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With $280 million in assets, 17 branches and less than 20 ATMs, Valley Bank in Greenwood, Miss., wasn't exactly a competitive threat to regional powers like Union Planters Bank and AmSouth Bank.

But Valley Bank leveled the playing field -- actually, the ATM network -- by making an innovative deal with Financial Technologies , a Jackson, Miss.-based ISO.

Under the agreement, Valley Bank customers gain surcharge-free access to all of the machines in FTI's network -- about 300 in Mississippi and another 2,000 or so elsewhere in the U.S. And Canada.

"Our customers now have free access to more ATMs than customers of any other bank operating in Mississippi," said Willis Brumfield, Valley Bank's vice president.

"For a very small per-customer cost, Valley Bank went overnight from having a very small network of ATMs to having as many ATMs as probably anyone, excluding the top 10 banks in the U.S., " said FTI President Tommy Glenn.

For Valley Bank, partnering with FTI was much simpler and more economical than building a network from the ground up.

"When you're talking about a large number of ATMs, you're looking at a tremendous capital investment. We were more interested in providing the service to our customers than in having a proprietary network," Brumfield said.

Noting that this agreement may be one of the first that combines the networks of an ISO and a financial institution, Brumfield added, "We're in the banking business. Financial Technologies is in the ATM business. I think maybe people should stick with the business they do best."

Three dozen or so customers have called the bank, and all seem amazed at their good fortune. "They think it's a gimmick," Brumfield said, "and I tell them 'No it's for real.' "

Valley Bank will publicize the service with statement stuffers and other direct mail pieces. A large ATM network will be a strong selling point to help attract new customers, Glenn believes.

"It gives people a reason to do business with them," he said. "When someone under 35 opens a bank account, one of the first questions they're going to ask is how many ATMs do you have and where are they."

A community bank is the best candidate for this type of partnership, Glenn said. "It won't be as attractive an offer to banks with a large card base -- it may end up being too expensive."

The FTI machines, marked with either the First South or First Nations brands, are located in a variety of retail locations, including grocery stores and convenience stores. "They're places our customers go past every day," Brumfield said.

Both First South and First Nations are brand names trademarked by FTI. First South was the original brand, when all of FTI's ATMs were located in the Southeast. First Nations became the name of choice as FTI expanded its network. The company is in the process of rebranding all of its terminals with the First Nations name.

FTI is adding interior and exterior signage with Valley Bank's logo. The exterior signs, in particular, will add value for the owners of retail stores where the ATMs are located. Glenn anticipates that the signs will attract Valley Bank customers, some of whom will make purchases after getting cash. Visiting certain stores may become a habit for those ATM users.

"People will be able to recognize it from the road and make a different purchasing decision," Glenn said. "The retailers who are our customers will benefit from a loyal customer base."

Glenn hopes that the Valley Bank deal marks the beginning of a trend for his company.

"We hope this will be not only the first step to integrating our network, but the first step to us working with other financial service providers -- whether they are banks, or brokerage firms, or others who have services they want to deliver or advertise using our network," he said.