STRATEGIC PARTNERS
November 22, 1999
BOSTON -- Citizens Bank plans to join SUM, a network of ATMs owned by banks that don't surcharge one another's customers, according to the Associated Press. The move comes as state regulators consider whether to allow a merger of Citizens, which has branches in Connecticut, Massachusetts, New Hampshire and Rhode Island, and USTrust, a Boston-based holding company with 87 banking offices in eastern Massachusetts. Citizens imposes a surcharge on non-customers, while USTrust does not. USTrust has been the major player in the SUM network since it began in late 1998, shortly after Massachusetts' largest banks began surcharging noncustomers at their ATMs. While Citizens had indicated it would allow USTrust to continue to participate in SUM, it hadn't committed to joining the network itself. Calling the SUM network a "terrific feature," Citizens President and CEO Thomas J. Hollister cited market research that shows many bank customers hate paying ATM surcharges. He thinks the bank may attract new customers by eliminating the fees. Massachusetts Treasurer Shannon O'Brien, one of three members of the Board of Bank Incorporation, had urged Citizens to consider joining SUM. Before the Board approved Fleet Financial Group's acquisition of BankBoston in September, O'Brien got Fleet's chairman, Terrence Murray, to cap surcharges at Fleet ATMs at 75 cents through the end of 2000. He also agreed to reduce BankBoston's usual $1 surcharge to 75 cents for the same period. The Board has final approval over Citizens' $1.4 billion acquisition of UST Corp., the parent of USTrust. A decision is expected by the first quarter of 2000.
