Credit unions, small banks embrace ITMs

Branch Transformation

ITMs aren’t just for big banks. Credit unions and community banks are increasingly utilizing them to expand their footprint and deliver a better banking experience.

July 22, 2025 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

ITMs aren’t just for big banks. Credit unions and small community banks are increasingly utilizing them to expand their footprint and deliver a better banking experience.

Use cases

One example is Cardinal Credit Union, which operates seven branches in northeastern Ohio and is increasingly utilizing ITMs as a way to extend its services outside of normal operating hours.

“Interactive Teller Machines (ITMs) enhance the banking experience for Cardinal members by offering extended service hours, quicker transactions, and personalized, face-to-face service through live video assistance, upon member request. Cardinal offers active teller sessions during regular business hours for any of our members interested in speaking to a teller regarding their transaction details,” Christine Blake, CEO of Cardinal Credit Union, said in an email interview.

Community banks are also embracing ITMs, such as Oxford Bank. David Lamb, president and CEO of Oxford Bank said his banks began embracing ITMs a few years back as a way to meet customer needs after hours.

“Our rationale was enabling customers, who like talking to a ‘live’ person, to not have to worry about if the branch was open because the ITMs are available 7 a.m. to 8 p.m. weekdays and 7 a.m. on Saturdays,” Lamb said in an email interview.

What’s new with ITMs?

Modern ITMs aren’t just about video banking. Instead, they act as full self-service banking solutions. These include basic ATM transactions such as cash withdrawals and deposits, and far more.

Brian Seemann, head of ATM/cash and logistics at Fiserv said that ITMs are like a “super-ATM.”

“They can handle more complex tasks like the processing of credit card applications, issuing loan advances, and even opening new bank accounts,” Seeman said. “Additionally, ITMs allow users to manage both personal and business bank accounts, enabling them to pay loans and bills. The key distinction of modern ITMs is versatility and seamless integration across several accounts, offering customers a more comprehensive self-service banking experience.”

These ITMs also save time for staff and can be better for the environment, as Cardinal Credit Union found.

Blake said that “ITMs reduce lobby wait times, improve staff efficiency, and provide secure, private environments for nearly all teller transactions: including deposits, withdrawals, loan payments, statements, transfers and more, all while promoting a greener, more efficient banking model with reduced paper usage.”

By utilizing an ITM, credit unions can move a significant amount of regular transactions to the drive thru. A blog post by Tidal Commerce mentioned that Five Star Credit Union transferred, “about 75% of branch transactions to a drive-thru using the ITM and after opening three new ITM branches in early 2019, at least two of those branches are among the top five branches in the entire company. The credit union was able to save $240,000 per year in labor cost savings.”

Why credit unions?

Credit unions often the lack the resources of big banks to do wide scale branch renovations or expand their space. ITMs can serve a critical role in helping credit unions keep up with customer needs.

“ITMs offer multiple potential efficiency gains for credit unions space by delivering convenient services without the high costs associated with expanding physical branches or increasing staffing levels,” Seemann said. “By enabling customers to self-serve for routine transactions, ITMs support an autonomous service model, helping credit unions reduce their physical footprint (or at least enhancing in-branch technology), lower operating costs, extend hours of operation with multilingual support, and streamline staffing.”

ITMs also help credit unions maintain their friendly brand image by providing access to members to live bankers, even during off hours.

Are ITMs the right fit?

It’s not enough to simply deploy an ITM. Credit unions and community banks alike need to consider if the ITM meets their goals and overall branch strategies.

“Decisions about which branches to modernize, consolidate, or close and how to balance digital services with in-person customer experiences need to be fully understood to maximize the benefits of an ITM program,” Seemann said.

He also recommends that financial institutions use, ” a combination of strategic planning, targeted investment, a well-defined technology roadmap, and deep customer insight,” to determine if an ITM is the right fit.

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