NORTH HAVEN, Conn.-Two local credit unions are coming together to offer their members shared ATM access across the region.
Connex Credit Union and Seasons Federal Credit Union members can now use one another's ATMs with no fear of a surcharge. The move bolsters the total number of ATMs that members of the two credit unions to 13 across central Connecticut and came weeks before the two institutions start sharing branches.
"Our two CEO's were having some conversations about shared branching so that's how this started," said Tansley Stearns, Connex VP of sales and services, who called the plan an opportunity to expand conveniences to members of both credit unions and improve the institutions. "The more people that participate the more value there is for the credit unions."
Connex CEO John Edwards and Seasons chief Keith Wiemart spoke at a state league event and discussed where they would be building new branches. In the course of that conversation, Wiemart said, each man commented that the other's facility would be great for his own members. Soon after, the collaborative effort was agreed upon.
"The conversation wasn't about merger, it was about collaboration," Wiemart stressed. "Credit unions need to collaborate in a very competitive environment and I think our state has a very competitive environment."
Both Seasons and Connex already belong to surcharge-free networks, the former is signed on with SUM while the latter has a contract with Allpoint; the move to share ATMs goes far beyond simply offering members another machine where they don't have to worry about fees. Each institution should benefit from the plan, as there is little footprint overlap between the credit unions' physical branch locations.
"Clearly convenience is a major issue for credit unions, so any way we can communicate 'here is how to use us' is clearly a win for Connex and our members," Stearns said.
Wiemart said that Seasons will soon be moving to CO-OP for its ATMs, but since Connex is not following suit, the two sides had to come to this unique arrangement to allow members of each credit union to use the other's facility without a fee. Aside from saving members from fees or driving longer distances than necessary, the arrangement will help the bottom line for both credit unions as well.
In this "grow or die" industry, the shared branching allows both credit unions to put capital to other use that may have been spent on branch expansion.
"It just makes sense. I think John is very visionary and open-minded," said Wiemart. It was really great to sit down with him and explore the possibilities. I wish more CUs were open to doing that, I think we would have fewer mergers. Merger shouldn't always be the only answer."
