The Rise of ITMs in 2026—Credit Unions Are Taking Action

By W.B. King

While ATMs were introduced to the banking industry in the 1960s, the functionality and member-facing reach of these machines exponentially grew in the decades that followed. When interactive teller machines (ITMs) hit the scene, the industry again experienced a sea change. Today, adoption rates of ITMs are increasing and reshaping the banking experience.

The $1.6 billion Plymouth. Mich.-based Community Financial Credit Union, for example, announced in December 2025 that its drive-through ATMs will be converted to ITMs, with the newest ITMs located in its Detroit and West Bloomfield locations. In total, the credit union supports 12 branches and has more than 80,000 members.

“ITMs allow for a type of flexibility in banking that people couldn’t have imagined even 20 years ago. It’s part of how we’re walking with you towards building a better financial future and igniting your wild dreams,” senior leadership stated. “All it takes is a couple of taps to chat with a real person—not a faceless machine, not AI (artificial intelligence)—a Michigan-based CFCU team member who knows our services in and out.”

Creating a Flexible Experience

More than 4,500 miles to the west, Hawaii State Federal Credit Union announced in January 2026 that it has become the first credit union in Hawaii to implement ITMs at every branch location.

“We are offering our members more options to manage their finances by providing a fast, secure self-service channel while continuing to offer traditional, full-service tellers,” said Andrew Rosen, president and CEO of Hawaii State FCU. The project, completed in late 2025, includes all 14 branch locations on Oahu and Maui.

While the credit union will still operate six standalone ATMs for “convenient public access,” Rosen noted that Hawaii FCU was the first credit union in Hawaii to introduce ITMs in 2019 and as such has always been forward-looking. “Unlike traditional ATMs that are limited to basic transactions, ITMs allow members to complete a wide range of everyday banking tasks, including depositing cash and checks, withdrawing cash in multiple denominations, transferring funds, and making loan payments,” he noted. “Members can use the machines independently or receive assistance from credit union staff, creating a flexible experience that blends digital convenience with in-person support.”

The $2.7 billion credit union, which supports more than 136,000 members, worked with the Portsmouth, N.H.-based The Element Group on the project. “This systemwide conversion underscores our commitment to modernizing our infrastructure and delivering a more flexible, reliable branch experience that meets members where they are,” Rosen added.

Marc Healy, Elements executive director of Sales and Business Development, outlined some key differences between ITMs and ATMs. The former has features such as real-time chat support, cash withdrawals in increments under twenty dollars (and in some cases can dispense coins), check cashing, cardless transactions, ability to open new accounts, order replacement cards, process savings bonds, and handle investment account transactions, among other critical tasks.  

“As with any aspect of updating your branch, only you, your staff, and your customers will be able to say whether ITM technology is the right fit for your institution. Size, brand identity, demographics, customer needs, and growth trajectory will all contribute to the decision,” said Healy. “For example, branches in rural communities or those with a high concentration of retirees may not benefit from implementing more self-service solutions, especially if face-to-face interactions are critical to their continued loyalty.”

Healy, who previously served as assistant vice president of Retail Sales and Branch Operations at Desert Financial Credit Union and director of Member Solutions at Boeing Employees Credit Union (BECU), added: “If you’re unsure whether ITM technology is right for your institution — or even if you’re confident in your need — start by deploying a customer/member and employee survey. Use the results to decide how many ITMs to install and where.” 

Courage of Conviction

During a recent podcast conversation with Element, Hawaii FCU’s Executive Vice President overseeing retail experience and operations Aaron Vallely shared related experiences.

“We weren’t sure if we were pushing technology too far in front of our members and we wanted to make sure we were in lock step with their expectations. One thing that was really eye opening for us is that we did extensive surveys on the ITM experience with our membership,” he noted. “Across all generational segments, we were surprised that every generation segment said that they would use that machine again—it was in the mid-90s [percentage].”

While he said a small percentage didn’t want to use ITMs again, the resounding positive results gave his team the motivation to move the model forward. This also led to the launching of micro branches, the smallest of which is 281 square feet.

“It’s a tellerless branch but we have employees there to walk our members through the transaction at the ITMs,” he said, adding that the member experience at an ITM, open 24-hours, is no different than a traditional teller and full branch service experience. “ [ITMs] gave us the courage to push the boundaries.”