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Committee hears bill to formally recognize interactive teller machines in banking code
Summary
House Bill 434 would add interactive teller machines (ITMs) to Montana’s banking statutes so they are not treated as full branches; proponents said the technology extends customer services to rural communities and mirrors FDIC guidance that ITMs need not be classified as branches.
Representative Ken Walsh opened House Bill 434 as a modernization measure to add a statutory definition for interactive teller machines, or ITMs. Walsh described an ITM as “an ATM on steroids” — an ATM-like machine with video and two‑way interaction with bank staff — and said the bill removes branch classification that triggers more onerous regulatory requirements.
Shane Scanlon of the Montana Independent Bankers Association and Maddie Tyson of the Montana Bankers Association testified in support. Scanlon noted FDIC guidance from late 2024 that ITMs need not be treated as branches, and said the bill updates Montana statute to reflect that practice and preserve access in rural communities where full branches are not feasible. Committee members asked about security, fees and whether remote staff would be bank employees; proponents said ITMs typically operate from secure locations, use encrypted communications and generally connect customers to the bank that operates the machine.
Questions from senators covered staffing (hours and weekend availability), fees for out‑of‑network users and whether ITMs would be sited inside branches or in stand‑alone locations. Walsh and proponents emphasized the bill is intended to increase access, particularly for rural customers, while preserving teller relationships where banks prefer them.
The hearing concluded with no opponents and the sponsor urging a positive vote.
