Utility distribution and payment systems and methods are described in which a financial institution individually bills and collects from individual utility users and provides batch payment to the utility company. The financial institution facilitates the aggregate utility billing by agreeing with a utility company to serve as a billing service for a subset of utility and banking customers. The utility company provides the utility to the customers via smart meters located at the properties receiving the utility (e.g., the customer's home, business, or other property). The smart meters provides individualized usage information to both the utility company and the financial institution. At the end of a billing cycle, the financial institution sends one aggregate payment for all users of the subset to the utility company. The financial institution then collects funds from the utility customers associated with the batch payment by performing internal transfers within the financial institution.