I was twice in Ecuador and no problems with ATM's.
About safety: avoid Quito viejo, though it has improved now much since the first time I was there. Be careful also in touristic places like the market in Otovalo. And negotiate every single price, that's common there. Quito nuevo is ok, but it's ugly. Quito on the whole was disappointing, Guayaquil is neither my city, I preferred Cuenca.
I went to a little place called Muisne, on the coast, nearby San Rafael de los Colorados, with only bikes. An adventure to get and stay there. Lovely place.