The Customer Effect

What war on cash? ATMs are the distributed bank of the future

  • The number of ATMs continues to grow globally.
  • Locating ATMs away from bank branches gives banks a competitive edge.
close

Email a Friend

What war on cash? ATMs are the distributed bank of the future
As a technology, the automated teller machine has been around the block. In the U.S., Chemical Bank debuted the ATM in 1969 in Rockville Center, New York. That first machine, also known as a Docuteller, disbursed cash when customers inserted a specially coded card. Almost 50 years later, as financial institutions work to transition customers to bank outside of expensive branches, the ATM is beginning to look a lot sexier. In an effort to shift the service burden away from tellers, some of the largest U.S. banks like Chase and Bank America are undergoing significant upgrades to their ATM networks. New ATMs, some of which include cardless access and video chat, are able to provide around 90 percent of the services tellers can provide from within a bank. ATM activity continues to rise -- Chase now sees more transactions from ATMs than tellers. Banks are to growing their ATM networks outside their branches, too. According to a recent study conducted by RBR on the global ATM market, in 2015, there were more ATMs located away from bank branches than located within. 51 percent of automated teller machines in the global market are disconnected from the physical real estate of banks, giving banks a smaller but broader distributed presence within their target markets. "It's all about access and convenience in our click-and-mortar world," Cardtronics' CMO Tom Pierce told Kiosk Marketplace. "And that bodes well for retail ATM deployers, because we are the convenient access to cash that consumers demand as part of their omnichannel lifestyle." Replacing tellers and branches with ATMs can lower costs and if placed in high-traffic areas, see enough surcharge and interchange fees to be run at a profit. In rural areas that are hard for retail banks to service, ATMs serve an important role in financial inclusion for customers who would otherwise go unbanked. Distributed ATM networks give banks added visibility within their communities, even as some banks shutter local branches. It's possible that for more communities, in just a few years, the modern teller machine will be the only physical banking presence around. Instead of making customers come to branches, ATMs bring the branches to the customer. “As independent ATM deployers expand their fleets, more and more retail centers, transport hubs and other non-branch locations will host ATMs," said RBR's Rowan Berridge. "Coupled with increasing off-site deployment by banks, in the future it will be even easier for customers to find a convenient ATM away from branches."    

0 comments on “What war on cash? ATMs are the distributed bank of the future”

The Customer Effect

How are consumer habits and spending changing due to economic turbulence?

  • Economic turbulence is changing consumer spending.
  • 66% of people say that the current economic situation is making them reconsider how much they put aside for their emergency fund, while others are pushing away travel plans and dipping into their 401k.
Rabab Ahsan | April 27, 2023
The Customer Effect

22% of Americans think ‘net worth’ only applies to wealthy people

  • American consumers are more aware of celebrity net worth than their own.
  • Younger consumers, those heading towards retirement, and women are the most likely to not keep track of their net worth.
Rabab Ahsan | April 20, 2023
The Customer Effect

Trouble in paradise: How layoffs are affecting consumer relationships

  • The recent wave of layoffs is impacting consumers’ relationships.
  • 80% of those who were laid off themselves would consider leaving their spouse if they got laid off, too.
Rabab Ahsan | April 14, 2023
The Customer Effect

Quick Take: Scrutinizing the impact of inflation on consumers’ finances

  • Troubles in finance paradise continue. With passing months these anxieties have been growing and are reflected in other parts of customers’ financial habits as well.
  • With rising inflation, how are increasing rents, embedded finance, & layoffs affecting consumers' financial anxieties?
Rabab Ahsan | April 05, 2023
The Customer Effect

The White House is proposing an increase in the capital gains tax. What will non-white groups gain?

  • The White House is proposing a hike in capital gains tax as part of a deficit reduction plan.
  • The taxation system in America needs another look, so far the balance has been tipped in the favor of investors and white households. Will the capital gains tax rebalance the scales?
Rabab Ahsan | March 15, 2023
More Articles