As digital banking takes financial services by storm , are ATMs at risk of obsoletion – or is there a place for them in the digital age ?
FUTURE OF ATMS
THE FUTURE OF ATMS :
ADAPTING TO THE DIGITAL AGE
As digital banking takes financial services by storm , are ATMs at risk of obsoletion – or is there a place for them in the digital age ?
WRITTEN BY : LOUIS THOMPSETT
Inspired by chocolate vending machines , John Sheppard-Baron invented the first automated teller machine ( ATM ) for use at a North London Barclays bank branch in 1967 , revolutionising financial services by granting account holders 24 / 7 access to cash . Success in Europe swiftly piqued the interest of a booming US financial market , and the ATM was brought to New York in 1969 by Donald Wetzel .
Now an infrastructural symbol of legacy banking , ATMs are a common sight on high streets and main streets , at petrol stations and in shopping centres worldwide . But , enter the 2020s , and you ’ ll find that digital banking and contactless payments are shifting the ancient , perennial means of paying for goods and services ( cash ) into obsoletion .
Indeed , the ATMs of today offer more than just cash dispensing , be it balance inquiries , mini statements or cash deposits . However , digital banking can do the same and then some ( aside from dispensing cash ), leaving brick-and-mortar bank branches and their ATMs in the dust when it comes to offering a quick and seamless customer experience . So , what does the future of ATMs look like , and can they still serve a purpose in today ’ s digital age ?
The fall of the bank branch For Martin Heraghty , Paymentology ’ s Regional Director for Europe , the survival of ATMs alongside their associate branches is dependent on customer preference , stating : “ As more people adopt digital banking , the demand for brick-and-mortar bank branches and ATMs is decreasing .”
Paymentology ’ s data backs this claim , with the number of ATMs in Europe falling by over 10 % since 2016 . Meanwhile , analysis from global consultancy partnership Kearney predicted that 25 % of European bank branches would close across Europe from 2020 to 2023 , as consumers ’ digital banking habits became more permanent .
76 July 2023