ATMs & THEIR PLACE IN THE DIGITAL PAYMENT ERA

Initially designed just to dispense cash, ATMs have now become sophisticated hubs offering a range of services that cater to the diverse needs of consumers. This shift is not only enhancing convenience but also driving the banking sector towards a more technologically advanced future.

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Are automated teller machines still serving customers?

With digital payment apps & digital currency becoming the top of the transaction food chain, cash is slowly going away. Almost half of Americans have said that they don't carry or pay for goods with cash. So, where does this leave ATMs (automated teller machines) that are mainly built for dispensing cash? Here are some truths about ATMs:

  • ATM's are decreasing year over year 
  • Still limited to cash transactions 
  • Banks are shedding their investment in ATM fleets
Old ATM

ATMs, ITMs, and beyond 

While ATMs are still cash focused, they still serve nearly 10 billion transactions annually in the U.S. alone. Because of this convenience, banks have invested more into self-service machines with new functions. ITMs, or Interactive Teller Machines, focus more on giving customers an in-branch experience with tellers assisting with transactions remotely. 

Equipped with advanced technology, ITMs offer services such as bill payments, account transfers, and even financial advice - redefining banking convenience for consumers. 

However, as teller roles fall, banks try to ITMs are already on their way out. 

See differences between ATMs vs ITMs
Woman on phone using a self-service machine copy
Woman using a next generation self service machine in a bank copy

 

Banks are investing more in next gen ATMs

The ATM industry is experiencing a notable expansion with an impressive 7% compound annual growth rate, and currently stands at an impressive $28 billion market. 

The next-generation ATM market is projected to surge even further, with an anticipated 8% CAGR, reaching $4.5 billion by 2028. This accelerated growth underscores the strategic importance of ATMs in the evolving digital landscape of banking.

What's the next step for self-service machines?

With ATMs and ITMs both being limited in capabilities necessary to grow, banks need to not just rethink their self-service machine offerings, but rethink the bank branch as a whole. 

Instead of bank branches with traditional teller windows & ATMs, they will soon move toward becoming becoming self-service banking hubs, filled with machines that can offer secure customers what can't get online, like account openings, card printing, cashier's check printing, and more - without needing a teller. 

The first step to this transformation? TellerCentral. 

Learn more about TellerCentral
Bank customers helping themselves with automated banking machines copy

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