Could banks that decommission ATMs be closing the door on Gen Z customers? (2024)

FAQs

What will replace ATMs? ›

The pandemic sped that process up, and in its place brought remote banking options in the form of video teller machines (VTMs) or interactive teller machines (ITMs). These have all the features of a regular ATM, but they provide a video link to a human teller who can walk the user through any complex transactions.

Gen Z wants this easy and seamless access to banking and payments services because they are active consumers of banking and payments products — five on average, according to the research. And they'd use twice as many, if offered and available. So, therein lies the rub.

With the increase in digital forms of payment, you might be concerned that cash will soon become obsolete and therefore ATM machines. Although Americans are using cash less, we are still very far from getting rid of it altogether. So yes. An ATM business is still a profitable business in 2024.

The huge adoption of digital payments - such as contactless cards or using smartphones on EFTPOS terminals - has seen a dramatic reduction in the number of customers accessing ATMs to withdraw cash.

Increasingly ATM manufacturers are developing multi-functional ATMs that can help patrons pay bills, fund transfers, exchange currencies – even charge a mobile phone – and video conference with a live teller as needed. Such ATMs are future driven and transformational for both banks and customers.

Gen Z attitudes toward money and finances are sometimes aligned with and sometimes starkly different from those of older generations. Research suggests that Gen Z trusts traditional banks more to secure their data and needs digital services to be exceptional to retain their customers.

Gen Zers face greater obstacles to financial success

Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.

Gen Z will make up 27% of the workforce by 2025. Banks need to attract this vital demographic — but that could require some radical change. From modernizing banking jobs to transforming the learning experience, there are six key ways banks can increase their appeal to potential employees.

This author says that's a false narrative. If it's been a long time since you pulled out actual dollars and coins to pay for something — here's a conversation for you. It might seem like cash is slowly becoming obsolete. But, Brett Scott says it's a false narrative that we're all pining for a cashless society.

Although paper-based currencies are becoming less popular, they will likely stick around for the foreseeable future. Dollars and cents may become harder to use, but as with many obsolete technologies, there are enough users to ensure demand doesn't disappear completely.

Are ATMs worth owning? ›

Potential Income from Owning an ATM Machine

On average, ATM surcharge fees range from $2.50 to $3.00 per transaction. Assuming an average of 6 daily transactions, you could earn $15 to $18 daily, or $450 to $540 monthly, from a single ATM machine.

The rise of online-only accounts also takes tellers out of the picture, as does the creation of enhanced ATMs that can perform many of the tasks tellers traditionally have done. The Bureau of Labor Statistics projects that the number of teller jobs in the United States will fall by 52,900, or 15%, from 2022 to 2032.

Bank teller employment was expected to decline by 12% from 2021 to 2031, but financial occupations on the whole are expected to grow 7% during that time period. Being a teller creates a foundation for a career in banking, Zimmerman said, and it can open up opportunities elsewhere in the company.

The trend is expected to continue. "Banks are investing in branch transformation initiatives aimed at cutting costs and enhancing the role of branch staff, by further automating routine everyday transactions and reorienting the traditional teller role toward more sales and advisory tasks," Berridge said.

The bank refills it. Banks have a periodic refilling schedule to ensure ATMs are loaded with sufficient cash. They stop accepting cards in the slot.

In that case, the ATM will let you know that it has insufficient funds and will deny the transaction. You may get the chance to withdraw whatever cash remains. New York Department of State. "ATM Skimmer Scam."

If you aren't near one of your bank's ATMs, look for a grocery store, gas station or big retailer. Many of these offer no-fee cash back as a part of your purchase when you use a debit card or prepaid debit card at checkout. When you're asked "debit or credit," select "debit" to get cash back.

Roles slated to disappear include branch managers, call center employees and tellers. Artificial intelligence, cloud computing and robots will play a larger role in daily banking functions like taking payments, approving loans and detecting fraud.