The Second Life of ATMs (2024)

FAQs

Will ATMs become obsolete? ›

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 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.

The cash dispenser on an ATM has a specialized electronic eye that counts each bill as the machine dispenses the cash. The scanner eye is the most accurate method to ensure that the dollar amount subtracted from the account matches the amount released to the ATM user.

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.

This aversion helped speed up industrywide digitization and increased consumer demand for online and mobile banking offerings. Later, as banks tried to navigate “the Great Transition,” they sought to cut operational costs by reducing in-person services, including branches and ATMs.

Successful ATM businesses in high-traffic areas can generate significant profits, but it's essential to conduct thorough market research and consider expenses like machine costs, maintenance, and cash stocking. Overall, with strategic placement and efficient management, an ATM business can be a profitable venture.

The slow decline of bank branches over the years is also contributing to the rapid decline of ATMs. In 2022, the number of ATMs fell for the fourth year in a row – more than ever before. The decline of just under five per cent calculated by Barkow Consulting meant the end of a good 2,500 machines.

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 many cases, ATMs are owned by banks and credit unions that use the convenience and location of their ATMs to attract customers. Businesses and individuals can own or lease ATMs as well. These ATMs are found in restaurants and convenience stores.

It's one of life's major OMG moments: An ATM takes your cash or check and miscalculates or doesn't acknowledge your deposit. It's best to move quickly, document the details of the event, and contact your bank immediately.

Will ATM go away? ›

Although the world is going digital, ATMs don't seem to decline in popularity. They are convenient banking devices that allow customers to withdraw cash, make transactions, pay bills, and perform many other operations fast and without any help from bank representatives.

Debit cards typically expire every two to three years. When your debit card is close to expiring, your bank or credit union will typically automatically send you a new one. This is one of the reasons why it's important to have your current address on file with your financial institution.

While digital transformation has altered the landscape, it poses no existential threat to ATMs or eliminates the need for bank branches. Digital payments continue to grow rapidly, but cash usage is still widespread due to its liquidity and historical reasons.