This proves that the possibilities of redefining ATMs are not yet all exhausted.
Is the ATM business dying
In many European countries, ATM usage statistics are falling as non-cash payments increase and cash payments decline. In 2017, the total number of automated teller machines (ATMs) in the EU decreased by 1.0% to 0.43 million, while the number of point of sale (POS) terminals increased by 9.9% to 13.5 million.
By 2018, the number of ATMs in Europe had decreased to approximately 406.5 thousand.
This, however, does not spell certain doom as many have immediately started predicting. ATM service providers have stepped up to the challenges of the digital revolution that is sweeping the financial sector and this ongoing transformation has, fittingly, been dubbed
In Sweden, however, one of the first cashless countries, ATM cash withdrawals value went down greatly by 63.05% from 2016 to 2017.
This doesn't mean people aren't still withdrawing cash or using ATMs. With the progress in teller automation, it is predicted that bank branches will eventually decrease which will put the spotlight on the new and evolved 2.0 or some higher versions of the ATM.
Self-service kiosks seem something like a hybrid phase of this and are proving very useful and practical.
In fact, by 2022, the self-service kiosk market is expected to reach 19.64 billion dollars. (Business Wire).
Pros and cons of ATMs
Until cash becomes obsolete, there will still be one remaining prevalent advantage of ATM technology - immediate cash as required without the users standing in long queue in banks. It also works round the clock meaning that ATM provides banking services to its customers 24 hours a day, 7 days a week and 365 days a year. Enabling access to the bank from any part of the world is yet another advantage.
The disadvantages are:
- ATM machines are a continuous target for criminals to carry out fraudulent attacks.
- The cost of ATMs and having cash as compared to electronic alternatives is an argument often made to promote phasing out cash.
For younger generations, the main problem is in the user experience and even interface with the many apps and methods nowadays available for making payments.
Future of the ATM machines
First and foremost, the evolved ATMs will still be, at their core the same - they will dispense and receive cash, as well as dispense cash previously deposited by engaging the ATM recycling functionality. However, in some markets, their role has already evolved from being a primary banking customer touchpoint to
a channel complementary to branch, mobile and internet banking (Accenture).