Bank customers increasingly rely on digital tools for their banking needs, but 41% still use ATMs for some of their transactions. At the same time, the total number of ATMs deployed worldwide is decline, even as the features provided to ATMs are increasing. The increased viability and user-friendliness of ATMs, along with features such as cash recycling, allow ATMs to operate with fewer hours of human labor spent on their operation.
Money recycling ATMs can take deposited money and process it to distribute it for future withdrawals. In comparison, a traditional ATM has one cassette that holds cash for withdrawals and another that holds cash on deposit. This requires constant maintenance, with staff traveling to ATMs to redeem the tapes and staff having to process both deposit and withdrawal tapes at a central location. Although this process is not completely eliminated by cash recycling, the number of trips to ATMs and the amount of cash handling by human workers is significantly reduced, saving time and resources. while avoiding the introduction of human error into the process.
This month Digital-First Banking Tracker® will examine how more and more ATM network providers and financial institutions (FIs) are seizing the lure of cash recycling ATMs and what this means for the future of digital-first banking.
Around the world digital banking first
As FIs and ATM network operators continue to update their fleets and incorporate the latest digital banking tools, cash recycling ATMs have grown in popularity, in part because they are no longer seen as a significant increase in the cost of new ATMs. Of the automated deposit terminals (ADTs) deployed worldwide, 65% are cash recycling units. ADT’s total global deployment increased by 1% in 2021, even as the total number of ATMs decreased. As FIs and ATM network operators adapt to a world with fewer but more sophisticated ATMs, recycling cash promises several benefits for the maintenance and operation of their fleets.
As ATMs simplify the physical aspect of banking, FIs of all shapes and sizes continue to embrace digital transformation. Many community banks, in particular, are still discovery their position on digital banking tools. Pushed to compete with large FIs and FinTechs, community banks must determine which digital products and services are prioritized to attract existing and potential customers. What that looks like can vary widely between community banks, with 29% of community banks even planning to offer cryptocurrency solutions within the next year and a half. However, not all community banks are sure what they will do next when it comes to digital innovation, as only 48% said they have a clear plan on how to proceed.
Read more about these stories and other digital banking developments in Tracker’s News & Trends section.
Quontic Bank on the Role of ATMs in Digital First Banking
Traditional financial institutions increasingly rely on ATMs with enhanced digital capabilities to provide customers with a growing range of products and services, but FinTech and neobank customers also need access to cash deposits and withdrawals .
In this month’s report, Grace Pace, senior vice president of digital banking at Quantum Banktalks about the importance of ensuring digital banking customers have access to ATMs and the future of physical touchpoints in digital banking.
PYMNTS Intelligence: Cash Recycling in the Future of ATMs
As FIs and ATM network providers move to increasingly technologically advanced ATMs, single-function ATMs that do nothing but dispense cash are becoming less common. The overall cost of these more advanced machines is not significantly increased by the addition of cash recycling capabilities, and the added benefits of cash recycling are beginning to draw attention as the cost gap narrows. reduced. Cash isn’t going away yet, but cash recycling ATMs can reduce the cost of maintaining fleets while ensuring availability and even a greater variety of denomination options for customers making withdrawals.
This month’s PYMNTS Intelligence examines the growing popularity of ATMs and the benefits they offer operators and customers.
the Digital-First Banking Tracker®a PYMNTS and NCR collaboration, examines the latest trends and developments shaping the digital banking space and the role cash recycling will have in the continued importance of ATMs for all types of FIs.