Why banks need to include ATMs in the 2023 budget ATM Market | Techy Kings

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Some banks are moving exclusively towards mobile banking for 2023, but research reveals customers, including Gen Z still want ATMs.

It’s that time of year again. The time when companies across the board begin their annual planning and carve out their budgets for the coming months. And, just like every other business, bank and credit union leaders usually have a specific picture of how the next few years should play out. It may have a big focus on mobile banking.

But before your institution gets too excited about putting all its eggs in the mobile banking basket, there are a few things you might want to consider.

Mobile banking has little gravitational pull

Post-COVID mobile and digital are the new buzz words in banking. It’s no secret that nationwide shutdowns in 2020 have significantly increased mobile usage. Today more than 75% of account holders use their institution’s mobile app as their primary place to access accounts. Even older generations, who have historically been slow to adopt new technologies, are forced to use online and remote banking options to maintain constant control over their accounts.

As consumers continue to rely on their phones and keyboards for communication, interaction and banking, the tasks they demand become just as complex. Gen Z has growing expectations for more complex functions such as loan applications, financial tracking, budgeting and finding an ATM.

Wait a minute… ‘Looking for an ATM’?

Oh, you read that right. Generation Z thinks that finding a surcharge-free ATM should be part of their mobile banking app. But why?’ you might ask. Let’s look at the numbers.

The majority of consumers under the age of 40 consider ATM network access a key consideration when looking for a major financial institution.

  • More than half (62%) of consumers say they prefer banks with institutions with a physical presence.
  • 45% of Generation Z prefer to use cash.
  • 33% of Gen Z see cash as a way to control their finances.
  • Consumers 18-34 visit ATMs to get cash more than 7 times a month.

This reliance on ATMs and self-service is not a failure of digital or mobile banking. Rather, it is a product of this new infrastructure. After the pandemic, large numbers of Millennials and Gen Zers reported turning to bank machines like ATMs and ITMs (interactive teller machines) as a way to perform more in-depth financial services — as well as withdraw and deposit cash.

The pandemic took away banking in person. But branches equipped with drives, ATMs at “essential” businesses, and stand-alone kiosks are fair game. Account holders have learned to use and rely on these self-service options as they turn to mobile banking applications.

So what now?

Banks and credit unions cutting back on “traditional” banking channels to plug their budgets into mobile apps may want to rethink their strategy. There’s more to remote banking than a digital presence, and account holders expect to see their financial institution’s brand in more places than just their phone.

Fortunately, there are ways to meet account holders’ self-service demands without destroying the path to mobile innovation. A reliable ATM outsourcing partner has options and opportunities for banks and credit unions to provide exactly what their account holders want and even help grow the brand.

Here’s the bottom line: while mobile banking is growing and money should be allocated to improving the channel, institutions should carefully consider the younger generation’s demand for physical brand presence, ATMs and cash when making their budgets for 2023 and beyond.

In 2007 he founded Star and has grown it into a nationwide financial payment services provider offering electronic and mobile payments, ATM equipment and processing, ATM branding, ATM outsourcing for financial institutions, mobile event payments and merchant service programs designed specifically for ATM deployment. .

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