The trend: Although the demand for cash remains steady, the number of ATMs has continued to decline worldwide, and this trend is predicted to continue through 2028.

How we got here: The pandemic marked a turning point for in-person banking services, which haven’t bounced back.

• Consumers were originally wary of COVID-19 transmission at local branches and through the surfaces of ATMs and money. 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.

But not everyone is happy about the reduction in in-person banking services: Multiple national governments are trying to turn this trend around to ensure their most vulnerable constituents still have access to cash.

• In the UK, which has lost over 28% of its ATMs since 2016, legislators have proposed new regulations that aim to guarantee that no person or business will be more than three miles from withdrawal/deposit facilities.
• Ireland also proposed a new bill that aims to ensure everyone around the country has access to cash. 
• In the meantime, rural communities in the UK increasingly depend on alternative banking services, utilizing local post offices or community bankers which operate at scheduled times within rented spaces in community buildings.

ATMs could offer a competitive advantage: Since Gen Z uses cash as a budgeting tool, these young consumers could help maintain a steady demand for ATMs. In fact, 42.4% of Gen Zers prioritize ATM proximity when choosing where to bank—the generation’s top concern.

• That means banks that go against the grain could strengthen their relationships with Gen Z by expanding their ATM presence, allowing users to easily find the nearest in-network ATM location through mobile apps, and marketing their dedication to ATMs.