ATM usage is headed the way of the payphone

The availability of ATMs may have peaked at 470,000 units scattered across the U.S. in 2019, with a fall-off since then to 462,000 in 2020 and an estimated 456,000 last year, a spokesperson for research firm Euromonitor International said in updating its report on financial cards and payments in the U.S. 

Kendrick Sands, Euromonitor’s head of Consumer Finance Research, expects that downward trend to continue.

The automated tellers are disappearing in tandem with banks closing local branches. The banking strategy pivot comes as digital banking and payment alternatives become more widespread.

Get the full story HERE. 

American Branch Banking is dying - Why?

The 2008-09 financial crisis was triggered by reckless banking practices that morphed into the global economic system. Though the world has since recovered and moved on from the crash, the banking system that ignited such damage has in some ways never been the same.

In the last decade, 27,943 bank branches have closed in the U.S. The increasing prominence of mobile and digital banking is leading to lighter demand for in-person banking services 

Check out the infographic HERE.

What does the future hold for the bank branch?

The fate of bank branches has been hanging in the balance. Pre-COVID-19 statistics from the European Banking Federation show the number of branches had already fallen to about 163,000 by the end of 2019, down 6% from 2018. This reflects the increasing use of digital banking by bank customers. This has created problems for many communities who now find they no longer have access to banking services locally.

So what's the solution? One emerging concept is the lean bank branch. What is a lean bank branch? Find out more from this post in ATM Marketplace. Read it here - The lean bank branch of the future

What is Neobanking?

Simply put, a neobank is an online-only bank. In other words it is a bank that has not physical interface (read “branches”) with its clients.

Compared to traditional, brick-and-mortar financial institutions, online-only banks are a relatively new concept. While there are an estimated 60 million customers who currently bank with online-only financial institutions in North America and Europe, one report estimates that this will surpass 145 million customers by 2024. With such a sizable share of the market so close to their inception, neo-banks are attracting significant Venture Capital backing.
PaymentsJournal has posted a detailed article on the subject of neobanking. Read it now - An Introduction to Neo-Banking