The Future of ATMs

Could ATMs Be the Bank of the Future?

The History of ATMs

In 1967, the world saw the first Automated Teller Machine in the United Kingdom, to what we know as the ATM today. It was silver, with “BARCLAYCASH” in big, bolded letters above. It had two rows of numbers to put in your six-digit pin and a place to insert the paper check to request cash. We’ve come a long way since, with ATMs scattered through cities, both in banks and businesses, and it appears they won’t be leaving us anytime soon.

An early verson of an ATM in Germany


How often is physical cash being used? Critics have noted with mobile payment apps, along with debit and credit cards, could bring an end to cash payments. Looking at current research, however, this isn’t the case. According to a study done by the Cash Product Office of the Federal Reserve in 2014, here are some #CashFacts:

  • Cash is still the most used form of payment in retail, accounting for 40% of all transactions.
  • Cash is the most used payment for purchases under $50.
  • Low-income consumers are the biggest users of cash.
  • 40% of people 18-24 mainly use cash as their form of payment.
  • Households earning under $25,000/yr prefer to use cash to pay bills over any other form of payment.
  • Cash is the preferred back-up form of payment

Cash is still heavily relied upon in our everyday market purchases. Society still heavily relies on cash and our cash dispensers.This might mean the future of ATMs is a lot closer than it seems.

Chase’s “Branch of the Future,” featured in New York City. Tellers roam around the bank with iPads, and the new ATMs feature a touch screen and have the ability to give exact change. It is predicted that more banks will use a self-serve system, most likely built into ATMs, rather than physical tellers.

Smartphone Integration, NFC, and ATMs

You’ve misplaced your bank card and need cash quick – however, what once was a major inconvenience now has a simple solution. Some banks now have an easy solution for you: accessing their ATM with your phone. The new feature enables those missing a bank card to access their bank account using their smartphone. The bank app will give them an access code, available for 30 minutes, to be entered into the ATM. Once entered, they’ll be able to withdraw cash, as they normally would. This feature is only available on bank-owned ATMs, like Bank of America, Wells Fargo, and CitiBank.

In fact, a lot of new ATM features are tied to smartphones. Customers are able to withdraw cash using the Apple Pay and Android Pay apps. Citibank is taking it to a new level, experimenting with a new iris scanner in their ATMs, similar to FaceID on the new iPhone X.

With the pervasiveness of touch screens in everyday use and recent additions of NFC technology to ATMs, it won’t be surprising to see a combination of the two at an ATM near you soon.

Seeing eye-to-eye

If you’ve been to a Starbucks drive-thru recently, you may have noticed a friendly face staring right back at you, ready to take your order. Bank of America is releasing a similar feature for their ATMs. Teller Assist will allow video conferencing with an actual teller during extended business hours, allowing you to withdraw exact change, request a loan, or cash checks, right from the ATM.

More than ever, ATMs are making forging the way for the future of mobile banking. The technology is constantly improving and changing, adding smartphone-compatibility and cameras to add the human experience. Plus, EMV technology is making ATM withdrawals safer and will continue to with more compliant ATMs.

The future for ATMs might be coming very soon, be on the lookout! In the meantime, consider checking out our models of ATMs, where you can purchase, lease, and rent. Make sure you ask us about our Free ATM Placement Program!

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