Super ATMs: A Game-Changer Amid Branch Closures

As access to traditional bank branches declines, innovations like super ATMs are emerging to help meet the need for accessible financial services. Some banks in the UK are testing super ATMs that provide capabilities beyond what we typically think of as those available at the ATM. The super ATMs provide advanced functionality that's useful for not only consumers but also for small businesses.

Super ATMs could also be useful in the US. In the US, the number of commercial bank branches peaked at 82,965 in 2012, and by 2023 had dropped to 69,996, according to Statista Research. This decline, driven by the rise of online and mobile banking, led to the spread of "banking deserts"-regions where access to physical banking services is scarce. Rural and low-income urban areas are disproportionately affected. The closures have created barriers to accessing basic financial services, such as deposits, withdrawals, and loans, leaving millions of people underserved. In 2019, an estimated 11.5 million Americans were living in banking deserts. By 2023, that number had risen to 12.3 million.

Source: statista.com/statistics/193041/number-of-fdic-insured-us-commercial-bank-branches

Super ATMs offer advanced functionality that includes the ability to pay bills, manage PINs, and top-up mobile phones. For small businesses in the UK, super ATMs could be a game-changer. Many rely on cash transactions and need convenient deposit options. Super ATMs provide the ability to make paper deposits without having to travel long distances or adhere to a branch's operating hours.

ATMs have long been a crucial way to provide access to essential banking services in underserved areas, especially for the unbanked and underbanked. As physical branches close, the need for multifunctional ATMs will grow. The decline of branches has created an urgent need for alternative banking solutions, and super ATMs are potentially a viable way to promote financial inclusion and ensure access to essential banking services.