There are approximately 6,300 banks today in Canada compared to approximately 19,000 ATMs. The way that people obtain cash has changed with financial institutions hustling to keep up with the demands of its consumers for more convenience.
Financial Institutions Closing Branches
Experts with Forbes suggest that the number of banks will shrink to less than 3,200 within the next decade. Even more banks are expected to close their smaller branches. Therefore, consumers are turning to ATMs to get cash. Globally, according to MasterCard, cash remains the most common method of payment.
Consumers Still Using Cash
In a 2016 survey, Mercator Advisory Group asked consumers to self-report rather they used cash more, less or about the same as they did one year ago. Over 64 percent of respondents said they had used cash about the same while 21 percent said their use of cash had increased. Only 15 percent reported that they used less cash in 2016 than in 2015.
Consumers Demand Convenient ATMs
According to Visa, the number one reason that consumers give in choosing their financial institution is convenient locations of ATMs where the customer already shops and lives. One of the challenges being faced by financial institutions is giving consumers the cash they demand. More institutions are joining large ATM networks like Allpoint allowing their consumers surcharge-free access to their money when using an ATM within the network.
Cash Use Highest Among Millennials
While many older people may still like the thought of going into a financial institution, according to a survey by Chase Bank, that is not the case with younger consumers. The survey found that over 80 percent of millennials preferred to use the ATM with most young adults use an ATM at least weekly to obtain the cash that they need.
Financial institutions will need to keep up with demand by consumers who love the self-sufficiency of running to the nearest ATM when they want money.
If you would like more information about renting an ATM machine in Edmonton or want to contact us to discuss ATM placement and merchant payment options, please contact us.