Are ATMs going the way of Redbox?
Considered the "tween" stage between Blockbuster and Netflix, Redbox is continually losing relevance while technologies such as ATMs stay popular. As technology has developed over time, entertainment items such as DVDs have fallen by the wayside. As such, the monolithic red box outside of grocery stores and convenience centers is steadily losing relevance with its audience. According to Yahoo, Redbox is soon to meet the same fate as Blockbuster with steadily declining sales over the past five years. Redbox's revenue dropped 17 percent in 2015 alone compared to sales in 2014. As such, it is expected to phase out or go bankrupt within the next five years.
If Redbox is now considered an old technology, are ATMs doomed to the same fate? Are ATMs losing relevance as well? The answer is simply no for a multitude of reasons.
Unlike movies, ATMs are forever
Technology for movies has changed throughout the ages. First, the projection screen turned into a digital canvas. TVs went from large to flat. Computers shrank, and movies could exist on technologies the size of your hand. However, unlike technology, cash is forever. According to CUES, ATMs are growing more prevalent than ever thanks to the self-service age of technology. As millennials and Generation X individuals become more comfortable using self-service technologies, such as checkout lanes and self-service price checkers, technologies such as ATMs stay relevant. They provide users with one of the only materials guaranteed to never go out of style: cash.
What else makes ATMs a continuing force? It's simple: their ability to adapt to current trends. According to Findabetterbank.com, 17 percent of all checking account shoppers state than an ATM was a "must-have" for banks in 2015. If consumers are still clamoring for ATMs, there is no reason that this technology will not persist into the future.
Why have an ATM?
ATMs are useful for banks and credit unions for multiple reasons. They provide a place for users to deposit or withdraw cash at any time of day and are great ways for banks to brand their messages with creative branding and marketing efforts.