Personalized experiences drive need for high-tech ATMs
As millennials grow in purchase power, their desire for personalized and thoughtful experiences drives a need for high-tech ATMs. According to the Cassandra Report, a research publication that aggregates existing report data and conducts new surveys, millennials are growing disenfranchised with banks and would rather borrow money from a family member or friend than a financial institution. As of 2015, nearly 5 million millennials do not have a bank account due to distrust inspired by the Great Recession. As such, banks and credit unions must ensure their ATMs provide the high-quality and trustworthy experiences millennials desire to increase profits, maintain brand image and encourage long-standing customer relationships.
Millennials and ATMs
Banks and credit unions are always looking for ways to appeal to millennials so they will open new accounts. Of this generation, close to 90 percent have a relationship with a traditional bank or credit union, according to CCG Catalyst.
Millennials aren't just glued to their computers for banking services either. These youths have a conscious relationship with credit unions and banks through mobile apps and in-person interactions. According to CCG Analyst, only 39 percent of millennials make mobile deposits. This means up to 61 percent of all millennials prefer to deposit their checks directly at the bank or through an ATM. As such, all banks and credit unions should invest in ATMs that accept deposits. This functionality provides customers with services they desire and help banks and credit unions establish strong brand loyalty.
With the advent of new payment technologies, some banks fear there will no longer be a need for ATMs. However, smart wallet technology has been slow to catch on, with only 1 in 6 consumers adopting mobile wallet technology in 2015, according to NFC World. This means more millennials are bound to traditional banking accounts than previously considered. However, the way they make payments is changing towards digital mediums. This is why ATMs will stay relevant as they adapt to newer technologies, such as EMV-chip card compliance.
The future of ATMs
ATMs are expected to stay as long as they can change with the times. With growing needs from millennials and a desire for personalized experiences, financial institutions must adapt their processes to align with what millennials need in the future including technology-compliant machines and devices.
June 3, 2016