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Today's ATMs are Occasionally referred to as the "throwback generation,"

Gen Z (people born from 1996 to 2015) stumps experts
becoming more at every turn. They are obsessed with new networks
and technology, such as virtual reality and TikTok. But
this same group is fascinated by vinyl records, Polaroid
relevant for FIs cameras, and other things they consider "vintage"—
including cash (see, https://bit.ly/3Rh3FXN).

While a sudden inclination for cash may seem surprising,
recent San Francisco Federal Reserve Bank studies show
that Gen Z is more likely to pay with cash than older
generations. According to Bloomberg (https://bloom.
bg/3UHvkUF) 45 percent of Gen Z report preferring to
use cash for everyday payments. But the fascination with
physical payments goes beyond its "vintage" appeal.

When discussing their growing preference for cash, Gen
Zers talk about how it gives them a way to feel more in
control of their finances and avoid the credit card debt
they have seen plague prior generations. This strategy is
reflected on one of their favorite platforms, TikTok, where
many videos show how to save and segment cash to
budget for bills, daily expenses and even long-term goals.

By Wayne Malone So, how can banks and credit unions bridge the gap between
FCTI mobile banking platforms and the cash withdrawals and
deposits Gen Z craves? The answer can be found in yet one
obile is the latest buzzword for banks and more "vintage" piece of technology, the ATM.
credit unions. As a result, branches are clos- ATMs are an essential part of the
ing, downsizing or being reinvented, and the self-service ecosystem
M entire banking industry has its sights set on
the digital realm. This, of course, means ATMs are finally Millennials and Gen Z use mobile banking applications
on their way out. as their primary way to bank, according to CUInsight. But
they realize there are certain things mobile apps cannot
Except, despite ongoing calls for the death of cash and all do, like provide access to cash.
things cash-related, ATMs aren't even close to becoming
relics. ATMs, however, link into the same systems as their
trusted mobile banking applications to offer fast access to
In an incredibly odd turn of events, consumers' rapid physical currency—in locations that are convenient and
transition to mobile banking over the past two years easy to find. So, it should be no surprise that young adults
has people viewing self-service systems as the standard between 18 and 34 visit ATMs to get cash over seven times
for basic financial transactions. And this new banking per month (see https://bit.ly/3rajt41).
environment includes ATMs.

Mobile banking can't do everything It's not just Gen Z that sees ATMs as a vital part of
their banking experience. Consumers under 40 who are
The basics of banking are generally agreed to be account actively seeking a new primary bank list an accessible
inquiries, money transfers, bill payments, deposits ATM network as a top consideration (see https://bit.
and withdrawals. These are the standard transactions ly/3CbPkrh). While older account holders might use the
performed in branches by bank tellers. And the introduction machines less often (around five times per month), they
of mobile banking applications has successfully moved recognize the need for convenient access to cash for things
these financial necessities to a (usually) easy-to-use self- such as budgeting, travel, person-to-person payments,
service platform. emergencies and community events.

Well, almost all of them. Mobile apps can't deposit or deliver But implementing on-site and off-site ATMs as part of the
cash, which is a big problem for financial institutions (FIs) self-service platform can do far more for FIs than cater to
looking to appeal to Gen Z. consumer demands. It can also save them money.

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