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ATMs can be a drawing card for millennials

Now is the time to use the digital capabilities and accessibility of the ATM to win over millennials disenchanted with the branch experience.

August 26, 2014 by Terry Dooley — SVP & CIO, ITS, Inc

By 2020, millennials will make up more than 30 percent of the American population. By 2025, this generation will represent as much as 75 percent of the workforce.

What does this mean for financial institutions? Quite a lot, but in particular, it could mean the retooling of traditional delivery channels. That’s because the majority of millennials (88 percent) do their banking online, and half use their smartphone to bank.

A recent Accenture study provides further evidence that the traditional banking model must transition to the digital world soon to satisfy a changing consumer expectation. The report revealed that nearly 40 percent of North American consumers age 18 to 34 will consider banking at a branchless online bank.

With an increased demand for and acceptance of non-traditional banking options on the rise, some data indicates that millennials are becoming less enchanted with using the branch.

Community FIs should consider using technology they already have in place to attract younger generations. The ATM can provide just such an opportunity.

After all, one of the main draws of online and digital banking options is convenience. ATMs are one of the earliest technological banking advances designed with convenience in mind, giving consumers cash and account access beyond branch hours.

As the ATM industry continues to innovate for the sake of further convenience, security, and to meet evolving consumer expectations and demand, now’s the time for FIs to use their ATMs to offer further digital options and accessibility.

Check cashing and deposit automation are just two of the value-added options FIs can employ at the ATM.

With an estimated 2.4 million ATMs around the world, there’s more than ample opportunity for ATMs to emerge as a strong digital, branchless convenience of the future.

photo courtesy of steven depolo | flickr

About Terry Dooley

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