Branch Transformation

Using transaction data to rethink cash, ATM networks

ATMs still anchor customer experience, even as the branch evolves. Insights drawn from transaction data is also increasingly empowering branches to make the most out of their ATMs and cash strategy.

Photo: Adobe Stock

August 17, 2026 by Peter Pizzutelli — Senior Manager, Advisory Services, Diebold Nixdorf

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For more than a decade, the narrative around banking has centered on digital transformation and the supposed decline of physical channels. Mobile apps, real-time payments and AI-driven experiences have dominated industry conversations, often accompanied by predictions that branches and cash would steadily fade into irrelevance.

Yet the reality inside many financial institutions tells a more nuanced story.

Consumers continue to rely on cash and self-service banking, and ATMs remain one of the most frequently used and consistent touchpoints in the customer journey. At the same time, advances in transaction analytics are giving banks unprecedented visibility into how customers actually interact with cash, branches and ATM networks. The result is a shift in how forward-looking institutions think about physical infrastructure as a strategic asset that can be optimized with data.

Why ATMs still anchor the customer experience

Despite the rapid growth of digital banking, ATMs continue to play a central role in how customers engage with their financial institutions. In fact, it remains one of the most widely used and trusted channels.

According to YouGov's International Cash and Self-Service Banking Consumer Survey, commissioned by Diebold Nixdorf, 91% of U.S. consumers use ATMs, and nearly six in ten of those polled used an ATM from their primary bank in the past month. That level of consistent engagement is difficult to match across any other physical channel.

This frequency matters. For many customers, the ATM is the most regular physical interaction they have with their bank. These interactions, often quick and routine, play an outsized role in shaping perceptions of reliability, convenience and overall brand experience.

Customer expectations at the ATM are also evolving. Contactless access, personalization and denomination choice are increasingly expected features, and they matter more than many institutions realize. In fact, 68% of ATM users prefer access to smaller denominations like $5 and $10 bills, and 21% say they would visit a teller if those options were unavailable. Offering smaller denominations can improve customer experience by providing more choice and convenience, but it also has efficiency implications, as it can deplete cassettes faster and increase replenishment needs. For younger customers in particular, capabilities like cardless access and mobile integration are becoming baseline expectations rather than differentiators, making ATM modernization an important lever for attracting and retaining this segment.

Cash remains a critical part of the payments ecosystem

The same Diebold Nixdorf and YouGov research underscores just how important cash remains. Nearly 90% of U.S. consumers say they would not sign up with a bank that does not offer cash withdrawals, an increase from prior years. Even more telling, this sentiment is rising among younger consumers, with rejection of cashless banking among Gen Z and millennials climbing significantly.

This reflects the unique role cash plays in providing privacy, control and immediacy. Nearly nine in ten consumers cite advantages of cash over digital payments, including privacy, security and instant settlement.

Cash also remains essential for financial inclusion. Underbanked populations, small businesses and rural communities continue to rely on physical currency as a primary means of transacting. More than 75% of consumers believe cash is critical for societal resilience and for supporting financially vulnerable groups. Most consumers are not choosing between cash and digital; they are using both. A mix of payment methods remains the most common behavior, and even among mobile payment users, the vast majority still access cash regularly.

Branches are evolving

As customer behavior evolves, so too does the role of the branch.

Routine transactions (like withdrawals, deposits and balance checks) are increasingly shifting toward self-service channels such as ATMs and digital platforms. In fact, 58% of consumers now rely exclusively on digital or ATM channels for their regular transactions. This shift is freeing up tellers to focus on higher-value interactions.

Rather than serving primarily as transaction hubs, branches are becoming centers for advice, problem resolution and relationship building. When customers encounter complexity or friction, they still value human interaction: 78% of consumers say they prefer visiting a teller in these moments.

This evolution introduces new considerations for financial institutions as they rethink the role of the branch. Branch strategy now centers more clearly on purpose, with decisions around staffing, layout, technology integration and service models shaped by how customers actually use these spaces today.

Encouragingly, physical proximity still matters. When choosing a new bank, consumers continue to rank proximity to branches (43%) and ATMs (40%) as more important than digital features (39%). This reinforces the idea that physical presence remains a key driver of acquisition and retention.

Data is transforming how banks handle cash, ATMs

Historically, decisions about ATM placement, cash levels and branch networks were often based on static assumptions or incomplete data. Today, transaction-level analytics allow financial institutions to understand usage patterns, peak demand times and location performance with far greater precision. In addition to seeing how often an ATM is used, they also have insights into what denominations are withdrawn, when demand spikes and how behavior varies across locations. This granular view of cash flow is the foundation for optimizing how machines are loaded and how often cash-in-transit visits are required.

These insights enable smarter, more proactive decision-making. Denomination data, for example, reveals a real trade-off: offering a wider mix of bill denominations improves the customer experience and reduces teller traffic, but it can also accelerate how quickly cassettes deplete, increasing cash-in-transit costs and the risk of out-of-service events. Institutions that can model this relationship are better equipped to configure their fleets in ways that balance both sides of the equation, improving uptime while still meeting customer expectations. This same data informs where machines should be placed, how replenishment should be scheduled, and where additional self-service capacity is warranted.

Customer behavior data also highlights where self-service demand is highest and where additional support may be needed. As ATM-only usage continues to rise, up significantly for both withdrawals and deposits since 2023, institutions are investing in modernizing their fleets to meet this shift. That means equipping machines with capabilities like cardless access, cash recycling, and remote support tools (like video-on-demand) that can detect issues proactively and enable staff intervention when a customer encounters a problem mid-transaction. Together, these capabilities let self-service channels handle more volume without sacrificing the experience.

A more connected future for branches

Forward-thinking institutions are moving beyond broad assumptions about declining usage and focusing instead on how to design more responsive, better-managed physical networks. The goal is infrastructure that reflects real customer behavior, building a network where branches and ATMs are placed, staffed and optimized based on how people actually bank.

Physical channels continue to play a critical role in delivering trust, reliability and accessibility, while data and analytics provide the visibility needed to manage these networks with greater precision. At the same time, digital and physical banking are becoming increasingly interconnected, working together to support a more seamless customer experience.

Institutions that align digital convenience with strong, well-optimized physical access will be better positioned to meet evolving expectations and adapt as those expectations continue to shift. A more data-driven approach to physical banking that connects customer behavior to network configuration, cash management and self-service capabilities improves efficiency, strengthens customer satisfaction, supports financial inclusion and reinforces long-term resilience.

About Peter Pizzutelli

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Peter Pizzutelli is Senior Manager, Advisory Services at Diebold Nixdorf, where he works with Strategic and Enterprise Banking clients to help optimize their ATM and branch networks using transaction data and customer insights. He brings 18 years of experience in consumer insights consulting, with a focus on data-driven approaches to physical banking networks.

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Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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