What Changing ATM Behavior Reveals About Cash Demand at Banks, Credit Unions and Independent Service Organizations

As digital wallets and contactless payments grow quickly, it’s easy to assume ATMs are becoming obsolete. In reality, evolving usage patterns suggest something more nuanced: consumers are visiting ATMs less often, but cash demand and the strategic importance of ATMs remain strong, especially for banks and credit unions focused on customer experience, financial inclusion, and network efficiency.

Below, we explore current trends in ATM usage, how different age groups interact with cash, and why banks, credit unions and independent service organizations should think strategically about their ATM networks.

1. ATM Use Is Changing, Not Disappearing

While digital payments are rising, global ATM infrastructure continues to handle significant volumes of cash and banking services:

• Global ATM transactions reached ~86.7 billion in 2025, only slightly lower than previous years, showing strong ongoing demand. 
• Average withdrawal per ATM transaction rose to about $157, indicating that although visits may be fewer, each visit tends to handle more cash.

These figures show that ATMs aren’t disappearing. The role of ATMs is shifting as banks, credit unions and consumers use them in new ways.

2. Demographic Shifts in ATM Usage Matter for Strategy

Usage patterns differ significantly by age and behavior:

• Younger consumers (Gen Z and Millennials) are increasingly using digital wallets and peer-to-peer apps, which contributes to declines in routine ATM visits in developed markets. 
• Still, older adults (e.g., 55+) make a notable share of their payments in cash, demonstrating enduring demand among certain segments. 
• Even in digital growth markets, rural areas and underserved populations continue to rely heavily on ATM access, partly due to limited banking infrastructure outside urban centers.

Bank takeaway: As customer behavior evolves, a “one-size-fits-all” ATM strategy no longer works. Instead, ATM planning should reflect regional demand and the needs of multiple demographic groups to strengthen customer relationships and trust.

3. ATMs Remain a Critical Touchpoint

Even in a digital economy, ATMs serve as a physical brand interaction and an important reliability channel:

• They offer on-demand access to cash, a resource consumers still value particularly in emergencies or when digital systems fail. 
• Machine reliability and cash availability influence customer satisfaction and trust with their financial institution. 
• Branch closures alone don’t eliminate need. ATMs often act as the last physical banking point in communities with fewer branches.

Rather than shrinking ATM networks indiscriminately, banks can view ATMs as a continuity pillar that complements digital services, particularly when technology struggles or goes down.

4. Smarter Cash Forecasting Improves ATM Performance

Given these shifts, accurate forecasting becomes essential:

• Fewer cash withdrawals per person but larger amounts per trip means that predictable replenishment is key to avoid out-of-service machines. (CoinLaw)
• Overloading ATMs with unnecessary cash increases cost and risk, while underloading leads to outages and lost confidence.

Data-driven cash forecasting allows banks, credit unions and independents to:

• Align cash levels with location-specific demand 
• Reduce unnecessary cash inventory costs 
• Enhance uptime to improve the customer experience

Solutions like Logicpath help banks and credit unions forecast and manage cash needs more precisely, giving them a competitive edge in ATM operations.

5. What This Means for Banks, Credit Unions and Independents Today

In the face of digital disruption, here’s a strategic framework for banks, credit unions and independent service providers:

• Don’t abandon ATMs. Optimize them. Declining use doesn’t equate to declining value. 
• Leverage demographic insights to tailor ATM networks by community need.
• Pair ATMs with advanced forecasting tools to reduce costs and boost reliability. 
• Treat ATMs as part of a holistic customer experience strategy, not just a cash dispenser.

Key Takeaway: Evolving Cash Access

Communication about “cash decline” can be misleading. Yes, digital methods are rising but real customer behavior shows that cash and ATMs are still deeply embedded in how people interact with their money, especially for certain groups and purposes.

For banks, credit unions and independent service providers this means rethinking ATM strategy. With the right tools and insights, ATM networks can remain efficient, dependable, and relevant in the digital age. Don’t know where to start? Reach out to Loomis to get the ball rolling on ATM efficiency.