China was one of the first countries to champion the non-cash payment methods and in the US, there has been a major closure of high street banks and a reluctance to keep up with VISA standards. In Brazil, 1,200 ATMs were removed last year.
This news will be welcomed by the police forces who continue to safeguard against fraud and pretty thefts at ATMs, including the use of ATM skimming of details and hold ups. There are also the implications of less physical cash being moved around which limits the influence of cash-in-hand jobs that aim to evade tax.
Increased confidence in alternative payments
The fall in use of ATMs comes with the rise of digital technologies, where Israeli companies such as Payoneer and Zooz are dominant. Whilst both companies were started in the early noughties, there is now increased confidence amongst consumers and market penetration for these products to be mainstream.
Drawing money from cashpoints plays an important role for children’s pocket money, paying low wage staff, transport, meals, groceries and more, but these are now fully automated into the digital economy.
Consumers are able to use contactless payments up to a certain limit and this comes as standard with all new credit and debit cards - and there is the option for retailers to accept payments this way too.
For those looking to send money between friends or families, this can be transferred digitally through online banking apps including Barclays PingIt, Revolut and Monzo. Fundamentally, there are huge savings through most banking apps on foreign exchange fees, something that banks have historically charged large tariffs for.
Personal banking is changing
The digital banking trends continue in consumer finance, through the growth of Fintech companies and traditional borrowing from high street stores and banks quickly becoming a thing of the past.
In particular, the use of mobile phones has surpassed the use of desktop computers for using financial services and the providers have had to keep up with this.
Direct lenders today that offer micro loans are embracing mobile phone apps to encourage regular use and flexibility. The likes of Drafty and StepStone offer apps that allow you to check your balance, top up your balance and repay at ease.
The idea of monitoring your balances or scores daily is part of the gamification of Fintech companies. Common examples include checking your favourite cryptocurrencies and even keeping track of your credit score.