Top ATM trends to watch in 2025

In addition to world-class technology and innovation, KAL shapes global ATM trends through active research and customer engagement. This article highlights some emerging trends in the future of the ATM industry – referencing the latest data from our?2024/5 ATM Software Trends report. ?

1.??The role of the ATM will keep expanding.

Most banks we surveyed for the 2024/5 period reported steady reliance on ATMs to deliver transactional services. While cash withdrawals have defined the ATM for decades, delivering cash is only one part of the story. When we asked banks to identify the additional responsibilities of ATMs, the top answers were: ??

• Supporting diverse self-service transactions?(39%)
• Maintaining a physical presence in local communities?(29%)
• Accepting deposits?(16%)

As technological possibilities and customer expectations continue to evolve and expand, so will perceptions of the ATM and what it can do.

2.??? An engaging customer experience is expected.

Is the ATM user experience you offer customers as engaging as your other delivery channels (such as mobile and home banking)?

This question generated a near 50/50 split in our survey - with 51% of banks saying yes and 49% saying no. These differences in opinion highlight that?half of the banks have invested in updating the ATM user experience while the others have yet to do so. In other words, half of banks are differentiating themselves?from competitors through the latest ATM technologies and engagement strategies. This dynamic may drive others to upgrade their ATM customer experiences to stay competitive.

3. ATM user interfaces (UIs) will become more digitally integrated, accessible, and visually engaging.

Today’s customers rapidly judge on-screen content and associate the user experience with the bank’s overall technological sophistication. UI design plays a vital role in shaping ATM experiences and broader perceptions about the bank. In our 2024/5 survey, we asked banks which ATM UI enhancements they planned to introduce soon. The top three answers were:

• Consistency with mobile/online banking
• Expanded accessibility features
• Engaging visuals

KAL Deputy CEO Kader BAADOUD explained the context:

We are now in a new era led by web and mobile-oriented design, and it’s important that using an ATM doesn’t feel like stepping back in time. Making ATM screens interactive, responsive, and user-friendly is a way of delivering great customer experiences that are smooth, easy, accessible, and fast. This approach gives customers a good impression of ATMs and, by association, the organizations running them.

4.??? More banks embrace cash recycling and monitoring to reduce costs.

According to McKinsey & Company, cash management accounts for up to 10% of bank operating costs. This expense is because distributing, maintaining, and processing cash relies on a wide variety of manually intensive activities. In our 2024/5 survey,?37% of bank respondents said cash recycling was their primary cash optimization strategy. Improved ATM monitoring was another popular answer, with 33% choosing this approach. ?

Since streamlining operational costs remains a high priority for many banks, we expect cash recycling and improved monitoring will continue leading the charge for optimizing ATM networks.

5.??? Some organizations will need to catch up with PCI mandates.

PCI mandates for remote key loading (RKL) with TR-31 key blocks are now in effect (as of the 1st of January). In Q3 of 2024, there were mixed perceptions about the ATM industry’s readiness for these changes. Some of the colleagues we interviewed in our 2024/5 report said they were on track for compliance, while others faced obstacles and technical complexities.

Since failure to comply with these requirements presents the risk of losing vital transaction functionality, organizations that have fallen behind will need to catch up quickly.?This pressure may increase the demand for drop-in RKL solutions such as?KAL’s card-acquiring host system.

6.??? More governments may promote cash for national security.

In Q4 of 2024, several countries in Europe began publicly promoting new guidelines for national security and emergency preparedness. Famous ‘cashless’ countries like Norway and Sweden surprised some observers by?actively promoting cash usage and acceptance. The main goal behind these efforts is to prevent citizens (and the economy) from being dependent on infrastructures vulnerable to cyberattacks.?

There is a possibility that more countries will return to cash for security. ?

7.??? Banks will keep exploring AI for ATMs, but implementation may be slow.

Did you know 9% of banks plan to implement Artificial Intelligence (AI) in their ATM networks this year? 8% have already done so, while 18% will leverage AI for ATMs in the next few years. Looking further ahead, our 2024/5 survey data revealed that 25% of banks are waiting to assess the impact, while 40% of banks have no plans.?AI adoption in the ATM industry will likely progress at a moderate pace this year.

What do you think is the number one way AI will be utilized to advance ATMs and self-service banking? The top answers from banks in our survey were enhanced security, improved personalization, and streamlined cash management.

8. ATM-as-a-Service will grow in popularity.

15% of banks in our 2024/5 survey said they outsourced all ATM-related responsibilities to a third party. ATM-as-a-Service is a delivery model that enables banks to reduce costs, streamline ATM management, and redirect energy to core business priorities. It puts advanced technologies and functionality enhancements in easier reach – ensuring ATMs deliver convenient, secure, modern, and accessible services. As the financial landscape evolves, ATM-as-a-Service helps banks stay ahead with minimal effort.?We expect that banks and other ATM organizations will continue to leverage this offering.

Access all our 2024/5 ATM Software Trends insights

The insights we’ve shared in this article are just the tip of the iceberg. To learn more about the evolving ATM landscape, download your free copy of the?2024/5 ATM Software Trends report?or watch our?webinar with guest experts?from Brinks, Regions Bank, and SECU. ?

What ATM trends do you anticipate for 2025?