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Used to finding a Bank of America ATM whenever you need one? Don't look now, but that could be changing.
This year, Bank of America has cut a record 1,536 ATMs, or about 9 percent of its total stock, write Hugh Son and Zachary Tracer of Bloomberg:
Bank of America chose to pull most of its ATMs at malls and gas stations in part because those devices only dispensed cash and weren’t available 24 hours a day, (Bank of America spokeswoman Anne) Pace said in an interview. Customers want to be able to deposit checks at an ATM, she said.
"It's about convenience and access, that’s what the customers are looking for," Pace said. "People aren't banking 9 to 5, they are banking when it’s convenient for them."
…
It costs banks an average of $1,700 per month to run an ATM on someone else's property, compared with $1,100 at a branch, said Tony Hayes, a partner at consulting firm Oliver Wyman in Boston. The difference stems from rental costs and fees for armored couriers to refill machines with cash, he said.
But is BofA's move an isolated event, or a sign that large banks are starting to abandon ATMs? Ann Carns of The New York Times Bucks Blog writes that it's more likely the former:
Other big banks say they have no plans to shrink their networks. JPMorgan Chase, the largest bank by assets, said it planned to expand its system. A Chase spokesman said in an email that the bank had more than 17,500 ATMs, "and that number will grow as we continue to build branches."
Citigroup has 10,428 Citi-branded ATMs, a spokeswoman said, including more than 6,000 machines at 7-Eleven stores, and has no plans to reduce those numbers.
Wells Fargo says it has about 12,000 ATMs since its merger with Wachovia, and has no plans for any changes.
U.S. Bancorp has 5,085 machines and has no plans to pull back on its network, a spokeswoman said.
Like Carns, though, I wonder about the long-term trend. Notwithstanding the old cliché, "cash is king," cash has grown increasingly rare as electronic payment methods like credit and debit become more ubiquitous.
I think as technologies like smartphone-based remote deposit capture and person-to-person payments become easier to use and more widely adopted, there will be fewer and fewer reasons to seek out an ATM, in the same way that the rise of cellphones has killed off the payphone. After all, if you have a device in your pocket that can perform many of the functions of an ATM, why go out of your way?
But in the meantime, having an extensive ATM network customers can use without paying an annoying fee is one of the major ways large banks differentiate themselves from community banks and credit unions, and so they'll continue to invest in them for the time being.
What do you think? Is a big network of ATMs important to you? Are ATMs on their way out, or will people always want easy access to cash?
Follow me on Twitter: @ClaesBell
I happen to own the ATM in my business. I agree with James, that I make a significant investment in order to provide the service for you, in return I feel a $2 service charge is fair. However, I don't believe banks should be able to tack an additional charge on that transaction nor should they be able to charge their own customers at their own ATMs! As Bud stated, the banks save by having fewer tellers at their banks because the ATMs serve many of the customers and reduce the regular tellers workload.
I agree with James about how much more efficient privately owned ATM's are and how they are serviced faster than a bank especially on weekends. I am also very glad for the remote deposit capture my bank offers me as i work full time and can''t always make it to the bank.
rocket surgeon,i did take my money out,your loss!
I am a Bank of America stock holder. If you don't like our bank, go elsewhere, please!
To me BoA has always been about greed and no service. That's why I recently changed banks after having been with BoA for many years.
Originally the ATMs were presented to us as a money saving necessity for the banks: An ATM was cheaper than an employee. These people would sell their Grannys false teeth to help their money fix, I reckon, always talkin' outta both sides a their mouths . .
I am the owner of a company that owns and operates ATMs. I can assure you that any bank or priviate company that is removing an ATM is doing so because it is not generating enough transactions to justify staying in place. No profit - no machine.
The ATM transaction fee is the ATM owners profit. I don't like paying ATM transaction fees myself but the ATM owner is entitled to make a profit just like any other business. I often hear "I shouldn't have to pay to get my moeny"! I agree with that statement, however, the money in an ATM my company owns is NOT your money! I went to the bank and bought that money to put in my ATM that provides a convenience to you. Don't want to pay that fee - fine - use your $3.00+ per gallon of gas to drive those miles to your bank.
Along with buying cash to load my ATMs don't forget that my company paid $2000 to $5000 for the ATM equipment - they ain't giving them away!! I have service trucks and employees that keep our machines loaded with cash and in good working order - wait for it - - - wait for it - your convenience! All those things cost the ATM owner money so how can ATMs be free?
I mentioned in another submission that small business owns and operates about 65% (and growing) of the ATMs in the US - NOT THE BANKS. So when looking for an ATM you might take a minute to review the information posted on every ATM (required by government regulations)and help the small business guy that works everyday just like you to make a living by using his machine rather than a banks!
Now i know why there was another reason to change banks. I would
not put it pass that BOA in the far distance future shut down
most of their banks. I am sure glad that the bank that i am now
with and all of you will have to guess because i will not tell
will continue with their ATMs.
i have found that the only time i need an ATM is...yard sales, b-day cards, the kids want money, well that's it. It's almost impossible to find a business that doesn't take debit cards. the businesses may charge the processing fees to the banks or to us consumers.Because I use my card every day, everywhere I go, I fear that soon I'll be paying fees out my nose.
The artical made several comparisons of payphones and ATMs and the writer is somewhat correct. I own and operate payphones (yes they are still out there) and ATMs. Since the early 2000's private companies owned more payphones than the traditional "telephone company". While the "telephone company" continued to raise rates and limit call times on payphone the small business guy did just the reverse since they are usually more efficent. The "telephone company" payphone limited local calls to 3 to 5 minutes and long distance charges of around $3.00 to $5.00 for the first 3 minutes. The small business owner has their call prices in the range of $.50 for a 10 minute local call and $1.00 for an 8 minute long distance call.
Same now goes for ATMs. About 60% - 65% of ATMs in the US are NOT owned by banks, but rather, small business folks. The ATM small business guys usually charges a smaller transaction fee and responds faster to repair issues or transaction issues. Of course ATMs are extreemly regulated by the government and small business ATM companies and banks must operate under the sames regulations.
Payphones will be around for a few more years and so will ATMs. Just look for the NON- BANK owned ATMs for a better deal on fees.