Where have all the ATMs gone?

ATMs, once ubiquitous, are disappearing from bank branches across New Zealand. The country's largest bank, ANZ, has reduced its ATM numbers by 85 in the past two years, with most contracts given to other providers. Westpac reported a 54% drop in its ATM count over the same period. The Reserve Bank noted that bank branches have declined by 40% and bank-owned ATMs by 32% over the last decade.

Total ATM numbers fell by 14.7% per million people between 2012 and 2017. While cash use remains significant, with 40.3% of people using it for everyday transactions, its prevalence is declining. Only 2.5% of people never use cash. The Reserve Bank's latest data shows that only 1.5% of customer transactions occur at ATMs, a figure that is slowly decreasing.

Banks cite customer demand as the main reason for the decline, as ATMs account for a small percentage of transactions. However, other factors, such as reduced use due to the shift towards eftpos transactions and the high cost and risk associated with maintaining ATMs, also play a role. Some ATMs have been removed or relocated due to landlord changes, seismic risks, or alternative payment methods like eftpos.

Experts argue that the cost and logistical challenges of maintaining ATMs outweigh their benefits. Cash access is particularly important for disadvantaged groups, including those with disabilities and limited mobility in both urban and rural areas. The Reserve Bank is consulting on plans to establish minimum standards for cash services, aiming to ensure that 95% of urban dwellers can access a free cash point within a short walking distance.

Meeting this standard would cost banks about $100 million annually, but it is seen as a worthwhile investment given the importance of cash access for many New Zealanders.