There are many factors influencing consumer cash withdrawal trends right now. Despite the coronavirus driving up mobile and digital transactions, for instance, many countries still rely heavily on cash. Consumers are also increasingly seeking cash as a result of financial market volatility, while others just want to keep more cash on hand during a crisis.
These factors are creating new patterns for financial institutions (FIs) and small businesses to consider regarding their current cash forecasts – such as reduced transaction frequencies, but increased withdrawal values. So it’s important that banks and credit unions closely monitor current transactions to make sure they're adequately anticipating the cash demand at their ATMs.
FIs that have sophisticated cash management tools, like cash recycling ATMs, can use these resources to track, analyze and take action based on the current situation; historical based modeling won’t be effective right now. And, because ATMs that are still in use will likely see evolving transaction volumes, banks should transfer cash to these ATMs from any that are not in use to effectively serve their customers.
Banks are also looking to more innovative ways to get cash to their consumers – in India especially mobile ‘ATM on wheels’ are being rolled out.