When an ATM disappears from a town or village, there is sometimes great resentment: because Raiffeisenbank Eifel did not repair a defective ATM for months, while Raiffeisenbank Landshuter Land announced the removal of machines in small towns and VR-Bank Alb-Blau-Donau persisted with the closure of ATMs, citizens voiced their protest, as a look at the regional press shows. Branch closures and the removal of ATMs are also a recurring topic in the local newspapers. The statistics confirm the trend. While the number of ATMs has remained fairly stable over the years, it has been falling significantly since 2021, as the Bundesbank notes. In the second half of 2023, there were almost 52,200 ATMs in Germany, around 3,400 fewer than just one and a half years earlier. Such a rapid reduction is tricky. The banking industry must proceed with caution.

Public protests may be dismissed as small-minded. Often it is a small number of people who speak out loudly. Presumably, the silent majority has no interest in expensive banking services. Each ATM costs between 10,000 and 15,000 euros a year to rent, operate, stock and insure, according to calculations by the Arbeitsgemeinschaft Geldautomaten. A new machine costs around 20,000 euros. These are costs that banks and savings banks have to pass on to their customers. At the same time, cash is becoming less relevant: In terms of transaction volume, coins and notes only account for 36% of retail transactions, according to calculations by the private-sector EHI Retail Institute. In fact, the trend is downwards. Cards of all kinds, above all the Girocard, are gaining in importance overall. And anyone who needs cash can also withdraw money at a supermarket checkout. So why have ATMs?

But it's not that simple: at the very latest when elderly or physically disabled people speak up because they can't manage without a nearby ATM, everyone should realise that the supply of cash is a sensitive issue. This is also the view of the Bundesbank: „Cash will continue to ensure the inclusion of certain groups of people better than non-cash means of payment in the future,“ it writes in a joint position paper with non-profit organisations. Even if older and disabled people also use digital services, a lack of cash supply is a problem in rural areas. The hip direct banks and neobanks have never been present in the area, meaning that anger is easily focussed on local savings banks and cooperative banks. The institutions' self-image is geared towards the common good: co-operative cohesion here, public service there.

Of course, there can be no guarantee that every ATM will continue to exist, and of course costs are vital – the loss of importance of cash cannot be ignored. But weighing up these factors involves more than just a business calculation. Co-operatives and savings banks are pursuing similar goals here and should seek cooperation. Jointly operated locations, as exemplified by some banks, are a model with a future. There are also good reasons for branch buses, which serve small villages and at least maintain a banking service for a while. Pragmatism is required – and a feel for the local mood.

At least there is some good news: Initial reports from some federal states indicate that the number of explosive attacks on ATMs is decreasing significantly. The problem so far has been serious: after a blast, it takes time for a bank to repair the damage and install a new machine. Sometimes a robbery attack is a reason to abandon a location. The mere risk of a demolition is associated with costs, be it insurance premiums or the retrofitting of the machine and branch. We can only hope that the police work of recent years will finally have an effect. This would be a service to the cash supply!