Why expanding access to cash is critical – and how to effectively do so

Stuart Mackinnon, COO, NCR Atleos

Last month was National Financial Capabilities Awareness Month, which is intended to raise awareness of the need to ensure consumers have access to necessary financial services. Cash is a critical and increasingly overlooked component of this mission; it’s a reliable and universally accepted form of payment. Despite misconceptions that cash is on the decline, credit unions can and should continue investing in ways to enable and optimize cash access.

The many benefits of cash

Despite an uptick in digital usage, cash remains a steady and valuable way for members to pay and get paid. It has many benefits; for example, cash transactions offer a level of privacy not possible with digital transactions. Plus, cash is secure, unhackable and safe, which is especially beneficial as fraud surges across other payment methods. Cash also provides greater control over finances and budgeting, limiting spending to the amount of money available. Such use cases are especially critical among younger generations like Gen Z, according to a recent Credit Karma survey.

Perhaps most importantly, cash is often a lifeline to the under- and unbanked, allowing those without access to traditional or formal banking systems to still participate in economic transactions. This is no small group; according to the RBR Global ATM Report 2023, 14% of people in the U.S. are underbanked, and 5% are unbanked. Cash contributes to facilitating inclusive economic practices and can support all members of a community.

How to effectively enable cash access

Even though cash remains vital, institutions often struggle with how to maintain and expand access to it in a strategic, efficient way.  A few ways to overcome this challenge include shifting more transactions to self-service, transforming the branch and expanding access beyond the branch. Credit unions that follow these strategies will be well-positioned to increase operational efficiencies while also better serving their members and broader communities.

A common way to enable easy access to cash via self-service is through a credit union’s ATM network, which automates cash transactions. However, the traditional ATM deployment method has grown increasingly expensive and arduous, with capital requirements, multiple vendor relationships, compliance complexities and upgrade cycles ultimately putting a strain on the credit union.

Instead, many are embracing an ATM-as-a-Service model, in which a trusted partner manages partial or complete maintenance of ATM operations. With such a shift, credit unions can more strategically and quickly deploy and manage ATMs, helping offer access to cash in areas where physical branches might not be present. Plus, this approach allows credit unions to reallocate employee time and resources to other areas, such as member relationships and growth.

Another effective way credit unions are helping expand cash access is by embracing a shared utility model, which involves plugging into a network of ATMs located within trusted retail locations (such as grocery, convenience/fuel and pharmacy), allowing members to withdraw and in some instances even deposit cash from where they live and shop. This provides a convenient, secure way for members to access their finances even without physical branches. Plus, it’s a win for the credit union, enabling them to extend their presence out in the community and better match the scale and reach of larger players.

As credit unions continue to execute upon their ‘people helping people’ mission, a critical component will be how to efficiently expand access to cash, a steady, reliable method of payment that can be leveraged by all. By shifting the strategy around ATM maintenance and management and considering a shared utility model, credit unions will be well-positioned to effectively support members and their communities.  

Stuart Mackinnon is COO for NCR Atleos, a leader in expanding self-service financial access for financial institutions, retailers and consumers.