The decline in the number of bank branches in the UK has been the source of much debate in recent years. When you look at the statistics, it’s easy to see why.
The number of bank and building society branches is now less than a third of what it was in the mid 1980s – a drop from more than 21,000 in 1986 to less than 7,000 today. And the rate of closures is showing no signs of slowing down. In the five years between 2019 and 2024, the number of branches fell by a third.
The economics behind the decline in bank branches needs little explanation. As telephone, online and now mobile banking have evolved, the need for people to go into a branch to access banking services has fallen dramatically. For banks, the high cost of running branches from rents, wages, security systems etc make little sense if a) fewer people are using them and b) you can provide the same services for a fraction of the cost via an app or a website.
But fewer people using bank branches isn’t the same as nobody using bank branches. And that’s where the debate stems from. Some people don’t want to switch to digital banking, or don’t feel comfortable with the technology. This is especially true among older age groups – those who are likely to be inconvenienced most by having to travel further to their nearest bank branch.
A new role for ATMs
At the same time, we’re also seeing a decline in the use of cash machines as digital payments also overtake the use of cash – though not anywhere near the rate of branch closures. In 2025, there was a 4% drop in the value of cash withdrawals from ATMs in the UK, and an 8% fall in the number of transactions overall. That’s not enough to trigger the wholesale removal of ATMs like we’ve seen with branch closures – especially as ATMs don’t carry anywhere near the same overheads.
The fact that ATMs are so much more cost effective to run could help address concerns about disappearing in-person banking services, while still making financial sense to banks. ATM technology is evolving. Rather than simply being cash dispensers, touchscreen interfaces and digital banking platforms allow ATMs to function more like full-service banking kiosks.
Cash machines that allow users to do things like transfer money between accounts and pay bills have been around for a while. But the real game-changer is coming with ATMs that are able to replicate the kind of ‘face-to-face’ services people like to go into branches for, like discussing new accounts, loans, credit cards and other products.
Banking kiosks fitted with AI agents can now share information about financial products in a ‘conversational’ way, either via text or voice. The latest AI tools can answer questions, walk customers through the options, and make recommendations much the same way you’d get from meeting with your local bank manager. Combinations of digital document scanners, digital signing tools and biometric ID verification via face or fingerprint scanners can be used to manage the approvals process for new loads and cards. With cameras fitted, banking ATMs can even be used as portals for real-time video calls with banking staff.
To date, this ‘kioskification’ of ATMs is most evident in large central bank branches – which of course does little to address the loss of convenience and accessibility that has caused so much concern around branch closures. But the technology is readily available. As demand for cash declines and bank branches disappear, transforming cash machines into banking kiosks that can make a full range of services accessible in local communities seems like a win-win for everybody.
