Some predict that these automated banking devices, which have drastically changed financial culture, will gradually disappear into history. (Yonhap)
GWANGJU, Jan. 30 (Korea Bizwire) — Automated teller machines (ATMs) are increasingly losing ground due to a boost in credit card use and the growing popularity of Internet and mobile banking.
Some predict that these automated banking devices, which have drastically changed financial culture, will gradually disappear into history.
According to data from Kwangju Bank, a South Korean local bank based in Gwangju metropolitan city, ATMs and other automated devices introduced by the bank hit a record high of 854 units in 2012.
However, the number dropped to 661 in 2015 and then 565 last year. This is because customers have reduced their use of automated teller devices.
The number of transactions utilizing ATMs, analyzed by the bank over the past three years, has also decreased significantly every year.
In 2017, there were 22.2 million transactions, but the number decreased to 17.8 million in 2018 and 15.9 million last year.
The transaction volume through automated devices also fell by 1.2 trillion won over two years to 8.74 trillion won (US$7.09 billion) in 2017, 8.11 trillion won in 2018 and 7.47 trillion won last year.
“The frequency of use has sharply decreased in recent years as even small amounts such as taxi fares have been paid with credit cards, and account transfers via mobile banking,” said a bank customer who used ATMs three to four times a month until just a few years ago.
“The fast-changing financial environment represented by mobile phones and the popularity of automated devices at all banks that enjoyed an era is slowly withering,” said an official at Gwangju Bank.
H. M. Kang (hmkang@koreabizwire.com)
