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With the momentous changes, we saw in the banking space in 2024, we expect that 2025 will continue with this trend. The year is expected to drive access to cash efforts that were laid out in 2024, see banks leveraging customer data in a smarter way and develop more robust cyber security strategies.
The regulatory considerations shaping banking
2024 saw the end of the Financial Conduct Authority (FCA) consultations. These promise a tougher line on holding banks to account when they are looking to shut down a branch and greater support for alternative facilities. So, 2025 is the year we should see a wider deployment of banking hubs across the country, with these being opened much faster than before.
However, we cannot expect banking hubs to be a true replacement for bank branches, but it is a reasonable alternative. Although, this depends on how the hubs are rolled out over the year.
Answering the cash management crisis
Even though cash usage is declining, it helps people manage their finances amid a cost of living crisis. Yet, cash management is an expensive job for banks. However, some of those cost pressures can be addressed through ATM pooling and cash recycling to ensure that cash is available locally.
Further, through using data modelling, which is based on AI and machine learning, a bank or ATM operator can optimise cash movement and forecast future usage across the bank’s entire network. This also plays into reducing Cash-in-Transit (CIT) and insurance costs due to less cash deliveries needing to be made.
The growth of intelligent data management
ATMs are key to understanding customer behaviour patterns and how the machines are performing, but little is done with this data. However, as banks realise the potential benefits from this data, next year we will see more banks mining this data for usable customer insights. Understanding how customers interact with the ATM, banks can strategically place their ATMs in the most convenient location for customers, protecting access to cash.
Not only that, with real-time data monitoring, but the sensors around the ATM can also look at how customers are interacting with the endpoints. For the most part, the sensors will pick up harmless activity, but other times, there may be signs that a threat actor was trying to take money out of the machine. Through ongoing monitoring, banks can protect themselves and their customers.
Combating new waves of cyberattacks on banks and ATMs
2024 saw the evolution of old cyberattacks, such as FASTCash Linux malware variant, but also new malware being discovered, like FixS or EU ATM Malware. As it could take up to two years for new samples of malware to be discovered, it is likely that 2025 will see ‘new’ ATM malware. So, it is important for banks to protect themselves and their customers through deploying a zero-trust strategy.
Next year is also expected to see the growth of QR Code Phishing (‘QRishing’). With the increasing use of QR codes for cash withdrawals and payments, it leads to a greater risk that malicious codes could compromise the security of ATMs and customer’s accounts. Here, banks should adopt proactive measures to ensure that their customers are protected, like using dynamic QR codes and implementing QR code verification through the bank’s official app.
So, whilst 2025 may see older trends continue there is an opportunity in 2025 for banks and ATM operators to more than just sustain but also innovate in how self-service banking services are run, protected and expanded.
