Cash in Hand: Exploring the Shift Towards Larger Denominations at ATMs
Are you tired of constantly withdrawing small amounts of cash from ATMs? Well, you're not alone. The trend of withdrawing larger denominations of cash from ATMs and ITMs is becoming increasingly popular worldwide.
In 2002, only 4.6% of all U.S. dollar bills were $100 bills. By 2024, this figure has skyrocketed to a whopping 18.5%, indicating a significant shift towards larger bills and fewer, larger withdrawals. This trend suggests a change in spending habits, with people potentially using fewer bills for everyday transactions or opting for larger withdrawals for needs such as paying rent, car payments, or high-end meals.
Previously, people would withdraw smaller amounts regularly. Sixty percent of withdrawals are in $20 increments. However, customers are now actively seeking out ATMs that dispense larger denominations, either for convenience or to generate fewer withdrawal fees on their account while traveling or when their preferred bank is not easily accessible.
In response, financial institutions are updating their equipment to handle mixed denomination withdrawals, including larger notes. They would also be wise to adjust cash loading based on this rise in circulation and recent withdrawal patterns. Some banks are taking it further and raising withdrawal limits to allow customers to access significant amounts of cash in one transaction more easily.
This increase in larger denomination withdrawals has implications for more than just financial institutions; small businesses must also be prepared to handle the exchanges required with high-denomination transactions. Adjusting cash management processes or investing in secure cash handling systems may be necessary to accommodate the shift in higher denomination use.
NuSource has the expertise and equipment to help your financial institution update its offering to dispense mixed denominations efficiently, including larger notes.
