Going Solo: Self-Service Catches on Across Retail and Banking

Self-service technologies are reshaping how consumers engage with retailers and financial institutions (FIs). As digital capabilities become more prevalent, shoppers and banking customers alike are increasingly seeking out faster, more convenient options. This shift reflects broader trends toward connected solutions, with businesses adapting to meet the growing demand for efficiency as human interaction becomes less of a must-have.

While younger generations are quick to embrace these innovations, adoption patterns vary across demographics. Older consumers are more hesitant to get on board with these new technologies.

As digital solutions continue to catch on, they are reshaping the experiences of modern consumers across the retail and banking industries.

Shoppers Seek Self-Checkout for Efficiency

Self-Checkout Isn’t for Everyone Just Yet

Self-Service Enthusiasm Applies to Banking as Well

Capturing Demand for Convenience With Self-Service in Retail and Banking

Shoppers Seek Self-Checkout for Efficiency

Shoppers are increasingly turning to self-checkout to streamline their retail experiences. This shift reflects a broader trend toward automation, with consumers seeking more efficiency and shorter waits in their purchasing journeys.

Self-checkout is quickly becoming many shoppers’ preference.

According to research from NCR Voyix, adoption of self-checkout technology is on the rise. For example, 43% of consumers now prefer to use self-checkout at the grocery store over traditional methods.

Overall, 87% of shoppers across several countries have used self-checkout and would use it again. Additionally, 74% of consumers approve of automating checkout, and 55% of retail shoppers rarely or never seek interactions with retail employees.

74%

of consumers approve of automating checkout.

Self-checkout demand is driven by a need for speed.

What consumers especially like about the technology is how it makes shopping more efficient. The top two reasons consumers cite for preferring self-checkout are speed and shorter lines.

Nearly three-quarters of consumers around the world want their trips to the grocery store to be as speedy as possible. Similarly, 52% want the same of their retail shopping journeys.

Self-Checkout Isn’t for Everyone Just Yet

While millennials and Gen Z shoppers are adopting self-service with enthusiasm, their older counterparts are not yet sold on the technology. Moreover, for some shoppers who love self-checkout, the reasons may not be as innocuous as seeking convenience.

Most young shoppers seek out self-checkout.

60%

of consumers ages 45 to 60 prefer traditional checkout.

More than half — 53% — of consumers ages 18 to 44 prefer self-checkout. Conversely, the majority of older shoppers prefer traditional, staffed checkout.

In addition, for consumers in younger generations, the availability of self-checkout can even influence their choice of merchant. Most Generation Z consumers (52%) say they would likely switch retailers for next-generation self-service options such as checkout-free stores. Similarly, 49% report they would likely spend more at a retailer that offered automated checkout. Another 52% say connected stores would boost their loyalty to retailers.

However, not everyone is eager to play cashier.

For instance, only 40% of those ages 45 to 60 and just 26% of those over 60 prefer self-checkout. For consumers who would rather stick with traditional checkout, the most common reason is a full shopping cart. These shoppers might find checking out the old-fashioned way to be simpler and quicker.

Younger consumers’ preference for self-checkout may not always be benign.

In fact, 31% of Gen Z consumers and 21% of millennials acknowledge they have intentionally taken a product without scanning it. Among those who have deliberately stolen an item at self-checkout, 44% say they will probably do so again. All told, 69% of consumers think the technology contributes to theft.

Self-Service Enthusiasm Applies to Banking as Well

The rise of self-service technologies is impacting industries beyond retail, with banking customers also increasingly amenable to digital and self-guided experiences.

Consumers are satisfied with the service they get from remote tellers.

Nearly seven in 10 consumers agree that working with remote tellers via video at interactive teller machines (ITMs) “feels just like” face-to-face service. In addition, 81% of those who have done so say remote tellers are knowledgeable and speedy.

Moreover, 36% said the experience was actually better than working with a teller in person. Nine-tenths of consumers who have used video banking say they would do so again.

23%

of Gen Z consumers say they choose FIs based on self-service banking convenience.

FIs are increasingly adopting remote and self-service technologies.

A recent letter from the Federal Deposit Insurance Corp. (FDIC) will make “branchless banking” easier from a regulatory standpoint. It stated that nonmember banks will not need regulators’ consent to set up bank branches as ITMS in non-branch locations around their respective states. These self-service locations could increase smaller banks’ ability to compete with industry giants.

Additionally, in the spring, Arizona Financial Credit Union kicked off a partnership with retail banking firm NCR Atleos. Through the collaboration, the FI uses Atleos’ ATM-as-a-service (ATMaaS) capabilities to make self-service banking more efficient.

The future of banking will be more self-service than ever.

Younger generations are significantly likelier to consider self-service when picking a bank than their older counterparts. Nearly one-quarter of Gen Z consumers report choosing FIs based on self-service banking convenience. Conversely, only 15% of baby boomers and seniors say the same.

Capturing Demand for Convenience With Self-Service in Retail and Banking

To stay competitive in the evolving retail and banking landscapes, businesses must strategically integrate self-service technologies while addressing potential challenges. Adoption is already high among younger consumers, but businesses need to address varying preferences and concerns across demographics to drive further growth. PYMNTS Intelligence offers the following action plan for merchants and banks to capture this opportunity:

Tailor solutions by demographic. With most younger consumers but only a handful of older consumers preferring self-service, retailers should offer both self-guided and traditional options to meet diverse needs.

Enhance security protocols. With concerns about theft and misuse, particularly at self-checkout, adopting advanced monitoring tools and real-time fraud detection is crucial.

Expand digital banking capabilities. FIs that offer video banking can gain a competitive advantage while providing consumers with efficient experiences.

By focusing on these key strategies, retail and banking businesses can adapt to consumer demands while ensuring that security and accessibility remain priorities.