ATMs Outlast Predictions of Doom as Millennials Keep Cashing Out

Branch closures may dominate the headlines, but for many credit union (CU) members, the in-person experience is still non-negotiable. PYMNTS Intelligence and Velera found in a recent Credit Union Tracker that more than half of CU members — consumers and small to medium-sized businesses (SMBs) — prefer face-to-face service, making branches an enduring pillar of trust and retention.

The report, “The Omnichannel Imperative: Why Credit Unions Need Both Digital and Physical to Thrive,” published in August, underscores that while digital tools drive growth and attract younger members, branches remain essential to loyalty.

The data shows that many members, particularly baby boomers and long-tenured customers, continue to rely on in-person banking.

Three Data Points Underscoring Branch Banking’s Staying Power

51% of CU members still prefer in-person interactions. Despite the rise of mobile apps and digital onboarding, more than half of CU members — consumers and SMBs alike — say they would rather conduct financial business face-to-face.

Baby boomers lead branch-first engagement. Among older members, 65% report visiting their CU in person, and 53% also use CU websites — higher than any other generation. This group is most likely to see branches as central to trust and service.

ATMs remain critical to daily transactions. About 26% of CU members use ATMs multiple times per week, with 70% citing cash withdrawals as the primary reason. Older millennials in particular lean on ATMs for deposits and withdrawals, showing that “physical” access extends beyond staffed branches.

These numbers suggest credit unions must resist the temptation to go fully digital. Instead, they should redesign branches and ATM networks as complementary touchpoints in a member’s broader financial journey.

Navy Federal Credit Union provides a case study in this balance. Despite the trend of closures, it recently opened a new branch at Fort Irwin, California, to serve more than 10,000 members in the area, many tied to the local military base. The expansion reflects a broader realization that members still value having a physical place to go, especially in communities where traditional banks have pulled back.

For credit unions, the challenge is no longer whether to keep branches open, but how to rethink them. Branches may evolve into hubs for high-value interactions, like complex product discussions, financial education or personal problem-solving, while digital channels handle speed, convenience and routine tasks. In this model, in-person and online banking are not competitors, but complements.

The concept of the branch access is not a relic, but a requirement. Credit unions that downsize their physical footprint without reinvesting in smarter, more member-centric branch strategies risk alienating their most loyal members.

The winning model will be omnichannel in nature, where digital convenience and the human touch of branch banking coexist to build long-term trust and loyalty.