BOH to cut 14% of its ATM network

A story of the business section of yesterday’s Honolulu Star-Advertiser seems to be an early sign of a seismic shift in consumer banking.

S-A reporter Dave Segal reported yesterday that Bank of Hawaii is removing all of its ATMs from McDonald’s restaurants in Hawaii and Guam.

According to the story, the move is in response to changing market conditions.

“Today, consumer preference is trending toward the use of debit cards and mobile phones instead of cash to pay for food and drinks at McDonald’s.”

The 65 machines represent nearly 14 percent of Bankoh’s ATM network. It will still have 404 ATMs systemwide — the most of any local financial institution — after the removals.

The change was spurred by McDonald’s decision to modernize its restaurants and the incorporation of point-of-sale technology to accept electronic payments.

The story quotes senior executive in charge of “digital channels”:

“An important technological shift is happening,” Oyadomari said. “The role of the ATM as only a cash dispenser has changed to now include the ability to scan deposited checks, count bills of deposited cash and communicate with your mobile phone. As the role of the ATM continues to change, we’ll continue to assess where customers would find the most value in having an ATM.”

So banks themselves are having to adapt their services, and businesses also have to keep up with the increasing importance of digital phone technologies and software advances.

Where is this heading? How will it affect banks more generally? Merchants? Let’s hear your thoughts.

7 responses to “BOH to cut 14% of its ATM network

  1. I was disappointed with this decision. I noticed it this weekend when I went to have breakfast. I usually withdraw cash for the week at McD. I found it super convenient as I always knew I could find a BOH ATM at any of the restaurants.

    I don’t take cash out to use at McD as I use Apple Pay there along with the many discounts/offers in the McD app. However, there are many other shops/services that don’t take credit card during the week or have a minimum, hence the need to have cash.

  2. I have found that I rarely use ATMs any more – and instead get cash-back when using a debit card at Safeway.
    On the other hand, I had a craving for Mickey-D’s the other day, and didn’t have cash. But I KNEW there was a BankoH ATM inside the Liliha restaurant . . . and then I saw the note taped onto the machine that announced its impending removal.
    That may, in fact, result in fewer McDonald’s stops!

  3. “Right here, children, is a typewriter. Here is a horse and buggy. Here is a newspaper. Here is a pencil. And here is this fancy old thing from my day …. It was called a ‘store’.”

  4. I think that you will be far healthier not eating at Mac Donald’s. I don’t use ATM’s. No loss!

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