4 banking services that could disappear by 2036

As technology advances and consumer habits evolve, banking services change too. From the decline of cash and paper checks to more stringent digital security requirements, the industry is moving toward an all-digital experience. In fact, some of the banking services you depend on today may disappear in the next decade.

Here are four banking services that will likely disappear by 2036.

Traditional in-person bank branches are set to undergo significant changes. According to Seth Perlman, global head of product at i2c Inc., the traditional bank branch model, in which customers visit a physical branch to make routine transactions such as deposits or withdrawals, is quickly being replaced by digital tools.

“New stand-alone bank branches that open will likely be smaller and more likely to be co-located with grocery stores or other retail outlets,” Perlman explained.

But he does not believe that physical branches will disappear completely; rather, they will change their operations. Perlman predicted that bank branches will focus on high-value interactions, such as providing financial advice, mortgage planning or business consulting services.

“At i2c, we are seeing this transformation firsthand,” said Perlman. “Our customers are investing in hybrid branch models that combine digital self-service kiosks with virtual consultations to strike a balance between efficiency and human connection.”

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The use of cash is also changing, although it is unlikely to disappear completely. It is no longer the most widely used payment method for transactions of $25 or less, indicating a substantial shift toward cashless payments.

Perlman explained that while cash usage may be declining, cash is still important as a backup during digital outages or emergencies.

With less cash, there could be fewer ATMs, but Lisa Hrabosky, vice president of banking and network partnerships at Marqeta, predicted that ATMs will not become completely obsolete and can coexist with new payment options.

“I certainly hope that digital payments and the use of digital wallets continue to gain popularity, and that new payment methods and capabilities continue to evolve, rather than existing methods becoming obsolete,” Hrabosky explained.

Personal checks will soon be a thing of the past, Perlman predicted, as person-to-person payment apps essentially make checks redundant. Additionally, he said online bill pay and card transactions will continue to increase as customers move away from paying with checks, which are slow and inconvenient.

“Over the next ten years, we will see more and more banks offer accounts that only come with a debit card and no checkbook,” Perlman said.

He suggested that business controls could continue for longer, particularly in industries that rely on legacy systems or manual processes.

“But as real-time payment systems like FedNow gain traction, businesses are quickly migrating to digital invoicing and money transfer services to save time and reduce costs,” Perlman said.

The days of entering a simple password or four-digit PIN to access your online banking account may soon end as well, as new security technologies emerge. According to Gates Little, CEO and president of altLINE and The Southern Bank Company, fraud in the consumer and commercial banking industries is increasing, so identity verification and account protection can become more advanced to defend against sophisticated fraud schemes.

“We are already seeing changes in the name of security, such as two-factor authentication, liveness detection, and AI-enabled verification,” he explained. “These new security technologies are likely to complement older security methods, creating multiple layers of protection.”

Perlman explained that behavioral biometric technology is an exciting advancement in banking security.

“This technology analyzes user patterns, such as typing speed, browsing behavior and even how a user holds their device, to authenticate identity in the background,” he explained. “It is simple for users and very effective in preventing fraud, since these patterns are difficult to replicate.”

Perlman predicted that we are likely to see passwords and PINs become secondary security layers as biometrics are increasingly implemented.

“Many banking applications already use facial recognition or fingerprint scanning, and these methods will become increasingly sophisticated,” he said.

Caitlyn Moorhead contributed to this article.

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This article originally appeared on GOBankingRates.com: 4 Banking Services That Could Disappear by 2036