Core Viewpoint - The number of bank branches and ATMs in China is decreasing significantly, indicating a shift towards a new model of cash withdrawal and banking services driven by digitalization and changing consumer behavior [1][3]. Group 1: Bank Branches and ATM Reduction - In the first half of 2025, 2,677 bank branches closed, surpassing the total of 2,533 closures in 2024, affecting various banking institutions including state-owned and joint-stock banks [1]. - The number of ATMs in China decreased from 1,097,700 at the end of 2019 to 802,700 by the end of 2024, a reduction of approximately 300,000 units, representing a decline of 26.87% [1]. Group 2: Reasons for Changes - The proliferation of mobile banking apps allows customers to perform most banking transactions without visiting physical branches, reducing the need for numerous bank locations [3]. - The rise of mobile payments has led to a decline in cash transactions, prompting banks to cut back on the number of ATMs to save operational costs [3]. - The introduction of digital currency is further marginalizing cash, making the excess of ATMs seem unnecessary [3]. Group 3: Enhanced ATM Features - Despite the reduction in ATM numbers, banks are upgrading their ATMs with facial recognition technology, making cash withdrawals more convenient by allowing users to withdraw cash without a physical card [5]. - The new ATM interface improvements, such as larger fonts and language prompts, have received positive feedback, especially from elderly customers [5]. Group 4: Future Trends - The trend indicates that bank branches and ATMs will continue to shrink, with digital currency gradually replacing cash as the primary medium of exchange [7]. - The adoption of facial recognition for cash withdrawals is expected to become widespread, leading to the potential phasing out of physical bank cards [7].