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].

Group 1 - China Merchants Bank announced the cessation of ATM QR code deposit services starting April 9, citing the need to provide safe and convenient financial services, without further elaboration on the reasons [1] - The bank's QR code deposit service allowed customers to deposit up to 30,000 yuan per day per card, while the QR code withdrawal limit was set at 20,000 yuan per day per card [1] - The decision aligns with a broader trend in the banking industry, where many banks have tightened their QR code deposit services for security reasons [1][2] Group 2 - The tightening of cardless deposit services has been ongoing for three years, with several state-owned and joint-stock banks having already ceased or adjusted their related services [2] - In 2022, major banks like China Construction Bank and Bank of China also discontinued their ATM QR code deposit functionalities, indicating a shift in banking practices [2] - By 2024, numerous banks, including Industrial and Commercial Bank of China and Agricultural Bank of China, have also suspended cardless withdrawal services, reflecting a significant industry-wide trend [3] Group 3 - Analysts attribute the changes in cardless deposit services to risk control requirements, noting that the security of identity verification in QR code deposits is relatively low [4] - The overall demand for cardless deposit services is considered low, suggesting that the impact of these adjustments on banks' operations will be minimal [4] - The industry is moving towards more secure methods such as facial recognition for transactions, replacing previous authorization code and QR code methods [3][4]