Physical banking sites are fewer and more expensive to run. That raises the standard for every remaining terminal: it has to stay online, stay stocked, and stay secure, because there may not be another one around the corner.
Fewer machines, higher stakes
A dense network can absorb a failure. A thinner network cannot. Monitoring and maintenance become more important as the estate shrinks, not less.
Software as the operating layer
The visible object is still hardware. The ability to run it as a fleet — to see it, update it, and service it — is software. Institutions that treat those as separate purchases often rediscover the seam later.