Europe’s ATMs increased in number for the second year in
a row in 2007, according to the latest industry research. Although
some markets appear to be reaching maturity, rapid growth was still
seen in countries such as Turkey, Portugal and even France, with
the off-site sector the main growth area.
Not only did the number of ATMs in western Europe increase last
year, but so did their sophistication, according to the annual
industry survey from London-based consultancy Retail Banking
Research (RBR). Automated note acceptance, for example, is now
available at 24,900 ATMs, an increase of over a third compared to
the previous year.
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Overall, RBR said the
Western European region now has 359,509 terminals in total, a rise
of 4.77 percent on 2006.
But it warned that the average number of monthly cash
withdrawals per machine fell once more in 2007, as the rise in the
number of installations continues to have a diluting effect on
transaction volumes.
Europe’s ATMs increased in number for the second year in a row
in 2007, according to the latest industry research.
Although some markets appear to be reaching maturity, rapid
growth was still seen in countries such as Turkey, Portugal and
even France, with the off-site sector the main growth area.
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By GlobalData“Automated note acceptance [has] increased over a third compared
with 2006. The proportion of ATMs with this facility rose to 7
percent in 2007. The uptake of automated deposit will continue,
driven by teller migration, the desire to deploy staff in more
profitable areas, and to reduce queues,” stated RBR.
The off-site sector continues to be the main growth area in most
countries as banks look reach customers away from the branch. The
expansion of independent ATM deployers (IADs) in several countries
has also brought about a rise in the number of off-site
installations. IAD ATMs were installed in Finland and Turkey for
the first time in 2008.
Some 30 percent of ATMs are now located away from the bank
branch, added RBR, a rise of one percentage point compared with
2006, and an increase of five percentage points on 2003.
ATMs located in bank halls (accessible only during branch hours)
saw a slight revival in 2007, their share increasing by one
percentage point. This is largely a result of banks in some
countries, such as France, installing more machines in this
location to divert routine transactions away from the teller.
More than 12.3 billion cash withdrawals were made at Western
European ATMs in 2007, but average usage fell to 2,854 withdrawals
per terminal per month as the rise in the number of installations
continues to have a diluting effect on transactions.
Finland has heaviest usage
Finland recorded the heaviest usage at 9,585 monthly cash
withdrawals, while Italy saw the lowest level at just 1,340.
The high level of usage in Finland can partly be explained by
its low density of machines to population, but also by the tendency
of Finns to visit ATMs frequently and withdraw small amounts on
each occasion. In contrast, one of the reasons for the low usage in
Italy is that the average value of a cash withdrawal is among the
highest in the region.
Turkey showed the largest growth in overall ATM numbers at 13
percent.
The country’s retail banking market has attracted a great deal
of foreign investment over the past two years – such as ING’s
purchase of Oyak Bank last year (see RBI
586), National Bank of Greece’s 85 percent stake in
Finansbank and GE Money’s 25.5 percent stake in GarantiBank
(see RBI 591) – a move which
has resulted in an increase in ATM expenditure, said RBR.
Not for the first time, Finland was the only country where the
number of ATMs declined, but the downward ATM trend looks set to be
reversed following the entry of an IAD – Kontanten – in March 2008
and the planned entry of another – Suomen Käteisnosto – in
September 2008.
The ATM market ‘exploded’ in CEE
RBR adds that while the ATM market within the CEE region has
been growing strongly for several years, in 2007 “it exploded”.
High numbers of new machines in Russia, the Ukraine and Kazakhstan,
in addition to surprisingly rapid growth in Poland and Serbia, made
for a bumper year in the region.
Overall, the CEE ATM market grew by 34 percent in 2007.
Kazakhstan, up 93 percent, experienced the highest growth of any
country in either Europe or Central Asia at a time when the country
is enjoying an economic upturn and continues to attract foreign
investment into the retail banking arena.
Even Poland, which would normally be considered one of CEE’s
more mature ATM markets, has grown strongly due to increased
competition and the threat posed by IADs entering the market. The
country’s ATM market increased by 1,582 units in 2007, its highest
absolute growth since 1999.
