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RBR Publishes Latest Data on Western Europes Off-Site ATM Market

Wednesday 3 March 2004 13:19 CET | News

Retail Banking Research has published a brand new analysis of the European off-site ATM market: Off-Site ATMs Europe. The report provides the industry with its most detailed and reliable country-by-country analysis of the off-site ATM markets in 18 European countries, comprising over 500 pages and 250 tables and graphs.

The information in Off-Site ATMs Europe is not available from any other source. - Western Europe home to 65,000 off-site ATMs; - Retail sites most popular for remote installations; - Off-site ATMs to number 100,000 by 2007; - Surcharging practised in only two markets. Western Europe Home to 65,000 Off-Site ATMs At the end of 2002, western Europe was home to 283,590 ATMs. A total of 64,828 (22.9%) were found away from bank branches, although the proportion of machines in off-site locations varies widely between countries. The number of off-site installations grew by 35,000 between 1998 and 2002, an increase of 117%. During 2002, growth amounted to 9,439 machines -a rise of 17% - and was driven by UK deployers, who added 4,044 new off-site ATMs. The UK has by far the largest population of off-site installations, and is followed by the other members of Europe’s big five economies, although in these countries less than one in five ATMs is found away from branches. Indeed, the proportion of machines located off-site is higher in a number of smaller countries. In 2001 remote ATMs became more numerous than branch machines in Finland, and the same happened in the UK during 2002. Off-site installation also account for more than a third of the total in Ireland, Turkey and Portugal. Retail Sites Most Popular for Remote Installations Retail locations – including not only supermarkets, hypermarkets, department stores and other retailers but also shopping centres and petrol stations – are home to more than 35,000 off-site ATMs, 56% of the western European total. Supermarkets alone account for one quarter of this figure. Factories and offices together account for more than one in ten off-site ATMs. Public sites (universities, hospitals and other municipal buildings) represent 7% of non-branch installations whilst transport-related sites (rail stations, underground stations and airports) account for 5%. Despite the overall dominance of retail locations, individual countries show a variety of deployment patterns: In Italy, Greece, Austria and Belgium, the most popular locations for remote ATMs are offices and factories, while in the Netherlands ATMs at closed bank branches are most numerous. The proportion of remote terminals found at supermarkets has decreased slightly since 2000, a fall which has been off-set by greater deployment at convenience stores. Bars, pubs and night clubs have become increasingly popular locations in the last two years, largely thanks to the activities of UK ISOs. Off-Site ATMs to Number 100,000 by 2007 It is forecast that more than 100,000 off-site ATMs will be installed in western Europe by the end of 2007, representing 30% of the market as a whole. Almost two fifths of these will be found in the UK. The principal drivers of growth include: - An increase in disposable income, and a willingness to pay for convenience; - The development of the retail sector: the forecast growth in average outlet size will increase the number of sites with high enough footfall to support deployment. This factor is expected to be especially important in Ireland, Austria and Greece; - The entrance of non-bank ATM deployers known as ISOs (independent service organisations). While the UK still accounts for the lion’s share of European ISOs, they are also present in Ireland, Germany, Norway and the Netherlands. Sweden and Denmark are current targets. ISOs will be helped by the introduction of cheaper ATMs (both in terms of purchase price and operational costs) and by the ability to increase their revenue through surcharging (see below), allowing them to make a profit at ever-lower transaction volumes; - The closure of bank branches and subsequent installation of ATMs at these sites or recla


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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce