Asia-Pacific contributed more to worldwide ATM growth in 2013 than any other region, accounting for 83% of new installations, according to RBR’s latest research Global ATM Market and Forecasts to 2019. The study found that the global ATM market increased by 8% overall in the year to reach 2.8 million, with 205,000 new machines added.
China remains the global powerhouse, as the country’s banks expand services to meet a significant increase in cardholders. China is the world’s largest ATM market, and its 105,000 additional ATMs accounted for 60% of expansion in Asia-Pacific in 2013, and half of growth worldwide.
The Middle East and Africa region also grew strongly in 2013, although it accounted for only 7% of growth globally. Iran led growth in the region, following a government drive towards banking automation. However, growth in Latin America slowed to 3%, with security attacks in Brazil, Chile and Mexico, and the subsequent investments required in new security measures, shifting deployer focus from pure network expansion.
Growth in other regions was flat, with North America and western Europe each demonstrating expansion of less than 1%. Branch closures in the USA led to a contraction in this market which limited growth in North America, while continuing economic challenges in western Europe have led to sizeable contractions in several markets, including Greece and Spain.
Global Installed ATM Base, 2008-2019 (millions)
India forecast to pull level with the USA by 2019 after trebling installed base
The global installed base is expected to increase by 40% between 2013 and 2019. In addition to strong growth in China – which is forecast to add 465,000 machines – ATMs are expected to treble in number in India by 2019, pulling level with the number in the USA. This follows the continued financial inclusion programme in the country. Such initiatives will also drive growth in markets including Indonesia, Nigeria and Egypt.
Cost cutting and demand from customers remain the most important drivers of growth in ATMs according to deployers in RBR’s survey. Installing ATMs is often considered to be the most efficient method of quickly increasing capacity without incurring the much higher costs of opening new branches. New branch concepts are also being implemented with a move away from teller assisted services to more automation and self-service, and banks in many markets are interested in making their fleets more dynamic by employing automated deposit technology on their ATMs. Take up has so far been highest in Asia-Pacific.
Growth in cash withdrawal volumes set to outstrip ATM growth in many markets
Withdrawal volumes are expected to increase by 58% globally between 2013 and 2019, to 138 billion, with volumes set to double in Asia-Pacific. An increase in customer demand – often under financial inclusion programmes – and teller migration will both be important drivers of this increase.
In Asia-Pacific, Latin America and central and eastern Europe, growth in cash withdrawals is expected to outstrip growth in ATMs between 2013 and 2019, with strong consumer demand for cash in Russia, in particular, leading the increase in the latter market.
Asia-Pacific will continue to lead cash usage globally, with the region set to account for nearly two thirds of global withdrawals by 2019. One country that stands out in the region is Bangladesh, where withdrawals are expected to more than treble in volume over this period, with the formation of a national payment switch contributing to rapid growth in this market. However, it is customers in China and India which will continue to generate the highest demand, together accounting for nearly half of global cash withdrawals by 2019.
Total Volume of Global Cash Withdrawals, 2008-2019 (billions)
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