Strong demand for off-premises cash machines will provide a springboard for the continued expansion of the overall European ATM market, according to marketing consultancy Frost & Sullivan.
New research suggests the expansion of ATMs to off-premise locations, such as shopping centres, supermarkets, pubs and local stores, has provided consumers with convenient access to their cash and, in turn, spurred greater usage and growth of ATMs.
Currently, the largest base of retail ATMs is found in the UK. "Here, a major factor for success has been the readiness amongst end-users to accept surcharging. An increased acknowledgement of this concept, coupled with the low cost of off-site retail ATMs is expected to expand the retail segment across Europe, as it has in the UK," reports Michelle Bone, research analyst at Frost & Sullivan.
She warns, however, that the expansion is not likely to be uniform, as a result of country-specific regulations and cultural attitudes across Europe.
Frost & Sullivan also points to evolving functionality as a driver for growth in the ATM market. New functionality at the ATM terminal is helping banks to automate their banking services and reduce overhead costs. In addition, increasing competition has meant financial insitutions are striving to provide innovative and improved services in the guise of multi-functional ATMs, in order to retain clients.
In 2001, revenues from the total ATM market were estimated at $5.36 billion with approximately 270,000 installed ATM units in Europe. The compound annual growth rate (CAGR) for 1998 to 2008 is anticipated to be 11.7 per cent, based on an average cost of $20,000 per ATM.