The following is an excerpt from 2009 ATM Future Trends Report: A comprehensive look at the ATM industry over the next five years, published by ATM Marketplace.
As we look at the global markets and the trends for the foreseeable future, we identify strategies for growth and innovation and divide them into two sectors. The first is the financial sector and its demands, and the second is the retail sector and off-premises deployments. In reviewing these two different areas, we have identified trend opportunities that are unique to specified regions of the world, as different areas have adopted different features and solutions offered by ATMs.
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| Chan Park |
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For example, we have observed greater use of cash recycling at ATMs in Asia, in combination with the use of passbook printing. We have also seen a higher demand for automation of document/check-imaging processing in countries where there is higher use of checks or printed-value media. Growth opportunities for these innovations are primarily in countries such as Brazil, the United States and some areas of Europe.
In retail, we are seeing solutions deployed for the sale of prepaid services, remittances and advertising, as ISOs look to grow their revenue streams. This trend is an effort to grow the market size, as the opportunity for growth is limited in countries such as the U.K., where IADs have deployed around 30,000 ATMs in the past two years, and in the United States, where such numbers historically have been between 32,000 and 36,000 units per year.
In both of these markets, expect to see check-deposit automation, sales of prepaid services, image processing and bill-payment solutions at the ATM, reflecting an effort to move these services to a more automated process, rather than the traditional post-and-mail routine or paying at brick-and-mortar facilities.
For the last 10 years we have also noticed a trend of growing product and service offerings at the ATM. We have observed dynamics in the market that have positioned some countries at the forefront of ATM automation. For instance, we have developed solutions that incorporate recycling at the ATM in Korea and have seen deployments of more than 40,000 units that feature cash and check recycling, advertising, passbook printing and cellular interfaces.
With the current changes in bank operations and streamlining efforts, there inherently will be continued growth in the check-imaging and processing requirements for those countries where there is a higher circulation and use of checks and printed-value media. For example, the United States leads in check issuance and circulation, but has limited offerings in the automation of check deposits at the ATM level.
So we will see increased demand by financial institutions for the ability to handle commercial deposits of checks.
In conclusion, as more and more cash-management technologies are developed, we will see greater adoption of recycling, bill-payment solutions, check/image processing and prepaid services as consumers demand the ability to perform more transactions at the ATM. Fortunately for the industry, movement toward this trend will help decrease operational costs, increase revenues and give ATM-deploying merchants and banks a competitive advantage over brick-and-mortar facilities.
Chan Gyun Park, president and chief executive of Nautilus Hyosung America Inc., has been responsible for the North American operations of Nautilus Hyosung Inc. since January 2007. To submit a comment, contact the editor, Tracy Kitten.
