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ATM future trends: A highlight of ATMIA
January 19, 2009 - Tracy Kitten
The future of the ATM industry in the United States will be impacted by increasing regulation and impending political changes.
Ask any banking expert who pays attention to regulatory compliance about the future of the ATM industry and that's the kind of response that will come out. Kurt Helwig, the chief executive of the Electronic Funds Transfer Association, is a perfect example.
"I expect to see the government getting involved in pricing decisions and in business decisions," Helwig said. "And they may look at surcharging and say it's too high, and they may say justify your cost. And even though the ISOs and networks didn't get the bailout from the government, the bank did, and therefore the government is going to make the bank connection and say, perhaps, that we just can't overcharge the consumer. It's going to be really hard to stop this intervention from the government, and the ATM industry needs to be prepared."
That means not just reacting to pricing and regulatory change, but playing an active role in how the regulators, the lobbyists, etc., set new standards, Helwig says.
"These markets aren't free anymore," he said.
The economic recession is at the core of many of those changes, says Mike Lee, the CEO of the ATM Industry Association, and the impact of the recession is something ATMIA is watching closely. In fact, the impact on the ATM and payments industry is an expected focal point at this year's annual ATMIA Conference in Nashville, Tenn., which runs from Feb. 10 through Feb. 12.
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A focus on cash
Lee, along with ATM Marketplace, is gauging how the industry is evolving in ways that are pushing more consumers toward cash. As credit tightens, cash use will continue to increase. It's just one trend Lee sees having a dramatic impact on the ATM industry in the short and perhaps long term.
Some of Lee's findings, along with in-depth industry information collected from some 1,600 survey respondents at the end of 2008 by ATM Marketplace and ATMIA, will be presented by ATM Marketplace publisher Tom Harper on Feb. 12. Harper, during his 2009 ATM Future Trends presentation, will provide a glimpse at statistics and information that ATM Marketplace and ATMIA will publish in March in the ATM Future Trends Report 2009 — an update to the popular ATM Future Trends Report 2004.
The report provides results from a massive industry survey as well as commentaries from some of the industry's top executives, including Bill Nuti, the CEO of NCR Corp., the world's largest ATM supplier, Eckard Heidloff, the CEO of Wincor Nixdorf AG, Tom Swidarski, the CEO of Diebold Inc., and Helwig of EFTA.
ATM Future Trends highlights
Every global market, save for South America, agrees that consumers are saving less than they were a year ago.
Over the next five years, technology and equipment designed to protect cardholder information, namely PINs, and the deployment of Windows-based ATMs are expected to have the greatest impact on the global ATM industry.
Within the next five years, solutions that integrate mobile-banking with the self-service/ATM channel are expected to be the most popular methods of serving cash-preferred consumers.
"An astute observation was made in RBR's Global ATM Market and Forecasts to 2013 study: 'The global ATM installed base expanded by over 130,000 units in 2007 —considerably higher than the previous record of 119,000 seen in 2000,'" Harper says. "'By 2013,' the study continues, 'there are forecast to be over 2.5 million installations worldwide.' I don't believe this momentum will be curtailed by the current global economic woes. In fact, the use of cash will likely grow as people rely less on credit. Our industry is poised for greater cash demand, which will lead to more deployments, though at a cautious rate."
To complement Harper's presentation, ATM Marketplace editor Tracy Kitten will lead a panel of industry experts who will provide their insights about some of the data collected by ATM Marketplace and ATMIA. The panel, which includes Wincor Nixdorf Inc. (USA) CEO Patrick Wright, Banking Administration Institute CEO and president Debbie Bianucci, and KAL Ltd.'s executive vice president of global sales, Steve Hensley, also will offer attendees an opportunity for Q & A.
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