Banks worldwide deployed a total of 464,000 automated-deposit terminals (ADTs) at the end of 2009, and the number of installations is forecast to triple by 2020 because the technology has become a key cost-savings solution that offers tangible benefits to bank customers.

According to a survey released by Retail Banking Research (RBR), a London-based strategic research and consulting firm, the number of automated-deposit terminals deployed at the end of 2009 increased 44 percent since 2007.

What’s surprising is that the deployments occurred during the economic downturn.

Record numbers of new automated-deposit terminals were deployed in 2008 and 2009—during the height of the global financial crisis. It may be surprising that this relatively expensive technology was given the green light at a time when many IT budgets were frozen and investment plans postponed, RBR wrote in its report, “Deposit Automation and Recycling 2010.”

“This phenomenal growth rate significantly outpaced that of non-deposit ATMs, which grew by just 12 percent during the same period, and has helped sustain the major ATM manufacturers during this difficult period,” RBR said.

Retail Banking Research’s survey of 138 banks in 46 countries reported that the world is experiencing a boom in deposit technology. Many financial institutions now consider deposit automation the technological advantage they cannot do without, partly due to a strong financial business case and partly because it has a tangible-positive impact on the customer experience.

The report noted that automated-deposit ATMs have reached a milestone, outnumbering envelope-deposit ATMs worldwide. The report said, however, that the milestone has not been reached in a number of the world’s largest markets, including Brazil, India, Spain and the United States.

Cash recycling is available at two-thirds of the automated deposit ATMs. The majority of the world’s recyclers are in Japan, where cash-dispensing terminals have such functionality. Outside of Japan and South Korea, the two largest markets for  cash recycling, only 26 percent of automated deposit ATMs re-dispense deposited notes, the reported noted.

Most automated deposit terminals are installed in bank branches, a channel that still heavily depends on staff and carries high operational costs. Banks that participated in the survey cited migration of transactions to self-service as the most important factor motivating them to deploy ADTs.

In countries where the banking sector is relatively mature, there is a general trend towards teller-less or cashless branches, the report noted. Twenty-five of 46 countries surveyed are forecast to have more ADTs than branches by 2020. The average across the 46 countries is expected to be nearly two terminals per outlet, with branches remaining the primary outlet for automated deposit terminals.

Retail Banking Research forecast that the number of automated deposit terminals worldwide will triple in nine years to reach 1.4 million. This corresponds to a CAGR of 11 percent, more than twice the growth rate forecast for non-deposit ATMs.

“As more deployers commit to mass rollouts of ADTs, it is clear that deposit automation will become an essential part of the modern self-service channel,” RBR said.