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2016 in the ATM industry: For Europe, a year of heavy lifting

The ATM industry has some big items on its 2016 to-do list, but ATMIA Europe Executive Director Ron Delnevo says his organization is fit for the job.

January 7, 2016 by Ron Delnevo — Chairman, Cash and Card World

by Ron Delnevo, Executive Director, ATMIA Europe

As a membership organization — and the only ATM trade group to span the globe — recruiting and retaining members has to be the No. 1 priority of the ATM Industry Association. It is therefore particularly pleasing to be able to confirm that 2015 has seen significant growth in the number of ATMIA members in Europe.

I have been delighted to welcome more than 30 new corporate members to the organization's Europe chapter, including major banks such as Société Générale, Santander UK and Alfa Bank, along with prominent organizations such as the Austrian and Bavarian mints.

The ATMIA attracts members from across the wide spectrum of activities that together constitute the "ATM Industry." As more and more companies appreciate the benefits that come with ATMIA membership, the number of members is set to grow further in the years ahead.

The ATMIA is known for organizing excellent conferences around the world, and we are proud of this hard-earned reputation. However, there is much more to the ATMIA than these annual events.

With an Online Academy, an impressive catalog of ATM industry best practices guides, a growing market intelligence library and a wide selection of committees covering every aspect of the diverse world of ATMs and cash, the ATMIA offers members a unique opportunity for meaningful participation, shared learning and networking.

In Europe and elsewhere, advocacy on behalf of both ATMs and payment choice is another vital aspect of the work carried out by the ATMIA on behalf of our members.

In 2015, we successfully worked at European Union level to help ensure that the Payment Services Directive 2 [the document that provides the legal foundation for the creation of an EU-wide single market for payments] will not hinder the development of the ATM industry.

Going forward into 2016, advocacy will focus on activities such as:

permitting direct charging in every European market, on any ATM cash withdrawal;
development of a transparent model, usable throughout Europe, for the calculation of ATM Interchange; and
enhancing payment choice across Europe.

Payment choice is an issue on which the association is particularly focused. We will be working to ensure that every European market maintains and enhances payment choice.

Concerns include the need for the public to have convenient and secure access to cash withdrawal and deposit facilities, for both notes and coins.

There are now more than three million ATMs worldwide, 400,000 of which are located in Europe. These ATMs dispense more than 70 percent of the cash in circulation — and more cash continues to come into circulation every year.

So even if nothing else were to change, ATMs would have a continuing and crucial role in making cash available to the public in Europe.

But, of course, there are many changes now affecting financial services in Europe.

One of the most important of these Europe-wide is the trend toward bank branch closures. In almost every European market, each year that passes sees a further reduction in bank branch numbers.

As branches disappear, ATMs take on an increasingly important role as a customer touchpoint. This enhanced role inevitably will lead to growth in the both the number of ATMs and the types of transactions available to ATM users.

Banks and other ATM deployers will need to ensure that the public and businesses are able not only to withdraw, but also to deposit cash at ATMs. ATM users might also want to deposit checks electronically, pay bills, take out loans, apply for mortgages, and so on.

A "smart ATM," perhaps with a video link to a specialist advisor, will enable all such services to be delivered — and delivered far more economically than could ever be achieved at traditional bank branches. This is especially the case when cost-reduction measures such as cash recycling are implemented at the ATM.

Not all of the developments identified in this article will occur during 2016. However, a start will be made. And the ATMIA in Europe will be at the forefront, working toward the enhancement of ATM and cash services on behalf of association members, the public and the economies of every European country.

There is much to do in 2016 ...

Bring it on!

photo istock

About Ron Delnevo

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ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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