Bank Machine may deploy more cash dispensers for 5-pound banknotes

Bank Machine Ltd., which Tuesday announced deployment of 21 free-to-use ATMs that dispense only the 5-pound British banknote to assist consumers with their budgets, may deploy more of the cash machines later this year, Ron Delnevo, Bank Machine's managing director, tells ATMmarketplace.com.

"There's pent-up demand for the 5-pound banknotes (U.S. $7.48) because most ATMs issue only the 20-pound banknote (U.S. $29.93) and some dispense the 10-pound banknote (U.S. $14.96)," Delnevo said. Bank Machine could install an additional six cash machines per month that dispense the 5-pound note beginning in the fourth quarter, he said. The Hatfield, Hertfordshire, England-based ATM independent sales organization plans to place through-the-wall cash dispensers in housing estates (public housing) and in busy merchant locations.

The Bank of England, the country's central bank, has several projects underway to meet the public's demand for 5-pound notes. Andrew Bailey, the bank's chief cashier, has encouraged the ATM industry to include 5-pound notes in their machines to assist citizens in monitoring their finances. "ATMs are the front line of cash provision to the public," Bailey said in a statement.

Bank Machine installed in 2008 and 2009 its first two free-to-use ATMs that dispensed only 5-pound banknotes in London. Company employees deployed the cash dispensers in British Telephone kiosks, which provided cardholders with 24-hour service. One side of the kiosk was a public telephone and the other side was the ATM.

After consumers became aware of the ATMs, the machines processed on average 10,000 transactions per month, which is equivalent to many bank-owned machines. Cardholders withdraw on average 25 pounds from Bank Machine ATMs compared with cardholders who take out an average of 55 pounds to 60 pounds from bank-owned cash dispensers.

"The two machines in London are getting an additional 100,000 fivers into circulation every month," he said. The company installed the 21 ATMs outside of London in several cities throughout the United Kingdom, including Manchester, Cardiff, Portsmouth, Lower Early and North Walsham. "Whether you withdraw 50 pounds or 5 pounds at our machines it will all be in 5-pound notes," Delnevo said.