News

China soon to exceed US ATM count

May 17, 2013

The Chinese ATM market is huge — and growing. The market added 76,000 ATMs in 2012 to reach 415,000, an increase of 250 percent since the end of 2008.

According to the report, "ATMs in China 2013," by strategic research and consulting firm RBR, the "Big Four" Chinese banks added 46,500 ATMs in just one year. And while China remains the second largest ATM market in the world, that's only by the slimmest of margins. And, RBR said, it could claim the number one spot from the U.S. when the company publishes its global ATM report later this year.

Driving this growth is customer demand. Chinese banks issue a million cards every business day, and they must support those cards with increasingly more ATMs. 

Another factor in the growth of ATM numbers is a decline in off-us fees. This makes it more attractive for a bank customer to use a competitor's ATM if it is more conveniently located, and banks are reacting by making sure that there ATMs are wherever their customers are.

Only 8 percent of ATMs in China are operated by entities other than banks, partly because all ATMs must be bank sponsored, and also because banks are questioning the profitability of an outsourced fleet.

RBR also found that ATMs in China typically offer high functionality, but this is beginning to change as banks establish kiosks to handle non-cash transactions, freeing up ATMs for cash withdrawal and deposits. The use of recycling ATMs has been problematic, as bank regulations regarding their use vary from province to province.

For more information about "ATMs in China 2013" report or to discuss the findings in further detail, contact Rowan Berridge at RBR.

graphic: ATMs in China 2013 (RBR)

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