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Europe's ATM base grows overall despite country-specific declines

The number of installed ATMs in Europe grew by 2 percent in 2013, to 634,000. However, of the 33 markets surveyed, more than half contracted during the year, an RBR study found.

July 11, 2014

Russia and Turkey drove ATM market expansion in Europe in 2013, while growth across the rest of the continent stood still, and several major markets contracted. These are findings from "ATMs in Europe 2014: Hardware, Software and Services," a new report by strategic research and consulting firm RBR.

The number of ATMs installed in Europe grew by 2 percent in 2013, to 634,000. However, of the 33 markets surveyed, more than half (17) contracted during the year — 10 in Western Europe and seven in Central and Eastern Europe. The overall picture is mixed, with markets at varying stages of maturity responding to different economic circumstances and customer needs.

Russia remains Europe’s largest ATM market, with more than 140,000 units. The number of ATMs in Russia grew by more than 8,000 during the year, with major state-owned banks aggressively expanding to meet customer demand, while the Turkish total rose by more than 5,000. In the rest of the continent, the total fell by nearly 3,000, but there is an east-west divide, with the CEE region performing more strongly than the WE region overall.

Greek ATM market shrinks by 14 percent

The most spectacular declines have been in Greece, where the installed base shrank by 14 percent during 2013, and Spain, where the largest number of machines (more than 4,000) was removed. These countries’ economies continue to suffer, with reorganizing of the banking sectors in both leading to branch closures and the removal of ATMs.

Every country in the Nordic and Baltic regions saw ATM numbers fall, too; in Scandinavia, mainly because of changing customer behavior and a growing emphasis on cashless payments, and in the Baltics principally owing to the closure of several banks.

Some seemingly mature markets continue to grow

Some countries have bucked the trend. The U.K. and France are two of Europe’s most mature ATM markets, but both saw surprisingly strong growth. In the U.K., where the installed base grew by 1,300 machines, the non-bank sector has continued to expand, while in France nearly 900 ATMs were added, primarily in post offices, as a way to reduce queues.

In Eastern Europe, nearly 1,000 new machines were installed in Ukraine. The market there is similar to Russia, with state-owned banks aggressively expanding their distribution networks through ATM deployment. Fast growth was recorded in neighboring Belarus, as well.

Deployers are upgrading their ATM fleets

Even in countries where the number of installed machines is falling, the ATM market remains dynamic. Many banks are upgrading from single-function cash dispensers to automated-deposit ATMs and cash recyclers, and some of the more mature Western European markets have a large number of old ATMs in service that need to be replaced. This means that even in markets where the installed base is shrinking, the number of ATMs purchased remains high, and might even rise.