News
RBR survey reveals Western Europe's maturing ATM market
August 21, 2006
LONDON - Retail Banking Research Ltd. has just published the latest edition of its annual European ATM survey, "ATMs and Cash Dispensers Western Europe."
Key findings from the study, which covers 18 countries, include:
- 12,600 new ATMs in Western Europe in 2005
- Ireland leads the way, with 14 percent growth
- Off-site share reaches 28 percent
- Annual volume of cash withdrawals rises to almost 11.8 billion
- Three manufacturers supply 86 percent of ATMs
- Second-line maintenance is almost always outsourced
- Windows NT use drops, but remains the preferred operating system
Since its first appearance in 1983, RBR's annual ATM survey has been recognized for the essential information it provides. The report, 850-pages in length, provides analysis of 18 markets in Western Europe.
The following countries are covered in the report: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey and the United Kingdom.
Growth in Western Europe
According to RBR's research, the Western European ATM market grew by 4 percent last year, reaching 328,000 installations. Total transactions continue to increase, but usage per ATM continues to fall.
A slowdown in growth in Western Europe provides further evidence that the sector is reaching maturity, at least in the bank sector, according to RBR. Just 12,613 installations were added in 2005 - the region's smallest increase for 10 years.
The United Kingdom, with 57,798 installations, holds its position as the region's largest ATM market. Spain, which had the leading position in 2003 with 55,878 terminals, is the second-largest market; Germany trails Spain with 52,763.
Seventy-seven percent of Western Europe's installed base is found in the "big five" regions - the U.K., Spain, Germany, France and Italy.
Just three regions - the U.K., France and Spain - accounted for more than half of the region's installed-base growth.
Ireland leads the way
Ireland's 14-percent growth rate was the region's highest in 2005, mainly a result of ATMs spreading to retail locations.
Ireland was the only country in the region to experience double-digit growth.
The U.K. showed the largest absolute growth, but fell from first in 2004 to fifth, as independent ATM deployment slightly decreased.
The Scandinavian market is showing strong signs of maturity. Both Norway and Finland saw their ATM pools reduced in 2005. One Norwegian deployer withdrew more than one third of its ATMs.
Belgium also experienced a decline in its ATM installations but is expected to grow again after restructuring is complete.
Off-site share reaches 28%
The proportion of off-site machines rose in most countries during 2005 - a trend that is expected to continue as banks look for more off-premise locations.
Through-the-wall and lobby terminals now comprise 67 percent of the region's total installed base, compared with 75 percent five years ago.
Germany is home to 40 percent of the region's lobby machines; lobby ATMs account for 72 percent of Germany's installed base.
Off-site is the most popular location for installations only in Finland, Ireland and the U.K. In the U.K., independent ATM deployers continue to drive off-premise deployment.
Annual cash-withdrawal volume rises to almost 11.8 billion
Withdrawals totaling $11.8 billion were made at Western European ATMs in 2005, a 3-percent increase from 2004. Average monthly usage fell, however, for the fourth consecutive year to 2,997 withdrawals per ATM.
There is wide variation in ATM usage in different countries. Finland recorded the heaviest usage at 10,320 withdrawals per ATM per month; Italy reported the lowest at 1,356.
The average cash withdrawal remained relatively stable at €112 (U.S. $144), but from country to country, that figure showed variation. In Portugal, the average withdrawal was €63 (U.S. $81). In Greece, the average was €238 (U.S. $238), a reflection of the relative strength of local economies and differing banking habits, RBR says.
Austria, Germany and Switzerland all experienced drops in average cash withdrawal values, while Luxembourg recorded an increase of 9 percent.
Three manufacturers supply 86% of ATMs
NCR Corp. has a 47 percent share of the Western European ATM market - a share represented in every country surveyed except Luxembourg. NCR leads in Denmark, Finland, France, Greece, Ireland, Italy, the Netherlands, Norway, Spain, Turkey and the U.K.
Wincor Nixdorf International is second, after overtaking Diebold Inc. in 2003. During 2005, Wincor added installations in all markets where it had a presence, increasing its share to 24 percent.
Third-placed Diebold's share fell for the fifth consecutive year to 15 percent. But Diebold is still the market leader in Belgium, Luxembourg and Switzerland.
Fujitsu and Triton Systems respectively remain in fourth and fifth places. Fujitsu has a strong presence in Spain; Triton supplies the majority of the U.K.'s independent ATM deployer market.
Second line maintenance is almost always outsourced
Third-party providers handle first-line maintenance for 42 percent of the region's branch ATMs and 87 percent of all off-premise installations.
Almost all deployers in Western Europe also outsource second-line maintenance for their branch machines. But the proportion of second-line maintenance for off-site ATMs was slightly lower, at 82 percent - which relates to the number of IADs, which perform their own second-line maintenance, in the U.K.
Cash replenishment is outsourced for 49 percent of all ATMs - 89 percent for off-premise and 33 percent for branch terminals. Finland is the only country where cash replenishment for all branch ATMs is outsourced, according to RBR. In contrast, cash replenishment is provided in-house for all branch machines in the Netherlands and Turkey. (Until early 2005, it was illegal for third parties to provide cash replenishment at ATMs in Turkey.)
Windows NT use falls, but it remains the preferred OS
More than half of all ATMs in Western Europe run from an IBM mainframe, with proprietary terminal-driving solutions being the most common.
Fifty-six percent of all ATMs in Western Europe use a Windows operating system. Windows NT continues to lead but its market share in 2005 fell 2 percent, to 38 percent, as several deployers migrated to Windows XP. And the majority of the region's ATM deployers now have remote software distribution capability.
Read also, Central, Eastern Europe ATM placements near 70,000.
Included In This Story
Triton Systems
Triton FI based products • NO Windows 10™ Upgrade • Secured locked down system that is virus/malware resistant • Flexible configurations - Drive-up and Walk-up • Triton's high security standards • NFC, anti-skim card reader, IP camera and level 1 vaults are all options • Triton Connect monitoring • Lower cost
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
Related Media
Subscribe
Get the latest news and resources from ATM Marketplace.
Recent Posts
