While the ATM was launched in the UK 50 years ago, it also has its place in Europe. Patrick Brusnahan looks at GlobalData’s research into some of the continent’s key markets, and the state of play in their ATM deployment
France
The number of ATMs installed recorded a compound annual growth rate (CAGR) of -0.97% from 58,536 in 2012 to 56,300 in 2016, and is anticipated to post a CAGR of -1.07% over the next five years, dropping to 53,939 in 2020.
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As contactless gains popularity, banks have found demand for cash is gradually decreasing, and consequently they are reducing their ATM networks.
Germany
The number of ATMs installed in Germany recorded a marginal CAGR of 0.85%, and is anticipated to post a CAGR of 0.93% between now and 2021.
An increase in the German banked population and the installation of ATMs in convenient locations such as supermarkets, shopping malls, railway stations and post offices drove the increase.
The number of ATMs rose from 82,610 in 2012 to 85,461 in 2016 and is forecast to reach 88,960 in 2021.
Italy
Between 2012 and 2016 the number of ATMs recorded a CAGR of 0.29%, rising from 50,746 in 2012 to 51,346 in 2016.
Sluggish growth indicates a gradual shift from cash-based to cashless transactions. As more consumers are expected to use payment cards at POS terminals, the number of ATM transactions is estimated to decrease at a CAGR of -5.62% by 2021.
Portugal
The number of ATMs in Portugal has decreased recently, from 16,760 in 2012 to 15,467 in 2016.
The economic crisis had a direct impact on Portugal’s banking system, with both public and private sector banks such as CGD and Millennium BCP experiencing heavy operating losses and poor profitability.
Banks in Portugal are also prohibited by a law enacted in 2010 to charge customers for ATM services such as cash withdrawals and bill payments, thereby compounding their financial losses. Many banks have, as a result, closed ATMs.
As government recapitalisation plans to salvage the banking sector take effect, many banks are anticipated to shift their focus towards cost-efficient channels.
Spain
The number of ATMs installed in Spain registered a marginal decrease from 56,258 in 2012 to 50,263 in 2016.
As Spanish banks attempt to cut operating costs, many are making reductions to their ATM networks, which is a key contributory factor leading to the decline.
