Retail Banking Research (RBR) has just published the latest edition of its highly respected annual western European ATM survey, ‘ATMs and Cash Dispensers Western Europe’. Key findings from the new study, which covers 18 countries, include:

• 14,295 new installations in western Europe
• Turkey is fastest growing market
• Off-site ATMs outnumber lobby installations for the first time
• Annual volume continues to rise whilst average monthly cash withdrawals fall
• Wincor Nixdorf’s market share increases to 27% of the region’s installed base
• Cash replenishment is outsourced for almost half of ATMs
• Windows XP doubled its market share from 15% to 30% during 2006

 14,295 new installations in western Europe

• The growth rate of the western European ATM market recovered slightly from an all time low of 4.0% in 2005 to 4.4% in 2006. 14,295 new machines were added to reach 342,495 total installations. Together with strong ATM shipment numbers for the region, these figures highlight the importance of replacement units ahead of installed base growth.
• The UK remains the largest market with 60,642 ATMs. Spain, which had the leading position in 2003, is in second place with 57,989 machines, followed by Germany with 53,630 units.
• Just three countries (the UK, Italy and Spain) account for more than half of the growth in the region’s installed base.
• The five largest markets (the UK, Spain, Germany, France and Italy) account for 77% of the region’s installed base.

ATM Installed Base in Western Europe, 2002-2006

Source: ATMs and Cash Dispensers Western Europe 2007 (Retail Banking Research)

Turkey is fastest growing market

• The Turkish market recorded the fastest rate of growth in 2006 at 11%; it was the only country to experience double digit growth. Since the 2001 financial crisis, banks are investing in expanding their branch and ATM networks and, as a result, the Turkish banking sector has witnessed significant growth.
• With 9% growth, the Netherlands was the second fastest growing market in 2006. Most of its new installations were a result of Postbank’s agreement with the supermarket chain Albert Heijn to deploy machines at its outlets.
• The Greek market grew by a rate of 8%, as it did in 2005. This is driven mainly by deployers’ further exploitation of the off-site sector.
• Austria, Belgium, Finland and Luxembourg saw their number of ATMs fall in 2006, due principally to the rationalisation of the fleets of certain major deployers.

Off-site ATMs outnumber lobby installations for the first time

• There are now, for the first time, more ATMs located off-site than in lobbies.
• 29% of ATMs are located off-site in western Europe. The proportion of off‑site machines rose in most countries during 2006.
• In 2006, the Netherlands and Norway joined Finland, Ireland and the UK as countries where off-site is the preferred ATM location.
• The number of terminals installed off-site is expected to continue rising as banks seek new locations to extend their reach and to maximise interchange revenue.
• The spread of off-site machines is also likely to be driven by IAD deployment in some countries.
• Through-the-wall and lobby terminals collectively account for less than two thirds of the region’s total installed base, compared with three quarters six years ago.
• Germany is the mainstay of lobby deployment in the region. Almost two fifths of western European lobby ATMs are found in Germany, where they represent 70% of the market.
• Hall ATMs continue to represent only a small share of locations, although many of the new generation of automated deposit terminals are being placed in such locations. Hall ATMs only account for more than 10% of the total in Denmark, France and the Netherlands

Annual volume continues to rise whilst average monthly cash withdrawals fall

• Almost 11.9 billion cash withdrawals were made at western European ATMs in 2006, an increase of 1.7% over the 2005 figure. Average usage fell for the fifth consecutive year to stand at 2,888 withdrawals per machine per month.
• There is a wide variation in ATM usage in different countries. Finland recorded the heaviest usage at 9,782 withdrawals per terminal per month, and Italy the lowest at 1,320.
• The average value of a cash withdrawal increased from EUR 112 in 2005 to EUR 116 in 2006. This mean figure disguises an almost four-fold variation between countries, from EUR 66 in Portugal to EUR 249 in Greece. These variations are mainly as a result of differing banking habits in the various countries.
• The Netherlands and Switzerland experienced falls in average cash withdrawal values between 2002 and 2006, while Turkey recorded the highest increase of 10% per year.

Volumes and Values of Cash Withdrawals at ATMs in Western Europe, 2002-2006

Source: ATMs and Cash Dispensers Western Europe 2007 (Retail Banking Research)

• NCR remains the largest ATM manufacturer in western Europe with a 46% market share. It is represented in every country surveyed except Luxembourg.
• Wincor Nixdorf is second in the market after overtaking Diebold in 2003. By the end of 2006, its share increased to 27%, up three percentage points on the figure a year earlier. As with NCR, it is present in all countries surveyed except Luxembourg.
• Third-placed Diebold’s share fell for the fifth year in a row, to 13%, although it is still the market leader in Belgium and Luxembourg.
• Fujitsu and Triton remain in fourth and fifth places respectively. Fujitsu has a strong presence in Spain while Triton supplies the majority of the UK’s IAD market.

 
Cash replenishment is outsourced for almost half of ATMs

• Cash replenishment is outsourced for 47% of installations. The proportions differ significantly for branch and off-site ATMs at 90% and 30% respectively.
• Finland is the only country where cash replenishment is outsourced for all branch and off‑site ATMs. In contrast, this function is carried out in-house for all branch machines in Denmark, Greece, the Netherlands and Turkey. Until early 2005, it was illegal for third parties to carry out cash replenishment at ATMs in Turkey.
• First line maintenance is carried out by third parties for 42% of branch machines and 86% of off-site terminals. Deployers typically use cash-in-transit companies such as Brink’s, Group 4 Securicor and Loomis (formerly Securitas) as partner organisations.
• Almost all deployers in western Europe outsource second line maintenance for their branch ATMs. The proportion for off-site machines is lower at 80%; this is mainly due to UK IADs which perform second line maintenance themselves.

Windows XP doubled its market share from 15% to 30% during 2006

• Many of the most interesting current ATM developments relate to software. The increase in use of Windows, TCP/IP and remote software distribution allow ATMs to take advantage of advances in internet technology, open platforms and multivendor software.
• Two thirds of ATMs use a Windows operating system. Windows NT continues to lead but its market share fell by six percentage points in 2006 to 32%. Several deployers migrated to Windows XP, which saw its market share double from 15% to 30% during 2006.
• Over half of the region’s installations communicate via TCP/IP which is the most common communications protocol in 12 of the 18 countries surveyed.
• Software can be distributed remotely to 82% of western European ATMs, up four percentage points compared to end-2005. Proprietary software is most commonly used for this function.