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ATM Future Trends Report 2012
ATM Future Trends 2012 © 2012 NETWORLD ALLIANCE2
Table of Contents
www.atmmarketplace.com
Joseph Grove, executive [email protected]
James Bickers, vice president custom media
Emily Wheeler, managing editor of special publications
Courtney Bailey, assistant managing editor of special publications
NetWorld Alliance
Alan Fryrear, chairman & CEO [email protected]
Tom Harper, president [email protected]
ATM Future Trends Report 2012 ©2012 Net-World Alliance LLC. 13100 Eastpoint Park Blvd., Louisville, KY 40223. (502) 241-7545. All rights reserved. No part of this publication may be re-produced without the express written approval of the publisher. Viewpoints of the editors are his own and do not necessarily represent the viewpoints of the publisher.All information was contributed by the compa-nies. Any errors or omissions are not the re-sponsibility of NetWorld Alliance.
Page 3 Executive summary Tom Harper, publisher, ATM Marketplace
Page 6 Survey results All respondents Industry segment Region
Page 71 Industry perspectives Debbie Bianucci, president and CEO, BAI
Daryl Cornell, president and CEO, Triton
Lachlan Gunn, director and coordinator, European ATM Security Team
Flora Hamilton, executive director, ATMIA Europe
Ian Kerr, general manager, Clear2Pay
Uwe Krause, vice president of banking, Wincor Nixdorf
Peter Kulik, vice president, product innovation and strategy, Vantiv LLC
Leonor Machado, chair, Cash Working Group and Gerard Hartsink, chair, European Payments Council
Michael O’Laughlin, senior vice president, NCR Financial Services
Steven Rathgaber, CEO, Cardtronics
Tim Robinson, CEO, Talaris
Tom Stevenson, president, Cash Connect
Thomas Swidarski, president and CEO, Diebold Inc.
Alan Walsh, vice president of banking, Wincor Nixdorf U.S.
Page 90 Special section: The state of cash Mike Lee, CEO, ATM Industry Association
Page 93 Further reading ATM Software Trends and Analysis
ATM Future Trends Report 2012
ATM Future Trends 2012 © 2012 NETWORLD ALLIANCE3
We’ve Come a Long Way:A Peek into the Next Exciting Chapter of the ATM Industry
Many thanks to ATMIA for collaborating with us on this comprehensive analysis of the threats, trends and opportunities facing the ATM industry during the next five years. This is one of the largest perception surveys of its kind, with approximately 500 respondents representing every major ATM market in the world.
The data and industry opinions on the following pages will equip financial institutions (FIs), ATM manufacturers, independent ATM deployers (IADs), retailers, ATM sup-pliers, government regulators, ATM service providers, transaction processors, indus-try consultants and ATM investors with actionable “future intelligence.”
Below are some of the significant differences we noticed between the 2009 survey and this year’s report.
Industry segmentBased on the breakdown of responses according to industry segment, it is clear that more financial institutions participated in the survey, especially medium to large institutions. In 2009, approximately five percent of respondents were FIs with $500 million to $1 billion in assets, and in 2012, eight percent of respondents were that size FI. Also in 2009, 11 percent of respondents were FIs with $1 billion to $500 billion in assets, while in 2012, approximately 18 percent of respondents fit that description.
Tom HarperPublisher, ATM Marketplace
Executive summary
FI23%
IAD20%
Processor6%
EFT network4%
ATM manufacturer12%
ATM parts provider
6%
Other29%
FI 23%
IAD 20%
Processor 6%
EFT network 4%
ATM manufacturer 12%
ATM parts provider 6%
Other 29%
2009 2009
FI35%
IAD19%
Processor5%
EFT network3%
ATM manufacturer
12%
ATM parts provider
5%
Other21%
FI 35%
IAD 19%
Processor 5%
EFT network 3%
ATM manufacturer
12%
ATM parts provider
5%
Other 21%
2012 2012
ATM Future Trends 2012 © 2012 NETWORLD ALLIANCE4
Executive summary
2012 2009
Advanced self-service solutions, such as bill payment and check cashing
21%
Advanced self-service solutions, such as bill payment and check cashing
21%
Reaching out to “digital natives,” those who grew
up with digital and mobile technology
12%
Reaching out to “digital natives,” those
who grew up with digital and mobile
technology12%
FIs, independent deployers and retailers
partnering to reach unbanked and
underbanked consumers18%
FIs, independent deployers and retailers partnering to reach unbanked and
underbanked consumers18%
Offering prepaid-card dispense at the ATM or
other self-service channel11%
Offering prepaid-card dispense at the ATM or
other self-service channel11%
Deploying solutions that integrate mobile banking and marketing with the
self-service channel38%
Deploying solutions that integrate mobile banking and marketing with the
self-service channel38% FI
38%
IAD 21%
Processor 12%
EFT network 18%
ATM manufacturer 11%
0% 0%
2009
OutsourcingInterestingly, in the 2009 survey, when asked whether FIs will outsource their ATMs to IADs, the majority of FI respondents said it would be “practiced by some,” and most IADs believed it would be “a dominant trend.” In our 2012 survey, the majority of respondents in all three major industry segments — FIs, IADs and manufacturers — said outsourcing would be “practiced by some.”
This represents a sea change for the independent deployers in our industry, as a once-viable business plan for most IADs has now faded. With the increasing regulations and requirements and the shrinking margins, IADs will continue to consolidate, and the small deployers that deliver exceptional customer service and unique offerings will be attractive acquisition targets.
Popular trendsFIs and IADs agree that mobile technology will have the greatest impact on the global industry over the next five years; however, the majority of manufacturers (37 percent) said cash recycling would make the biggest impression.
Mobile technology
Cash recycling
Gov’t regulations
Interchange Reduction
Technology/equipment to protect cardholder PINs
Technology/equipment to protect cardholder PINs
Deployment of more Windows-based ATMs
Self-service software upgrades/patches
Movement to virtual private networks (VPNs)
Working with outside vendors compliance standards
42%
14%
9%
9%
9%
29%
20%
17%
13%
12%
2012 2009
FI 45%
IAD 18%
Processor 16%
EFT network 14%
ATM manufacturer 7%
0%
0%
2009
Greatest impact on the global ATM industry
ATM Future Trends 2012 © 2012 NETWORLD ALLIANCE5
Executive summary
All segments cited deploying solutions to integrate mobile banking and marketing with the self-service channel as the most popular five-year trend. Indeed, as I said in 2009, banks are still leading the way in mobile applications, perhaps because they still view ATMs as one channel among many.
Growth of ATMsIn 2009, Retail Banking Research’s “Global ATM Market and Forecasts to 2013” study predicted that the global ATM installed base would reach 2.5 million installations by 2013. With the number sitting at more than 2.3 million, that forecast appears to be right on track. RBR’s most recent report puts the number of installed units at 3.4 million by 2017.
This corroborates my own 10-year prediction back in 2007 that we would double the 1.56 million machines then in existence. Let’s hope we’re all correct and that we add another million or so ATMs to today’s footprint!
I agree with ATMIA CEO Mike Lee that the use of cash will continue to grow, fueling the aggressive expansion in our industry’s collective crystal ball.
The next five years will be exciting, indeed.
Deploying solutions that integrate mobile banking and marketing with the self-service channel
Advanced self-service solutions, such as bill payment and check cashing
FIs, independent deployers and retailers partnering to reach unbanked and underbanked consumers
Reaching out to “digital natives,” those who grew up with digital and mobile technology
Offering prepaid-card dispense at the ATM or other shelf-service channel
Deploying solutions that integrate mobile banking and marketing with the self-service channel
Advanced self-service solutions, such as bill payment and check cashing
Reaching out to “digital natives,” those who grew up with digital and mobile technology
FIs, independent deployers and retailers partnering to reach unbanked and underbanked consumers
Offering prepaid-card dispense at the ATM or other shelf-service channel
29%
20%
17%
13%
12%
45%
19%
16%
14%
7%
2012 2009Most popular trend
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