A recent report by RBR has found that, in the offsite ATM arena, marked by burgeoning growth, slightly more than half of all ATMs were located away from bank branches as late as 2015, according to the firm’s Global ATM Market and Forecasts to 2021 report.
The shift is tied to the desire of banks to retain customers while attracting new ones. (And in many nations, people do love their cash, as the PYMNTS Global Cash Index has shown).
The impetus to move toward offsite ATMs comes amid cost containment efforts, along with the overarching theme of financial inclusion. In reference to the former, RBR said that, in a single market — in this case, the Netherlands — 900 branches were closed between 2011 and 2015, with an attendant 800-count growth in offsite ATMs.
The push toward financial inclusion comes as the ATM remains a cost-effective choice in rural areas, with the machines and kiosks standing as the main point of contact between consumer and bank. The total share of independent ATMs deployed stood at 16 percent, said the firm, a percentage that is likely to grow in almost all countries, with the exception of China, where these so-called IADs deploy machines in conjunction with partner banks.