ATMIA Benchmarking
Study 2016
Francesco Burelli – Global Payments Strategy Lead
Accenture Payments Services
2Copyright © 2015 Accenture. All rights reserved.
Agenda
• Accenture’s profile
• Industry context
• ATM Benchmarking 2016 participation
• Quantitative findings
• Evolution of the ATM
• Growing challenge of ATM security
• Conclusions
3Copyright © 2015 Accenture. All rights reserved.
Accenture has differential capabilities across multiple
operating groups
Accenture Overview
Accenture is a leading
professional services company,
with capabilities in strategy,
consulting, digital,
technology and operations
We commit to results: design
the strategy and execute
leveraging our firm capabilitiesCMT
H&PS
Resources
FS
Products
Over 6.000+
professionals in
38 countries
(Over 300+
Strategists in
UK)
Design and
innovation
consultancy that
uses the power of
design to create
experiences that
people love
Interactive: Delivering
unique customer
experience
Analytics: Data
scientists deliver
meaningful insights
Mobility: Growing the
digital business
Distribution and
marketing
services helps
clients in
transformation
programs
4Copyright © 2015 Accenture. All rights reserved.
Number of ATMs is keeping growing to 3.2 million units
installed in 2014
Number of ATMs (world, m of units)
0,5
3,0
0,0
1,0
2,5
3,5
4,0
1,5
2,0
4,5
2015(f)
4,8%
3,8
2018(f)2017(f) 2019(f)
4,0
2020(f)2016(f)
4,1
4,3
3,4
3,6
12,4%
2,0
2,6
2012
2,1
2010
3,2
2013
2,4
2011 2014
East Asia & Pacific Middle East & North Africa
Sub-Saharan Africa
Central Asia
Central Europe and the Baltics
Latin America & Caribbean
North America
Europe
World (total)
-4%
3%
40%
29%
3%
9%
26%
20%
12%
Note: number by
region in legend
indicated CAGR
2010-2014
Source: World Bank, BIS, ECB, RBR, Accenture analysis
5Copyright © 2015 Accenture. All rights reserved.
Penetration of ATMs grew in all regions except Europe
ATM penetration (ATM per 100,000 people)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
80
220
200
180
20
60
0
40
90
10
210
70
190
50
230
30
World
Latin America & Caribbean
European Union
OECD members
Central Europe and the Baltics
Europe & Central Asia
North America
Middle East & North Africa
East Asia & Pacific
Source: World Bank
6Copyright © 2015 Accenture. All rights reserved.
Value of ATM withdrawals grew faster than POS
transaction globally but not in Europe
Value and Number of ATM and POS transactions
20.000
15.000
5.000
2014
10.000
2010
POSATM
30.000
60.000
0
Valu
e o
f tr
ansactions
($B
n)
Volu
me o
f tr
ansactions
(mill
ions)
11.2%
16.4%
8.3%
11.5%
2010-14
CAGR
GDP
2.000
1.000
2010
3.000
2014
3.000
2.000
1.000
7.4%
2.5%
0.8%
7.4%
2010-14
CAGR
GDP4.4% 1.0%
Global Europa
Source: World Bank, BIS, ECB, Accenture analysis
7Copyright © 2015 Accenture. All rights reserved.
ATMIA Benchmarking drew on a global sample of forty three full
participants plus two qualitative only participants
Geographical distribution of participation
10(+1)
18(+1)
6
9
8Copyright © 2015 Accenture. All rights reserved.
Participation was up by 2% on 2014, 47% on 2012
Participation
+2% participation in 2016 vs. 2014
+2 full participants of which three
took part with multiple branches /
countries
88% of ATM operators participating in
2014 decided to take party also in 2016
36% of ATM operators participating in
2012 only decided to participate again in
2016
29
4342
2012 2014
+2%
Asia Pacific
Middle East and Africa
Europe
+45%
Americas
2016
Participants 2012
29New Participants 2014
4342
Participants by region
Participants by benchmarking round
9Copyright © 2015 Accenture. All rights reserved.
The scope of the ATM Benchmarking has now reached its
final shape and it is not expected to expand any further
Scope of ATMIA ATM Benchmarking
Transaction
related
revenues
Cash
Mgmt.
Transaction
Mgmt.
ATM
performance
monitoring
Estate Mgmt.Fraud, Crime
and Dispute
Innovation
General estate and transaction statistics
Expanded categoriesIncluded information about reversals, declines and cash
deposit ATMs
EXPANDED
REDESIGNED
EXPANDED
EXPANDED
EXPANDED EXPANDED EXPANDED
Added detail about VAS
Expanded categories
Added cash
deposit ATMsAdded cash
deposit ATMsAdded cash
deposit ATMs
10Copyright © 2015 Accenture. All rights reserved.
ATM cost performance continues to show significant
variance and little scale correlations
Unit costs
Number of transactions
Cost per
transaction
R2=0.12
Cost of re
ple
nis
hm
ent events
per
year
per
AT
M
Average number of replenishment events per year per ATM
R2=0.60
Cost per transaction vs
number of transactionsCost per replenishment events vs average number
of replenishment events per year per ATM
11Copyright © 2015 Accenture. All rights reserved.
Only a small part of ATM estates is managed profitably
with most banks running the ATM channel at loss
Economic performance
Average transaction
margin (direct revenue
and costs only)
Profitability per ATM
channel (direct revenue
and costs only)
+56.0%
100
-354.4%
+92.5%
100
-278.6%
12Copyright © 2015 Accenture. All rights reserved.
The ATM is proving to be getting more (selectively) multi-
functional
Value Added Services
Services offered or planned
to be rolled-outNot willing to add service
100% 100%
Charity donations
Payment of taxes/fines
Pass book printing
Couponing
Person to person domestic remittances (collected)
Cardless withdrawal
Person to person domestic remittances (initiated)
Mobile top-ups
Balance enquiries
Account transfers (cardholder owned acconts)
PIN services
Printed receipts
Bill payments
Mini statements
Sports event tickets
Travel tickets (urban e.g. bus)
Person to person cross-border remittances (collected)
Lottery tickets
Person to person cross-border remittances (initiated)
Stamps sales
E-Wallet top up
Third party loyalty rewards
Licences renewals
Entertainment event tickets
Travel tickets (extra-urban e.g. train)
Road tolls payment / prepayment
Travel tickets (extra-urban e.g. flight)Offered now
Planned 1 Year
Planned 5 Years
Stamps sales
E-Wallet top up
13Copyright © 2015 Accenture. All rights reserved.
The ATM is proving to be getting more (selectively) multi-
functional
Value Added Service 2016 2014 Status
Balance enquiries 1 1
Printed receipts 2 2
PIN services 3 3
Mini statements 4 4
Bill payments 5 7
Account transfers (cardholder owned acconts) 6 6
Cardless withdrawal 7 13
Mobile top-ups 8 5
Person to person domestic remittances (initiated) 9 14
Person to person domestic remittances (collected) 10 15
Couponing 11 12
Pass book printing 12 19
Payment of taxes/fines 13 17
Charity donations 14 10
Licences renewals 15 24
Stamps sales 16 27
E-Wallet top up 17 22
Person to person cross-border remittances (initiated) 18 18
Person to person cross-border remittances (collected) 18 18
14Copyright © 2015 Accenture. All rights reserved.
Fraud is a growing challenge …
Number of fraud cases per ATM
2016
+21%
+53%
+38%
2012
100
2014
15Copyright © 2015 Accenture. All rights reserved.
… with a growing investment to prevent fraud and fight
crime
Number of fraud cases per ATM
0% 100%
Cash protection systems such as IBNS/dye staining
Transaction encryption measures/MACing
Anti-solid explosive attack measures
Security guards at ATM lobbies
ATM room smoke protection systems
Defensible spaces (painted lines) at ATMsSensor surveilance on the pin pad to detect false keyboards
Higher specification security enclosures
Anti-gas attack measures
Alarms in ATM security enclosuresOther securty features
Anti-deposit trapping detection sensors
Enhanced ATM locking systems for the security enclosure
Anti-cash trapping detection sensors
Remote monitoring for unusual transaction patterns
Internal cages/locking bars to protect cassettes?
Enhanced physical security for cash shutters
Anti-ram raid anchorage plinths/anti-theft devices
Anti-card trapping detection sensors
Remote monitoring for unusual ATM device behaviour
Enhanced ATM locking systems for the cabinet
Anti-skimming jamming measures
Anti-ram raid bollards
Mirror to detect shoulder surfingCCTV coverage
Enhanced building and perimeter security
Building alarms
ATM fascia and cabinet alarms
Anti-cash trapping physical prevention measures
Have PIN pad shields/guards
Anti-skimming detection sensors
Transaction reversal fraud/dispenser manipulation detection
Measure
quote
d b
y num
ber
of re
spondents
Number of respondents quoting the measure
Have it
16Copyright © 2015 Accenture. All rights reserved.
Prevention measures are evolving, likely in line with the
evolving nature of the threat
Number of fraud cases per ATMNo Fraud prevention measure 16 14 Status
1 Building alarms 1 1
2 Anti-cash trapping physical prevention measures 2 12
3 Anti-skimming jamming measures 3 5
4Remote monitoring for unusual ATM device behaviour
4 18
5 Anti-ram raid bollards 5 4
6 Anti-skimming detection sensors 6 13
7 Anti-card trapping detection sensors 7 15
8 CCTV coverage 8 2
9 Mirror to detect shoulder surfing 9 17
10 Have PIN pad shields/guards 10 18
11 Anti-ram raid anchorage plinths/anti-theft devices 11 7
12 ATM fascia and cabinet alarms 12 11
13 Enhanced physical security for cash shutters 13 19
14 Enhanced building and perimeter security 14 16
15 Enhanced ATM locking systems for the cabinet 15 6
16 Transaction encryption measures/MACing 16 3
No Fraud prevention measure 16 14 Status
17Transaction reversal fraud/dispenser manipulation detection
17 8
18 Remote monitoring for unusual transaction patterns 18 14
19 Other securty features 19 New
20 Alarms in ATM security enclosures 20 9
21 Anti-cash trapping detection sensors 21 26
22 Anti-gas attack measures 22 New
23 Cash protection systems such as IBNS/dye staining 23 21
24 Internal cages/locking bars to protect cassettes? 24 22
25Enhanced ATM locking systems for the security enclosure
25 10
26 Higher specification security enclosures 26 20
27 Anti-deposit trapping detection sensors 27 27
28 Anti-solid explosive attack measures 28 28
29Sensor surveilance on the pin pad to detect false keyboards
29 New
30 Defensible spaces (painted lines) at ATMs 30 29
31 ATM room smoke protection systems 31 25
32 Security guards at ATM lobbies 32 24
17Copyright © 2015 Accenture. All rights reserved.
Larger ATM portfolio tend to employ a larger number of
fraud prevention measures
Number of prevention measures in use vs. size of portfolioN
um
ber
of A
TM
s in p
ort
folio
Use of Security Measures
R2=0.52
18Copyright © 2015 Accenture. All rights reserved.
The study is keeping proving to be an insightful exercise
for a number of participants
•Over 137 benchmarks in progress of being compiled, covering everything from
profitability per transaction to uptime and fraud to the average cost per transaction
•Study is still proving to be counterintuitive
-Little correlation between the type of management and the cost performance
-This has important implications with the ATM industry as it continues to seek best
practices
•Significant opportunity for improvement in ATM management practices and economic
performance
BUT
•Significant opportunity to improve cost allocation and performance monitoring of the
ATM channel beyond the (physical) ATM performance
19Copyright © 2015 Accenture. All rights reserved.
Future ATMIA ATM Benchmarking plans are evolving in
line with the needs of the participating organisations
•GAP between ATM Benchmarking rounds to increase from 2 to 3 years, enabling a
wider GAP and a too frequent data collection effort
•The data sample is to remain stable or to be potentially simplified in line with the data
provided by participants
•Set-up of a content advisory board to meet in 2Q 2018
•Next round scheduled for 2019 with registration opening in late 2017
20Copyright © 2015 Accenture. All rights reserved.
Contacts
Francesco Burelli
Global Payments Strategy Lead
Accenture Payments Services
Mobile: +44 788 781 3003
Email: [email protected]