ATM Benchmarking Study 2014 and Industry Report

report FEBRUARY 2014

ATM BENCHMARKINGSTUDY 2014 AND INDUSTRY REPORT

ATM Benchmarking Study 2014 and Industry Report

A report based on the

ATMIA Benchmarking Study 2014

Published by

Value Partners Management Consulting Ltd

Kings Buildings, 7th Floor,

16 Smith Square, London SW1P 3HQ, UK

February 2014

Written by

Francesco Burelli, Andrey Gorelikov,

Marco Labianca

If you would like an electronic copy

please write to:

[email protected]

For more information on the issues

raised in the report please contact:

[email protected]

valuepartners.com atmia.com

Copyright ©

Value Partners Management Consulting Limited

All rights reserved

report ATM BenCHMArKInG STUdy 2014 And IndUSTry rePorT

1 ExECUTIvE SUMMARY 5

2 INTRODUCTION 9

3 THE GlOBAl ATM MARKET 13

4 SCOPE OF THE ATMIA BENCHMARKING STUDY 2014 17

5 KEY FINDINGS OF THE ATMIA BENCHMARKING STUDY 2014 19

5.1. CoST MeTrICS And PerForMAnCe MonITorInG 19

5.1.1. TrAnSACTIon ProCeSSInG 21

5.1.2. CASH MAnAGeMenT 21

5.1.3. CoST oF HArdWAre 24

5.1.4. PerForMAnCe MonITorInG 24

5.2. FrAUd And dISPUTe MAnAGeMenT 27

5.3. reVenUe And ProFITABILITy 28

5.4. CoMPLAInT MAnAGeMenT 29

5.5. VALUe Added SerVICeS And MULTIFUnCTIonALITy 31

6 CONClUSIONS 39

CONTENTS

Disclaimer: This report illustrates some of the key general findings of the ATMIA Benchmarking Study 2014 developed jointly by ATMIA and Value Partners, with the addition of industry trends, analysis and commentary from Value Partners.

Participation in the ATM Benchmarking study is strictly confidential and selected examples mentioned in the Value Partners commentary section on industry trends do not necessarily imply participation to the ATM Benchmarking study.

4—5

What is remarkable is the degree to which benchmarking has become associated with organisational improvement in the post-modern era”Dr. J.P. Moriarty, lincoln University, “A theory of benchmarking” 2008

“


WeLCoMe To THIS SeCond rePorT oF ATMIA’S GLoBAL ATM

BenCHMArKInG STUdy. LAUnCHed In 2012, THIS BenCHMArKInG

STUdy’S ArrIVAL WAS eSPeCIALLy reLeVAnT For THe 21ST CenTUry

GIVen THe ConTInUed GLoBALISATIon oF THe ATM IndUSTry And

ITS enTry InTo A dynAMIC neW PHASe oF rePoSITIonInG. THe ATM

TerMInAL IS BeCoMInG THe doMInAnT ToUCH-PoInT SeLF-SerVICe

deVICe For CArdHoLderS And More reCenTLy, For MoBILe PHone

ACCoUnT-HoLderS.

ATM BenCHMArKInG ProVIdeS A BAnK or IndePendenT

ATM dePLoyer WITH A SCoreCArd oF ITS orGAnISATIonAL

PerForMAnCe, MeASUred AGAInST ITS CoMPeTITorS nATIonALLy,

reGIonALLy And GLoBALLy. BenCHMArKInG MeTrICS HIGHLIGHT

AreAS reQUIrInG IMProVeMenT AS WeLL AS CUrrenT

orGAnISATIonAL STrenGTHS, GIVen THe InCreASed STrATeGIC

InTereST In ATMS WITHIn THe BAnKInG SeCTor AGAInST A

BACKGroUnd oF roBUST GLoBAL CASH deMAnd And GroWTH In

ATM SHIPMenTS. THIS rePorT By VALUe PArTnerS For ATMIA IS An

IMPorTAnT reMInder THAT BenCHMArKInG IS A VITAL CorPorATe

TooL For IMProVInG eFFICIenCIeS And STePPInG UP THe LeVeL

oF TeCHnoLoGICAL And SySTeMS InnoVATIon.

AS dr. J.P. MorIArTy oF LInCoLn UnIVerSITy CorreCTLy STATed

In THe 2008 STUdy, A THeory oF BenCHMArKInG: “WHAT IS

reMArKABLe IS THe deGree To WHICH BenCHMArKInG HAS BeCoMe

ASSoCIATed WITH orGAnISATIonAL IMProVeMenT In THe PoST-

Modern erA.”

IT WAS XeroX CorPorATIon WHo PIoneered InTernAL And

eXTernAL BenCHMArKInG In THe 1980S To drIVe ForWArd THeIr

SUCCeSS AFTer THey STArTed To LoSe “FIrST MoVer” AdVAnTAGe

And MArKeT doMInAnCe AS HIGH-QUALITy rIVAL JAPAneSe

ProdUCTS SnATCHed SIGnIFICAnT MArKeT SHAre. dAVId T. KeArneS,

XeroX’S Ceo FroM 1982–1990, onCe deSCrIBed BenCHMArKInG AS

“THe ConTInUoUS ProCeSS oF MeASUrInG ProdUCTS, SerVICeS

And SUCCeSSFUL In-HoUSe QUALITy IMProVeMenT ProCeSS

AGAInST THe ToUGHeST CoMPeTITorS or THoSe CoMPAnIeS

reCoGnISed AS IndUSTry LeAderS.”

FOREWORD

6—7

ATMIA BeLIeVeS THAT THere HAS neVer Been A BeTTer TIMe

For AnnUAL GLoBAL ATM BenCHMArKInG To enSUre THAT ATM

oWnerS STAy AHeAd oF THe CUrVe AS THeIr TerMInAL eVoLVeS

InTo THe doMInAnT SeLF-SerVICe PAyMenT deVICe In THe WorLd.

THe ATM IS eVoLVInG rAPIdLy AS We SPeAK. IT HAS MoVed FroM

A TeLLer-rePLACeMenT TeCHnoLoGy InTo GreATer VALUe

AddInG FUnCTIonALITy, enABLInG MoBILe PHone CredIT, LoAnS,

CoUPonS, BILL PAyMenTS And eVen InTernATIonAL Money

TrAnSFerS. THere IS STILL MUCH To LeArn In THIS TIMe oF GLoBAL

TeCHnoLoGICAL And STrATeGIC CHAnGe; More IMPorTAnTLy,

THere IS STILL MUCH To IMProVe.

BenCHMArKInG reMAInS one oF THe MoST VALUABLe TooLS

In THe CoMPeTITIVe ArSenALS oF ATM dePLoyerS To MeASUre

THeMSeLVeS AGAInST THe BeST. THe PUrPoSe reMAInS THe SAMe

AS IT WAS For XeroX BACK In THe 1980S, nAMeLy, To IMProVe

CoMPeTITIVe eFFICIenCy AS A SoUrCe oF ProdUCTIVITy GroWTH

And To TUrn AroUnd SUB-oPTIMAL ASPeCTS By eMULATInG A

SUPerIor PerForMInG ModeL.

MAy THe 2014 GLoBAL ATM BenCHMArKInG STUdy, THe SeCond

In oUr SerIeS, ConTInUe THe Good WorK In IMProVInG ATM

PerForMAnCe AS oPerATorS rACe To BeCoMe ToP PerForMerS.

MICHAEl lEE Ceo ATMIA


Cash re-circulation assumed a key role

in the reduction of the cost of cash,

benefiting not only the financial servic-

es institutions that adopt them, but the

economy and society at large by reduc-

ing the amount of cash in circulation.

The general findings of the previous

study have been confirmed during the

course of the Benchmarking Study

2014, with significant cost disparities

being outlined across a number of cost

metrics regardless that overall cost

efficiencies appear, in general, to be

improving. Amongst the most impor-

tant findings of the study has been the

highly diverse cost of cash, hardware

and transaction processing for partici-

pants in the survey, despite the broadly

similar nature of ATM operations

globally. once again, little correlation

between the size, location, or type of

ATM operator and their costs was found

in the analysis.

ATMs continue to be one of the main

touch-points for the customers of

financial institutions. Growth rates of the

number of ATMs, transacted volumes

and values are different among the

regions of the world, but mostly exceed-

ing the GdP growth rates, underling the

importance and potential of the ATM

channel. Following the success of its

first ATM Benchmarking Study of 2012,

ATMIA has once again, undertaken a

global ATM benchmarking exercise in

collaboration with Value Partners.

A total of 42 survey respondents have

participated. once again uptake has

seen the participation of some of the

largest ATM operators globally, in-

cluding banks and Independent ATM

deployers, some of which took part at

group level with multiple subsidiaries

submitting their data so benefiting from

intra-group benchmarks and a view

of in-house best-practices. The value

and the interest for such an exercise

was once again confirmed by the fact

that two thirds of the participants of

2012 have joined again this important

ATMIA’s initiative.

ATMs have changed their historical

role of a mere cash dispenser and are

expanding their potential to offer a

wider range of services to banked,

underbanked and unbanked popula-

tions. Available added functionality vary

significantly to a wide range of services

and ATM operators are starting to

implement Value Added Services strate-

gies in a more selective manner than

what was previously outlined during the

course of the previous study.

ExECUTIvE SUMMARY1

8—9

The 2014 study was built upon the

areas in scope of the previous study

and expanded to include areas such as

ATM revenues. This is a highly sensitive

and confidential part of the study but

it is fair to say that not all participants

may have a strategy whereby profits are

generated from the ATM channel.

IAds have the ATM as a main line of

business but for banks, in particular, the

ATM is a channel that is complementary

to other services and often leverages

purely as on a cost-substitution basis.

Profitable or less profitable organisa-

tions are evenly distributed across the

various regions with the imbalance

between costs and revenue appearing

to cause losses that are not necessary

affecting close competitors, likely on

the basis of different management

strategies for ATMs estates between

organisations. nonetheless, this rein-

forces the working hypothesis deriving

from the analysis of the costs sections

that overall there are potential areas

of improvement that are waiting to be

investigated and realised by a number

of ATM operators.

despite the high focus on availability

and on performance management,

it was outlined that few ATM operators

monitor and manage cardholder satis-

faction measures such as those related

to complaint management.

This latter finding potentially points to

opportunity for diversification and com-

petitive advantage that has yet to be

fully explored by the industry at large.

For more detailed conclusions of the

findings of the ATM Benchmarking

Study 2014 please see section 5 of the

report.


Automatic Teller Machines (ATMs)

remain one of the main channels for

the provision of retail banking services.

Their importance is proved by the con-

tinuous growth of the channel in terms

of the number of ATM units installed

and the volume and value of transac-

tions. different regions show different

rates of growth, with a common growth

trend for rates of growth that exceed

GdP growth. This points to the fact that

financial institutions are continuing to

invest in this self-service channel, but

also that retail and SMe consumers

continue to use this important banking

touch-point to access their funds. over-

all, industry research estimates that the

number of installed ATMs units was over

2.75m in 2013, and is forecasted to grow

to over 3.22m by 2016, a 17% increase

over a 3-year period.

The overall value of cash dispensed in

2013 is estimated to $10.47tn,1 with an

increase of 26% over the same time-

frame to over $13.19tn. This cash dis-

pensed through ATMs remains critical to

future cash accessibility and wider glo-

bal economic development, despite the

crucial and growing role that electronic

payment methods will play, and the

increasing penetration and rapid pace

of innovation in the non-cash payments

landscape that will be complementary

to the functions enabled by ATMs.

As outlined in the previous ATM Bench-

marking and Industry report,2 ATMs

increasingly serve more functions than

the simple provision of cash and as a

key touch-point between people and

financial institutions. They realise and

expand their potential to offer a wider

range of services to banked, under-

banked and unbanked populations.

INTRODUCTION2

despite this rapid growth, penetration

and access to ATMs remain unevenly

distributed, as reported by the World-

Bank,3 with South Asia and Sub-Saha-

ran Africa being the regions with the

highest growth, albeit from a very low

baseline.

The ATM industry’s offering has evolved

significantly since its inception in the

early 1960s, becoming a key enabler of

branch innovation, and now evolving in

parallel to internet banking and newly

developing mobile banking channel,

developing its role from a pure teller

substitution / cash dispensing service to

being one of, if not in many cases, the

most important touch-point between a

financial services organisation and its

retail and SMe customers. ATMs keep

providing a low-cost-to-serve channel

to financial institutions for an increasing

number of services ranging from access

to current account funds and informa-

tion, enabling cash and cheque deposits

and now enabling access to a wider

range of services. Within this context,

ATMs keep playing a key role for the

reduction of the cost of cash through

re-circulation, benefitting not only the

financial services institutions that adopt

them, but the economy and society at

large by reducing the amount of cash in

circulation.

1 Source: Timetric 20142 ATMIA and Value Partners, ATM Benchmarking Study 2012 and Industry report3 Source: Global Partnership for Financial Inclusion, financial inclusions indicators 2014

0

500

1,000

1,500

2,000

2,500

3,000

3,500

20072006 2008 2009 2010 2011 2012 2013 2014 2015 2016

+8%

+6%

06-16CAGR

3%

4%

12%

6%

12%

0

20,000

10,000

30,000

40,000

50,000

60,000

70,000

80,000

20072006 2008 2009 2010 2011 2012 2013 2014 2015 2016

4%

06-16CAGR

6%

21%

4%

13%

+12%

+6%

NuMBer of ATMS, 2006-16 (‘000)

NuMBer of ATM TrANSAcTIoNS, 2006-16 (MlN)

Source: Timetric 2014


Following the success of its first ATM

Benchmarking Study 2012, and on the

feedback received from the organisa-

tions that took part to the former exer-

cise, ATMIA has once again, undertaken

a global ATM Benchmarking exercise

in collaboration with Value Partners.

Approximately 65% of the banks and

independent ATM deployers (IAd) that

took part to the 2012 study participated

again to this second round, and were

joined by others to a total 42 survey

respondents, some of which participat-

ed through subsidiaries from multiple

countries.

of these, around 65% are based in

mature economies and 35% in emerging

or transitioning economies. Similar to

the previous round of ATM Benchmark-

ing, the vast majority of responses to the

general invitation to participate came

from some of the largest ATM operators

globally, including banks and IAds.

Although some of the insights from the

survey and its general conclusions have

been included in this report, the full

findings of the benchmarking study are

exclusively available to respondents.

North America South&Central America Middle East & Africa Europe AsiaPacific

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

20072006 2008 2009 2010 2011 2012 2013 2014 2015 2016

2%

06-16CAGR

12%

21%

7%

16%

+13%

+9%

VAlue of ATM TrANSAcTIoNS, 2006-16 ($BN)

North America

Europe

EastAsia&Pacific

Latin America & Caribbean

Middle East & Africa

South Asia

Sub-Saharan Africa

2%

04-12CAGR

27%

63%

17%

5%

4%

7%

0

10

20

30

40

50

180

190

200

210

220

200720062004 2005 2008 2009 2010 2011 2012

GloBAl ATM NuMBerS (per 100,000 ADulTS)

Source: World Bank, eCB, Value Partners analysis


THE GlOBAl ATM MARKET

3

4 ATM Benchmarking Study 2012 and Industry report

The number of ATMs installed globally

has grown rapidly at a rate of 8% CAGr

of the installed base between 2006

and 2012. The growth rate is expected

to remain high at a CAGr of 6% between

2012 and 2016. While this may be

wrongly seen a slow-down in a pace of

growth that is outstripping that of GdP,

it is an indicator that some markets

might have reached saturation.

While this may be a credible working

hypothesis for some countries,

there is still significant disparity in the

availability and access to this channel, as

highlighted by World Bank statistics.

overall, the African and Asia-Pacific

regions are driving growth, with north

America growing at a slower pace of 2%

CAGr between 2004 and 2012.

Africa and Asia-Pacific contribute the

largest part of overall ATM unit growth,

driven by a combination of population

growth, economic development and

a rollout of financial services which is

pushing demand for non-branch ac-

cess to cash, financial information and

other services. As highlighted in the ATM

Benchmarking report 2012, the role

of the ATM channel has changed from

that of a mere cash dispenser to being

in many cases, the primary channel for

retail financial services.

Compared to the findings of two years

ago, there are earlier signs of a refine-

ment of the services offered through the

channel. Mobile penetration, together

with the increasing access to financial

services and financial education, are not

only changing the role of the ATM but

also expanding the role of cards (and

mobile handsets). ATM functionalities

are evolving from being a simple instru-

ment providing access to cash outside

of bank working hours to a means

for customers to access a much wider

range of services offered by banks,

and in few cases in partnerships with

governments.

It was reported in the previous edi-

tion of the ATMIA ATM Benchmarking

Study and Industry report that in 2009

the number of ATMs exceeded the

number of bank branches in low-income

countries.4 over the last two years, the

installation of ATM units has increased in

all countries across all regions, includ-

ing north America, which has shown an

increase of 3% CAGr between 2006 and

2012. In comparison, europe’s installed

base grew by 6% CAGr in the same

period, both the Middle east and Africa

and Asia Pacific by 12% and South and

Central America by 4%.

All rates are higher than GdP growth

for the same period in each respective

region. Similarly, in all regions,

the growth value of cash withdrawals

has been in line with or in excess of

inflation rates, suggesting that consum-

ers are increasing the use of the ATM

channel to access funds.

AUSTRAlIA CHINA

20

08

20

09

20

10

20

11

20

12

20

08

20

09

20

10

20

11

20

12

1,000 12,000

0

0% 0%

1% 1%

2% 2%

3% 3%

4% 4%

5% 5%

0

800 10,000

50 5,000

6008,000

100 10,000

4006,000

150 15,000

200

4,000

2,000

0 0

200 20,000

+22%

+30%

2008 2009 2010 2011 2012

5,175

5,269

6,358

6,722

8,359

9,187

10,313

12,352

11,453

15,264

-1%

0%

2008 2009 2010 2011 2012

870

154

563

156

851

155

844

154

827

152

MIL

LIo

nS

MIL

LIo

nS

Cn

y B

n

AU

d B

n

GDP growth (annual %)

Inflation,consumerprices (annual %)

Householdfinalconsumption expenditure (annual % growth)

TrANSAcTIoNS per Type of TerMINAl: ATM VS. poSDyNAMIcS of cASh wIThDrAwAlS AT ATM VS SelecTeD ecoNoMIc TreNDS

Source: WorldBank, BIS, Value Partners analysis


While general terms are valid pointers,

it is to be noted that different countries

may see different ATM channel dynam-

ics, regardless of broadly similar positive

economic conditions. Ultimately, the

unique characteristics of the infra-

structure in each country, the country’s

consumer payment habits and the

dynamics of its domestic retail bank-

ing industry drive very different type

of mutations in the development of the

channel and its leverage by consumers

and bank alike. For example, looking at

two large economies in the Asia Pacific

region, China and Australia, the trends of

the number of cash withdrawals at ATMs

are very different, despite both countries

experiencing positive GdP growth, low

inflation and growth in household final

consumption expenditure.

This ATM growth in developing econo-

mies, especially in the Asia-Pacific

region, means that those countries often

lead the way in terms of the value added

offerings available at ATMs, but as time

goes by and ATM acquirers in other

parts of the world continue to extend

the functionality of their ATM portfo-

lio, this is less likely to be the case. In

general, Asia remains the global leader

in terms of cash recycling, for example,

while countries in which ATMs are an

established and widespread channel are

facing a country-wide wave of upgrades

due to the transition to eMV compliant

technology. The practice of extending

the working life of older units beyond

their depreciation period remains, de-

spite ongoing innovation in the channel.

The ATM market continues to grow

globally, in terms of the quantity of

ATMs proportional to the population,

in the volume and value of transactions

captured through the channel and in

the quantity and quality of services

on offer. Mobile and online channels,

along with PoS terminals, are evolving

to complement rather than displace the

role of ATMs as a key financial services

channel. ensuring the availability, reli-

ability and quality of services remains

a key driver for the success of the retail

banking industry: “the second most

common means of access in the past 12

months was via an ATM or online bank-

ing, both at 74%” of respondents to the

Federal reserve Board’s survey.5 This is

in line with a number of similar findings

and statements from other sources

confirming the importance of ATMs

for the retail banking industry, even in

an online banking context, with 53% of

online banking customers identifying

ATM access as a key choice criteria in

choosing a bank, more than double the

next most important criteria.6

5 Board of Governors of the Federal reserve System, Consumers and Mobile Financial Services 2013, March 20136 Compete.com

Source: eMVco, MasterCard, Visa, American express, Value Partners analysis

81%

15%

94%

68%81%

16%

95%

73%

2011 20112011 20112012 20122012 2012

+20%

+36% +4%

+2% +1%

+2%

41%

77%

49%

79%

2011 20112012 2012

21%

76%

29%

77%

2011 20112012 2012

26%

50%

27%

51%

2011 20112012 2012

0%

+3%

0%

+7%

EMV Cards

EMV Terminals

Canada,LatinAmerica & the Carribbean

United States (data not available)

Africa & the Middle East

AsiaPacific

Europe Zone 1 (Western & Central Europe)

Europe Zone 2 (Eastern Europe)

GloBAl eMV coMpleTIoN of cArDS AND TerMINAlS (INcluDING ATMS AND poS TerMINAlS)


SCOPE OF THE ATMIA BENCHMARKING STUDY 2014

4

during 2013, Value Partners, in partner-

ship with ATMIA, collected statistics from

42 ATM operators, in order to expand,

update and build upon the insightful uti-

lisation and cost benchmarking baseline

developed previously. Sixteen of these

responses were from europe, ten from

Asia, five from Middle east and Africa

and eleven from the Americas.

In addition to these detailed responses,

a purely qualitative questionnaire

was completed by a further four ATM

operators. The second round of Bench-

marking built on the categories and

metrics of the first round with expanded

detail for the Value Added Services

and Fraud sections and with the

addition of revenue and Quality

of services sections.

Anonymous data was gathered in the

following areas of ATM management:

• General estate Statistics (e.g. the

size and offering of the respondents’

ATM estate)

• Cash Management (e.g. replenish-

ment and reliability information)

• Transaction Management

(e.g. transaction costs and data

transmission figures)

• ATM performance monitoring

(e.g. costs of performance monitor-

ing)

• estate Management (e.g. hardware

statistics and malfunctioning figures)

• Fraud, Crime & dispute (e.g. frequen-

cy and cost of ATM crime)

• revenues (e.g. fees and commis-

sions)

• Quality of services (e.g. customer

complaint management policies and

statistics)

Statistics collected from 42 ATM operators, in order to expand, update and build upon the insightful utilisation and cost benchmarking baseline developed previously in 2012

18—19

The purpose of this survey was to pro-

vide participants with renewed insights

into the performance and cost structure

of their ATM estates with the additional

detail on revenue and profitability indi-

cators and with more comprehensive

insights into the Value Added Services

and Fraud management and prevention.

The value of such insights is especially

important as ATMs are proving to be

a much needed channel for Financial

Institutions as well as representing

a profitable business line. With cost

controls being kept high on the agendas

of all financial institutions in particular in

times of more accurate capital allocation

due to tighter compliance requirements,

such a capital intensive channel that is

also central to customer interaction, will

benefit from an objective view of per-

formance and a way to compare against

industry best-practices.

YES NO

of the newly participating organisa-

tion less than half were already making

industry comparisons prior to joining

the ATMIA ATM Benchmarking study,

proving, once again, the interest and the

value of such type of exercise for ATM

operators.

Some of the statistics gathered are

included in the report below on a “base

100 normalised index” basis. Some

graphs and statistics include most of the

sample, but not all of the 42 respond-

ents, since some submissions were not

fully completed. others, meanwhile,

reflect findings from the full sample.

The underlying philosophy of the exer-

cise is that through such cooperation

the ATM industry, together with ATMIA

and domestic banking communities will

be able to provide pointers that lead to

improved efficiency and performance.

By leveraging the data and information

shared, service quality can be improved

whilst reducing operating expenses,

all the while ensuring the protection of

sensitive information and competitive

advantages.

Source: ATMIA Benchmarking Study 2014, Value Partners analysis

Do you MAke reGIoNAl or NATIoNAl coMpArISoNS wITh ANy coMpeTITor or SIMIlAr operATor?

0% 100%


KEY FINDINGS OF THE ATMIA BENCHMARKING STUDY 2014

5

7 Source: KL Guide, ATM Software Trends and Analysis, 6th edition, 20138 Asian Banker research, 2011, ‘Understanding the cost of handling cash in Asia Pacific Building an integrated cash supply chain to improve cash handling efficiency’

5.1. cost metrics and performance monitoring While ATM operators were especially

keen to bring down expenditure in a pe-

riod of economic crisis, despite the signs

of economic recovery in many markets,

financial institutions are now facing the

challenge of tighter capital regulatory

requirements. Cost control has always

been an important area of focus for all

parts of the banking industry and this

keeps being of particular importance in

the capital intensive ATM industry. Cost

efficiency is a key requisite to profitably

operate a business within a channel

that absorbs a relatively higher liquidity

compared to other business lines of the

financial services industry.

Cutting operational costs is by far the

most critical change as highlighted

by the 2013 ATM Software Trends and

Analysis report7. Improving functional-

ity for the customer was the second,

followed by integration with other

self-service channels. In light of this, the

comparison of cost indicators across

the 2012 and 2014 benchmarking study

is pointing to an indicative, general cost

reduction of about 7-8% on average.

After investigating such cost perform-

ance improvements, participants appear

to have benefitted by technology up-

grades, modernisation of ATM portfolios

and an overall refinement of manage-

ment practices.

one of the key findings of the previous

ATMIA ATM Benchmarking Study 2012

consisted in outlining the lack of cost

advantage provided by economies of

scale in this channel.

This counterintuitive conclusion sug-

gested that ATM operators were not

able to fully leverage scale to drive

cost efficiency and that there was a

significant potential for optimising ATM

operations. The instances in which the

lack of correlation was outlined during

the course of the previous study match

the findings of this second benchmark-

ing exercise.

5.1.1. Transaction processingAlthough management theory assumes

that the size of operations is one of

the most critical drivers for variable

unit cost, such as processing, as a

result of economies of scale, this was –

once again - not found to be the case

amongst the respondents to the ATMIA

Benchmarking Study 2014.

This is also in line with Value Partners’

experiences in the card issuing and PoS

acceptance industries, again, proving

to be the case in the ATM industry.

once again, there are a number of

potential explanations for this, ranging

from contract management to a lack

of price transparency from vendors

and, in some markets, competitiveness

with regards to alternative processing,

platform providers and outsourcers.

Labour also remains a prominent cost

for ATM operators, especially in mature

markets where technology outsourc-

ing and process streamlining have

already reduced costs such as machine

downtime8. Automated fault-detection

systems, integrated servicing and re-

plenishment schedules and centralised

ATM software environments continue to

be potential ways in which ATM opera-

tors may control their costs.

CO

ST

PE

R T

RA

NS

AC

TIO

N

Note: average of transaction = 100

Source: ATMIA Benchmarking Study 2014, Value Partners Analysis

NUMBER OF TRANSACTIONS

coST per TrANSAcTIoN VS. NuMBer of TrANSAcTIoNS


5.1.2. cash managementCash, together with the cost of hard-

ware, and increasingly the cost of

security and fraud prevention, remains

one of the major cost components of

an ATM business. A key opportunity to

reducing costs lies in enhanced cash re-

circulation functionalities while accurate

forecasting of cash demand, ensuring

that ATMs are provisioned with the

right amount of cash needed, remain

key drivers of cost efficiency as well as

ensuring ATM availability and avoidance

of out-of-cash downtime.

differently from the findings of the

previous Benchmarking study, this time

participants appear to adopt increas-

ingly in-house intelligence for cash

forecasting purposes with the use of

forecasting software remaining widely

used. This difference compared to the

previous study is driven not only by new

participating organisations but also by

changes within cash forecasting practic-

es of few ATM operators that took part

in both rounds of the ATM Benchmark-

ing study. Some companies surveyed do

not perform cash demand forecasting

at all, implying that significant improve-

ments could be made in the manage-

ment of cash in the ATM system.

Source: ATMIA Benchmarking Study 2014

Similarly to the findings of the ATMIA

Benchmarking Study 2012, this study

found that ATM operators continue

to have different approaches to cash

replenishment, with the frequency of

replenishment being inversely propor-

tional to the amount reloaded and the

float stored within the ATM. In analysing

the frequency of cash replenishment,

after normalising the data to take into

account the economic characteristics

of each participant’s economy, ATM

locations and geographical dispersion

across each participant’s country, a

number of common trends emerged:

• ATMslocatedwithinbankbranches

are typically loaded more often

• DifferentATMlocationstendtobe

replenished to different levels of float

• Countrieswithlowerincidenceof

attacks to ATMs and ATM theft tend

to have high amounts of float

• Replenishmentvalueandfrequency

can vary significantly according to

the geographical dispersion of ATM

locations

For this latter point the survey recorded

a variety of behaviours, whilst showing

similarities amongst participants from

the same country, region or size and

type of operator, are far from homoge-

nous globally. More generally, the survey

found cases of very different cash refill-

ing approaches even amongst directly

competing ATM operators. In particular,

during the course of this study and

differently from the previous find-

ings, these differences appeared to be

predominantly driven by the approach

towards reducing potential losses in case

of ATM theft. This is once again based on

the assumption that less cash stored at

the ATM leads to lower losses in the case

of a criminal attack.

0% 100%

FORECASTING SOFTWARE

IN-HOUSE INTEllIGENCE

DO NOT PERFORMCASH DEMAND FORECASTING

how Do you perforM cASh DeMAND forecASTING?


coST of repleNIShMeNT eVeNT VS. AVerAGe NuMBer of repleNIShMeNT eVeNTS per yeAr per ATM

CO

ST

OF

RE

Pl

EN

ISH

ME

NT

Ev

EN

Tv

Av

ER

AG

E v

Al

UE

OF

CA

SH

HE

lD

IN

AN

AT

M

AvERAGE NUMBER OF REPlENISHMENT EvENTS PER YEAR PER ATM

AVerAGe VAlue of cASh helD IN AN ATM VS NuMBer of repleNIShMeNTS per ATM per ANNuM

Note: Base 100 normalised index

(-)r2 = 0,55

AvERAGE NUMBER OF REPlENISHMENT EvENTS PER YEAR PER ATM


once again few instances of cash

replenishment behaviour were investi-

gated with the conclusion that, some-

times the cost of the more frequent

reloads exceeded the cost of total

losses incurred.


It is to be noted that while this observa-

tion is analytically relevant, it is also im-

portant to note that crime against ATMs

appear to be perpetrated sometimes in

a consistent but near-random manner,

incentivising ATM operators to focus on

preventing and minimising losses rather

than adopting risk-weighted approaches.

Cash recirculation is far from being the

norm and ATM replenishment remains a

key area in which effective management

can keep costs to a minimum and main-

tain maximum reliability. differently from

the participants to the previous round

of benchmarking when cash recircula-

tion was a feature resulting hardly in use

by ATM operators, this study has found

that over 17% of the participating sample

benefits from cash recirculation.

overall cost of cash must take in account

the opportunity cost of cash that is de-

pendent upon the amount of cash locked

in cassettes and vaults and upon the

cost of the liquidity. This is sometimes

calculated as a weighted cost of capital

but more often consists of an internal

transfer rate from the central treasury

unit or from a third party lender. In the

case of the previous study the findings

outlined that cash provided by a third

party can be cheaper than that provided

by treasury. However, in this case the

variance, netted from interest base line

differences, is less wide than that found

during the previous study.

The previous graph shows that, in line

with the findings of 2012, that the more

replenishments the lower the cost of

each individual replenishment, with a

group of high frequency replenished

ATMs representing in-branch estates.

As in the previous case more remote

locations with an higher cost of cash re-

plenishment because of travel distanc-

es, however, may potentially providing a

case for considering the deployment of

ATM recirculating units.

Do The ATMS IN your NeTwork TAke DepoSITS? If yeS, whAT proporTIoN?

<20%

20%-40%

40%-60%

>60%

Are you coNDucTING pIloTS reGArDING The IMpleMeN-TATIoN of full cASh recy-clING cApABIlITy IN your ATM NeTwork?

coMpArATIVe opporTuNITy coST of cASh (ceNTrAl BANk INTereST rATe = 100, MAxIMuM AND MINIMuM rANGeS ShowN)

100%

+83.7.3%

-81.6%

INTERNAlTRANSFER RATE

3RD PARTY lENDER

100%

+105.3%

-47.3%

YES

NO

YES

NO0% 0%

100% 100%

24—25

5.1.3. cost of hardwareHardware is the major cost compo-

nent for ATM operators. Similarly to

the previous study, the benchmarking

study recorded significantly different

approaches to depreciation, the exten-

sion of the useful life of ATM hardware

and vendor management. The majority

of operators are opting for a multiven-

dor policy. Hence, one would assume

that this would lead to a high level of

competitiveness in the ATM market and

a narrow range of ATM unit costs. once

again, this was not the case as the cost

of ATM units varies greatly between

participants.

From the benchmarking sample the

cost of hardware was found to have

little correlation with the type, size and

location of the organisation.

5.1.4. performance monitoringPerformance monitoring is composed

of a number of activities that are critical

to the ATM business and in some cases

concern nearly all aspects of ATM oper-

ations, from activity monitoring to cash

management and fraud prevention. er-

ror monitoring largely takes place in real

time but performance monitoring is an

activity that is deployed through varied

approaches to monitoring the ATM

estate with the aim to maximise uptime

and performance.

once again the majority of surveyed

ATM operators produce internal per-

formance monitoring reports on a daily

basis, although some appear to opt for

monthly updates on the performance of

the ATM estate.

coST of hArDwAre (AVerAGe = 100)

ATM HARDWARECOST

100

+131.8%

-17.5%


whAT IS your VeNDor polIcy? If you hAVe A MulTI VeNDor polIcy, how MANy VeNDorS Do you uSe?

0%

100%

SINGlEvENDOR

MUlTI vENDOR

0% 100%

frequeNcy of perforMANce MoNITorING

reporTS proDuceD

Hourly Daily Weekly Monthly

OUTCOURCED

AUDITS

REAl TIMEMONITORING

0% 80%

whAT MeThoDS Do you uSe To IDeNTIfy errorS AT ATMS?

2

3


YES

NO

differently from the previous sample,

this time around, few participating or-

ganisations are monitoring the perform-

ance of their ATM estate on an hourly

basis, frequency that would appear to

be connected to higher availability.

In terms of the parties directly responsi-

ble for the creation of ATM performance

reports, it seems that this sample makes

less recourse to outsourcing with one

organisation in particular in-sourcing its

performance monitoring which during

the course of the previous ATM Bench-

marking Study was provided by a third

party provider.

Are you plANNING ANy INVeSTMeNT To IMproVe/upGrADe your MoNITorING cApABIlITy? If yeS, pleASe SpecIfy

during the course of this ATM Bench-

marking study, the majority of ATM

operators do not appear to be planning

to improve their monitoring capability,

largely through investment in software.

overall, the survey found a relationship

between more frequent and accurate

monitoring and better network

performance (downtime / uptime)

and pointed towards a potential

association between a more detailed

approach to performance management

and lower operating costs, cash man-

agement and transaction processing

costs in particular.

Source: ATMIA Benchmarking Study 2013, ATMIA Benchmarking Study 2014, Value Partners Analysis

0% 100%

NONE (OUTSOURCED)

PERFORMANCE OF OUTSOURCED ATM MANAGEMENT

ATM UPTIME

PROBlEM HANDlINGAND RESPONSE TIMES

TRANSACTION DATA

TYPE OF FAUlT

Infrastructure upgrade

Software investment

Monitoring system for multi-vendor network

whAT MeTrIcS/DATA Do you collecT ASpArT of your perforMANce MoNITorING?

0% 100%

OUTSOURCING IN-HOUSE

whAT IS your ApproAch To perforMANce MoNITorING?

0%

100%

frAuD, crIMe AND DISpuTe – SecurITy MeASureS


0%

100%

100%

0%

% oF FLeeT CoVered By SeCUrITy MeASUre

% oF PArTICIPAnTS HAVInG SeCUrITy MeASUreS In PLACe

BU

IlD

ING

Al

AR

MS

CC

Tv

CO

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RA

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TR

AN

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ION

EN

CR

YP

TIO

N M

EA

SU

RE

S/M

AC

IN

AN

TI-

RA

M R

AID

BO

ll

AR

DS

AN

TI-

SK

IMM

ING

JA

MM

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ME

AS

UR

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EN

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AT

M l

OC

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YS

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MS

FO

R T

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CA

BIN

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AN

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AID

AN

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E P

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S/A

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FO

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/DY

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ES

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RD

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AT

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5.2. fraud and dispute managementFraud is and will remain a serious chal-

lenge to the industry and is an area

in which all participants appear to be

investing significantly. The amount of

investment is not yet at the same level

as those absorbed by the estate invest-

ment or by cash float, but is increasing

rapidly versus other operational costs.

once again, the survey found a high

level of variability between the levels

of fraud experienced by respondents

with most organisations participating to

both rounds of benchmarking, reporting

higher fraud losses.

DISpuTe AND frAuD STATISTIcS(AVerAGe = 100, MAxIMuM AND MINIMuM rANGeS ShowN)

COSTPER DISPUTE

NUMBEROF DISPUTECASES PER

TRANSACTION

While disputes can originate from

causes other than fraud (e.g. card-

holder errors, processing errors, etc.),

the analysis has outlined a correlation

between the number of fraud cases

and the number of disputes and their

respective unit cost.

once again, on the basis of the data

analysed during the course of this

round of benchmarking, fraud is – to-

gether with malfuctionings - appearing

to be a key driver of dispute cases and

their associated costs.

100 100

+46.9%

+166.4%

-85.6%

-95.9%

Do you hAVe oTher SecurITy MeASureS IN your reAl eSTATe?If yeS, how MANy?

YES 1-3

+10

0%

100% NO

NuMBer of frAuD cASeS per ATM

0%

100%

AT

MIA

BE

NC

HM

AR

KIN

G

ST

UD

Y 2

012

AT

MIA

BE

NC

HM

AR

KIN

G

ST

UD

Y 2

014

28—29

5.3. revenue and profitabilityThe ATMIA ATM Benchmarking study

2014 expanded from the pure cost

focus of 2012 to include revenues.

This is a highly sensitive and confiden-

tial part of the study but it is fair to say

that not all participants may have a

strategy whereby profits are generated

from the ATM channel.

IAds have the ATM as a main line of

business but for banks, in particular, the

ATM is a channel that is complementary

to other services and often leverages

purely as on a cost-substitution basis.

While the vast majority of participants

have not provided a breakdown of

revenues by services (e.g. withdrawal,

mobile top-up, etc.) the vast majority

supplied revenue figures for transac-

tion and cardholder fees that have been

used to calculate the pro-forma profit-

ability of the ATM estates.


AvERAGETRANSACTION

MARGIN

100

+424.6%

-192.4%

TOTAlMARGIN

100

+438%

-44.5%

Profitable or less profitable organisa-

tions are evenly distributed across the

various regions with the imbalance

between costs and revenue appearing

to cause losses that are not necessary

affecting close competitors, likely on

the basis of different management strat-

egies for ATMs estates between organi-

sations. nonetheless, this reinforces the

working hypothesis deriving from the

analysis of the costs sections that on

the whole, potential areas of improve-

ment are waiting to be investigated and

realised by a number of ATM operators.

Where losses have been seen, in gener-

al, overall cash withdrawal transaction

margins continue to result in a slightly

wider range than the total marking of

the ATM product line. In many cases, the

losses of cash withdrawals are balanced

by margin origination from value added

services that are seen to be dragging

the overall economic performance of

a couple of estates back into positive

from a distinct loss making position.

The majority of ATM operators, do not

account for on-us transactions with an

internal transfer price, de-facto penalis-

ing the economic performance of their

ATM estate while providing a nominal

cost advantage to their ATM portfo-

lio. While it appears to be a common

practice, it distorts the actual financial

results of the ATM and debit card busi-

ness units.

AVerAGe TrANSAcTIoN profITABIlITy STATISTIcS (AVerAGe = 100, MAxIMuM AND MINIMuM rANGeS ShowN)



5.4. complaint managementATM operators are investing considera-

bly in performance monitoring activities,

mostly with the aim to maximise ATM

availability and avoid downtime.

While most participants monitor and

manage the performance of their ATMs

through a variety of ATM reports,

only few - about a quarter of the total

number of participants - collect data on

complaints from card-holders. of these,

the vast majority has implemented a

formal complaint handling policy.

This latter include the option of a formal

compensation for the lack of service to

disgruntled cardholders.

pArTIcIpANTS collecT DATA oN coMplAINTS

Do you hAVe A coMplAINT polIcy?

IS coMpeNSATIoN offereD?

0% 0%

100% 100%

YES

YES

NO

YES

NO

NO

over half of recorded complaints

appear to be originating from card

captured due to an ATM malfunction

and just over a quarter is due to cash

not dispensed despite the account

being debited due to a malfunction.

As a channel there is great effort be-

ing invested to ensure availability and

avoiding poor service but, data appears

to indicate that very few ATM opera-

tors are taking in account factors like

customer satisfaction.

The analysis did not venture into inves-

tigating the rationale for such a choice

but the findings have outlined that

there may be an untapped opportunity

to leverage customer satisfaction as a

source of competitive advantage.

This would need to be investigated and

validated based on the competitive

landscape and characteristics of each

estate.

COMPLAINTS MANAGEMENT


CArd CAPTUredATM MALFUnCTIon

CASH noT dISPenSedA/C deBITed

ATM MALFUnCTIon

CArd CAPTUredISSUer reQUeST

ATM oUT oF order

oTHer

TrAnSACTIon SLoW or InCoMPLeTeCoMMUnICATIonS MALFUnCTIon

PrICInG CoMPLAInT

CASH reTrACTed

proporTIoN of coMplAINTS receIVeD per yeAr

CASH noT dISPenSedA/C noT deBITedATM MALFUnCTIon

CASH noT dISPenSedCUSToMer error


5.5. Value added services and multi-functionalityThe role of the ATM channel continues

to change. That was one of the five

general conclusions from the previous

ATM Benchmarking Study and it is a

trend that emerged even strongly dur-

ing second exercise. The role and the

range of functionalities that are being

offered through the ATM are fundamen-

tally changing the nature of the chan-

nel. This is because as many customers

interact with their financial institution

increasingly via the ATM as well as

other self-service touch-points, the user

experience of ATMs itself is keeping

being re-designed around a self-service

concept.

Increasing consumer familiarity with

digital interfaces driven by the growing

uses of smart phones and tablets is one

of the key enablers that are accelerat-

ing the potential changing role of ATM

estates.

Compared to the previous study, the

current analysis outlined two key trends

in regards to multi-functionality:

I. Multi-functionality is – in most

cases – becoming the norm

II. ATM operators are starting

to select the services they wish

to offer through their estates

ATM advertising functionality continues

to be common throughout all geogra-

phies. Message personalisation is now a

growing feature that is offered in over

50% of the cases, about twice as much

compared to the findings of the previ-

ous ATM Benchmarking study.

Advertising initiatives on ATM are grow-

ing by as much as 13% year-on-year,

being perceived by bank institutions

and advertisers “as a more effective and

efficient way of advertising than direct

mail/email and any other standard form

of advertising”. Indeed, according to

nCr Inc., ATM adverts are 65% less

expensive and 200% more effective

than direct mail.

Cash withdrawals and mini-statements

are thus no longer the only services that

an ATM operator can offer to customers

but, based upon the findings from the

analysis, they remain the predominant

service demanded by ATM users.

Source: Press, Company websites

TypeS of ATM ADVerTISING

DIRECT MARKETING

3RD PARTY ADvERTISING

COUPONING

% oF PArTICIPAnTS, oFFerInG A SerVICe

Within the next year Within the next 5 years Not planning to add service Services declared planned to be dismissed by some participants

VAlue ADDeD SerVIceS

0%

100%

100%

0%

% oF FLeeT CoVered By SeCUrITy MeASUre

BA

lA

NC

E E

Nq

UIR

IES

PR

INT

ED

RE

CE

IPT

S

PIN

SE

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S

MIN

I S

TA

TE

ME

NT

S

MO

BIl

E T

OP

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S

AC

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UN

T T

RA

NS

FE

RS

BIl

l P

AY

ME

NT

S

INT

El

lIG

EN

T D

EP

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RR

EN

CY

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ER

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N F

OR

TO

UR

IST

S

CH

AR

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DO

NA

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NS

OT

HE

R

CO

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ON

ING

CA

RD

lE

SS

WIT

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RA

WA

l

PE

RS

ON

TO

PE

RS

ON

RE

MIT

TA

NC

ES

(IN

ITIA

TE

D)

PE

RS

ON

TO

PE

RS

ON

RE

MIT

TA

NC

ES

(C

Ol

lE

CT

ED

)

PA

YM

EN

T O

F T

Ax

ES

/FIN

ES

lO

YA

lT

Y R

EW

AR

DS

Fx

RE

MIT

TA

NC

ES

PA

SS

BO

OK

PR

INT

ING

TR

Av

El

TIC

KE

TS

EN

TE

RTA

INM

EN

T E

vE

NT

TIC

KE

TS

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Al

lE

T T

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RO

AD

TO

ll

S

lIC

EN

CE

S

lO

TT

ER

Y T

ICK

ET

S

SP

OR

TS

Ev

EN

T T

ICK

ET

S

STA

MP

S S

Al

ES

Ev

EN

T T

ICK

ET

S



Do pArTIcIpANTS ADVerTISe oN BehAlf of 3rD pArTIeS?If No, why?

YES

NO

YES

NO

Generic

Cardholder-specific

Split between ‘on us’ and ‘not on us’ customers

Incompatible technology

Company Policy

Other

This trend toward multifunctionality is

not limited to mature ATM markets, but

is common throughout geographies. As

this trend continues, the two potential

challenges highlights in the previous

ATM Benchmarking Study 2012 are

starting to be addressed by ATM opera-

tors. The first is related to cost man-

agement, with the increase in available

services requiring a constant review of

how to best optimise ATM expenditure.

The second is complexity, with mul-

tifunctionality necessarily involving

connections with 3rd party telecom-

munication networks, with all the

interoperability and reliability issues this

implies.

The current study analysed a shift in

multi-functionality trends compared to

two years ago; after that most par-

ticipating organisations having imple-

mented functionalities that were on

their wish lists during the course of the

previous study.

nowadays attention and plans are be-

ing paid to fewer value added services

and with ATM operators starting to

selectively dismiss a few services, in a

drive to optimise queues at ATM or that

are not profitable or not taken up by

consumers as expected.

CASH WITHDRAWAl WITHBAlANCE ENqUIRY

CASH WITHDRAWAl ONlY

BAlANCE ENqUIRY ONlY

OTHER

Do pArTIcIpANTS uNDerTAke SAleS or MArkeTING?If yeS, whAT Type?

whAT Are The MoST populAr or frequeNTly TrANSAcTeD SerVIceS?

VALuE AddEd SERVICES – AdVERTISING

0%

0%

100%

100%

0% 80%

34—35

CONClUSIONS6

Similarly to the previous study, the ATM

Benchmarking Study 2014 has provided

participants with an insight into key

performance metrics of their respective

ATM estates. While the findings specific

to each participants are confidential to

participating organisations, there are

a number of general conclusions that

have been developed during the course

of the analysis. These do not contradict

but, on the contrary build upon the

findings of the previous Benchmarking

Study.

The conclusions are:

• Economiesofscaleare(still)nota

source of competitive advantage

once again it was found that a larger

scale does not necessarily result in

lower unit costs. While, in general

terms costs have been decreasing

relatively to the previous ATM

Benchmarking study, there is still

no correlation between scale and

cost efficiency. once again no single

operator has emerged as an obvious

best performer amongst all partici-

pants.

• Fraudisagrowingchallenge

Fraud is a growing challenge to the

industry and ATM operators are

increasing their efforts to prevent

and combat it. Investment in fraud

prevention measures is increasing as,

in general, fraud losses continues to

increase.

• ATMscanbeaprofitablebusiness

line but with exceptions

While the majority of participants are

showing profitable ATM businesses,

a minority is apparently running loss-

making estates. It is to be noted that

not all ATM operators have a strategy

whereby profits are generated from

the ATM channel, this conclusion

is reinforcing the working hypothesis

that the cost imbalances outlined

in the first conclusion may provide

opportunities to improve overall ATM

economic performance

• Cardholdersatisfactionisnot

a typical driver to ATM management

Very few participants appear to be

tracking cardholder complaints

(or other types of customer satisfac-

tion measures) in parallel to ATM

performance monitoring. While

availability and uptime are important

drivers for ATM performance, could

customer satisfaction be a source

of competitive advantage too?


• Selectivemultifunctionalityisthe

ATM business model of the future

In line with what the conclusions

and findings of the 2012 Study,

multifunctionality is now an estab-

lished, dominant business model

for ATMs. ATM operators appear

to be developing selective approach-

es to multi-functionality with some

Value Added Services being phased

out in parallel to a more selective

approach to Value Added Services

being implanted in evolving the role

of the ATM.

Value Partners believes that the ATM

channel is, and will continue to be, for

the foreseeable future, one of the most

important channels of the banking

industry and, with very few exceptions,

the main touch-point between retail fi-

nancial institutions and their customers.

The development of other channels

such as internet and mobile banking is

currently proving complementary to

ATM industry and it is far from being a

threat to ATMs. Within this context, ATM

business management and the result-

ing fundamental economics should not

be overlooked, since current business

practices appear to offer potential for

improvement.

As referred to previously, the content

of this report refers to the general

results of the ATMIA ATM Benchmark-

ing Study 2014 and are general

in nature. Survey participants have

exclusive access to the full findings

and are provided with a customised

report detailing their performance

relative to a number of benchmarks.

If you would like to participate in the

survey in future years, please contact

your ATMIA regional director or write to

[email protected].

The development of other channels such as internet and mobile banking is currently proving complementary to ATM industry and it is far from being a threat to ATMs

36—37

ABOUT vAlUE PARTNERS MANAGEMENT CONSUlTING

value Partners has an

established financial

institutions practice with

a track record in cards,

payments and transaction

banking. Over a quarter

of our projects are now on

behalf of financial institu-

tions. We have completed

projects with top banks,

issuers, acquirers, proc-

essors and payments

schemes.

The firm also works across

all sectors of the telecom-

munications and digital

marketplace, as one of

the largest TMT practices

worldwide. This, together

with our thought leader-

ship position in the finan-

cial services industry, has

enabled value Partners

to excel within the context

of industry convergence.

Over the last 21 years we

have delivered real ben-

efits for our clients, 60% of

whom have been with us

for over 10 years, build-

ing on our deep industry

insights into key issues for

these sectors. value Part-

ners has played a primary

role in the development of

innovative solutions, espe-

cially those at the cross-

roads between industries.

We have assisted 3 of the

world’s top 5 banks, the

leading European financial

institutions and the main

telecoms operators in

Europe, Asia, Middle East

and latin America.

We serve the largest

private equity firms with

an interest in financial

services, telco and media

industry. value Partners

helps its clients adapt

their business models in

an increasingly complex

business environment,

to maximise impact and

returns in the financial

services, payments, telco,

technology and digital

media spaces.

Founded in Milan in 1993,

value Partners’ rapid

growth testifies to the val-

ue it has created for clients

over time. Today, it draws

on 20 partners and over

250 professionals from 23

nations, working out of

offices in Milan, london,

Istanbul, Dubai, São Paulo,

Buenos Aires, Beijing,

Hong Kong and Singapore.

value Partners has built a

portfolio of more than 350

international clients – from

the original 10 in 1993 –

with a worldwide revenue

mix.

valuepartners.com


ABOUT ATMIA

The ATM Industry Associa-

tion, founded in 1997, is a

global non-profit trade as-

sociation with over 4,000

members in 60 countries.

The membership base

covers the full range of

this worldwide industry

comprising over 2.3million

installed ATMs.

ATMIA has chapters

around the world in the

United States, Canada, Eu-

rope, India, latin America,

Asia-Pacific, Asia, Africa

and the Middle East.

ATMIA has just launched a

new international certified

eTraining programme for

ATM Operators (for both

banks and independent

ATM deployers. In addi-

tion, the association runs

an ATMIA Consulting and

Training practice as well

as a range of industry

committees to deal with

Government Relations and

regulatory monitoring,

ATM security, best prac-

tices and ATM deployer

issues.

ATMIA’s provides a one-

stop online resource for

member information with

security best practices,

industry white papers,

articles, research findings,

ATM business efficiency

best practices, compliance

material, Corporate Gov-

ernance best practices,

Glossary of ATM Terms, a

Gallery of Technology, on-

line ATM Risk Assessment

system, industry calendar

and more.

atmia.com

For more information on the issues raised

in the report please contact:

[email protected]

ATM business management and the resulting fundamental economics should not be overlooked, since current business practices appear to offer potential for improvement

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Economy & Finance

ATM Benchmarking Study 2014 and Industry Report