The document provides an executive summary of the ATM Benchmarking Study 2014 and Industry Report. Some of the key findings from the study include:
- Costs related to cash management, transaction processing, and hardware varied widely between participants despite similar ATM operations globally.
- ATM operators are expanding the services offered at ATMs to include things like mobile phone credit, loans, bill payments and money transfers.
- Revenue and profits from ATMs varied between regions and organizations, with some organizations showing losses, suggesting opportunities for improvement.
- Few ATM operators monitored customer satisfaction metrics like complaint management, indicating an opportunity for competitive advantage.
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The Payments Innovation Jury Report, written by John Chaplin, details global trends in payments innovation, and future opportunities and challenges for the industry. The report is based on the expertise of a panel of 40 business leaders in the payments sector from 23 countries across six continents.
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
The Payments Innovation Jury Report, written by John Chaplin, details global trends in payments innovation, and future opportunities and challenges for the industry. The report is based on the expertise of a panel of 40 business leaders in the payments sector from 23 countries across six continents.
Carlos Conesa innovations and non-banks in retail paymentsBogdan Stavrev
1.What is the CPMI and what is its role?
2.Recent work of the CPMI in the field of retail
Innovations in retail payments (what?)
Non-banks in retail payments (who?)
3.Some conclusions and future outlook
Potential second round effects (“faster” payment systems?)
And what about virtual currencies?
A new study on development organizations’ use of Mobile Money Bulk Payment Products carried out by NetHope. The report, based on qualitative and quantitative research, highlights a desire to move away from cash; usage of mobile money bulk payments; preferences and recommendations for design features of the products; and the estimated volume and value of this market segment.
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
The Fintech industry which is the backbone of all economies has also been impacted because of Covid. What are the implications of Covid to an important sector?
This report was commissioned by NetHope with a charitable contribution from Visa's Financial Inclusion Unit. Research for this study, both primary and secondary, was conducted by Deloitte Touche Tohmatsu India LLP.
Payments innovation is Critical for Every Global EnterpriseXTRMAccount
As fintech software and service innovations continue to disrupt the Financial Services market, even non-financial firms need to think about how to take advantage of this trend to improve
their payments processes for the benefit of the company, their customers and their partners.
Carlos Conesa innovations and non-banks in retail paymentsBogdan Stavrev
1.What is the CPMI and what is its role?
2.Recent work of the CPMI in the field of retail
Innovations in retail payments (what?)
Non-banks in retail payments (who?)
3.Some conclusions and future outlook
Potential second round effects (“faster” payment systems?)
And what about virtual currencies?
A new study on development organizations’ use of Mobile Money Bulk Payment Products carried out by NetHope. The report, based on qualitative and quantitative research, highlights a desire to move away from cash; usage of mobile money bulk payments; preferences and recommendations for design features of the products; and the estimated volume and value of this market segment.
Reference: Mobile payment industry in china 2012-2015 C. Keiko Funahashi
Referenced in presentation, "The Seven Wonders of China's Mobile World"
http://www.slideshare.net/ckeikofunahashi/m-learncon-session-907-ckeikofunahashi
The Fintech industry which is the backbone of all economies has also been impacted because of Covid. What are the implications of Covid to an important sector?
This report was commissioned by NetHope with a charitable contribution from Visa's Financial Inclusion Unit. Research for this study, both primary and secondary, was conducted by Deloitte Touche Tohmatsu India LLP.
Payments innovation is Critical for Every Global EnterpriseXTRMAccount
As fintech software and service innovations continue to disrupt the Financial Services market, even non-financial firms need to think about how to take advantage of this trend to improve
their payments processes for the benefit of the company, their customers and their partners.
This report explores the power of mobile technology in providing low income consumers with access to a wide range of financial products that go beyond simple mobile payments. This work, sponsored by the Bill and Melinda Gates Foundation, aimed to look at distribution strategies and second generation mobile microfinance products via pilots in West Africa and South-East Asia. The number of unbanked or underbanked mobile subscribers around the world is projected to reach ~2 billion by 2012. Today, only around 50 million subscribers use mobile money services. Most of these deployments have been focusing on 1st generation mobile money products such as remittances, airtime top-up, bill payments and loan repayment. The transformational impact of mobile money is expected to come from 2nd generation financial services such as micro-savings, micro-credit and micro-insurance, especially in countries with less than 10% retail banking penetration. Both telcos and financial institutions should benefit from the take-up of these products, as they reap expertise from complementary skills and deliver more value to customers. However, the formula for success is not straightforward. Drawing on their on-site experiences in pilots conducted in West Africa and in South-East Asia in the course of 2010, PlaNet Finance and Oliver Wyman explain the challenges in deploying mobile microfinance and offer strategic and operational solutions.
- See more at: http://ec2-54-247-108-110.eu-west-1.compute.amazonaws.com/blogs/branchless-banking/articles/planet-finance-mobile-banking-report#sthash.G58HPykI.dpuf
Retail Payments Report - Sponsored by VeriFoneVerifone
This survey aimed to see if the goals of Retailers and Merchants are aligned with the suppliers of technology and services to both Consumers and Retailers/Merchants. Especially in focus are new technologies like contactless cards, NFC payments on cards or in wallets, QR-codes, related values added mobile services, and the mobile-POS terminals (mPOS) launched for the emerging markets of small and mobile merchants.
ANALYSIS OF MOBILE PAYMENT INFLUENCING FACTORScscpconf
With the exponential proliferation of mobile devices in the consumer market, wireless e-business
is emerging as a key area to revolutionise industries. In the past few years, industry has
witnessed an increase in the adoption of mobile payment and billing methods that leverage on
wireless technologies. Yet, the success of mobile payments in businesses much depends on
many factors such as, type of wireless technologies used, security options available, the players
involved and their influencing m-business models. This paper examines mobile payments in
both technical as well as business perspectives. It identifies and analyses the influencing factors
from multi-dimensions that would be useful for adopting mobile payments.
CUSTOMERS PERCEPTION TOWARDS CRM PRACTICES ADOPTED BY PUBLIC SECTOR BANKS IN ...IAEME Publication
The CRM practices are adopted to generate better understanding of the customers for product development, segmentation, appropriate targeting, campaign management and maintenance of long term profitable and mutually beneficial relationships with customers. A very small proportion of its potential has been utilized. Today's banking is known as Innovative banking. Driven by new technologies, changing customer preferences, and increased competition, banks have taken to heavy investments in new distribution channels like advance automated teller machines, telephone systems, and online banking, etc. The research work is an empirical study intended to explore the technological revolution that the commercial banks witnessed and how far it has benefited banks to build better customer relationship management (CRM) services of public sector banks.
CPNI Mobey Forum Mobile Payment Trusted Service Provider Sept 23 2008The Stilwater Group
Mobey Forum quarterly meeting Sept 23, 2008. The opportunity for banks and the entire mobile payment ecosystem created by focusing on remote mobile payments.
Based on a survey of Dutch banking executives, we identify the strengths and weaknesses of payments operating models (including selective outsourcing) in a demanding, highly regulated business sector and recommend a customer-centric model.
Similar to ATM Benchmarking Study 2014 and Industry Report (20)
The European Commission’s new rule on credit cards will cut 200 million commissions in Italy: will a subscription fee be introduced? With a contribution by Gabor Friedenthal, Dep. Managing Director, and Daniele Pontecorvo, SEM
The policy and prospects of China’s fixed broadband Market liberalizationValue Partners
By Jane Hou , Partner, and Adam Meng, Associate of the Beijing office, and Taylor Lam, SEM of the Hong Kong office
A new perspective devoted to the “policy on the pilot of fixed broadband market liberalization” in China, that encourages civil capital to enter fixed broadband market in various models, a milestone of state monopolized industries’ opening up
Dynamic ticket pricing. Squeezing more juice from half time oranges Value Partners
A new perspective devoted to the benefits of the dynamic ticket pricing (DTP) in the sport industry. It is a pricing strategy according to which companies set flexible (dynamic) prices based on market demands.
Online to offline. What is in for traditional retailers? Value Partners
A new perspective devoted to O2O and the latest approaches adopted by retailers trying to integrate online resources with their offline physical assets
Customer Service: Achieving excellence through a company-wide approachValue Partners
A new perspective devoted to customer satisfaction, a key driver to increase a company’s value. By Alberto Griselli and Charles Monteux of the São Paulo office
Magazine Publishers' Transformation: The Time to Act is Now! Value Partners
By Demetrio Di Martino, Partner of the Singapore office, Charles Monteux, Senior Engagement Manager of the São Paulo office and Mark Weston, Business Analyst of the London office. January
Un nuovo perspective dedicato all'importanza della trasparenza nel settore sanità, con un confronto internazionale - A cura di Daniela Scaramuccia, Partner, e Nunzio Guida, Associate dell'ufficio di Milano Dicembre
A new perspective devoted to forecasting: demand planning is a very challenging job, that is why multinationals manage forecasting poorly. How can they improve it?
A perspective devoted to Private Equity firms: to be successful they should adopt an innovative business model and control the richest parts of the value chain
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
3. CONTENTS
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
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.
report ATM Benchmarking Study 2014 and Industry Report
4. 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
4—5
“
5. FOREWORD
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.”
report ATM Benchmarking Study 2014 and Industry Report
6. 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
6—7
7. 1
Executive summary
report ATM Benchmarking Study 2014 and Industry Report
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.
8. 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
8—9
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.
9. 2
INTRODUCTION
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.
report ATM Benchmarking Study 2014 and Industry Report
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 2014
2 ATMIA and Value Partners, ATM
Benchmarking Study 2012 and
Industry Report
3 Source: Global Partnership
for Financial Inclusion, financial
inclusions indicators 2014
11. 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.
14,000
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
report ATM Benchmarking Study 2014 and Industry Report
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 Asia Pacific
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
06-16
CAGR
2%
12%
21%
7%
16%
+13%
+9%
Value of ATM transactions, 2006-16 ($Bn)
12. Global ATM numbers (per 100,000 adults)
North America
Europe
East Asia & Pacific
Latin America & Caribbean
Middle East & Africa
South Asia
Sub-Saharan Africa
04-12
CAGR
2%
5%
7%
4%
17%
63%
27%
220
210
200
190
180
50
40
30
20
10
0
2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: World Bank, ECB, Value Partners analysis
13. 3
The global ATM
market
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.
report ATM Benchmarking Study 2014 and Industry Report
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.
14. AUSTRALIA CHINA
800 10,000
8,000
6,000
4,000
2,000
0 0
0
600
400
200
2008 2009 2010 2011 2012
50 5,000
100 10,000
150 15,000
200 20,000
5% 5%
4% 4%
3% 3%
2% 2%
1% 1%
2008
2009
2010
2011
2012
2008
2008 2009 2010 2011 2012
2009
2010
2011
2012
1,000 12,000
0
0% 0%
+22%
+30%
5,175
5,269
6,358
6,722
8,359
9,187
10,313
12,352
11,453
15,264
-1%
0%
870
154
563
156
851
155
844
154
827
152
MILLIONS
MILLIONS
CNY BN
AUD BN
GDP growth (annual %)
Inflation, consumer prices
(annual %)
Household final consumption
expenditure (annual % growth)
Transactions per type of terminal: ATM vs. POS
Dynamics of cash withdrawals at ATM vs selected economic trends
Source: WorldBank, BIS, Value Partners analysis
15. 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.
report ATM Benchmarking Study 2014 and Industry Report
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 2013
6 Compete.com
16. 81%
+2% +1%
Source: EMVco, MasterCard, Visa, American Express, Value Partners analysis
15%
94%
68%
81%
16%
95%
73%
2011 2012 2011 2012 2011 2012 2011 2012
+20%
+36% +4%
+2%
41%
77%
49%
79%
2011 2012 2011 2012
21%
76%
29%
77%
2011 2012 2011 2012
26%
50%
27%
51%
2011 2012 2011 2012
0%
+3%
0%
+7%
EMV Cards
EMV Terminals
Canada, Latin America
& the Carribbean
United States
(data not available)
Africa & the Middle East
Asia Pacific
Europe Zone 1
(Western & Central Europe)
Europe Zone 2
(Eastern Europe)
Global EMV Completion of cards and terminals
(including ATMs and POS terminals)
17. 4
Scope of the ATMIA
Benchmarking Study 2014
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.
report ATM Benchmarking Study 2014 and Industry Report
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. 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
Do you make regional or national comparisons with any
competitor or similar operator?
0% 100%
18—19
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
19. 5
Key findings of the ATMIA
Benchmarking Study 2014
7 Source: KL Guide, ATM
Software Trends and Analysis,
6th Edition, 2013
8 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.
report ATM Benchmarking Study 2014 and Industry Report
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 processing
Although 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.
20. Cost per transaction
Note: average of transaction = 100
Cost per transaction vs. number of transactions
Number of transactions
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
21. 5.1.2. Cash management
Cash, 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.
How do you perform cash demand forecasting?
Forecasting software
Do not perform
cash demand forecasting
Source: ATMIA Benchmarking Study 2014
In-house intelligence
report ATM Benchmarking Study 2014 and Industry Report
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:
• ATMs located within bank branches
are typically loaded more often
• Different ATM locations tend to be
replenished to different levels of float
• Countries with lower incidence of
attacks to ATMs and ATM theft tend
to have high amounts of float
• Replenishment value and frequency
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%
22. Cost of replenishment event vs. 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
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
vAvaeegr valeu fo achs ehld in an ATM Cost fo eprleehimnnst event
Average number of replenishment events per year per ATM
Note: Base 100 normalised index
(-)R2 = 0,55
Average number of replenishment events per year per ATM
23. 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.
0% NO 0%
+105.3%
NO
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
report ATM Benchmarking Study 2014 and Industry Report
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)
+83.7.3%
100%
-81.6%
Internal
transfer rate
3rd party
lender
100%
-47.3%
YES
YES
100% 100%
24. 5.1.3. Cost of hardware
Hardware 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.
What is your vendor policy? If you have a multi vendor policy,
how many vendors do you use?
24—25
5.1.4. Performance monitoring
Performance 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 hardware
cost
+131.8%
100
-17.5%
100%
0%
MULTI
VENDOR
SINGLE
VENDOR
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
What methods do you use to identify
errors at ATMs?
Outcourced
Audits
Real time
monitoring
0% 80%
Frequency of performance monitoring
reports produced
0% 100%
Hourly Daily Weekly Monthly
2
3
25. 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
What is your approach
to performance monitoring?
Outsourcing IN-HOUSE
0% 100%
None (outsourced )
Performance of outsourced
ATM management
ATM uptime
Problem handling
and response times
Transaction data
Type of fault
0% 100%
100%
report ATM Benchmarking Study 2014 and Industry Report
NO
YES
party provider.
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.
Are you planning any investment to improve/upgrade your
monitoring capability? If yes, please specify
Source: ATMIA Benchmarking Study 2013, ATMIA Benchmarking Study 2014, Value Partners Analysis
Infrastructure upgrade
Software investment
Monitoring system
for multi-vendor network
What metrics/data do you collect as
part of your performance monitoring?
0%
26. Fraud, crime and dispute – Security measures
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
0%
% of participants having security measures in place
100%
% of fleet covered by security measure
100%
0%
building alarms
CCTV coverage
transaction encryption measures/MACin
anti-ram raid bollards
anti-skimming jamming measures
enhanced ATM locking systems for the cabinet
anti-ram raid anchorage plinths/anti-theft devices
transaction reversal fraud/dispenser manipulation detection
alarms in ATM security enclosures
enhanced ATM locking systems for the security enclosure
ATM fascia and cabinet alarms
anti-cash trapping physical prevention measures
anti-skimming detection measures
remote monitoring for unusual transaction patterns
anti-card trapping detection sensors/measures
enhanced building and perimeter security
a mirror to detect shoulder surfing
PIN pad shields/guard
remote monitoring for unusual ATM device behaviour
enhanced physica l security for cash shutters
higher specification security enclosures
cash protection systems such as IBNS/dye staining
interna l cages/locking bars to protect cassettes
security guards at ATM lobbies
ATM room smoke protection systems
anti-cash trapping detection sensors
anti-deposit trapping detection sensors
anti-solid explosive attack measures
defensib le spaces (painted lines ) at ATMs
27. 5.2. Fraud and dispute management
Fraud 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.
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.
Do you have other security measures in your Real Estate?
If yes, how many?
100% NO
YES 1-3
Dispute and fraud statistics
(average = 100, maximum and minimum ranges shown)
Cost
per dispute
+46.9%
100%
report ATM Benchmarking Study 2014 and Industry Report
Number
of dispute
cases per
transaction
+166.4%
100 100
-85.6%
-95.9%
+10
0%
Number of fraud
cases per ATM
0%
ATMIA
Benchmarking
Study 2012
ATMIA
Benchmarking
Study 2014
28. 5.3. Revenue and profitability
The 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
+438%
100
-44.5%
28—29
of the ATM estates.
Average
transaction
margin
+424.6%
100
-192.4%
TOTAL
MARGIN
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
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)
29. 5.4. Complaint management
ATM 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.
COMPLAINTS MANAGEMENT
Participants collect data
on complaints
Do you have
a complaint policy?
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.
100% 100%
NO
YES
NO
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
YES
report ATM Benchmarking Study 2014 and Industry Report
Is compensation offered?
NO
YES
0% 0%
30. Pricing Complaint
Cash not dispensed
Customer error
Card captured
ATM Malfunction
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
Other
ATM out of order
Card captured
Issuer requesT
Cash not dispensed
A/c debited
ATM Malfunction
Transaction slow or incomplete
communications malfunctiON
Cash retracted
Proportion of complaints received per year
Cash not dispensed
A/c not debited
ATM Malfunction
31. 5.5. Value added services and multi-functionality
The 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.
Types of ATM advertising
report ATM Benchmarking Study 2014 and Industry Report
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
Direct marketing
3rd party advertising
couponing
32. % 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%
% of fleet covered by security measure
100%
0%
Balance enquiries
Printed receipts
PIN services
Mini statements
Mobile top-ups
Account transfers
Bill payments
Intelligent deposit
Dynamic currency conversion for tourists
Charity donations
Other
Couponing
Cardless withdrawal
Person to person remittances (initiated)
Person to person remittances (collected)
Payment of taxes/fines
Loyalty rewards
FX Remittances
Pass book printing
Travel tickets
Entertainment event tickets
E-Wallet top up
Road tolls
Licences
Lottery tickets
Sports event tickets
Stamps sales
Event Tickets
33. NO
YES
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.
Generic
Cardholder-specific
Split between ‘on us’ and
‘not on us’ customers
100%
0%
Do participants advertise on behalf of 3rd parties?
If no, why?
NO
YES
Incompatible technology
Company Policy
Other
100%
Source: ATMIA Benchmarking Study 2014, Value Partners Analysis
report ATM Benchmarking Study 2014 and Industry Report
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 with
balance 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% 80%
34. 6
conclusions
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:
• Economies of scale are (still) not a
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.
34—35
• Fraud is a growing challenge
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.
• ATMs can be a profitable business
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
• Cardholder satisfaction is not
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?
35. • Selective multifunctionality is the
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.
report ATM Benchmarking Study 2014 and Industry Report
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
atm@valuepartners.com.
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. 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.
36—37
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
37. 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.
report ATM Benchmarking Study 2014 and Industry Report
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
38. For more information on the issues raised
in the report please contact:
daniele.pontecorvo@valuepartners.com
39. ATM business management
and the resulting
fundamental economics
should not be overlooked,
since current business
practices appear to offer
potential for improvement