ATM Growth Slows, Picks Up New Markets
As the cashless trend picks up pace in major markets, ATM numbers are seeing a swift fall. However, their growth in developing markets is softening the decline.
The number of automated teller machines (ATMs) worldwide fell by 1 percent in 2018 to 3.24 million, according to «Global ATM Market and Forecasts to 2024», a new report from London-based research and consulting firm RBR.
According to the report, more than half of the world's ATMs are located in only five countries: China, Japan, the United States, Brazil and India. All except India saw declines in ATM numbers in the past year, while the subcontinent experienced slower growth.
Reasons for their decline vary across markets: in China, the swift adoption of non-cash payments has contributed to a similarly rapid fall in ATM installations. In the U.S., branch closures have led to fewer bank ATMs, while the number of independently operated machines fell as some retailers chose to withdraw them rather than upgrade to EMV standards. Numbers in Japan fell for the first time since 2009, as banks have increased ATM sharing in a bid to improve operational efficiency, while the removal of 1,200 terminals in Brazil was due to banks reacting to a surge in the use of digital channels.
Growth in Developing Markets
While the total number of ATMs worldwide experienced a decline in 2018, this figure actually grew in most countries, particularly in developing markets across Asia-Pacific, the Middle East and Africa and Latin America.
The report cited financial inclusion initiatives in these regions as contributing to stemming the fall in global ATM numbers, which is set to decline slowly over the next five years to 3.22 million as a result of branch closures and a rise in mobile payments.
