The ongoing but stable decline in global ATM numbers disguises a more dynamic picture on a regional and country level
Financial inclusion powering banks’ expansion of self-service strategies
The latest research from RBR Data Services’ Global ATM Intelligence Service found that the number of ATMs worldwide remained on a steady decline in 2023. The global total decreased by 2% for the third consecutive year, dropping below three million units.
However, two regions, Central and Eastern Europe and the Middle East and Africa, saw the number of ATMs rise, by 2% and 1% respectively. Financial inclusion initiatives are powering banks’ expansion of self-service channels in both regions, with several thousand new installations in countries like Uzbekistan and Egypt. Uzbek banks are adding new installations in more remote areas of the country as part of an aim to level up provision of banking services for all residents.
While Latin America experienced an overall decline in the number of ATMs, this was concentrated mostly in the region’s largest ATM market, Brazil. Rapid uptake of digital payments in Brazil has reduced demand for cash and precipitated large scale ATM removals by deployers. Almost all other Latin American countries saw an increase, however, including Argentina where expansion by a nascent IAD sector is supporting robust growth.
Ambitious branch expansion strategies fuel ATM deployment
The global decline in the number of bank branches slowed to just 1%. In Mexico, Banco del Bienestar focused on extending its network to remote communities, adding over 1,000 new locations which supported a strong uptick in ATM numbers, with over 2,000 new installations. Pakistani banks also enhanced access to financial services throughout the country, with several hundred new branches and over 2,000 additional ATMs.
The branch picture was mixed internationally, however, with every western European country that features in the study seeing a decline in branch numbers. Major banks reduced their physical footprints in favour of remote services, fuelling the ongoing debate into the social impact on communities of widespread branch closures.
Newly banked customers will drive demand for ATMs
While the number of ATMs will continue to slowly fall on a global level, RBR Data Services expects a mixed picture within regions. Asia-Pacific is a good example of this, as some of the largest countries in the region are removing significant numbers of ATMs, while at the same time, countries such as Bangladesh and Pakistan, will see some of the greatest expansion in ATM deployment.
Scope for ATM growth through branch expansion will remain limited by the cost of staffing a full physical outlet, but branchless strategies will not become the norm. The decline in the number of branches is anticipated to slow globally as the biggest banking groups complete projects to pare down their networks to a targeted size while fast-growing players in emerging economies open new locations with the latest multifunctional ATM models to cater to recently banked customers.
Mandy Eagle, who led RBR Data Services’ Global ATM Intelligence Service research remarked: ‘The global ATM landscape is far from uniform and RBR Data Services’ research highlights significant variations by country. These show us that, contrary to the overall global decline, there remain multiple countries with robust demand for new ATMs and branches to serve fast-growing populations eager to access financial services.’
Notes to editors
About RBR Data Services
RBR Data Services provides clients with independent and reliable data and insights through published research, consulting and bespoke data services. Our global research covers the cards and payments, retail technology and banking automation sectors and is used by the leading market participants, analysts and regulators as the authoritative source of industry and competitor benchmark data. For any questions about this release, please contact [email protected].
About Datos Insights
Datos Insights delivers the most comprehensive and industry-specific data and advice to the companies trusted to protect and grow the world’s assets, and to the technology and service providers who support them. Staffed by experienced industry executives, researchers, and consultants, we support the world’s most progressive banks, insurers, investment firms, and technology companies through a mix of insights and advisory subscriptions, data services, custom projects and consulting, conferences, and executive councils.
The information and data within this press release are the copyright of Datos Insights, and may only be quoted with appropriate attribution to RBR Data Services, a division of Datos Insights. The information is provided free of charge and may not be resold.