Banks around the world continue to upgrade their self-service estates to meet increasing customer demand for efficient, real-time deposit transactions
Automated deposit terminals are becoming indispensable at bank branches globally
According to new research by RBR, the number of automated deposit terminals (ADTs) installed worldwide grew by 4% to reach a record 1.4 million in 2018. In a busy world where time is of the essence, both business and retail customers no longer expect to have to queue for the teller to make everyday deposits. Banks report that deposit ATMs are an efficient tool for keeping their customers satisfied, while also enabling them to migrate transactions from the teller and achieve cost savings.
RBR’s research reveals that automated deposit transactions have been growing rapidly over recent years. Excluding China, where a meteoric surge in mobile payments has stifled cash usage, automated deposits grew by 10% in the other core markets covered in the report, contrasting with a fall in cash withdrawals in many of the same markets. Customers increasingly appreciate the benefits offered by automated deposit such as reduced queuing, instant account crediting and out‑of‑hours availability.
Strong potential in both emerging and developed markets
The vast majority of markets covered in the study continue to show potential, with the number of terminals worldwide forecast to increase by 14% by 2024 to over 1.6 million. Growth will be generated by deposit ATMs, rather than less functional stand-alone terminals, with 52% of the world’s ATMs expected to accept automated deposits by 2024.
The USA will see the largest increase in deployment, with 40,000 additional ADTs installed over the next five years. Rising customer demand and financial inclusion initiatives will also drive new installations in Brazil and India, which will both see an extra 34,000 ADTs by 2024.
Focus shifts further towards cash recycling
Cash-recycling technology, previously perceived by many banks to be too expensive or complex to implement, is proving to be an increasingly viable option for banks across the world. Recycling ATMs have been shown to reduce CIT costs and many banks now rank recycling as a basic functional requirement when selecting new deposit terminals.
Over two thirds of deposit terminals are expected to recycle notes by 2024 and the technology is now taking off in markets where it had previously been overlooked, such as in the Americas. Even where the functionality is not immediately utilised, banks are purchasing these machines to allow them the flexibility of switching on the recycling function at a later date when the business case is established.
Number of automated deposit terminals worldwide by type (thousands)
Source: Deposit Automation and Recycling 2019 (RBR)
Sam Blackwell, who led RBR’s Deposit Automation and Recycling 2019 research, commented: “Although the technology has been available for decades, the number of deposit ATMs installed worldwide continues to demonstrate healthy growth. Banks are now expected to pivot further towards recycling as the ratio of withdrawals to deposits narrows and CIT costs grow, presenting increased opportunities for cost savings”.