ATMs have come a long way from being just a cash delivery channel, and among a range of advanced facilities, many deployers allow customers to make instant cash deposits at their machines

The number of ATM cash withdrawals rose by six billion in 2016

RBR’s Global ATM Market and Forecasts to 2022 shows that the number of cash withdrawals made at ATMs globally in 2016 was 107 billion, 6% more than in 2015. Withdrawal volumes are falling in some developed markets, but this is often accompanied by a rise in the total value of cash withdrawn, as customers choose to access their cash by making fewer, higher-value transactions.

Not only are withdrawal volumes and values rising in most markets, but customers can increasingly also make real-time cash deposits at ATMs. By the end of 2016, the number of ATMs that could be used to automatically deposit banknotes reached 1.1 million, which equates to 34% of the global ATM total.

Automated deposit ATMs enable banks and independent ATM deployers to reduce costs

The rise in ATM popularity meant that banks could rationalise their branch networks, or redeploy staff members who no longer needed to carry out as many over the counter cash withdrawals. The same is now happening with banknote deposits, as automated deposit ATMs allow banks to move staff members to other roles, such as sales. Depositing cash with a teller is often restricted by branch opening hours; automated deposit ATMs, however, can be stationed in bank lobbies, through the exterior wall of the branch or even off-site, meaning that customers can deposit their banknotes at more times of the day and in more locations. By connecting additional facilities to the deposit module, deployers often enable customers to settle bills, transfer money, or pay for other goods and services with the deposited cash.

An increasing number of automated deposit ATMs recycle banknotes

Recycling ATMs – automated deposit ATMs that also dispense the deposited banknotes – are growing in number. Over 670,000 ATMs at the end of 2016 were recyclers, up from 360,000 in 2012. In addition to staff redeployment or rationalisation, these machines also allow banks and independent ATM deployers to reduce their cash-in-transit (CIT) costs, as they require fewer cash replenishment visits. Reducing reliance on CIT companies is a goal for many deployers.

Rowan Berridge, who led RBR’s Global ATM Market and Forecasts to 2022 research, said: “Banks are improving the functionality of their ATMs so that more transactions can be migrated from the branch counter to self-service, freeing up staff to undertake sales and advisory tasks. Furthermore, they are increasingly rationalising their branch networks and using ATMs to offer a wide range of services in areas that do not justify the presence of a traditional outlet”.