The number of automated deposit ATMs continued to grow in 2020, driven by branch transformation initiatives and the continuing migration of cash transactions away from the teller

Banks are smartening their approach to self-service banking

RBR’s Global ATM Market and Forecasts to 2026 reveals that of the 3.1 million ATMs installed globally, 1.4 million now accept automatic note deposits. Automated deposit can both enhance profitability for banks and increase convenience for customers. The COVID-19 pandemic led to a greater emphasis on self-service banking in 2020, as lockdowns and other social distancing measures meant that customers were unable or unwilling to visit bank branches and carry out transactions face-to-face.

Share of automated deposit ATMs, 2020

Source: Global ATM Market and Forecasts to 2026 (RBR)

Brazilian banks look to recyclers to cut cash management costs

Automated deposit is still relatively uncommon in Latin America and is only offered at 15% of ATMs in the region. That is starting to change however, as Latin America recorded the highest growth of any region in the number of ATMs offering automated deposit last year. This was mainly driven by a significant increase in Brazil, where 6,800 automated note deposit machines were introduced, although other markets in the region are following the same path. Many Brazilian banks have decided to install recycling ATMs, which redispense deposited banknotes. In doing so, they are able to reduce cash management costs as fewer cash-in-transit visits are needed to refill machines.

Cash recycling popular in Asia-Pacific, but adoption varies widely

Asia-Pacific is the most advanced region in terms of automated deposit. 83% of ATMs in the region are cash recyclers, including all automated deposit machines in Japan, Indonesia, Malaysia and Bangladesh. However, there is a great deal of disparity between countries, with Pakistan and the Philippines having only introduced recycling ATMs for the first time in 2020.

Cash recycler numbers to grow, bucking the overall ATM trend

Whilst the number of ATMs installed worldwide is set to continue its gradual decline, the number of automated deposit machines, especially recyclers, is projected to grow. Rowan Berridge, who led RBR’s Global ATM Market and Forecasts to 2026 research, remarked: “The ATM landscape is changing, and while the overall ATM installed base has started to fall, banks are looking to make their remaining ATM estates as efficient as possible. Automated deposit ATMs play a key role in this and offer enhanced customer benefits at the same time. The recent developments in Latin America are an intriguing shift, highlighting how the region is adapting its banking services”.