As the banked population expands in Asia Pacific, the demand for cash from ATMs is growing drastically, as new figures show the value of cash withdrawn from ATMs in the region has increased by 50 per cent since 2011.

This is according to RBR’s ATM Hardware, Software and Services 2016 report, which found that the value of cash withdrawals in the Philippines, Vietnam, Indonesia and India grew by more than 15 per cent in 2015 alone. RBR attributes the rise to a number of new financial inclusion programmes that are bringing large numbers of previously “unbanked” people into the banking system – adding to demand.

The number of customer visits to ATMs in Asia-Pacific also rose sharply in the past year. The fastest growth rates are in the Indian sub-continent (India, Pakistan, Bangladesh), where there remains low numbers of ATMs compared with the population, and Indonesia, where a higher percentage of the population can access ATMs.

The study also found that the value of ATM withdrawals in 20 European markets has grown by 8 per cent since 2011. While 2015 saw strong growth in the value of withdrawals in countries such as Russia and Turkey (in part due to inflation), and Spain (due to economic uncertainty), in many parts of Europe the value of cash withdrawals has actually fallen.

The smaller European markets, such as Finland, Sweden, Ireland and Greece, are where the average numbers of withdrawals per ATM are highest – these countries tend to have fewer ATMs relative to population than the larger markets such as the UK and Germany.

In most European countries, the average number of ATM withdrawals has been flat or falling over the last five years, with three major exceptions in Greece, Ukraine and Italy, where the average has risen strongly. Falling ATM numbers (in Greece and Ukraine) and economic instability were cited as the two main factors driving this change.

Robert Chaundy, lead of the RBR study, commented: “Consumer behaviour varies widely across Europe and Asia, but the demand for cash remains strong, and can be driven upwards by economic uncertainty.

“The runaway growth seen in many Asian markets is set to continue for the foreseeable future, and the key challenge for the banks there is getting enough ATMs installed to deliver cash to their customers.”

Share Story: