Allpoint Blog

Resolving the ATM Paradox: Cardtronics and TD Bank

As consumer behavior changes and the banking model shifts more toward self-service, the current state of the ATM industry is evolving as well. This evolution does not mean the demise of cash so much as it demands more innovative, creative thinking on how to deliver on what many studies have shown: consumers still want cash – and convenient access to it – more than ever.
Johnathan Simpson Dent speaking at the ATMIA Europe Conference
At the ATMIA’s “European ATMs 2016” conference held in London June 14-15, the ways in which future-looking banks and independent ATM deployers (IADs) should partner in defining the new paradigm for consumer cash access were discussed by Jim Grimmer, Senior Vice President, Head of North American ATM Channel for TD Bank (on the left in above photo), and Jonathan Simpson-Dent, Managing Director for Cardtronics Europe (UK). TD Bank is a client of Cardtronics.
The following are key takeaways from their session, “The ATM Paradox:”

Consumer Behavior and Payment Methods

  • Even though consumers have a variety of digital payment methods from which to choose, cash still represents 40 percent of all retail payments in Europe, with 90 percent of payments under €20, according to an independent study commissioned by Cardtronics Europe last year.
  • Thus, consumers demand convenient access to cash, but 24 of the 27 European Union members decreased their branch networks – and shut down the ATMs that were available in many of those branches – after the economic crisis.
  • These ATM closures have negatively impacted local communities, such as the UK’s ubiquitous “high street” shopping districts. Retailers report that the lessened access to cash has caused them to lose customer footfall and lowered their profits and the amount of cash consumers do spend.
  • The loss of local ATMs could reduce the £94 billion spend on UK main streets by over 30 percent.
  • However, ATM operators have the opportunity to work with financial institutions to fill the void and restore the health of the high street economy by installing free-standing ATMs in these districts as Cardtronics UK did earlier this year.

Focus on the Customer

The emergence of the self-service banking model means that banks need to focus even more intently on putting their customers’ convenience first. An ATM footprint that fills those gaps where the branch footprint is lower versus that of the competition is TD Bank’s North American strategy for putting customers first.
Grimmer also recommended the following criteria for implementing an ATM branding program and choosing the vendor with which to partner:
  • Design a program that increases the bank’s footprint in a low-expense growth manner, allows for scaling, and limits the need for capital investment and creation of an infrastructure.
  • Seek a partner with widespread national coverage, a strong presence in key target markets, the flexibility to expand, and that has relationships with reputable, well-known retailer brands.
  • Require that the vendor can meet the bank’s security standards and has an understanding of regulatory compliance issues.
The annual “European ATMs” conference brings together more than 600 banks, independent deployers, network processors, vendors and service providers at one event. The conference is jointly organized by ATM Industry Association (ATMIA) Europe, the only European ATM industry association, and RBR, the industry's leading research and consulting firm, and is sponsored by Cardtronics.
Tom Pierce
Chief Marketing Officer

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