With advancements in mobile banking and online banking, along with other third-party payment options, bank branch closures are on the rise. Moreover, advancements in mobile payment technology, as per recent market reports, have furnished a significant first worldwide drop in ATM installations.
As per a newly published report by Retail Banking Research (RBR), the number of ATMs, installed globally, are dwindling, with reports of a 1% fall in 2018. Although, four of the five largest markets – China, the USA, Japan, and Brazil – reported a mild decline in ATM installations, India, the fifth largest market registered a significant slowdown in growth.
Going further into the details, the report attributes China’s mild decline to its early adoption of non-cash payment methods, while in the USA, the report attributes branch closures amongst one of the reasons for dwindling ATM installation figures, along with the reluctance of US retailers to upgrade to Europay, Mastercard, and Visa (EMV) standards. Brazil, with its growing popularity of digital channels, has removed about 1,200 ATMs last year, alone.
Furthermore, the report, titled “Global ATM Market and Forecasts to 2024,” in its findings reported that although ATM numbers have increased in most countries, in particular, the developing markets, owing to financial inclusion initiatives, the number of ATM installations on a global scale is expected to fall to 3.22 million in 2024.