How and why the population of ATMs is changing

By Leonidas Stergiou

The official figures do not confirm the general impression that today it is more difficult to find an ATM to be served. According to the data of the Hellenic Banks Association, the reduction of ATMs is half of the reduction of bank branches in the last decade. If the comparison is made in five years, then today we have more ATMs than in 2017.

10 years ago, in 2012, there were 6,655 ATMs across the country, when bank branches numbered 3,448. In 2017 there were 5,505 ATMs and 2,045 stores. As of June 2022, 5,788 ATMs and approximately 1,400 bank branches were operating nationwide. That is, the number of ATMs available today is about 253 more than in 2017.

The problem, therefore, does not seem to be found in the total number of ATMs nationwide, but in the distribution of the machines according to the transactions they accept and according to where they are located. According to the data of the Hellenic Banks Association, there is a clear decrease in the number of ATMs in stores and those that accept cash deposits and other transactions (payments, money transfers, etc.), while the number of those intended only for withdrawals has increased significantly. In fact, the number of withdrawal-only ATMs is the highest in 10 years.

Charges

The issue of charges is another parameter that leads the bank’s customer to look for an ATM of his bank. Therefore, this is a parameter that reinforces the fact that we do not easily find ATMs even though their total number is relatively high. Since the end of 2019, ATM fees of other banks have been abolished in certain remote areas, in the event that there are no ATMs of all banks. This, however, only applies in a few areas, in about 30 along with specific islands. No, throughout Greece, large and small urban centers, cities and villages.

ATM reduction for payments

Two other factors are accuracy and increased use of ATMs for deposits rather than withdrawals. And the data shows a significant decrease in ATMs that accept deposits and online transactions in general, while a large increase is seen in those that only offer withdrawals.

Today there are almost half of what there were 10 years ago. And these seem to be concentrated in areas where there is a great demand from businesses to deposit cash – and in fact several times a day – due to the nature of their work (eg tolls, etc.). But here, too, change is taking place. A systemic bank has imposed a ceiling on cash deposits in ATMs and makes it mandatory to deposit them over the counter for reasons of risk and cost management (compliance, IT, banknote and coin management, security, etc.), while DIAS Interbank Systems through the IRIS services that has developed has succeeded in reducing cash in stores by 54%, compared to 2020. These are business-to-business or consumer-to-merchant payment services that reduce the use of cash, with direct debiting of accounts.

Tourism

Also, a key factor that increases the need to use ATMs that provide all transactions, especially on islands and in tourist destinations, is the significant increase in tourism. The increase in arrivals and income boosts traffic at ATMs (mainly withdrawals from tourists) but also deposits from hotels, tourist agencies, etc. In 2019 there was a record collection and it seems that a new one will be recorded this year reaching close to or exceeding 20 billion. , according to estimates by banks and entrepreneurs in the tourism sector.

At the same time, accuracy and the tendency to use new payment methods have also increased the need for ATM deposits and other cash transactions. So, in addition to the other restrictions (store closures, limits on deposits and withdrawals over the counter in the pandemic, etc.), energy bills, for example, paid through ATMs have soared. Also, other bills, even rents, etc. are paid through ATMs.

Cash deposits

From 3.6 billion euros of ATM deposits in 2017, they reached 15.8 billion euros in 2021 and close to 10 billion euros in the first half of the year alone. The average deposit value per transaction from 375 euros in 2017 has risen to 490 euros, while if other minor transactions are added (eg money transfer), then we have to add another 250 euros per transaction.

The reduction of disposable income and precision can also be seen from the restriction of the circulation of money which is currently estimated at around 18.5 billion euros, i.e. about 2 billion less than during the lockdown period in 2020. Consequently, an inflow of cash is observed which circulated outside banks in the banking system and through ATM deposits for bill payments.

Voltage change

EET and ECB data show that the ATM is starting to transform from a main machine for withdrawals to a key point for cash deposits and other payments and cash transactions. Various events of the last decade have contributed to this and have changed the way of trading behavior. Starting with capital controls, when cash withdrawals were capped, we reach the measures during the Covid pandemic in 2020, when cash deposits of up to 1,000 euros were mandatory at ATMs (not at the cash desk). At the same time, store closures (due to the pandemic and restructuring of the banking system) drove consumers to digital networks. This includes the ATM network. Today, 97% of cash transactions take place through digital networks, i.e. internet, mobile, POS, and ATMs.

This percentage, i.e. 97%, concerns the transactions carried out through the banking system which currently totals 1 trillion. euro. There are also hand-to-hand cash transactions that do not enter and move through banks. If, therefore, all transactions are taken into account, then almost 60% of payments are made in cash, while it is decreasing, according to data from the Bank of Greece and the ECB. In other words, cash remains the dominant means of payment in Greece.

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