ATMIA Benchmarking Study 2016 US... · ATMIA Benchmarking Study 2016 Francesco Burelli –Global Payments Strategy Lead Accenture Payments Services

ATMIA Benchmarking

Study 2016

Francesco Burelli – Global Payments Strategy Lead

Accenture Payments Services

2Copyright © 2015 Accenture. All rights reserved.

Agenda

• Accenture’s profile

• Industry context

• ATM Benchmarking 2016 participation

• Quantitative findings

• Evolution of the ATM

• Growing challenge of ATM security

• Conclusions


Accenture has differential capabilities across multiple

operating groups

Accenture Overview

Accenture is a leading

professional services company,

with capabilities in strategy,

consulting, digital,

technology and operations

We commit to results: design

the strategy and execute

leveraging our firm capabilitiesCMT

H&PS

Resources

FS

Products

Over 6.000+

professionals in

38 countries

(Over 300+

Strategists in

UK)

Design and

innovation

consultancy that

uses the power of

design to create

experiences that

people love

Interactive: Delivering

unique customer

experience

Analytics: Data

scientists deliver

meaningful insights

Mobility: Growing the

digital business

Distribution and

marketing

services helps

clients in

transformation

programs


Number of ATMs is keeping growing to 3.2 million units

installed in 2014

Number of ATMs (world, m of units)

0,5

3,0

0,0

1,0

2,5

3,5

4,0

1,5

2,0

4,5

2015(f)

4,8%

3,8

2018(f)2017(f) 2019(f)

4,0

2020(f)2016(f)

4,1

4,3

3,4

3,6

12,4%

2,0

2,6

2012

2,1

2010

3,2

2013

2,4

2011 2014

East Asia & Pacific Middle East & North Africa

Sub-Saharan Africa

Central Asia

Central Europe and the Baltics

Latin America & Caribbean

North America

Europe

World (total)

-4%

3%

40%

29%

3%

9%

26%

20%

12%

Note: number by

region in legend

indicated CAGR

2010-2014

Source: World Bank, BIS, ECB, RBR, Accenture analysis


Penetration of ATMs grew in all regions except Europe

ATM penetration (ATM per 100,000 people)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

80

220

200

180

20

60

0

40

90

10

210

70

190

50

230

30

World

Latin America & Caribbean

European Union

OECD members

Central Europe and the Baltics

Europe & Central Asia

North America

Middle East & North Africa

East Asia & Pacific

Source: World Bank


Value of ATM withdrawals grew faster than POS

transaction globally but not in Europe

Value and Number of ATM and POS transactions

20.000

15.000

5.000

2014

10.000

2010

POSATM

30.000

60.000

0

Valu

e o

f tr

ansactions

($B

n)

Volu

me o

f tr

ansactions

(mill

ions)

11.2%

16.4%

8.3%

11.5%

2010-14

CAGR

GDP

2.000

1.000

2010

3.000

2014

3.000

2.000

1.000

7.4%

2.5%

0.8%

7.4%

2010-14

CAGR

GDP4.4% 1.0%

Global Europa

Source: World Bank, BIS, ECB, Accenture analysis


ATMIA Benchmarking drew on a global sample of forty three full

participants plus two qualitative only participants

Geographical distribution of participation

10(+1)

18(+1)

6

9


Participation was up by 2% on 2014, 47% on 2012

Participation

+2% participation in 2016 vs. 2014

+2 full participants of which three

took part with multiple branches /

countries

88% of ATM operators participating in

2014 decided to take party also in 2016

36% of ATM operators participating in

2012 only decided to participate again in

2016

29

4342

2012 2014

+2%

Asia Pacific

Middle East and Africa

Europe

+45%

Americas

2016

Participants 2012

29New Participants 2014

4342

Participants by region

Participants by benchmarking round


The scope of the ATM Benchmarking has now reached its

final shape and it is not expected to expand any further

Scope of ATMIA ATM Benchmarking

Transaction

related

revenues

Cash

Mgmt.

Transaction

Mgmt.

ATM

performance

monitoring

Estate Mgmt.Fraud, Crime

and Dispute

Innovation

General estate and transaction statistics

Expanded categoriesIncluded information about reversals, declines and cash

deposit ATMs

EXPANDED

REDESIGNED

EXPANDED

EXPANDED

EXPANDED EXPANDED EXPANDED

Added detail about VAS

Expanded categories

Added cash

deposit ATMsAdded cash

deposit ATMsAdded cash

deposit ATMs


ATM cost performance continues to show significant

variance and little scale correlations

Unit costs

Number of transactions

Cost per

transaction

R2=0.12

Cost of re

ple

nis

hm

ent events

per

year

per

AT

M

Average number of replenishment events per year per ATM

R2=0.60

Cost per transaction vs

number of transactionsCost per replenishment events vs average number

of replenishment events per year per ATM


Only a small part of ATM estates is managed profitably

with most banks running the ATM channel at loss

Economic performance

Average transaction

margin (direct revenue

and costs only)

Profitability per ATM

channel (direct revenue

and costs only)

+56.0%

100

-354.4%

+92.5%

100

-278.6%


The ATM is proving to be getting more (selectively) multi-

functional

Value Added Services

Services offered or planned

to be rolled-outNot willing to add service

100% 100%

Charity donations

Payment of taxes/fines

Pass book printing

Couponing

Person to person domestic remittances (collected)

Cardless withdrawal

Person to person domestic remittances (initiated)

Mobile top-ups

Balance enquiries

Account transfers (cardholder owned acconts)

PIN services

Printed receipts

Bill payments

Mini statements

Sports event tickets

Travel tickets (urban e.g. bus)

Person to person cross-border remittances (collected)

Lottery tickets

Person to person cross-border remittances (initiated)

Stamps sales

E-Wallet top up

Third party loyalty rewards

Licences renewals

Entertainment event tickets

Travel tickets (extra-urban e.g. train)

Road tolls payment / prepayment

Travel tickets (extra-urban e.g. flight)Offered now

Planned 1 Year

Planned 5 Years

Stamps sales

E-Wallet top up


The ATM is proving to be getting more (selectively) multi-

functional

Value Added Service 2016 2014 Status

Balance enquiries 1 1

Printed receipts 2 2

PIN services 3 3

Mini statements 4 4

Bill payments 5 7

Account transfers (cardholder owned acconts) 6 6

Cardless withdrawal 7 13

Mobile top-ups 8 5

Person to person domestic remittances (initiated) 9 14

Person to person domestic remittances (collected) 10 15

Couponing 11 12

Pass book printing 12 19

Payment of taxes/fines 13 17

Charity donations 14 10

Licences renewals 15 24

Stamps sales 16 27

E-Wallet top up 17 22

Person to person cross-border remittances (initiated) 18 18

Person to person cross-border remittances (collected) 18 18


Fraud is a growing challenge …

Number of fraud cases per ATM

2016

+21%

+53%

+38%

2012

100

2014


… with a growing investment to prevent fraud and fight

crime

Number of fraud cases per ATM

0% 100%

Cash protection systems such as IBNS/dye staining

Transaction encryption measures/MACing

Anti-solid explosive attack measures

Security guards at ATM lobbies

ATM room smoke protection systems

Defensible spaces (painted lines) at ATMsSensor surveilance on the pin pad to detect false keyboards

Higher specification security enclosures

Anti-gas attack measures

Alarms in ATM security enclosuresOther securty features

Anti-deposit trapping detection sensors

Enhanced ATM locking systems for the security enclosure

Anti-cash trapping detection sensors

Remote monitoring for unusual transaction patterns

Internal cages/locking bars to protect cassettes?

Enhanced physical security for cash shutters

Anti-ram raid anchorage plinths/anti-theft devices

Anti-card trapping detection sensors

Remote monitoring for unusual ATM device behaviour

Enhanced ATM locking systems for the cabinet

Anti-skimming jamming measures

Anti-ram raid bollards

Mirror to detect shoulder surfingCCTV coverage

Enhanced building and perimeter security

Building alarms

ATM fascia and cabinet alarms

Anti-cash trapping physical prevention measures

Have PIN pad shields/guards

Anti-skimming detection sensors

Transaction reversal fraud/dispenser manipulation detection

Measure

quote

d b

y num

ber

of re

spondents

Number of respondents quoting the measure

Have it


Prevention measures are evolving, likely in line with the

evolving nature of the threat

Number of fraud cases per ATMNo Fraud prevention measure 16 14 Status

1 Building alarms 1 1

2 Anti-cash trapping physical prevention measures 2 12

3 Anti-skimming jamming measures 3 5

4Remote monitoring for unusual ATM device behaviour

4 18

5 Anti-ram raid bollards 5 4

6 Anti-skimming detection sensors 6 13

7 Anti-card trapping detection sensors 7 15

8 CCTV coverage 8 2

9 Mirror to detect shoulder surfing 9 17

10 Have PIN pad shields/guards 10 18

11 Anti-ram raid anchorage plinths/anti-theft devices 11 7

12 ATM fascia and cabinet alarms 12 11

13 Enhanced physical security for cash shutters 13 19

14 Enhanced building and perimeter security 14 16

15 Enhanced ATM locking systems for the cabinet 15 6

16 Transaction encryption measures/MACing 16 3

No Fraud prevention measure 16 14 Status

17Transaction reversal fraud/dispenser manipulation detection

17 8

18 Remote monitoring for unusual transaction patterns 18 14

19 Other securty features 19 New

20 Alarms in ATM security enclosures 20 9

21 Anti-cash trapping detection sensors 21 26

22 Anti-gas attack measures 22 New

23 Cash protection systems such as IBNS/dye staining 23 21

24 Internal cages/locking bars to protect cassettes? 24 22

25Enhanced ATM locking systems for the security enclosure

25 10

26 Higher specification security enclosures 26 20

27 Anti-deposit trapping detection sensors 27 27

28 Anti-solid explosive attack measures 28 28

29Sensor surveilance on the pin pad to detect false keyboards

29 New

30 Defensible spaces (painted lines) at ATMs 30 29

31 ATM room smoke protection systems 31 25

32 Security guards at ATM lobbies 32 24


Larger ATM portfolio tend to employ a larger number of

fraud prevention measures

Number of prevention measures in use vs. size of portfolioN

um

ber

of A

TM

s in p

ort

folio

Use of Security Measures

R2=0.52


The study is keeping proving to be an insightful exercise

for a number of participants

•Over 137 benchmarks in progress of being compiled, covering everything from

profitability per transaction to uptime and fraud to the average cost per transaction

•Study is still proving to be counterintuitive

-Little correlation between the type of management and the cost performance

-This has important implications with the ATM industry as it continues to seek best

practices

•Significant opportunity for improvement in ATM management practices and economic

performance

BUT

•Significant opportunity to improve cost allocation and performance monitoring of the

ATM channel beyond the (physical) ATM performance


Future ATMIA ATM Benchmarking plans are evolving in

line with the needs of the participating organisations

•GAP between ATM Benchmarking rounds to increase from 2 to 3 years, enabling a

wider GAP and a too frequent data collection effort

•The data sample is to remain stable or to be potentially simplified in line with the data

provided by participants

•Set-up of a content advisory board to meet in 2Q 2018

•Next round scheduled for 2019 with registration opening in late 2017


Contacts

Francesco Burelli

Global Payments Strategy Lead

Accenture Payments Services

Mobile: +44 788 781 3003

Email: [email protected]

Documents

ATMIA Benchmarking Study 2016 US... · ATMIA Benchmarking Study 2016 Francesco Burelli –Global Payments Strategy Lead Accenture Payments Services