More ATMs, Less Profit: White Paper
A new white paper, sponsored by the ATM Industry Association, found independent ATM firms deployed more machines in the last four years, but made less money. The ATMIA is the trade association for primarily independent ATM firms.
The trade partnered with Tremont Capital Group, a Boston-based ATM consulting group, to research and write the “U.S. ATM Industry Overview.” The paper updated a previous paper of the same name last published in 2010.
The new report, published June 23, reported that independent ATM owners pumped $5.5 billion into their ATM fleets over the past decade. More money to address additional operational costs, in particular software and security upgrades, was still accruing.
The paper reported independent, domestic ATM firms deployed 10% more machines over the past four years, but collectively, they lost 25% in net income over the same period. Expense as a share of transaction income increased.
Nonetheless, executives with both the ATMIA and Tremont remained upbeat.
“Tremont’s new research confirms that ATM deployment business models are under pressure from increased costs,” said ATMIA U.S. Executive Director David Tente. “But despite those pressures, the industry is doing a great job of providing consumers with even greater convenience in accessing their cash.”
“While the U.S. ATM industry has faced many headwinds in recent years, it remains resilient and continues to serve an absolutely essential role in the U.S. economy in regards to cash accessibility,” said Sam Ditzion, CEO of Tremont Capital Group and author of the report.