The global market for ATM outsourcing services is expected to register a CAGR of 6% from 2023 to 2033, reaching a value of US$ 35.2 billion by 2033. Financial institutions and retailers are outsourcing ATM maintenance to save money. Using remote monitoring and management tools, ATM outsourcing companies have become more effective and efficient at managing large ATM networks as technology advances. Growth of the market is attributed to
Technological advances and new compliant standards continually increase the cost of owning an ATM. In addition, as transaction delivery channels become increasingly complex over time, the industry is moving towards managed services to streamline operations. Financial institutions are experiencing a fundamental change in how they interact with their customers. With the rapid adoption of internet technologies, mobile devices, and social media in recent years, branch banks face unprecedented challenges. Mobile banking applications and other tools are heavily emphasized by banks according to cardholder trends.
Numerous companies in North America provide ATM outsourcing services. In addition to providing ATM outsourcing solutions, ATM outsourcing companies have installed, maintained, and managed ATM networks. North American ATM outsourcing services are expected to experience strong future growth in the coming years. ATM use is predicted to increase in the coming years as consumers seek better efficiency and saving potential, accompanied by the introduction of new technology and services. New players will enter the market to meet the evolving needs of their customers. Existing providers will expand their offerings. As a result, the market is expected to continue to expand in the coming years.
Approximately three times a month, consumers report visiting an ATM to deposit cash. ATM withdrawals are made by consumers at least four times each month. According to statistics, 77% of employers intend to adopt a hybrid work model in the coming years, indicating a significant growth in the number of remote workers. Banks and credit unions can gain better access to ATMs by outsourcing ATM services.
Financial institutions and retailers have a tough time staying compliant with regulatory requirements and keeping ATM networks secure. A partnership with specialized service providers can reduce an organization's internal resources' workload while meeting its requirements. A growing number of transactions are now being handled by ATMs, creating a demand for more convenient and accessible ATM networks. A financial institution or retailer can increase ATM networks more efficiently and quickly by outsourcing ATM management.
For instance, APTMA, the leading non-profit organization for ATM technology in India, presented the Peter Quick Innovation Award to Electronic Payment and Service Private Limited EPS landing Payment Technology service providers. The award is given for a carless catch withdrawal made using a QR code by the international ATM association EPSSC. The award was presented at a special ceremony in New Orleans during ATM 23.
In another instance, payment services provider Worldline installed an expanded ATM fleet for French retailer Groupe Les Mousquetaires (GLM). In addition to complying with a variety of industry requirements, GLM benefits from the innovative technologies implemented in its updated ATM fleet.
With ATM outsourcing, customers not only get access to new self-service machines with a variety of features, but they can also remove their existing machines from their files. Existing machines may be purchased outright in some outsourcing opportunities. Instead of combining large dollar amounts into one monthly payment, a financial institution can keep them in accounting worksheets. Service packages like this include reliable daily operations, high-quality machinery, software upgrades, security patches, and hardware compliance.
| Data Points | Key Statistics |
|---|---|
| Estimated Base Year Value (2022) | US$ 19 billion |
| Expected Market Value (2023) | US$ 19.63 billion |
| Anticipated Forecast Value (2033) | US$ 35.2 billion |
| Projected Growth Rate (2023 to 2033) | 6% CAGR |
ATM outsourcing services cater to demands pertaining to system updates, cash management, equipment maintenance, and compliance issues. ATM outsourcing service providers fulfill every aspect of ATM network for their clients.
These market players issue a team of professionals for every client opting for their services. ATM outsourcing services help keep ATM network operating at maximum efficiency. ATM outsourcing service providers offer ATM network monitoring and management services that help control operating expenses, relieve burden of compliance, and reduce capital costs.
Well-established ATM outsourcing service providers also help their clients avoid cash surpluses and outages by offering cash forecasting services, cash ordering services, armored carrier scheduling services and cash balance monitoring services.
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ATM outsourcing service providers offer service-level agreement guarantees as per contractual requirements, and ensure constant notifications and updates to the financial staff of their clientele. These service providers also offer web portals designed as per custom specifications, and clients can access these portals to harness online reporting services in real time.
This operational feature allows clients to ‘stake-out’ the status of their ATM in real time, while gathering variety of transactional reports. Also, some ATM outsourcing service providers also offer partial outsourcing services, in which banks and financial institutions do not have to outsource ATM servicing for every unit, and can outsource selected ATMs.
The primary driver boosting procurement of ATM outsourcing services is savings worth 10% to 20% of the total cost per transaction. Maintenance of their ATMs is the key challenge faced by end-users in the global landscape.
Increasing problems and restrictions in operational aspects of cash dispensing like security issues, electricity outages and satellite link failure are motivating more and more end-users to procure ATM outsourcing services. However, many banking and financial institutions are not so keen on procuring ATM outsourcing services, and prefer servicing their ATMs using their own professional teams.
ATM outsourcing services market in Southeast Asia Pacific region was the dominant market in 2019 in terms of market value. Over the forecast period, ATM outsourcing services market in India is projected to be the most lucrative market for sustainable generation of revenue from service deployments.
The demand for ATM outsourcing services in India may be attributed to the constant reforms incorporated in the country’s Banking, Financial Services and Insurance (BFSI) industry.
Accelerated procurement of efficient ATM outsourcing services is expected to enable the market in Middle East and Africa region to record the fastest growth rate over the forecast period. Among all the regional markets, ATM outsourcing services market in Southeast Asia Pacific region is estimated to offer the highest incremental opportunity during the forecast period.
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Some of the key competitors in the global ATM outsourcing services market are Transaction Solutions International; Dolphin Debit; NuSourse; NCR; ATMJ; Burroughs; Asseco; CashTrans; FIS; and Cardtronics, among others.
The ATM Outsourcing Services market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.
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1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis and Forecast, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis and Forecast 6.1. By Service Type 6.2. By ATM Deployment 7. Global Market Analysis and Forecast, By Service Type 7.1. End-to-End Outsourced ATM Services 7.2. Individual Services 7.2.1. ATM Cash Management Services 7.2.2. ATM Site Outsourcing Services 7.2.3. ATM Site Maintenance & Repair Services 7.2.4 ATM Security Services 7.2.5. Others 8. Global Market Analysis and Forecast, By ATM Deployment 8.1. On-Site ATMs 8.2. Off-Site ATMs 8.3. Mobile ATMs 9. Global Market Analysis and Forecast, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia & Pacific 9.6. Middle East and Africa 10. North America Sales Analysis and Forecast, by Key Segments and Countries 11. Latin America Sales Analysis and Forecast, by Key Segments and Countries 12. Europe Sales Analysis and Forecast, by Key Segments and Countries 13. East Asia Sales Analysis and Forecast, by Key Segments and Countries 14. South Asia & Pacific Sales Analysis and Forecast, by Key Segments and Countries 15. Middle East and Africa Sales Analysis and Forecast, by Key Segments and Countries 16. Sales Forecast by Service Type and ATM Deployment for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. Transaction Solutions International 18.2. Dolphin Debit 18.3. NuSourse 18.4. NCR 18.5. Burroughs 18.6. Asseco 18.7. CashTrans 18.8. FIS 18.9. Cardtronics
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ATM Outsourcing Services Market
