From 2021, the 4 major Belgian banks will manage a single ATM network using a common platform, enabling them to reduce fixed costs and cope with the decline in cash. Here are the details.
Better distribution of ATMs
The number of ATM withdrawals fell by 15% between 2012 and 2019, from 300 million to 264 million, according to the Federation of Belgian Banks. At the same time, electronic payments have surged by 70% in less than a decade, reaching a volume of 2 billion transactions. This trend can also be seen in France, where the number of cash withdrawals fell by 3.5% between 2017 and 2018.
BNP Paribas Fortis, Belfius, KBC and ING have joined forces to create a joint ATM network. This alliance will optimize the geographical position of ATMs. In a press release, the 4 banks point out that, while there are too many ATMs in places like shopping malls, there are often none in more remote locations. Thanks to the new network, 95% of the Belgian population will be able to access an ATM within a maximum distance of 5 km. This distance will be reduced in major cities.
Lower operating costs
The initiative set up by the major Belgian banks will see the light of day in 2021, under a white label. The 4 institutions will be equal shareholders in the new structure. In other words, these players will no longer offer ATMs in their branches. The situation will then be comparable to that in the Netherlands, where ABN Amro, ING and Rabobank have joined forces to manage a joint ATM network. The aim is clear: lower operating costs. It has to be said that the costs associated with the storage and security management of ATMs are particularly high for banking establishments, generally ranging from 14,000 to 25,000 euros per machine.
In France, while each bank prefers to keep control of its ATMs, the trend could change. In 2019, the BCPE group has shown its determination to stand out from the crowd by signing a partnership with Brink's France for the operation and dynamic management of Banque Populaire and Caisse d'Épargne ATMs. In addition, new functionalities could gradually appear, such as cash withdrawal with biometric authentication or cardless cash withdrawal.
These measures are of concern not only to consumers, who continue to prefer cash, but also to retailers, who fear losing some of their clientele. These fears are particularly acute in small towns, where the removal of an ATM can fuel the process of desertification. Although the Belgian establishments involved in this project promise a better territorial distribution of ATMs, their number continues to decline. According to the Federation of Belgian Banks, the number of ATMs has fallen from 8,754 in 2015 to 7,869 today.