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ATMIA and Tremont Capital Group conduct an analysis of the number of Independent ATM Deployer (IAD) ATMs operating in the Americas

Wednesday, April 11, 2018

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by ATMIA/Tremont Capital Group

LONDON, UNITED KINGDOM and SIOUX FALLS, SD, USA, April 3, 2018 - The ATM Industry Association (ATMIA) and Tremont Capital Group, one of the nation’s leading consulting firms specializing in the ATM industry, have announced the completion of an analysis of the number of Independent ATM Deployer (“IAD”) ATMs operating in the Americas1.     

The proprietary analysis, led by Tremont Capital Group CEO Sam M. Ditzion, a top ATM industry consultant, used data compiled from confidential interviews and surveys of nearly three dozen ATM operators, processors and other experts in Canada, United States, and Latin America.  Financial institution ATMs are not included in the analysis, other than as included in an “ATM Bank Branding” 2 or “ATM Outsourcing” 3 arrangements with an IAD.

“Sam has unearthed some fascinating facts in a groundbreaking study,” commented Mike Lee, CEO of ATMIA. “We wanted to find out what the opportunities are for outsourcing and for new IAD markets in various regional marketplaces.”

“While the IAD industry in Canada and the United States is quite mature, the Latin American IAD sector is less developed due to regulatory, structural, economic, and security complexities in certain countries,” said Sam M. Ditzion, CEO of Tremont Capital Group. “The biggest growth opportunity in 2018 and beyond for highly regarded IADs is ATM Outsourcing, as it allows financial institutions to maximize operating efficiencies and potentially improve their bottom lines.”

Summary of Tremont Capital Group’s Findings for the ATMIA study:

  • In Canada, approximately 100 IADs operate about 38,000 ATMs, with around 61 percent operated by Canada’s three largest IADs (Cardtronics, Access Cash, and Stanley).  The rest of the market is highly fragmented.  Approximately 3,000 of Canada’s IAD ATMs are part of an ATM Bank Branding arrangement with a financial institution.  Fewer than 250 ATMs in Canada are currently operating under a comprehensive ATM Outsourcing arrangement with an IAD.
     
  • In the United States, more than 100 IADs operate approximately 330,000 ATMs, with about 75 percent of those ATMs operated and/or processed by the nation’s two largest IADs (Cardtronics and Payment Alliance International).  The rest of the market is highly fragmented.  Approximately 30,000 of U.S. IAD ATMs are part of an ATM Bank Branding arrangement with a financial institution.  Fewer than 3,000 ATMs in U.S. are currently operating under a comprehensive ATM Outsourcing arrangement with an IAD.
     
  • In Latin America, approximately 15 IADs operate about 25,000 ATMs, primarily deployed in Brazil, Mexico and Puerto Rico (part of LAC region); more recently, after the Central Bank of Argentina changed regulations to allow independent ATMs, a small but growing number of IAD ATMs have been deployed in Argentina.  Around 91 percent of the IAD ATMs in Latin America are operated by Tecban’s Banco24Horas, Cardtronics, and Saque e Pague.  About 22,000 of the IAD ATMs in Latin America are part of an ATM Bank Branding arrangement with a financial institution.  The largest operator, Tecban, currently brands all toppers on its Banco24Horas ATMs in Brazil with five Brazilian bank logos.  Fewer than 250 ATMs in Latin America are currently operating under a comprehensive ATM outsourcing arrangement with an IAD.
     
  • In the combined Americas, more than 215 IADs operate approximately 393,000 ATMs.  About 55,000 of these IAD ATMs are part of an ATM Bank Branding arrangement with a financial institution.  Fewer than 3,500 ATMs are currently operating under a comprehensive ATM Outsourcing arrangement with an IAD.
     
  • In the combined Americas, only approximately 14 percent of IAD ATMs currently have a financial institutions’ brand/logo placed on the ATMs (“ATM Bank Branding” arrangement), and fewer than 3,500 IAD ATMs are being operated under an arrangement in which the IAD provides end-to-end ATM operations management to a financial institution ATM (“ATM Outsourcing” arrangement). Tremont Capital Group expects a growing shift towards smaller financial institutions outsourcing all aspects of their ATM operations to IADs.

These findings are open to ATMIA members and can be accessed through the ATMIA website. For more information, contact Mike Lee at mike@atmia.com.


ABOUT ATMIA www.atmia.com

ATMIA is the leading non-profit trade association representing the entire global ATM industry. ATMIA serves more than 10,700 members from over 650 participating companies in 67 countries spanning the whole ATM ecosphere, including financial institutions, independent ATM deployers, equipment manufacturers, processors and a plethora of ATM service and value-added solution providers. ATMIA provides educationadvocacy and connections to help its members keep abreast of industry news and developments; increase knowledge and professionalism; improve operational efficiencies; understand and influence regulatory processes; participate in the local, regional and global ATM community; and forge new relationships to advance their businesses. Founded in 1997, ATMIA has active chapters in the United States, Canada, Europe, Latin America, Asia-Pacific, Asia, Africa, India and the Middle East focusing on the unique needs and issues of each region. For more information, please visit atmia.com. Follow us on LinkedInTwitter or YouTube.

ABOUT TREMONT CAPITAL GROUP, INC.

Tremont Capital Group is the nation’s leading provider of business strategy consulting, valuation, and merger & acquisition advisory services to the ATM and related industries. To learn more about the services provided by Tremont Capital Group, please visit www.tremontcapitalgroup.com or call 617-482-8866.


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