2013 ATM Benchmarking Study Results

Navigator Edition: January 2014
By: Melissa Fox and Sarah McCroy

Findings from First Annapolis’s 2012 Study of Leading Bank ATM Deployers highlighted the ongoing shift in deployers’ strategic focus and their return to the customer service roots of the ATM channel. Direct profitability, while still an important factor in managing the business, is no longer a strategic driver for most banks. Instead, focus is on providing customers with convenient, fee-free ATM access and delivering a high quality customer experience.

This shift in strategic focus continues a several-year trend, and prompted First Annapolis to ask: how has the shift in strategic focus affected deployers’ fleet composition, performance metrics, and future projections?

The First Annapolis Debit and Prepaid practice conducted the 2013 ATM Benchmarking Study1, and found that the shift in strategic focus is very much influencing deployer metrics and changing the overall ATM landscape. The shift is evident in the changing composition of FI ATM fleets, with on-premise ATMs accounting for an increasing share of FI ATM deployments, and in FIs’ increasing volume of “on-us” transactions— trends that FIs expect to continue.

The shift is perhaps most clear in the increased volume of ATM deposits, a result of FIs’ focus on, and investment in, image-enabled ATMs, which has been a driving force in reinvigorating the ATM channel. While initially limited to large deployers, deposit imaging is increasingly a competitive requirement. By 2015, image deposits will be a standard ATM feature in the market.

  • The average deployer in the participant sample has converted 54% of its full-service ATMs to image depositories, up from 8% in 2011. By 2015, that percentage is expected to reach 91%.
  • Individual deployers are at varying stages of migration: within the participant sample, only one deployer has completed its roll-out (and another is 97% complete), while others range from 17% to 70% complete. By 2015 however, six of the nine participants expect to be 100% image-enabled.

As deployers improve the customer experience for ATM deposits, deposit volumes are increasing. The average number of deposits per image-enabled ATM is approximately 2.4 times the deposit volume at envelope ATMs, with one deployer reporting a lift of 9.9x. The increase is likely a function of multiple factors, including customer preference, deployer marketing and education, and prioritization criteria for conversion, but the impact is clear: deposits per full-service ATM (regardless of depository type) increased 21% annually between 2011 and 2013 (see Figure 1).

Figure 1: Historical Change in Average Deposits per Full-Service ATM
Average Deployer


Source: First Annapolis Consulting, 2013 ATM Benchmarking Study.

The migration to image deposits is moving the needle on deployers’ overall ATM transaction mix—something that been relatively stable for the last decade or more. Over the past two years, deposits’ share of transactions for the average deployer has increased from 6% to 8%, with deployers further along the migration path reaching deposit transaction shares as high as 13% of all transactions (see Figure 2).

Figure 2: Deposit Share of Transactions


Source: First Annapolis Consulting, 2013 ATM Benchmarking Study.

Increased volumes of ATM deposits is one indicator of the changing role ATMs are playing in serving FI customers. This role will continue to evolve as FIs invest in advanced CRM and deposit capabilities, as well as video teller services and other technologies that leverage ATM infrastructure to serve customers in new and more efficient ways. We look forward to tracking the impact these changes have on their channel performance metrics.

Study results are based on data provided by nine U.S. financial institutions deploying a combined 28,000 ATMs. Surveys were distributed in the second quarter of 2013 and collected both historical data for March 2011, March 2012, and March 2013 and projected data for March 2014 and March 2015.

For more information, please contact Melissa Fox, Manager,; or Sarah McCroy, Senior Analyst, Both specialize in Debit and Prepaid.

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