GLOBAL VARIANCES IN ATM USAGE - Transaction … · GLOBAL VARIANCES IN ATM USAGE A report prepared by Transaction Network Services September 2017 TNS Global Variances in ATM Usage

GLOBAL VARIANCES IN ATM USAGEA report prepared by Transaction Network ServicesSeptember 2017

TNS Global Variances in ATM Usage - ©2017 TNS, Inc. All Rights Reserved.

TNS Global Variances in ATM Usage - ©2017 TNS, Inc. All Rights Reserved. 1

ContentsExecutive Summary 2

About this Report 3

Section One – Patterns of General ATM Use 4 Frequency of use 4 ATMs remain primarily a source of cash 5 Willingness to pay fees 5 Using ATMs in other countries 6

Section Two – Preference for Free to Use ATMs 8 I only use free ATMs for cash withdrawals, I am not willing to pay to withdraw my money 8 Are there enough free ATMs? 8

Section Three – Adoption of New ATM Functionality 10 Mobile ATMs 10 Foreign currency dispensing ATMs 11

Section Four – Why do Some Adults Not Use ATMs? 12 Security concerns 12 Availability and functionality 13 Changing role of cash 14 Personal touch preferred 14

Section Five – Conclusions 16 About TNS and Contact Details 17

Appendix – Regional and Demographic Survey Components 18 US survey demographics 19 UK survey demographics 20 Australian survey demographics 21

Executive Summary 2017 sees the 50 year anniversary of the first ATM. Over the years, ATM technology and functionality has evolved offering consumers a wider choice of locations and features. ATMs have expanded beyond simply being a bank managed extra service and a thriving industry of ATM operators and deployers is now present globally.

In order to ensure ATMs continue as a cornerstone of the payments industry, it is essential that we understand how changing consumer habits are influencing its role.

This report reveals the interesting findings of a recent survey conducted in the US, UK and Australia, including:

It also explores the reasons why some adults chose not to use ATMs, including:

Changes in how frequently consumers use ATMs Whether consumers are willing to pay a small token charge to obtain money

Experiences with foreign currency dispensing at home and using ATMs in other countries

The desire for free to use ATMs

Acceptance of mobile and temporary ATMs

Security concerns

Availability and functionality challenges

The changing role of cash in society

A preference for the personal touch at the bank counter

2TNS Global Variances in ATM Usage - ©2017 TNS, Inc. All Rights Reserved.

About this ReportTransaction Network Services (TNS) commissioned a US, Australian and UK Ncompass International Omnibus Survey by Kantar TNS which ran between 4th – 6th May 2017 and covered 1,037 US adults, 1,002 Australian adults and 1,010 UK adults.

The survey asked respondents to agree or disagree with a series of statements which reflected their attitudes to and experiences with credit and debit card data security issues.

This report presents the key findings of this survey and, where available, compares and contrasts the results with the same questions asked between 6th - 10th August 2015, and covered 1,007 US adults, 1,008 Australian adults and 1,031 UK adults.

The contents of this report are protected by the copyright laws of the United States and other jurisdictions. You may print a copy of any part of this report for your own personal, non-commercial use, but you may not copy any part of the report for any other purposes, and you may not modify any part of the report. Inclusion of any part of the content of this report in another work, whether in printed or electronic, or other form, or inclusion of any part hereof in a web site by linking, framing, or otherwise without the express permission of TNS, Inc. is prohibited.


1. Patterns of General ATM UseATMs remain popular globally, with 82% of respondents reporting that they used these facilities, however, the survey uncovered some stark differences in usage between the US, UK and Australia.

Frequency of use

Our survey asked respondents how often they typically used an ATM to withdraw cash, check their account balance, change a PIN, top-up their mobile phone, etc. In the UK the most popular answer was once a week, while US respondents elected for once a month. Australians were split between these answers. Graph 1 - Frequency of ATM use

When reviewing how this has evolved from data obtained in our 2015 survey, we see that the US and Australia are witnessing a shift in usage patterns. In 2015, all three countries consistently reported ‘once a week’ as the top answer, but in the 2017 data set we can see a move to less frequent usage in these two countries.

4

SECTION

ON

E

UK

38%27%

25%

10%

31%31%

22%

16%

34%

29%21%

16%

Once a weekOnce every 2 weeksOnce a monthNever

US


Australia



The US has the largest number of respondents – 29% - who reported that they never use ATMs, this is higher than the 21% who gave the same answer in the US in 2015.

ATMs remain primarily a source of cash

60% of respondents that said they used ATMs said they only did so to withdraw cash, they do not use any of the additional services available.

Graph 2 – Adult use of ATMs solely for cash withdrawals

When looking at the responses by age, we see the younger age groups appear to derive more value from ATMs by using a wider range of services. In the UK 53% of 18 to 24 year olds said they used ATMs for more than just cash withdrawals and in Australia 43% of the same age group reported this.

Willingness to pay ATM fees

One in four respondents said they would be happy to pay a small token charge to obtain money from an ATM which was based at a convenient location, such as a restaurant or entertainment venue. US adults appeared most acceptable to this overall, but when contrasting with the data obtained from our 2015 survey it shows US acceptance declining, while UK adults appear slightly more open to a token charge now.

5

COU

NTRY

PERCENTAGE

0 10 20 30 40 50 60 70

US

UK

Australia

62%

54%

66%


Graph 3 – Number of adults willing to pay a small token charge in 2017 vs 2015

Age appears to influence consumer willingness to pay a charge with those aged 25 to 34 years across the US, UK and Australia being the most accepting.

Graph 4 – Acceptance of a small token charge by age

Using ATMs in other countries

Our research uncovered a wide variation in the number of people who had used an ATM in another country. UK and Australian respondents gave figures largely consistent with those seen in our 2015 survey, however, the number of US adults confirming they had used an ATM in another country fell considerably, widening the gap between it and the UK and Australia.


PERCENTAG

E

COUNTRY/YEAR

0

10

20

30

40

50

UKUS Australia

201

5

201

7

201

5

201

7

201

5

201

7

37%31%

15%18%

27% 28%

PERCENTAGE

AGE

0

10

20

30

40

50

18 –24 25 –34 35 –44 45 –54 55+

US

UK

Australia

30%

24%

34%38%

30%

36% 35%

19%

28%26%

10%

21% 22%

5%

17%

Graph 5 – Respondents who have used an ATM in another country


COU

NTRY

PERCENTAGE

0 10 20 30 40 6050

US

UK

Australia

25%

52%

47%

SECTION

TWO

2. Preference for Free to Use ATMsI only use free ATMs for cash withdrawals, I am not willing to pay to withdraw my money

Our survey explored whether some adults restricted their usage of ATMs to free facilities and found UK respondents felt significantly stronger about this than their counterparts in the US and Australia.

Graph 6 – Respondents who only use free ATMs

These figures are consistent with the responses given in 2015.

Are there enough free ATMs?

When asked about access to free ATMs, UK respondents appeared least concerned. When relating this to the previous question regarding only using free ATMs, this would suggest that UK adults have sufficient free resources available to them to be able to favor these locations, while those living in the US and Australia perhaps do not.

0 2010 4030 50 60 70 9080 100

US

UK

Australia

COU

NTRY

PERCENTAGE

70%

88%

72%

32%

22%

24%


Graph 7 – Respondents who feel there are not enough ATMs


0 2010 4030 50 60 70 9080 100

US

UK

Australia

COU

NTRY

PERCENTAGE

61%

44%

64%

SECTION

THREE

3. Adoption of New ATM FunctionalityMobile ATMs

As ATM technology continues to develop, we asked consumers about their use of ATMs at mobile and temporary sites. We asked respondents if they had used an ATM at an open-air venue, such as a festival, country show, fairground, etc.

30% said yes with usage being most popular among the younger age groups as show in graph 8.

Graph 8 – Positive responses by age

The greatest usage of ATMs in these locations was reported by the Australian data set.

Graph 9 – Positive responses by country


0

20

10

30

40

50

18 - 24 25 - 34 35 - 44 45 - 54 55+

43%

28%

18%15%

42%

PERCENTAGE

AGE

US UK AUSTRALIA

32% 21%39%

Foreign currency dispensing ATMs

A growing number of ATMs, particularly at travel hubs, are now dispensing foreign currency. In our survey we found 14% had used an ATM to withdraw foreign currency in their home country with more men than women doing so.

Graph 10 – Respondents who have withdrawn foreign currency by gender


PERCENTAGE

COUNTRY/GENDER

0

10

20

30

UKUS Australia

20%

11%

16%13%

16%

9%

SECTION

FOU

R

4. Why do Some Adults Not Use ATMs?As expected, a proportion of the survey respondents reported that they never use ATMs. We took this opportunity to explore their reasons for not using this technology and found the most popular answer to vary in each country.

The most popular answer among US respondents was that they prefer to go into a bank to obtain money over the counter

UK respondents said they do not think ATMs are safe

Australian respondents said they did not need to use cash anymore

Security concerns

ATMs continue to be targeted by criminals and consumers appear to be only too aware of this. In Australia we saw heightened levels of concern regarding ATMs being safe when we contrasted our 2017 findings with those gathered in 2015, however, UK respondents remained the most worried.

Graph 11 – Number of respondents who do not use ATMs because they do not think they are safe


COU

NTRY

PERCENTAGE

0 5 10 15 20 25 30 35

US

UK

Australia

24%

30%

24%

Concerns that personal details could be stolen was also a popular answer, however, the US saw a drop in the number of people who chose this as a reason when compared to our 2015 data. In 2015 the US appeared the most concerned about this risk, but in 2017 they are the least concerned of the three countries surveyed.

Graph 12 – Number of respondents who do not use ATMs because they are worried their personal details will be stolen

Availability and functionality

14% of adults in our survey said they did not use ATMs because they are not in easily accessible and convenient locations. This was a factor of greater importance for women in Australia and the US.

Graph 13 – Respondents who reported not using ATMs because they are not in easily accessible or convenient locations


PERCENTAGE

COUNTRY/YEAR

0

10

20

30

UKUS Australia

201

5

201

7

201

5

201

7

201

5

201

7

23%

14%

21% 21%

13%16%

PERCENTAGE

COUNTRY/GENDER

0

10

20

UKUS Australia

10%

16% 16%15%

4%

18%

In addition, 4% said they do not think ATMs are easy to use and 2% said they cannot see the screen.

Changing role of cash

With a growing range of alternative payment methods now in use by consumers, we expected to see some report that they no longer need to use cash and this transpired as the most popular reason in Australia.

Graph 14 – Respondents who said they no longer need to use cash

Personal touch preferred

The survey results suggest there is still a place for traditional bank branches with a large number of respondents who did not use ATMs stating it was because they prefer to go into a bank to obtain money over the counter.

Preference was still greatest in the US, however, the number of people reporting this as a reason has dropped since our 2015 survey.


PERCENTAGE

COUNTRY

0

5

10

15

20

25

30

35

US UK Australia

29% 27%

35%

Graph 15 – Respondents who do not use ATMs as they prefer to obtain money over a bank counter


PERCENTAG

E

COUNTRY/YEAR

0

10

20

30

40

50

UKUS Australia

201

5

201

7

201

5

201

7

201

5

201

7

48%

37%

26%29%

20% 19%

SECTION

FIVE

5. Conclusions

Our survey confirms that the ATM remains an integral part of the world’s financial infrastructure and projections that it will be around for another 50 years would seem readily believable.

The challenge for banks, ATM operators and deployers, and others active in the industry is to continue to encourage consumer adoption of new technology. Our results show the younger age groups using ATMs at open-air venues and being most accepting of a small token charge to access money at a convenient location. This lays the foundations for a strong, positive future.

However, this does not mean the payments industry can take its foot off the gas as it appears some work needs to be done to reassure consumers that using an ATM will not put them at risk of criminal activity. In our survey 25% of those who said they do not use ATMs said it was because they do not feel they are safe and 16% said they were worried their personal details would be stolen. Recognizing these concerns and addressing them directly will help to reinforce both the ATMs reputation and that of the industry as a whole.


GBL JUN 2017

About TNSTNS is one of the world’s leading payments connectivity providers and is trusted by hundreds of organizations to securely deliver more than 24 billion payments transactions each year. For over two decades, TNS has provided innovative data communications solutions to valued partners including merchants, banks, acquirers, processors, ATM operators and deployers, payment service providers and other financial institutions. The company now proudly serves customers in more than 60 countries.

TNS: A global business with regional strength

By telephone:

By email:

17

1,250+ active network connections Handles communications to more than 100,000 ATMs

Manages 500,000+ payment-specific SIMs

Supports millions of point-of-sale terminals

A level 1 PCI DSS certified service provider

Offices in 19 countries

Driving innovation of new technologies, such as encryption and tokenization

USA - +1 866 523 0661

UK - +44 (0)114 292 0200

France - +33 (0)1 7236 6321

Italy - +39 02 481 225 3

Spain - +34 91 799 1670

Asia Pacific - +61 2 9959 0800

[email protected]

Or please visit www.tnsi.com



Appendix – Regional and Demographic Survey ComponentsThe survey was conducted by online self-completion interview between 4th-6th May 2017 by Kantar TNS. Our survey in 2015 was also conducted by Kantar TNS and ran between 6th-10th August 2015.

These online surveys are designed to be nationally representative of adults interviewed per country. The surveys use a quota sample (age interlocked within gender, and a regional quota). Post fieldwork correctional weighting within age, gender and region, has been used to ensure the representativeness of the survey.


US 2017 survey demographics1,037 responses received

Northeast

Midwest

West

South

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+

16%

22%

21%

22%

19%

49%51%

Gender breakdown Region breakdownAge breakdown

Male

Female

US 2015 survey demographics1,007 responses received

Northeast

Midwest

West

South

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+


Male

Female

50%50%

16%

22%

20%

22%

20%

22%

18%

37%

23%

22%

18%

37%

23%


UK 2017 survey demographics1,010 responses received

Gender breakdown Region breakdown

North

Midwest

South

35%33%

32%

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+

17%

22%

18%

22%

21%

Male

Female

50%50%

Age breakdown

UK 2015 survey demographics1,031 responses received

Gender breakdown Region breakdown

North

Midwest

South

33%37%

30%

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+

19%

21%

18%

22%

20%

Male

Female

50%50%

Age breakdown



Australia 2017 survey demographics1,002 responses received

32%9%

9%

22%

28%

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+

14%

23%

19%

21%

23%

Male

Female

49%51%

Australia 2015 survey demographics1,008 responses received

Victoria & Tasmania

Queensland

South Australia & Northern Territory

New South Wales & Australian Capital Territory

34%11%

8%

20%

27%

18 – 24 year olds

25 – 34 year olds

35 – 44 year olds

45 – 54 year olds

55+

18%

22%

18%

20%

22%

Male

Female

49%51%


Victoria & Tasmania

Queensland

South Australia & Northern Territory

Western Australia

New South Wales & Australian Capital Territory

GLOBAL VARIANCES IN ATM USAGE - Transaction … · GLOBAL VARIANCES IN ATM USAGE A report prepared by Transaction Network Services September 2017 TNS Global Variances in ATM Usage

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