ATM INDUSTRY INFO

The world's first Automated Teller Machine ("ATM") was deployed in 1967 by Barclays Bank in the United Kingdom. This voucher-based system required consumers to insert a paper voucher into a device that would then dispense cash in fixed increments.

From these humble beginnings, the ATM has become the commonly accepted way to obtain cash in most developed and developing markets and today, there are over 1.25 million ATMs worldwide. The predictions are that there will be over 2 million ATMs internationally by the year 2012. Most of this growth will occur in developing markets as developed markets reach saturation point in their domestic ATM markets.

South Africa has a developed banking system and the banking sector is considered to be the eighth-most developed among countries with a population greater than 20 million people - ahead of France and Japan. Other African countries are improving their ATM networks by implementing shared EFT networks and aggressively growing their ATM footprints. Their aim is to break the cycle of poverty that has affected much of Africa by providing consumers with a cheap and effective medium to store their cash - their bank account - and have access to it in a safe and convenient location - the ATM. These countries benefit from being "late movers" and have adopted best practices by partnering with South African and other leading ATM solutions suppliers such as Spark ATM Systems.

Africa's ATM market is enjoying unprecedented growth for a number of reasons:

• Individual country's economic, social and political successes in recent years have led to a strong push to modernize their mostly outdated banking systems;
• Governments and banks have focused on servicing the traditionally under-banked "cash economy" by offering affordable savings accounts and ATM cards coupled with a strong educational drive to educate the population;
• South Africa's leading banks, switches and ATM deployers have expanded northwards into Africa and have offered internationally-renowned best-of-breed products to their African neighbours;
• Shifting demographics have led to a greater concentration of populations around urban centres meaning that ATM networks can be more densely concentrated and thus more easily managed;
• Advanced cellular telecommunications networks have facilitated faster and more affordable ATM deployment into previously unserviceable rural areas;
• The lower cost of ATM hardware has allowed smaller banks in less wealthy countries to achieve what their “bigger” banking counterparts have achieved elsewhere in the world;