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consulting

ATM location analysis complemented with detailed ATM usage-, traffic- and potential estimation

The Bank wanted to get a clearer picture about the drivers shaping customer’s habits of ATM usage. They looked for an answer to shed some light on the real potential ATM automats hold and the factors that determine the patterns in terms of their usage and traffic.

In case of 80% of the surveyed ATMs we have found at least 5 locations in given agglomerations where the supposed potential could bring about a transaction based revenue growth so significant that it would show a full financial return of the automat’s transition cost.

Answered questions and executed tasks

With regard to the ATM’s location in correlation with its performance:

  • Why do downtown ATMs perform great while others perform poorly?
  • Why do specific downtown ATMs perform better than a few on the outskirts?
  • How big is the agglomeration of one ATM automat?
  • Where do the ATM users come from?
  • Which are the decisive factors determining the number of transactions on a specific ATM?

With regard to customer movements in correlation with ATM usage:

  • Which is the maximum distance a customer is willing to take to get to the ATM automat of his/her preferred bank?
  • What kind of correlation exists between being loyal to a bank and the distance one must take to get to its ATM automat?
  • How big is the clientele that is not covered by the ATMs’ agglomerations?
  • What percentage of the transactions are re-owned by other ATM networks, given that there is no ATM of the specific bank nearby?

Beyond answering these questions, the other decisive role of the project was to define those specific ATM automats in case of which, their relocalization to a more frequent spot would possibly be a more profitable idea.Basically, we followed two major criteria:

a) that the full cost of the ATM transition shall show a financial return in one year.

b) the relocalization must take place in the same agglomeration, so the danger factor of losing clients is kept at a minimum

Results

In case of 80% of the analyzed ATM automats, we found at least 5 locations in given agglomerations, where the extent of the estimated potential was so big – based on the expected increase in the number of transactions – that the cost of the transition would possibly show a full financial return in one year.
Calculated with a 1-1,5 million HUF cost per relocalization, that would mean an annual 1-1,5 million HUF increase in income.

It is important that the chosen spots are already available places to set up new ATM automats, therefore can be approached with a contract offer (institutions, offices, public buildings, work places etc.)

We provided the results integrated in an interactive, dashboard based map that can be used on the long term, showing not only the ATMs in question, but the competitors’ automats and promising new spots as well.

Strategic thinking, effective and established methods, customized solutions.
You tell us what your goals are – we tell you how to achieve them and lead you along the process.

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