While most bankers say the market is saturated, they continue to deploy new automated teller machines at a fast clip - and the boom in off-premises ATMs is far outpacing the branch-based advance.
For the 12 months ended June 30, the top 50 banks increased their overall ATM count by 13%, according to the 1995 American Banker ATM survey.
The major banks that broke down their ATM figures said off-premises units grew by a whopping 32%, with consumers lining up to use them especially in shopping centers, supermarkets, and hotels.
The entire U.S. banking industry increased the installed base of ATMs by 12% to 122,706, according to Bank Network News. American Banker ranks only the top 201 banks in ATM ownership, for which the growth rate was 14%. (Tables start on page 12.)
The American Banker survey counts 43,537 ATMs at the top 50 banks, and 56,022 units for the total polled population.
Bankers had predicted that the explosion in point of sale debit - where consumers can get cash back right after making a purchase - would slow the growth of ATMs. They had also said the emergence of home banking would likely reduce consumers' dependence on ATMs.
The reality is that ATM usage continues to grow, and banks are busily chasing down those customers who no longer visit the branch by deploying more and more ATMs, both in branches and, increasingly, off premises.
"Most of the larger banks have an aggressive stance on ATM deployment," said David Baker, director of marketing for ATM manufacturer Fujitsu-ICL Systems Inc., La Jolla, Calif.
"Meanwhile, smaller banks are getting very interested in providing better service and more functionality," he said, goals that he proposed are readily achieved with ATMs.
As consumers visit bank branches with less frequency, U.S. banks are trying to accommodate customers by deploying more off-premises ATMs. The top 50 banks posted 32% growth in off-premises ATMs.
The growth rates within the top 50 banks correspond closely to the growth rates posted by the 198 banks that provided data this year and last. For those respondents, off-premises ATM deployment grew by 39%.
"A lot of ATM owners are taking it to the consumers - where they want it and need it," said Anne Morgan Moore, president of Synergistics Research Corp., Atlanta.
The off-premises market is especially appealing because consumers are willing to pay a "convenience" fee to use such machines.
Consumers are especially receptive to using ATMs located in shopping centers, according to recent Synergistics research, which found that 15% of consumers already use ATMs in shopping centers, and another 27% said they were likely to do so.
Other popular off-premises locations detected by Synergistics include supermarkets, (with 38% of consumers saying they either already use or are likely to use), hotels (37%), airports (32%), department stores (29%), and theme parks (29%).
In many of the more popular off-premises locations, banks are choosing to deploy simple cash dispensers, rather than full-function ATMs.
Diebold, which claims more than 50% of the installed base of ATMs and cash dispensers in the United States with Diebold or Interbold machines, is introducing its third cash dispenser model to take advantage of the off- premises deployment trend.
"If someone had come into the Diebold offices five years ago and said we would need three cash dispensers, we probably would have looked at them strangely. Today, however, the market has really progressed to the point where we need to offer three cash dispensers," said a Diebold spokesman.
Major nonbank deployers of ATMs also tend to favor cash dispensers over full-function ATMs.
Among the top-ranked ATM deployers, 1995 was a year of jockeying for position. Among banks, BankAmerica Corp. and NationsBank Corp., retained their No. 1 and No. 2 positions, respectively.
American Banker omits nonbank deployers from its annual ATM survey. However, other studies show that Electronic Data Systems Corp. is neck-and- neck with BankAmerica for the top ranking. Affiliated Computer Services Inc., with almost 4,100, would rank just behind these two market leaders if American Banker included nonbanks.
First Bank System, Wells Fargo & Co., and Banc One Corp. round out the top five in American Banker's ranking.
First Bank System posted an impressive growth rate of 118% - highest in the survey. The growth is mostly attributable to deployment of off-premises ATMs. The Minneapolis-based bank jumped into third place from 11th because of a lucrative deal to install 1,100 ATMs in Circle K convenience stores.
There are only 14 banks with more than 1,000 ATMs overall. First Bank System is the only bank with more than 1,000 off-premises ATMs.
Banc One Corp. enters the top five - it was sixth last year - because of an aggressive strategy to deploy more ATMs both in and out of the branches. The Columbus, Ohio-based banking company posted at 24% increase in its overall ATM count to 1,927; branch ATMs increased by 31% to 1,261, while off-premises units increased by 13% to 666.
After First Bank System, the top gainers in total ATM ownership are First Commerce Corp, which increased its ATM penetration 79% to 297; First Security Corp., with a posted 73% increase to 451; Chemical Banking Corp., with a 45% growth rate, taking it to 1,229 overall ATMs, and a 10th-place finish overall; Huntington Bancshares, which increased its ATM count to 390, a 42% growth; and PNC Bank Corp., with a 41% increase to 1,284.
The top five gainers in off-site ATMs include the previously-mentioned First Commerce Corp. (207% growth to 184), First Bank Syste, and Huntington Bancshares (92% growth to 90). First Interstate Bancorp (181% growth to 548) and Southern National Corp. (100% growth to 22) round out that list.
Chemical and Huntington also make appearances on the list for top five gainers for in-branch ATMs. Chemical increased its in-branch ATM penetration by 41%, taking it to 1,018; Huntington grew 32% to 300.
Rounding out the in-branch list are Bancorp Hawaii Inc., which grew 46% to 98; First Fidelity Bancorp., up 40% to 650, and Keycorp, up 39% to 1,107, taking the No. 8 spot on the overall ranking.
