ATM was once known as the “most useful invention” in the banking industry, but under the impact of mobile payment, the aura of ATM has faded. In 2020, the number of ATMs will shrink by more than 80000, and the number of ATMs per 10000 people will drop from 7.87 in 2019 to 7.24. The trend of online, the industry dividend no longer, forced ATM manufacturers to upgrade, but at present, the effect is not significant. For ATM manufacturers, the dependence on offline services is still the biggest pain point, and deeper reform is imminent.
The decline in the number is obvious
The two-dimensional code’s crush on payment has also made ATM’s deposit and withdrawal a thing of the past, and the utilization rate of ATM’s has dropped again and again. According to the latest data released by the people’s Bank of China on the overall operation of the payment system in 2020, by the end of 2020, the number of ATM machines was 1013900, a decrease of 83900 compared with the end of 2019. The number of ATMs per 10000 people in China was 7.24, a year-on-year decrease of 7.95%.
Looking back at the data of the whole year of 2020, the number of ATM machines has a significant downward trend. As of the end of the first quarter, the end of the second quarter and the end of the third quarter of 2020, the number of ATM machines is 1083000, 1052100 and 1029100 respectively, with a quarter on quarter decrease of 14700, 30900 and 23100 respectively.
From the data of the past two years, in the first quarter of 2018, the central bank added new terminal equipment such as self-service terminal, visual counter (VTM) and intelligent counter, expanded the statistical scope of ATM, and the number of ATM increased significantly. By the end of 2018, there were 1110800 ATMs, an increase of 150300 compared with the end of 2017.
However, since the second quarter of 2019, the number of ATMs began to decline, from 1100400 at the end of the second quarter of 2019 to 1088800 at the end of the third quarter of 2019, and increased to 1097700 in the fourth quarter of 2019, but still decreased by 13100 compared with the end of 2018.
The reduction of ATMs can also be seen from the annual reports of commercial banks. The reporter from Beijing business daily noticed that most of the banks that have released the annual reports recently have not paid much attention to ATMs. Among the large state-owned banks, the number of ATMs in Bank of China by the end of 2020 was 33300, down 10.76% from 37300 at the end of 2019. Although Yunong commercial bank did not disclose the number of ATMs in its annual report, it said that “in 2020, the income from bank card service charge will be 165 million yuan, 15 million yuan less than that of the previous year, with a decrease rate of 8.38%, mainly due to the decrease in the income from ATM service charge of debit card and POS consumption”.
In sharp contrast, the steady growth of non cash payment business. According to the data released by the central bank, in 2020, banks nationwide handled 354.721 billion non cash payment businesses, with an amount of 4013.01 trillion yuan, an increase of 7.16% and 6.18% respectively year on year.
In an interview with Beijing business daily, Yu Baicheng, President of zero one research institute, analyzed that according to the data disclosed by the central bank, the number of ATM machines in China has declined for the first time in 2019, and the decline will further expand in 2020. The main reason behind this is that the rapid growth of mobile payment has impacted the demand for cash payment. From 2015 and 2016, the transaction volume of bank deposit and withdrawal business began to decline. As a result, the demand of banks for traditional ATMs has declined, and some ATM suppliers have even withdrawn from the market. However, AMT machine will not disappear completely, China’s regional development is quite different, and mobile payment can not completely replace cash transaction.
Highlights no longer
The sharp shrinkage of ATM market demand has forced ATM manufacturers to transform. The reporter from Beijing business daily noticed that after years of drastic reform, the commercial performance of ATM manufacturers has also shown obvious differentiation, with mixed feelings.
Among the ATM mechanism manufacturers, the recognized leading listed companies are mainly Yuyin shares, Hengyin technology, Dongfang communication, radio and television express, etc.
Take radio and television express as an example. As early as 2016, the net profit of radio and television express had the first negative growth since it was listed in 2007, with a decline of 6.07%. At that time, radio and television express mentioned in its annual report: “mobile payment technology has impacted the banking industry in an all-round way, the domestic ATM market demand has shrunk, the industry competition is fierce, the product price continues to decline, and the company is facing increased operating pressure.” It also mentioned “actively seeking new business growth points”.
However, after many years of transformation, the performance of radio and television express in 2020 is still in a negative growth trend. According to the 2020 annual report recently released by the company, last year, the operating revenue of radio and television express was about 6.411 billion yuan, a year-on-year decrease of 1.32%; the net profit attributable to the shareholders of the listed company was about 700 million yuan, a year-on-year decrease of 7.59%.
Dongfang Telecom, another ATM manufacturer, although its business revenue will increase in 2020, its net profit data is hardly optimistic. In 2020, the company will achieve an operating revenue of 2.967 billion yuan, a year-on-year increase of 10.57%. The corresponding net profit attributable to the shareholders of the listed company was about 104 million yuan, a year-on-year decrease of 21.37%.
Under the decline of ATM, the relevant manufacturers bear the brunt, and the price drop will inevitably lead to the cost reduction. Dongfang Telecom admitted in the annual report that the gross profit rate of intelligent self-service equipment in the reporting period was 4.94%, a year-on-year decrease of 14.09%, mainly due to the serious decline of equipment price and the improvement of equipment configuration requirements. By analyzing the product structure of Dongfang Telecom, the company’s intelligent self-service equipment industry products mainly include cash withdrawal machine, cash circulation machine, large circulation machine, intelligent teller machine, portable card issuing machine and other categories.
Hengyin technology’s latest 2020 annual performance pre profit announcement data mentioned that according to the preliminary calculation of the financial department, it is estimated that the company’s net profit attributable to shareholders of Listed Companies in 2020 will turn from loss to profit compared with the same period of last year, with a profit of about 30 million to 36 million yuan. However, the company also mentioned that the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses is expected to be between – 12 million yuan and – 10 million yuan in 2020.
In 2020, Yuyin Co., Ltd., an ATM manufacturer that focuses on independent R & D, production, sales and operation, showed a decline in operating revenue and a rise in net profit. According to the 2020 annual performance express released by Yuyin Co., Ltd., the company realized an operating revenue of about 183 million yuan in 2020, a decrease of 14.67% over the same period of last year, and realized a net profit of 74.5637 million yuan attributable to shareholders of listed companies, a decrease over the same period of last year It increased by 10.83% in the same period of the year.
Wang Pengbo, a senior analyst in the financial industry, pointed out that “offline RMB circulation is still necessary. As long as there are cash activities that need interaction, ATM still has the foundation and necessity to exist. For ATM manufacturers, there is no problem in “surviving”. They just need to control the cost. However, from the perspective of operation, the profits of ATM manufacturers have declined seriously, and there has been no particularly good case in the transformation for many years. At the same time, from the perspective of newly developed bank outlets, the update frequency is also decreasing. “.
From teller machine to intelligent network
It is not the fierce competition among industries that beats ATM manufacturers, but the trend of online.
At the beginning of 2021, transformation and upgrading has become an inseparable topic in all walks of life, and ATM manufacturers are also eager to try. As stated in the performance forecast for the first quarter of 2021, in 2021, the company will focus on financial technology and urban intelligence, and accelerate the business expansion of AI + scenarios. It is estimated that the net profit attributable to shareholders of Listed Companies in the first quarter of 2020 will increase by 30% – 50% over the same period of last year, with a profit of 186819500-215560900 yuan.
Dongfang Telecom mentioned in its 2020 annual report that in 2021, it will continue to promote the transformation and upgrading of the three industrial ecosystems of “enterprise network and information security industry, intelligent self-service equipment industry, and information and communication technology service industry”, and take this as the center to enhance the overall cooperation ability of the whole industry chain support platform, including R & D, procurement, manufacturing, sales, and customer service.
How can ATM manufacturers cultivate their outlets, build customer value management centers, and continuously deepen online channels to establish their own business models?
“For ATM manufacturers, the direction of product transformation is to serve the intelligent upgrading of banks, increase R & D investment, and explore the possibility of integration of artificial intelligence, big data, cloud computing and intelligent devices.” In Baicheng’s view, ATM manufacturers can extend their product chain from “teller machines” to “intelligent outlets”, and develop from low-end business to high-end, complex and core business. In addition, we can build intelligent terminal equipment and relevant channels or platforms around digital RMB and mobile payment.
Wang Pengbo further analyzed and pointed out that it is very difficult to build the central value of online customers based on ATM, because although ATM can directly reach customers and also know the transaction information of some customers, in fact, most customers’ terminal identification is in the bank. ATM only paves the way for banks offline, but ATM manufacturers do not develop their own virtual payment system like third-party payment It is proposed to establish a new account system. Therefore, ATM can only do business under the banking system forever, and the transformation is relatively difficult.
According to the business performance in 2020 and the future strategic development focus, the reporter of Beijing business daily contacted Yuyin Co., Ltd., Hengyin Technology Co., Ltd., Dongfang Communication Co., Ltd. and radio and television express for interviews, but no response has been received as of press release.
Beijing Business Daily reporter Meng fanxia song Yitong
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