ATM Pooling
A cost-effective solution for a new cash reality
ATM Pooling
A cost-effective solution for a new cash reality
Against a backdrop of persistent economic uncertainty, inflation, policy shifts, and geopolitical tensions, consumers are feeling the pressure. An unexpected result is a steady rise in cash use, bolstered by growing public demand and government moves to mandate access to cash.
Kjetil Bratbergsengen, Head of ATM Services at Tietoevry, discusses the re-emergence of the ATM and why ATM pooling should be a key component of any bank’s strategy.
Consumers and regulators keep the cash option open
Cost-of-living pressures are causing consumers around Europe to increasingly use cash as a means of managing their finances. In January 2025, the UK-based Nationwide Building Society reported that customers made 32.8 million cash withdrawals from its 1,260 ATMs the previous year, representing a 10% increase over 20231. Other factors influencing a new attitude towards cash include recognition by the European Central Bank and governments that cash is a vital means of social and financial inclusion, while civil rights campaigns are encouraging cash use for privacy reasons. The UK and Nordic markets – some of the most advanced digital economies anywhere in the world – are now widening their legal mandate to enable access to cash2.
This combination of consumer demands and government legislation creates a predicament for banks when it comes to the cost of cash management. According to a report by McKinsey3, the cost of handling cash accounts for between 4-10% of total bank operating costs. In mature markets such as the UK, France and the Netherlands, where between 40 and 60% of the economy runs on notes and coins, cash represents up to 6% of banks’ total operating costs. In cash-intensive markets such as Germany and Austria (60 to 80% cash-based), banks can pay up to 7% of their total operating costs for handling cash.
If cash usage is growing (or at least stabilizing after a long period of decline) and the cost of cash networks is increasing, the burden per transaction will continue upward, making providing cash services more expensive in the medium to long term. Banks are therefore being challenged by governments to maintain their ATM networks while containing their costs and managing fraud risk in ATMs and elsewhere in their cash business.
ATM pooling – cost savings, inclusion and a better customer experience
At Tietoevry, we believe that ATM Pooling is one of the most significant developments for the future of cash distribution and usage in European society. In ATM Pooling arrangements, banks come together to form a consortium that operates under a single brand and infrastructure against a backdrop of persistent economic uncertainty, inflation, policy shifts, and geopolitical tensions, including centralized cash distribution services. Reducing the cost of a broadbased ATM network by as much as 40%, this structure enables banks to share their expertise and combine resources to provide cash access more broadly and effectively, and at lower overall cost.
Banks in Scandinavia first pioneered this concept of inter-bank relationship in the 1990s to split the costs of ATM networks through vendor-agnostic management software services, including security and anti-fraud measures. Over the years, ATM Pooling has evolved and key drivers are now cost reduction, improved service delivery, and increased customer satisfaction.
Challenges and success factors
Often the biggest challenge in creating a pooled ATM network is the political landscape – along with getting competitors to work together. It is vital that the participants in a pooling solution are willing to adopt a collaborative mindset for mutual benefit and to improve customer satisfaction.
There will always be technical issues including integrations and on-us transactions, among others, to address but hurdles can be overcome through proper planning, collaboration and trust among participants and service providers. Examining successful implementations provides valuable insights – such as those learned from Bankomat in Sweden and Geldmaat in the Netherlands. These Companys have been in operation for many years, demonstrating how ATM Pooling can be effectively executed.
Success stories
Bankomat: Sweden
In 2010, five major Swedish banks (SEB, Nordea, Swedbank, Danske Bank and Handelsbanken) joined forces to launch Bankomat, one of the first ATM Pooling companies. Starting with a fleet of 2,700 ATMs, this pooling solution reduced the number of terminals in operation to 1,200 and enabled a 40% reduction in the cost of ATM network management for participant banks. Customers use services under their own bank’s brand once they insert their card, maintaining brand affinity despite using a shared ATM. Bankomat also offers cash depot services for business customers.
Geldmaat: Netherlands
Similar benefits were experienced when the top three banks In the Netherlands (ABN Amro, ING and Rabobank) created Geldmaat in 2019. In this case banks were able to maintain a network of 3,800 ATMs across the Netherlands (down from 6,400 previously) while ensuring 99% of all domestic cardholders live within five kilometers of a Geldmaat ATM. This consortium achieved equally impressive cost reductions and net gains in efficiency while creating a widely known and trusted ATM brand.
More than 15+ years experience
Effective collaboration
Ensure transparent and collaborative planning with all partner banks to standardize processes for the whole ATM pool and identify unique needs from banks that should be shared with all partners.
Flexible business model
Adopt a flexible model that accommodates transaction-based cost reductions as more banks join the pool and balance that cost model with charges that reflect the unique needs of every bank.
Service evolution
Based on ad-hoc demand for cash, transition and develop the ATM pool to targeted services like cash centers, which have the scope to evolve self-service options and optimize local cash recirculation for improved operational efficiency.
Strategic ATM placement
Position ATMs based on customer traffic patterns to maximize usage and efficiency of the ATM pool. This could mean moving ATMs away from branches to non-branch locations such as shopping malls, gas stations, or market squares with heavier consumer traffic.
Resource management
Ensure continuation of bank services and management of resources, capabilities and commitments during transition of ATMs from banks to the pool. Banks may want to transition or discontinue ATM resources after a handover as not all aspects will be solved before or during a migration project.
IT provider selection
Select a provider that matches the objectives of your ATM pooling project by strategically analyzing customer adoption of an existing or adapted solution. Consider new providers offering new solutions as well.
Cost optimization
Cost control during the building phase of the project is essential. Long or delayed ATM terminal migration will hamper cost reduction. Back-office operations for ATM transactions should focus on simplification and process automation.
Partnership strategy and agreements
Selecting the right partners is key to success. This includes contracts for cash-in-transit, plus airtight agreements for software and IT solution providers, including service upgrades and future developments. Schemes acceptance agreements must also take into account the new cash pooling company payment license.
Your partner for ATM pooling
Setting up an ATM pooling consortium is not a trivial undertaking – especially when getting competing banks to collaborate with each other. Choosing the right partner is essential to creating a successful consortium that will deliver more efficient, customerfocused ATM services at low cost.
Tietoevry Banking is a leading financial services software provider with more than 400 customers in 64 countries and over 3,500 employees globally. Consistently ranked as the leading provider of ATM services in the Nordics and Baltics, today we bring more than 25 years of experience to banks in 13 markets across Europe.
Tietoevry has a long history of financial software and services innovation that can help the banking industry create a balance between government mandates and rising consumer demand for cash on the one hand, and the need to develop profitable value-add services on the other.
These include the evolution of ATMs into full-service financial kiosks, increased adoption of AI-driven predictive maintenance routines for ATMs, the integration of biometric security factors and new forms of verification, and growth in ATM pooling run by independent ATM networks.
Learn more
Banking’s full suite of ATM services
For a discussion about creating pooled ATM services across Europe, contact
Kjetil Bratbergsengen
Head of ATM Services at Tietoevry Banking
Our offering:
References
1 Nationwide PLC, 07 January 2025: “Cash use rises for a third year”
2 Cash usage rises for third year as Brits continue to value money in their pockets, Nationwide
3 Attacking the Cost of Cash, McKinsey
At Tietoevry, we believe it’s time to shift perspective. It’s not about what technology can do anymore — but what it should. So that the futures of businesses, societies, and humanity can live and thrive. Side by side.
