Banks and independent ATM deployers installed 169,003 ATMs in 15 central and eastern European countries last year, despite a dramatic slowdown in deployments in Russia, Europe’s largest ATM market, according to a report released May 10 by Retail Banking Research, a London-based strategic-marketing firm.

Last year’s deployments represented a 10.5% increase from 152,905 machines deployed in the region in 2008, when deployments grew by 27.7% from 119,758 the previous year, Andrei Charniauski, a Retail Banking Research associate, writes in his report “ATMs and Cash Dispensers Central and Eastern Europe 2010.”

In 2008, banks and independent ATM deployers in Russia and the Ukraine drove the deployment growth. The Ukraine last year represented the region’s second-largest ATM market with 27,025 machines, up 2% from 26,505 ATMs in 2008, when deployments grew by 26.6% from 20,931 the previous year, Charniauski says.

ATM deployments in eastern and central Europe grew at a much higher rate than in Western Europe, where deployments grew by just 2% last year, Charniauski says. (see story).

Growth in Russia’s installed ATM base slowed considerably in 2009 because of financial and liquidity problems faced by the country’s private banks, many of whose customers either were late repaying loans or refused to pay them altogether. As a result, private banks either stopped deploying ATMs or slowed their investing in bank infrastructure, Charniauski says. Russia’s state-owned banks took up some of the slack left, with Sberbank, RosSelHozBank, VTB24 and TransCreditBank together deploying more than 7,600 ATMs.

Russian banks last year deployed a combined 11,405 ATMs, down 41.1% from 19,375 in 2008. Russia is Europe’s largest ATM market with 81,930 machines at the end of 2009, up 16.2% from 70,525 ATMs in 2008, when deployment grew 37.9% from 51,150 the previous year, Charniauski says.

Other than Russia, Poland reported double-digit growth in deployments, driven by independent sales organizations. Last year, Polish banks and independent ATM deployers deployed 15,595 machines, up 13.6% from 13,729 in 2008, Charniauski says.

Independent ATM deployers Euronet Worldwide Inc. and Cash4You installed a combined 740 ATMs in Poland in 2009.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry