On 3 March 2009, ATM direct charging was introduced across Australia. These changes were designed to achieve a number of policy objectives including:
• Increased number of ATMs
• Fee Transparency
• Competition
Though early days, what do the preliminary APCA and Reserve Bank of Australia (RBA) figures say about the progress of changes against these objectives?
Increased Number of ATMs
APCA figures on the number of ATMs in Australia shows a 6.7 % annual increase, from 25,599 (March 2008) to 27,306 (March 2009). This represents the most significant March to March annual increase over the past four year period. One plausible explanation for this increase is in anticipation of the introduction of ATM direct charging however, this would require further analysis.
Percentage Increase in No. of ATMs in Australia |
|
12 Months to March 2009 |
6.7 % |
12 Months to March 2008 |
0.2 % |
12 Months to March 2007 |
6.6 % |
12 Months to March 2006 |
0.7 % |
Source: APCA Statistics >>
Changing Consumer Behaviour
Recent RBA figures strongly suggest consumers are responding to the changing price signals introduced under direct charging.
The most noticeable change has been the shift towards the use of own ATMs. In recent years, own ATM transaction volume as a percentage of overall ATM transactions has consistently been around 52%. In March 2009, this figure rose dramatically to 60%, though settled back to 58.6% in April. Similarly own ATM transaction value as a percentage of overall ATM value rose from just below 60% to 65.8% in March. However, in April this value dropped back slightly to 64%.
Given the stability of these monthly figures in recent years, the strong shift in the March and April 2009 figures suggests consumers are responding to the new price signals and changing their behaviour accordingly.
| Own ATM Volumes (No. of Transactions) as Percentage of All ATM Volumes |
Own ATM Values ($) as Percentage of All ATM Values | |
Monthly Average (12 Months to February 2009) |
52.8% |
59.9% |
March 2009 |
60.0% |
65.8% |
April 2009 |
58.6% |
64.0% |
Source: RBA Statistics >>
Conclusion
The recent increases in the number of ATMs, as well as changing consumer usage of ATMs, suggests direct charging is already having an impact. These very early signs are pointing in the right direction of increased number of machines and consumers responding to price signals. However the long term impact of direct charging on competition still remains to be seen.