This article is from WeChat official account:Beijing Business Daily (ID: BBT_JLHD) , author: Meng Xia, Song Yitong, editor: Zhang Lan, the original title: “disappearing ATM machine Shu said the banking industry was” the most useful inventions “, now a year to reduce 80000 Taiwan”, head picture from: IC photo
The ATM machine was once called the “most useful invention” in the banking industry, but under the impact of mobile payments, the highlight of the ATM machine has faded. For the whole year of 2020, the number of ATM machines has shrunk by more than 80,000 units, and the number of ATM machines per 10,000 people in the country has also dropped from 7.87 units in 2019 to 7.24 units.
Industry dividends are no longer, and it is also forcing ATM manufacturers to transform and upgrade. The reporter of Beijing Business Daily noted that after years of drastic transformation, the profitability of ATM manufacturers is still unspeakably optimistic. In the future, how manufacturers will deepen their branches to create customer value management The hub, while continuing to deepen online channels to establish its own business operation model still needs time to test.
1. ATMs gradually “disappearing”
Under the epidemic situation in 2020, effectively blocking the transmission chain of “person-to-person” is the key. Therefore, the concept of mobile payment and “contactless” has become popular. Swiping cards, scanning QR codes, and using mobile terminals for payment have become the mainstay of people. payment method.
The two-dimensional code crushes the payment world, and also makes the life of ATM machine deposit and withdrawal become a memory, and the utilization rate of ATM machine has dropped again and again. According to the latest data released by the Central Bank of the “Overall Operation of the Payment System in 2020”, As of the end of 2020, there were 1.0139,000 ATM machines, a decrease of 83,900 units from the end of 2019. The number of ATMs per 10,000 people nationwide was 7.24, a year-on-year decrease of 7.95%.
Looking back at the data for the entire year of 2020, the number of ATM machines has declined significantly. As of the end of the first quarter, second quarter, and third quarter of 2020, the number of ATM machines was 1.083 million, 1.0521 million, and 1.029 million, respectively. The quarter-on-quarter decrease was 14,700, 30,900, and 23,100 respectively.
From the data of the past two years, in the first quarter of 2018, the central bank added statistics on self-service terminals and visual counters. New types of terminal equipment such as, smart counters, etc., have expanded the scope of ATM statistics, and the number of ATMs has increased significantly. As of the end of 2018, there were 1.1108 million ATMs, an increase of 150,300 over the end of 2017.
However, since the second quarter of 2019, the number of ATM machines has begun to decline, from 1.1104 million units as of the end of the second quarter of 2019 to 1.088 million units at the end of the third quarter of 2019. The number of ATM machines ushered in the fourth quarter of 2019 A slight increase, it rose to 1,997,700 units, but still decreased by 13,100 units compared to the end of 2018.
The reduction of ATM machines can also be seen in the annual reports of commercial banks. A reporter from Beijing Commercial Daily noted that among the banks that have released annual report data recently, most of the banks don’t pay much attention to ATM machines.
Among the major state-owned banks, Bank of China had 33,300 ATMs as of the end of 2020, a decrease of 10.76% from 37,300 at the end of 2019. Although Chongqing Rural Commercial Bank did not disclose the number of ATM machines in its annual report, it stated that “in 2020, bank card fee income will be 165 million yuan, a decrease of 15 million yuan from the previous year, or 8.38%, mainly due to debit card ATM fees. Due to the decrease in income and POS consumption.
In stark contrast is the steady growth of non-cash payment business. According to data released by the Central Bank, in 2020, banks across the country handled a total of 354.721 billion non-cash payment services, with an amount of 4013.01 trillion yuan, respectively. Increased by 7.16% and 6.18%.
In an interview with a reporter from Beijing Business Daily, Yu Baicheng, the director of Zero One Research Institute, analyzed that according to the data disclosed by the central bank, the number of ATMs nationwide declined for the first time in 2019, and the decline will be further expanded in 2020. . The reason behind this is mainly the rapid growth of mobile payment, which has had an impact on the demand for cash payment.
From 2015 and 2016, the transaction volume of bank deposits and withdrawals began to decline. Affected by this, banks’ demand for traditional ATM machines has declined, and some ATM suppliers have even withdrawn from the market. However, AMT machines will not completely disappear, China’s regional development is quite different, and mobile payment cannot completely replace cash.
Second, ATM machine manufacturers with “no longer highlight”
The sharp shrinkage of ATM machine market demand has forced ATM machine manufacturers to face transformation difficulties. A reporter from Beijing Business Daily noted that after years of drastic reforms, ATM machine manufacturers have also differentiated in their performance and operation. The pattern is mixed.
Among ATM machine manufacturers, the recognized leading listed companies mainly include a few companies such as Royal Bank, Hengyin Technology, Eastern Communications, and Guangdian Express.
Take GRG Express as an example. As early as 2016, GRG Express’s net profit showed its first negative growth since its listing in 2007, down 6.07%. At that time, SVA Express mentioned in the annual report. “Mobile payment technology has fully impacted the banking industry, the domestic ATM market demand has shrunk, industry competition is fierce, product prices continue to fall, and the company is facing increased operating pressure.” He also mentioned “actively seeking new business growth points.”
However, after many years of transformation, the performance of China Radio and Television Express in 2020 is still in a negative growth trend. According to the company’s 2020 annual report recently released, for the whole year of last year, China Radio and Television Express achieved operating income of approximately 6.411 billion yuan, a year-on-year decrease of 1.32%; net profit attributable to shareholders of listed companies was approximately 700 million yuan, a year-on-year decrease of 7.59%.
Although Dongfang Communications, another ATM machine manufacturer, has increased its operating income in 2020, the company’s net profit data is hardly optimistic. In 2020, the company achieved operating income of 2.967 billion yuan, an increase of 10.57% year-on-year. The corresponding net profit attributable to shareholders of listed companies was approximately 104 million yuan, a year-on-year decrease of 21.37%.
The relevant manufacturers are the first to bear the brunt of the decline of ATM machines. The price drop will inevitably lead to lower costs. Eastern Communications frankly stated in its annual report that the gross profit rate of smart self-service equipment during the reporting period was 4.94%, a year-on-year decrease of 14.09 Percentage points, mainly due to the serious decline in equipment prices and the increase in equipment configuration requirements. Analyzing the product structure of Eastern Communications, the company’s intelligent self-service equipment industry products mainly include cash dispensers, cash recycle machines, large-value recycle machines, smart teller machines, portable card issuing machines and other categories.
Hengyin Technology’s latest 2020 annual results pre-earnings announcement data mentioned that after preliminary calculations by the financial department, the company is expected to be in 2020Compared with the same period of the previous year, the annual net profit attributable to shareholders of the listed company will be realized, and the profit will be around 30 million to 36 million yuan. However, the company also mentioned that it is expected that the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will be between -12 million yuan and -10 million yuan in 2020.
Yuyin, an ATM manufacturer that focuses on independent research and development, production, sales, and operation, has shown a decline in operating income and an increase in net profit in 2020. According to the 2020 annual performance report released by Yuyin, the 2020 The company achieved operating income of approximately 183 million yuan, a decrease of 14.67% over the same period last year, and realized net profit attributable to shareholders of listed companies of 74.563 million yuan, an increase of 10.83% over the same period last year.
Wang Pengbo, a senior analyst in the financial industry, pointed out that “Offline RMB circulation is still necessary. As long as there is cash, interactions are required. ATM machines still have a basis and necessity. It’s definitely not a problem to “survive”, you just need to control costs. But from an operational point of view, the profits of ATM machine manufacturers have fallen more severely, and there have been no particularly good cases in the transformation for many years. At the same time, new bank branches have been opened. From the current point of view, the update frequency is also decreasing.
3. Extend from “Teller Machine” to “Intelligent Branch”
What ATM machine manufacturers did not expect was that it was not the fierce competition between industries that defeated them, but the baptism of the online trend.
At the beginning of 2021, transformation and upgrading have become indispensable topics in all walks of life, and ATM machine manufacturers are also eager to try. As stated in the first quarter 2021 performance forecast of GRG, the company will focus on financial technology and urban intelligence and accelerate the business expansion of AI+ scenarios in 2021. It is expected that the net profit attributable to shareholders of listed companies in the first quarter of 2020 will increase over the same period of the previous year. 30%~50%, with a profit of 186,819,500 to 215,560,900 yuan.
Eastern Communications mentioned in its 2020 annual report that in 2021, it will continue to promote the transformation and upgrading of the three major industrial ecosystems of “enterprise network and information security industry, intelligent self-service equipment industry, and information and communication technology service industry”. For the center to enhance the overall collaboration capabilities of the entire industry chain support platform including R&D, procurement, manufacturing, sales, and customer service.
ATHow can M machine manufacturers deepen their outlets to build customer value management centers, while continuing to deepen online channels to establish their own business operation models? “For ATM machine manufacturers, the direction of product transformation is to serve the intelligent upgrading of banks, increase R&D investment, and explore the possibility of the integration of artificial intelligence, big data, cloud computing and smart devices.”
In the view of Baicheng, ATM machine manufacturers can extend the product chain from “teller machines” to “intelligent outlets”, and develop from low-end business to high-end, complex and core business. In addition, it is also possible to build smart terminal equipment and related channels or platforms around digital renminbi and mobile payment.
Wang Pengbo further analyzed and pointed out that it is difficult to build the central value of online customers based on ATM machines, because although ATM machines can directly reach customers, they can also know the transaction information of some customers, but in fact, customers have more terminals. The identification is in the bank, and the ATM machine is to pave the way for the bank offline, but the ATM machine manufacturer does not develop its own virtual account system like a third-party payment. Therefore, ATM machines can only do business under the banking system forever, and the transformation is relatively difficult.
In response to the 2020 business performance and future strategic development priorities, reporters from Beijing Commercial Daily contacted Royal Bank, Hengyin Technology, Eastern Communications, and Guangdian Express, but did not receive a response as of press time.
This article is from WeChat official account:Beijing Commercial Daily (ID: BBT_JLHD), author: Meng Xia, Song Yitong, editor: Zhang