ATMs

The growth of online banking, electronic payments and deposits, and automated teller machine (ATM) usage has been driven by customer demand for greater convenience. ATMs were introduced in the mid-1970s. By 2009 there were some 425,000 ATMs in the United States, four times the number of bank and thrift branches. ATMs increasingly are being installed in places where consumers may want access to their money such as supermarkets, convenience stores and transportation terminals.

The ATM business consists of three major entities: ATM cardholders’ banks, the ATM network that links banks in other locations and the owners of the ATM machines, which may or may not be banks. Most banks allow their own customers to withdraw money from their ATMs free of charge but charge a fee to other banks’ customers. These charges help offset the cost of ATMs and fees banks must pay to the ATM network system.

A 2010 study on payment systems by the Federal Reserve found that there were 6.0 billion ATM withdrawals in 2009, with a total value of $647 billion, up from 5.8 billion withdrawals valued at $579 billion in 2006. The average ATM withdrawal increased slightly from $100 to $108 during the same period.

ATM WITHDRAWALS, 2006 AND 2009

      2006-2009 change
  2006 2009 Percent change Compound annual
growth rate
Number of ATM withdrawals (billions)  5.8 6.0 3.4% 0.9%
Value of ATM withdrawals ($ billions)  $578.8 $646.7 11.7 3.8
Average value ($)
100.0 108.0 8.0 2.9

Source: Board of Governors of the Federal Reserve System.

TOP TEN U.S. BANK OWNERS OF ATMS, 2012 (1)

Rank Owner Number of ATMs
1 Citigroup Inc. (2) 26,000
2 JPMorgan Chase & Co. 18,132
3 Bank of America Corporation 16,220
4 Wells Fargo & Company 12,222
5 PNC Financial Services Group, Inc. 7,206
6 U.S. Bancorp 5,085
7 SunTrust Banks, Inc. 2,906
8 BB&T Corporation 2,511
9 Fifth Third Bancorp 2,409
10 Regions Financial Corporation 2,063

(1) As of June 30, 2012, unless otherwise indicated.
(2) As of December 31, 2011.

Source: SNL Financial LC.

View Archived Tables

WITHDRAWALS FROM BANK ATMs BY TYPE OF INSTITUTION, 2010

Institution Number
(billions)
Value
($ billions)
Commercial banks 4.2 $478.5
Credit unions 1.4 132.2
Savings institutions 0.3 35.9
Total (1)
6.0 $646.7

(1) May not add to total due to rounding.

Source: Board of Governors of the Federal Reserve System.