In 2007, cash recycling system had the rapidest growth, and its market share increased to 35.90% from 10% in 2006 in ATM market. With social-economic development, people are no longer satisfied with ATM, by which they can only withdraw money, and they hope they can deposit cash easily by ATM. Especially with the fast growth in use of credit cards in recent years, many credit card holders hope that they can repay by ATM. Therefore, banks are requested to install more cash recycling systems. It is forecasted that cash recycling system market will continue to grow rapidly in 2008.
In 2007, ATM market was still dominated by foreign companies like Diebold, NCR and Wincor Nixdorf. However, the market has begun inclining to local ATM machines gradually. Some local brands, for instance, such as GRGBanking and KingTeller have developed rapidly recently. In 2007, China's brands took up more than 30% of total ATM market, a big rise from 20% posted in 2006.
ATM market has high market entry barriers in terms of technology and funds. With its advantages in client resources and channels of banks, Hengbao in cooperation with LG started to enter ATM industry in 2007 and is expected to grab a certain market shares starting from 2009, when GRGBanking, KingTeller and Hengbao will be the key local ATM manufacturers in the market.
The report is based on the authoritative statistics from the National Bureau of Statistics, the China UnionPay, the China Banking Association, the People's Bank of China and the State Information Center, as well as information from Tremont Capital Group, NBR and ATMIA.
