Belgium's four largest banks (BNP Paribas Fortis, KBC, ING and Belfius) are rolling out one joint, optimal ATM network from 2021 to 2024. The brand new locations of these bank ATMs were determined with the help of RetailSonar.
Batopin (Belgian ATM Optimization Initiative) is the name of the company in which the banks have united. The organization seeks locations for the neutral bank ATMs and builds and manages the ATMs. This neutral network will replace the partner banks' current networks. We asked Batopin's CEO, Kris de Ryck, and Chief Product Officer, Marie Janart, how they are approaching this.
Kris De Ryck: "Thanks to digitization, the number of cash transactions has been decreasing for years, while fixed costs (think of value transport and security) are still increasing every year. Corona has only reinforced this trend of digitalization. With the disappearance of bank branches, more and more ATMs are also disappearing. Therefore, the distribution of cash must be arranged as efficiently as possible."
"An ATM where the user expects it, that is our aspiration."
Today, ATMs are over-represented in cities, while in rural areas or on the outskirts of cities, distances sometimes become long. Batopin wants to provide a better balance." But with that goal in mind, how do you then arrive at the most optimal network? That's a challenging puzzle that requires very punishing and well-supported geomarketing models. Batopin enlisted the help of RetailSonar in this endeavor.
"The advantage of a neutral network like Batopin is that we were able to start from scratch. We started from the idea that we are a retailer that plants its stores in the best possible places, both demographically and geographically. Basically, we are building the largest chain of stores in the country."
The RetailSonar analyses showed that the number of vending machines could be reduced without sacrificing coverage. "Currently, you often have several banks around one square. As a user, you experience these as one location. Customer accessibility will be at least as good" assures Marie. "Batopin's new network will have 2,240 CASH points in 750 locations."
"We can reduce the number of vending machines without impacting accessibility"
"In theory, we would even have enough with 654 locations to match the banks' current coverage. But we are adding 100 locations. This way we ensure that even in cities there are enough locations within walking distance. We also want the right number of ATMs at each location but not too many. That way, by 2024, we will achieve an average of 50,000 transactions per terminal per year, which can reassure users in terms of queues."
To determine the optimal positions of the 2,240 ATMs, the first step was to look at the existing situation: the ATMs of the four banks and those of the competition. Smart gravity models provided insight into the overlap and synergy between the ATMs.
"We take into account the places where people work, store or travel."
Customer behavior also plays an important role in locating ATMs. Marie explains: "A large part of the new cash points will be implanted in places with a lot of passage such as train stations and shopping streets. We take into account the places where people work, store or move around. We also saw a strong correlation between demographic factors and cash usage." Actualtravel time was also considered, as it is often even more important to customers than travel distance.
With all this data and insight into the complete interplay of forces, it was finally possible to calculate - in a fully automated way - the optimal ATM network.
Finding, identifying and building these new CASH points is done very gradually and in frequent consultation with local actors such as local governments. In this way, we can evolve from theoretical locations to the most appropriate ones according to local needs. We find that the model, based on Retail Sonar, is almost always confirmed locally as the right location.
Meanwhile, Batopin has not been idle: Batopin is active in more than 70 locations in Belgium with more than 150 CASH points. For the user, they are recognizable by a modern, sober look with yellow and blue. Batopin chose to partner with Bancontact as a B2C brand. A logical choice, since this is a trusted brand in the world of payments. Together with the CASH signboard, these are also quickly recognizable for tourists and people from other backgrounds.
For each existing ATM, the location decision (closing, moving or merging) is now known. Batopin also knows exactly where and how many CASH points should be placed in which locations. A complex, multidimensional puzzle that could be solved in no time thanks to the consultants and the platform of RetailSonar.
Want to know more about this unique project? You can find all updates at www.batopin.be. Batopin is still looking for properties to house their CASH points. Do you have your own premises available? Then you can also visit this website with your proposal.