Banks pledge

Solution for cash supply throughout Austria

It is important to Austrians to continue to have ATMs in their vicinity. However, the number of ATMs has fallen from around 9,200 in 2021 to just 8,600 today.

(Bild: Jöchl Martin)

An agreement has now been reached between the Association of Austrian Municipalities and the banks to secure the supply of cash in Austria - especially in rural regions: the existing ATMs are to be retained over the next five years. With the help of the OeNB, new ATMs are even to be installed in underserved communities.

The issue of cash supply and ATM locations has been on the minds of Austrians for years, as they want to continue to have ATMs in their vicinity. In a first step, agreement was reached on Tuesday between the Austrian Federal Economic Chamber's Banking & Insurance Division and the Association of Austrian Municipalities that the existing ATMs will be secured for a period of five years. Association of Municipalities President Johannes Pressl: "In a next step, we also want to conclude an agreement with the Oesterreichische Nationalbank (OeNB) on underserved areas in rural areas."

The agreement with the banks provides for the following:

1. In the moratorium signed, the domestic banks undertake to maintain their existing 8600 or so ATMs at their current locations. Any changes will only be made in agreement with the respective municipality.
2. If there is a need for new machines from the municipalities' point of view, this will be jointly analyzed and the banks will make the municipalities a particularly favorable offer for the installation of an additional ATM via Payment Service Austria (PSA).
3. The agreement is initially valid until the end of 2029 and will be jointly evaluated one year before it expires.

The ATM moratorium was signed by Pressl and Willi Cernko, Chairman of the Federal Banking and Insurance Division of the Austrian Federal Economic Chamber. Cernko: "With this initiative, we are ensuring the high quality of cash supply throughout Austria and taking into account the needs of the municipalities. Our agreement is a clear commitment to partnership between business and the public sector, in the interests of our citizens."

Pressl also thanked Governor Holzmann of the OeNB: "His offer to become active as a national bank in underserved areas has brought movement into the matter. I am confident that, following the location guarantee from the banks, we will now also create support for affected rural regions."

National Bank Governor Robert Holzmann wants to help underserved communities with funding to install new ATMs.

(Bild: Reinhard Holl)

The background: Since May 2023, the OeNB has been negotiating directly with bank representatives and has even set up its own "cash board". Governor Robert Holzmann advocated a regulation for nationwide cash supply in Austria: 66.9 percent of the population should continue to have access to an ATM within one kilometer, 82.6 percent within two kilometers and 97.1 percent within five kilometers. Although the banks withdrew from negotiations with the OeNB in May 2024, they subsequently entered into talks with the Association of Municipalities - and have now reached an agreement with the latter.

The aim is to install new ATMs in 100 to 120 rural municipalities
In his assessment of this agreement between the Association of Municipalities and the banks, Holzmann told "Krone" that the most important thing is that "the cash supply is guaranteed". In addition, the National Bank wants to "hold its own talks with the Association of Municipalities to help ensure that ATMs are also installed in particularly precarious municipalities, for example in rural and Alpine areas. We have so far identified 100 to 120 such municipalities." Specifically, the OeNB wants to award grants so that new ATMs can be installed there.

Operating an ATM costs 12,000 to 15,000 euros per year
The problem is that operating ATMs is expensive. The banks quote costs of 12,000 to 15,000 euros per year. In many cases, the municipalities already contribute money, for example if there are fewer than 2,000 withdrawals per month from ATMs in rural areas. Nevertheless, the operation is becoming less and less profitable for the institutions, which is why they have recently reduced the number: While there were still around 9,200 ATMs across Austria in 2021, the number had already fallen to under 8,700 by the end of 2023.

In Sweden, 51% of people were unable to pay with cash in stores last year because they were refused. As a result, dissatisfaction among the population is on the rise.

(Bild: picturedesk.com/Eva Manhart)

The fact that it is now possible to withdraw money at the till in many supermarkets such as Billa or Hofer is not enough for Holzmann in terms of cash supply: "We appreciate the fact that this option is available, but retailers offer it voluntarily and they are also closed on Sundays"

Small businesses should also have bank branches to bring in cash
The OeNB governor also wants to ensure that small and micro businesses continue to have enough bank branches to bring in cash. If this were not the case, stores, for example, might no longer accept cash. However, a situation like the one in Sweden must be prevented: 51% of Swedes were unable to pay with cash in stores last year because they were refused. As a result, the population's dissatisfaction with the decline in cash increased from 36% to 44% in 2023.

However, Holzmann does not believe it is necessary to write cash into the constitution: "That would achieve little and would be difficult to implement." However, if the ATM demise continues at some point despite the recent agreement, "a legal regulation would at least be the last resort. But that would then be a matter for the legislator."