ATMs: – Money supply in Austria secured until 2029

The issue of cash supply and ATM locations has been a concern for Austrians for years as they want to continue to have ATMs in their area. Yesterday, in a first step, an agreement was reached between the WKÖ Federal Banking and Insurance Division and the Austrian Association of Municipalities that the existing ATMs would be insured for a period of five years. Chairman of the community association Johannes Pressl: “In a next step, we also want to conclude an agreement with the Austrian National Bank (OeNB) on disadvantaged areas in rural areas.”

The agreement with the banks provides for the following:

1. In the signed moratorium, the domestic banks commit to this maintaining approximately 8,600 existing ATMs at current locations. Any changes will usually only be implemented in consultation with the relevant municipality.
2. If it is from the perspective of the communities Need for new equipment This is analyzed together and the banks make a particularly favorable offer to the communities via Payment Service Austria (PSA) to set up an additional ATM.
3. Die The agreement initially applies until the end of 2029 and must be evaluated together one year before the expiration date.

The ATM moratorium was signed by Pressl and Willi Cernko, chairman of the Federal Banking and Insurance Department of the Austrian Economic Chamber. Cernko: “With this initiative we guarantee the high quality of money supply throughout Germany and take the needs of the communities into account. Our agreement is a clear commitment to the partnership between business and the public sector, entirely in the interests of citizens.”

Pressl in turn also thanks Governor Holzmann of the OeNB: “His offer to become active as a national bank in disadvantaged areas has set things in motion. I am confident that after the banks’ settlement guarantee, we will now also provide support to the affected rural areas.”

The background: Since May 2023, the OeNB has been negotiating directly with representatives of the banks and has even set up its own ‘cash board’. Governor Robert Holzmann campaigned for a national cash supply scheme 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 have an ATM. In May 2024, the banks withdrew from negotiations with the OeNB, but then started discussions with the Association of Municipalities – and have now reached an agreement with them.

The goal is new ATMs in 100 to 120 rural communities
When assessing this agreement between the community association and the banks, Holzmann considers it especially important for the “Krone” that “the money supply is assured”. In addition, the National Bank “wants to conduct its own discussions with the community association to ensure that ATMs are set up in particularly precarious communities, such as rural and Alpine areas. We have identified 100 to 120 such communities so far.” In concrete terms, the OeNB wants to provide financing so that new ATMs can be installed there.

Operating an ATM costs between 12,000 and 15,000 euros per year
The problem is that ATMs are expensive to use. The banks quote costs between 12,000 and 15,000 euros per year. The communities often already inject money, for example when 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 below 8,700 by the end of 2023.

The fact that you can now withdraw money at the cash register in many supermarkets such as Billa or Hofer is not sufficient for Holzmann when it comes to the cash supply: “We appreciate that this option exists, but the retailers also offer it voluntarily.” closed on Sundays.”

Small business owners must also have bank branches where they can bring in cash
The OeNB governor also wants to ensure that small and micro businesses continue to find sufficient banking locations to raise cash. If this were not the case, stores would no longer be able to accept cash. However, such a situation in Sweden must be prevented: 51 percent of Swedes were unable to pay with cash in shops last year because it was refused. Result: The population’s dissatisfaction with the decline in cash has risen from 36 percent to 44 percent in 2023.

However, Holzmann does not believe it is necessary to write cash into the constitution: “That would yield little and be difficult to implement.” legal regulation would be the ultimatum ratio. But that is a matter for the legislature.”