The Belgian Competition Authority (BCA) is investigating whether there is a lack of service and competition issue in the ATM market. In doing so, it targets the big banks’ Batopin project.
In a press release, the competition watchdog BMA says the investigation into the Batopin project by the major banks is still at an early stage. With Batopin, the traditional four major banks are rolling out a network of 750 ATMs to replace the existing network. In Belgium, there is relatively much dissatisfaction with the provision of ATMs. There is a growing problem, especially in rural areas.
Economy Minister Pierre-Yves Dermagne (PS) said a few weeks ago that the competition supervisory authority is working on the dossier. The BMA confirms this and says it is investigating whether the project is lacking in terms of competition and service.
If the BMA concludes that this is the case, the BMA can ask Batopin to make concrete improvements. “For example, providing ATMs in more locations and installing more ATMs,” says Damien Gerard, BMA’s auditor general in a telephone explanation.
Such adjustments can be made in the context of talks between Batopin and the BMA, but if Batopin does not move enough, the BMA can also impose measures. One step further is to enforce structural behavioral changes, but Gerard still doesn’t show the back of his tongue. Fines are also possible.
“The dossier is one of the priorities for next year,” says Gerard. In Batopin, managing director Kris De Ryck points out that the major banks have already held extensive consultations with all stakeholders since the start of the project at the end of 2019. Then there was also the BMA. A process with the National Bank then followed during which “several improvements” were made, says De Ryck.
New Year’s Council
«Batopin was introduced because otherwise more than 30 percent of municipalities would have been left without ATMs in the long term. It is a pity that a project which aims to lead to a solution has come under such heavy fire.’ The problem is that the decline in the use of cash makes it relatively expensive to supply enough machines. Cooperation within Batopin must ensure that a sufficiently widespread ATM network continues to exist.
In principle, Batopin wants there to be an ATM every 5 kilometers at most, but this means that some population centers no longer have an ATM. Also, those 5 kilometers are a distance as the crow flies. Older people who are no longer mobile enough have a problem. While older people often still want cash on a regular basis. For example, at this time of year to give grandchildren a New Year’s tip. In December, the demand for cash is 20-30% higher than in other months.
Taxes
Finally, De Ryck points out that governments make it less attractive to implement a network by imposing taxes on ATMs. “Sometimes there are regional taxes, but also municipal taxes,” says De Ryck. In Wallonia there is a regional tax of 4,000 euros per year for ATMs. The highest tax is levied by a municipality in Brussels asking for 10,000 euros. According to De Ryck, safety requirements in Belgium are stricter than in other countries, which would further increase the cost price.
