ATM machines become "chicken ribs" intelligent transformation and upgrading can stand in the C position
Market differentiation is the future trend. Those who have a fast pace of research and development will be favored by investors first and occupy the C position in the capital market and investors, otherwise they will inevitably be eliminated by the market.
According to reports, as of the end of the second quarter of this year, there were 1.0521 million domestic ATM machines, a decrease of 30,900 from the end of the previous quarter; the number of ATMs per 10,000 people nationwide was 7.52, a month-on-month decrease of 2.85%.
Since the beginning of this year, the number of ATM machines nationwide has decreased by more than 40,000.
In less than a year, the number of ATM machines in the country has decreased by more than 40,000. People are paying attention to this topic, but there are just a few situations.
One is whether the physical bank branches based on ATM services will disappear; the second is whether the ATM manufacturing industry will collapse; and the third is the development prospects of related listed companies.
In recent years, Internet giants represented by Alipay and WeChat have expanded their mobile payment services, reducing people’s reliance on bank payments.
At the same time, in order to gain more Internet users, banks have also adopted more favorable promotion methods for Internet payments based on the banking system.
For example, the major bank APP online transfer services, some do not charge fees, and can achieve instant payment, etc., in contrast, through ATM transfers, etc., you need to pay a corresponding proportion of service fees, and the time for payment is longer.
Multiple factors such as the impact of mobile payment by Internet companies, the need for banks to reduce costs, and consumers' demand for convenient payment have led to the abolition of ATMs in most bank branches. This is an inevitable result of technological progress and changes in consumer payment habits.
But does this mean that ATM has said goodbye to the market?
The author believes that it will not happen, because people's demand for cash has not completely disappeared.
As long as the demand for cash usage exists, the service provided by ATM is lower than that of labor, and the bank will not cancel the ATM physical branch service in order to reduce costs.
What's more, the current elderly people do not fully "connect to the Internet", they have a demand for cash payments.
With the rapid development of mobile payment, the ATM manufacturing industry is currently experiencing a "chicken rib" decline. The decline in the performance of ATM listed companies in the A-share market in the first half of 2020 is a concrete manifestation.
According to the data, the semi-annual report of the leading ATM company Guangdian Express shows that the company achieved a net profit of 309 million yuan in the first half of the year, down 16.12% year-on-year.
In addition, the net profit of Yuyin's shares in the industry was cut in half, down 55.76% year-on-year.
The shrinking industry and the performance of listed companies have affected the investment enthusiasm in the secondary market.
After the market encounters a ceiling, in the face of the reality of a significant decline in business volume, how to turn the "chicken rib" position into a C position is an important way to win the trust of investors.
Increasing the pace of transformation and upgrading, through the development and manufacturing of more intelligent service products and service systems, may be able to occupy an important position in the era of digital currency and unmanned banking.
In addition, high-end services should also be developed based on physical outlets to meet multi-level service needs.
For example, for some high-net-worth clients, online services are difficult to meet their needs for customized financial management services. Professional financial management personnel and teams provide VIP-style consultation and configuration services at branches are still the first choice.
In this way, ATM manufacturers can develop new product and service application scenarios based on a series of new technologies such as artificial intelligence, voice recognition, and face recognition required by future digital currency and unmanned banking, and solve IT services in banking and other service industries. Demand, seize new outlets.
Furthermore, the demand for inclusive finance in underdeveloped areas has given current ATM-related products a certain market space for inclusive financial services in underdeveloped areas, especially in rural areas. This has brought a free time for transformation and upgrading of the ATM manufacturing industry.
For the ATM manufacturing industry in the A-share market, opportunities and challenges coexist, and market differentiation is the future trend.
Whoever has a fast pace of research and development, new products can be quickly promoted to the market, will be favored by investors first, occupy the C position of the capital market and investors, otherwise it will inevitably be eliminated by the market.
□Muding (financial commentator)