One of the heavy hitters in the Australian and New Zealand automated teller markets believes the economics of cash distribution are strengthening despite customer gravitation to digital payments.
Tim Wildash, the founder of the Macquarie-backed Next Payments ATM network, says he is investing heavily to overhaul his fleet to take advantage of opportunities created by the major banks closing branches in regional and rural parts of the country.
“Our business is growing because millions of Australians increasingly have fewer ways to source cash in their towns,” he said.
In the 12 months to the end of June, Wildash said his company had increased the size of its Australian ATM network by more than 600 machines or 20 per cent to 3,680 units.
“We’re filling the gaps that the banks have created in regional areas and we’re finding the demand for our services is strong,” he said.
“People still need cash in their towns.”
To resource the big expansion, Next embarked on a recruitment campaign that resulted in its full time equivalent headcount rising 40 per cent to 144 positions in the last financial year.
Wildash expects the company’s workforce to continue growing in line with the expansion of the ATM business.
Apart from boosting the size of the Next fleet, Wildash said the company was focused on replenishing the network with new generation ATMs with full recycling capabilities.
Recycling machines, which enable notes deposited into machines by customers to be used or “recycled” for withdrawals, are transforming the economics of the industry.
Next replaced around 3 per cent of its cash dispensing network with recyclers supplied by South Korean manufacturer, Hyosung.
“We expect the percentage of recyclers in our fleet to reach ten per cent this year,” Wildash said.
“The recyclers are lowering servicing costs and improving service to customers.”
Next Payments is now in its tenth year as a stand-alone ATM player and there are signs that the business is poised for an internal transformation after Wildash last week announced a reorganisation of the management structure.
Under the revamp, Wildash said he would be standing aside as chief executive of the company to become executive chairman.
His replacement as CEO will be Peter Walford, the current head of Next’s NSW operations.
Wildash said he would retain responsibility for the “traditional businesses” of the company, while Walford would focus on new growth areas relating to digital payments.
The management reorganisation is likely to stoke conjecture across the ATM industry that the business is being prepared for a stock market listing some time in the next few years.
Wildash and Macquarie control more than 95 per cent of the issued scrip in Next Payments.