Greek Banks Consider Joint ATM Model

Greek banks are actively exploring a shared ATM model to tackle the high expenses of developing and maintaining ATMs. This initiative follows new legislation aimed at eliminating cash withdrawal fees, while still promoting ATM development and expansion.

This model has been effectively utilized in Portugal under the name Multibanco, involving 29 Portuguese banks, and it’s also been adopted successfully in other countries like Germany, Austria, and the Netherlands.

In Portugal, Multibanco, operated by SIBS (similar to Greece’s DIA), provides cash withdrawal and payment options for customers of participating banks. The model distributes operational and maintenance costs among the banks involved, which helps lower the expenses associated with ATM infrastructure. Moreover, the costs related to expanding the ATM network are shared, reducing the financial burden on individual banks and enhancing geographical coverage. Revenue is divided based on transaction numbers, often resulting in minimal fees for users, depending on the service type. This accommodates a range of transactions, from utility bill payments to transfers and even tax purchases.

A new law, effective August 11th, will limit interbank cash withdrawal fees to 1.5 euros, should claims be abolished. This presents challenges for European tourists looking to withdraw cash from Greek ATMs. EU regulations on cross-border payments require fair treatment for all European citizens, which adds to the complexity. Additionally, banks are concerned this could open up the ATM networks to foreign banks like Revolut, which are planning to establish a presence in Greece.