The Belgian Competition Authority (ABC) has voiced concerns over the potential implications for consumers of the Batopin cash distribution network, established by the nation’s four major banks.
Batopin is a joint initiative of Belfius, BNP Paribas Fortis, ING and KBC, launched in 2020 to consolidate their ATM services across Belgium. The company currently operates around 400 locations, hosting approximately 1000 ATMs.
The company aims to set up a total of 970 locations, hosting 2,510 ATMs spread across 503 communities by the end of next year. Lease agreements have been signed for an additional 150 locations, although 420 suitable locations are still required.
The regulator expressed on Thursday its concerns following an initial preliminary analysis of this project for a single network of cash dispensers belonging to the four major banks operating in Belgium.
The ABC found that the project "raises concerns about the consequences of the project for consumers, despite the fact that the March 2023 agreement between the federal government and Febelfin on access to cash dispensers has significantly improved the situation".
The concerns relate on the one hand to "the reduction in the number of ATMs and the additional distance required to access them, and on the other hand to the consequences of increased use of ATMs in the Batopin network on quality of service," the regulators said.
Testachats and Financité, who have been campaigning against Batopin for years, welcome the ABC's analysis.
The two organisations have been denouncing the reduction in the number of cash dispensers for a number of years, and in particular lodged an appeal with the Conseil d'Etat to demand that the government "finally provide the essential information needed to assess its practical impact on consumers".
For Testachats, the CBA's analysis indicates that it shares their concerns, stating that concerns remain despite the March 2023 agreement.
"Being able to access your own money easily and free of charge is a fundamental right for us, which must be guaranteed by the banks, who must continue to play their societal role. We hope that the Authority's analysis will wake up our government on this essential issue", commented a Testachats spokesperson. This was shared by Financité, which believes that the next government "will have to be firm and live up to the expectations of its citizens".
The ABC's investigation continues. The Authority states that Batopin has already "provided a series of observations in response to the preliminary analysis" and is "actively collaborating in the ongoing investigation."
What is Batopin?
Batopin offers three types of cash points: indoor spaces, wall ATMs, and stand-alone kiosks. Kiosks can stand independently, making them adaptable for locations such as parking lots – particularly useful in smaller towns.
With the planned 970 locations, it is estimated that 95% of Belgians will live within 5km of a cash point. This scattered network was devised together with the financial sector and the government.
Due to the decrease in cash transactions and withdrawals, banks are reducing their expensive ATMs. As per the Febelfin Banking Federation, Belgium had 4,055 ATMs last year, less than half compared to a decade ago. The number of cash withdrawals has also reduced, now standing at 139 million in the past year.
In an agreement with the Federal Government, the financial sector has pledged to maintain around 4,000 ATMs until 2027, and requires Batopin to install at least one ATM in every municipality in the country.
