Greek banks plan shared ATM network to cut costs and counter new competitors

Greek banks are jointly exploring the creation of a nationwide network of shared ATMs under a unified brand, in a strategic move to cut infrastructure costs and respond to growing competition from digital banks and upcoming regulatory changes. The model under consideration mirrors the Multibanco system in Portugal, where 29 banks jointly operate a nationwide interbank ATM and payments network under the coordination of SIBS.

The government has taken yet another step to reduce bank fees, the second in seven months, this time in the aftermath of the strong reactions caused by the fees for withdrawing cash from ATMs owned by third-party providers, according to Press Reader.

If the mandatory reduction in fees imposed on banks in early 2024 by the Competition Commission is also taken into account, this is essentially the third move in this direction.

With an amendment submitted to Parliament on Monday by Economy and Finance Minister Kyriakos Pierrakakis, in the bill concerning the new Customs Code, cash withdrawals from the ATMs of a bank other than that of the cardholder will no longer be subject to any charge, provided that they both belong to the DIAS network, while a maximum charge of 1.50 euros is imposed for cash withdrawals from the ATMs of third-party providers or banks that do not belong to the DIAS network.

In fact, in his speech in the relevant intervention he made on Monday in the Standing Committee on Economic Affairs of the Parliament, where the bill is being discussed, the minister made sure he all but named the practice of Piraeus Bank, which recently sold 850 ATMs, saying characteristically: “What happened with the sale of ATMs by a Greek bank, which subsequently charged its customers at a specific level, is a situation that is not acceptable – neither by the prime minister, nor by the government, nor by me personally, as minister of finance.”

The same amendment contains a special provision for geographical areas, such as villages and small islands, where only one ATM operates, while now the cost for transfers through third-party providers will be the same as that which applies to transfers through banks.

The new measures will be implemented 15 days after the publication of the new law in the Government Gazette, with the draft law set to be put to a vote in the plenary of the Parliament this Thursday. That means the measure is expected to start applying around August 10-15.

The banks reponse

Greek banks are jointly exploring the creation of a nationwide network of shared ATMs under a unified brand, in a strategic move to cut infrastructure costs and respond to growing competition from digital banks and upcoming regulatory changes, according to MilletNews.

By creating a unified and efficient ATM network, Greek banks aim to improve service access while protecting market share. The discussions are still at an early stage, but sources suggest that the proposal has strong backing from key players in the industry and may move forward rapidly, particularly after August 11.

The model under consideration mirrors the Multibanco system in Portugal, where 29 banks jointly operate a nationwide interbank ATM and payments network under the coordination of SIBS, the Portuguese equivalent of Greece’s DIAS payment clearing system. Similar shared systems exist in Germany, Austria, and the Netherlands.

The plan comes in response to a new legislative regulation abolishing interbank cash withdrawal fees, making ATM operation increasingly unprofitable. The law, set to take effect on August 11, also limits withdrawal fees to €1.50 when using third-party ATM providers such as Euronet or Cashflex.

Under EU regulations on cross-border payments, banks are now prohibited from charging higher fees to European visitors, meaning all EU tourists in Greece will withdraw cash without incurring extra charges. Greek banks are particularly concerned about the long-term impact on revenue, as the change also opens the door for foreign digital banks, including Revolut, which is reportedly preparing to enter the Greek market.