Banks Invest $2.5Bn on ATMs to Decongest Banking Halls

Money deposit banks in the country  have invested some $2.5billion in the acquisition of Automated Teller Machines (ATMs) deployed across the country at both offsite and banking premises, Nigeria CommunicationsWeek can now reveal.

Investigations revealed that as at the end of October this year there are about 12,100 active ATM performing transactions across the country at bank branches, hotels and airports.

It was gathered that the cost of ATMs are determined by their functionalities which including; mono-functional, cashless and multi-functional ATMs.

A mono-functional ATM is the type mostly deployed by banks in the country which dispenses cash as well as carry out other transactions such as payment of utility bills and cost $20,000, this type of ATM is the one mostly deployed by banks in the country.

Multi-functional ATM whose cost is between $50,000 and $100, 000 are those that aside dispensing of cash also accept cash deposit as well as cheque, there are very few of this type deployed in the country.

Cashless ATMs as the name implies does not accepts or dispense cash but rather carry out electronic payment transactions only and it costs some $3,000.

Nigeria CommunicationsWeek learnt that there are two major brands of ATMs that are deployed by banks they include, NCR and Wincor Nixdorf. More so, there are ATMs that are stand-alone which are not deployed on walls, they are mostly deployed at airports and hotels, and the type deployed on walls.

It would be recalled that ATM deployment in the country before now witnessed policy somersault when Central Bank of Nigeria (CBN) issued a directive stopping banks from deploying ATMs at offsite locations thereby mandating its licensed Independent ATM Deployers (IADs) to do so.

But, months after the expiration of the deadline IADs were reluctant to commence operation in this space due largely to issues of Cash In Transit as well as high interest banks charge IADs on funds to be loaded in the IADs owned ATMs.

CBN had to reverse its earlier directive and allow banks to operate offsite ATMs. The reversal of this policy inflicted heavy losses on the IADs who have borrowed money to deploy infrastructure as well as ATM terminal and to cushion the effect that CBN decided to find a role in the operation of offsite ATMs for the three licensed IAD, namely, ChamsAccess, ATMC and Cooperative Support Services.

Central Bank of Nigeria  had to offer Independent Automated Teller Machine Deployers (IADs) the option of becoming Terminal Service Providers in the deployment of offsite ATMs, IADs were skeptical in accepting the CBN offer expressing worry over modalities for its implementation.

They cited CBN’s inability to implement its earlier policy due to pressure from Bankers Committee who promised to collectively deploy 10,000 ATMs between July and January 2012 if the policy is reversed.

IADs believe that the Bankers Committee was determined to frustrate the smooth take of their operation. They wondered how banks that could not deploy up to 10,000 ATMs in five years will deploy such number in less than six months.

Today, banks have taken the fully responsibility of deploying ATMs at offsite locations as well as within bank premises as IADs are no longer playing any role in the ecosystem.