ATMs becoming a 24-hour teller service

In late 2008, in a first to market initiative in SA, First National Bank started rolling out advanced ATMs, known as ADTs. The technology of ADTs scans cash and cheques and allows for the deposited cash to be credited immediately.

More South African banks are installing this technology, extending banking services beyond branch operating hours and giving tellers a chance to focus on aspects of banking other than accepting deposits and dispensing cash.

"The ADTs, have been a huge success for us and we will continue roll them out according to our needs.

"It has huge benefit to the client as they get a real-time benefit and business gets 24/7 banking," FNB CEO Michael Jordaan said last week. "It does take volumes away from the teller, but provides us with a great opportunity to re-skill and develop more sales and service staff, which is where our strategic focus is. We are moving our branches to a sales and service environment as opposed to a transactional environment."

Jordaan says some FNB branches, known as DotFNBs, are completely cashless.

FNB says to date it has installed 977 of these advanced ATMs, an increase of 42% in the past 12 months. The volumes deposited in these advanced machines often match the deposits at branches located at the same site as the advanced ATM.

Standard Bank, which has been quietly transforming its core banking system to a more efficient and innovative one, has about 600 ATMs that allow for deposits to reflect immediately. The plan is to install a further 500.

"We decided to go this route for various reasons. Chief among them was improving customer convenience by enabling customers to make deposits 24/7 and obtaining real-time value for the deposit," says Itumeleng Monale, head of channel design and development at Standard Bank SA.

"Another reason was to address the high costs associated with running and maintaining branch infrastructure as a channel for deposits, which subsequently leads to high transaction fees for customers," she says.

Monale says the first devices were installed in January last year and the total amount of cash deposited into these devices over the period is more than R3bn.

She says Standard Bank's intention is to use staff-enabled channels such as branches for more value-adding sales and service interactions with customers.

"Where we can use alternative channels for cash-related and other transactions not requiring highend advice and interactions with our customers, we aim to migrate those transactions to the appropriate channels," says Monale.

Arrie Rautenbach, Absa's head of retail markets, says that to date Absa has rolled out more than 1,000 cash-accepting terminals and has committed more than R500m between 2012 and next year to upgrade and increase its cash acceptor and ATM infrastructure.

"The priorities for banking customers have changed in recent years," says Rautenbach.

"As with internet and cellphone banking, their banking activities no longer need to keep work hours.

"In addition to the convenience, these terminals make funds available immediately."

Both Absa and Standard Bank are still working on an optimal functionality that allows for the cash deposited to be recycled back out for cash withdrawals. This will reduce costs associated with trucks filling up the ATMs with cash.

Capitec introduced its cash and cheque acceptor machines last year. They also allow cash to be recycled.

Capitec CEO Riaan Stassen says the plan is to install a further 100 in the short term.

"The main advantage of these note recyclers is that people who deposit cash into their accounts can do the deposit at a lower cost than at a branch counter," Capitec said last week.

"Second, if someone withdraws cash from the same note recycler, they are dispensed with notes that someone else deposited. This means that the note recycler ATM needs less cash replenishing from the cash-in-transit companies. That in turns means less cost, which we then use to keep our bank fees lower than the other players."

Capitec has also been redesigning its branches and believes the teller's role will change over time as these machines become the norm.

Source: Business Day