Why Every Bank Account Holder Needs An ATM Card

Counting The Gains Of The Emerging ATM Culture

When a friend recently declared that ATM is the new word for convenience, he possibly exaggerated a bit. However, the truth, seriously speaking, is that the ATM is set to fundamentally impact on the banking experience of Nigerians, especially in terms of cash withdrawals. You only need a short period of using the service before coming to the inescapable conclusion that this is a new phase in banking experience in Nigeria. Granted that the ATM is currently playing a limited role in the service matrix - cash dispensing is dominant - it's still a wonderful relief to users, given the not too inspiring counter service you will find in most banking halls. Today, you can dash into the bank and be off in a moment without even an encounter with the doorman. At other times, you are able to pick cash from non-bank locations which host dispensing machines. Then late at night or on Sunday or at any other odd hour for that matter, you can stop over at a bank (most banks) and, in some two minutes, be gone with the cash you need. Brilliant! And fun really, because it's never been this easy!

Joining The Elite Club
What is being experienced here, today, is what citizens of various developed economies have enjoyed for decades. One commentator recently remarked that many bank account holders in the USA can go for months, and even years, without stepping into their banks, because they rely on ATMs for cash drawings. Our situation is still different: far from an explosion in the spread of ATM terminals, while usage penetration remains low. Which is the irony - many people are yet to catch this bug.

Challenges Still Dog The Progress
The relatively low subscription is understandable - people approach new technologies with caution and this is doubly so when it is one that accesses their bank balances. Moreover, the stakeholders, particularly the banks and card companies, cannot be credited with a coordinated or far-reaching collective effort to push the acceptance of cards by the public. Why do I say this? Because I know there are many who don't realise that these cards are currently issued for free (at least my bank does), or that there is no significant transaction cost or indeed that there are ATMs cards available to all customers. Possible fear about security, which may dissuade some people, is also not being challenged.

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The System Is Proving Itself
I've used the ATM for some time now and rather than nurse fears about the transactions, I have experienced further reassurances. Cash dispensed has, so far, always been accurate. Entries posted have also agreed with transactions. Operating the machines is generally hassle-free, except for down-times which need to be addressed. Because the service is on an integrated consortium platform, such failure has limited damage, except if your bank's server is down, since you can draw from the next bank around. Additionally, my bank has introduced an electronic notification service which hits your GSM line and/or email with a near-instant message, the moment a drawing is posted, inclusive of ATM transactions. The bank has also continued to raise the single transaction limit, an indication, I believe, that they too are finding the service progressively within the high safety range. So, who is going to tell the public that they don't need to burn time in the bank again, if all they want is to withdraw some pocket money?

The Promise Is Exciting
The future can only get better. I think the way forward is to intensify work on the spread of ATM machines, achieve a more massive extension to merchant outlets for purchase payments, push hard to increase the subscription level and continue to raise the transaction limits as the system proves itself. Everybody will benefit. Customers will enjoy faster turnaround at banks. The operators will save huge sums currently wasted on cash-handling. Currency printing costs will go down if less cash-carrying is achieved. And more. The CBN possibly needs give more impetus to this aspect of the payment system reform process. In all, the progress made needs to be relished and enjoyed by Nigerians. Bank customers who are reluctant to pick these cards must begin to realise that they are short-changing themselves.

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