JOHANNESBURG, South Africa -- First National Bank (FNB) will install 2 000 scrip terminals by the end of 2003, which will allow the bank to double the size of its ATM network to 4 000 in just two years -- at a low cost.
Scrip terminals do not dispense cash but receipts that can be cashed in stores where the terminals are located. There are no costs for data line, security and cash-in-transit service.
According to a report on News24, the rollout will enable FNB to better serve its growing social grant payment customers, while bringing banking services to areas that have been underserviced and underbanked.
"The challenge for banks in finding ways to better service the underbanked has been finding innovative alternatives to existing electronic banking channels or branch outlets," said Jean Ochse, head of FNB's Self Service channel. "FNB's solution enables us to dramatically increase our penetration into the rural areas of South Africa."
Recently, FNB concluded an agreement with the Eastern Cape government to open free banking accounts for social grant recipients. The cost of these accounts is subsidized by the provincial government; account holders pay no FNB ATM charges or monthly service fees.
Kim Jenkins, FNB's head of strategic delivery, said the deployment of scrip terminals into rural areas will reduce the travel time for pensioners to access their social grants and reduce time spent in queues.
"It will also serve as a boost for local economies. FNB's increased reach of banking services means that money will be retained and spent in local communities instead of going to the nearby towns," Jenkins said.
FNB expects to conclude similar social grant payment agreements with other provincial governments, according to News24.
