News

Nigerian FIs turn to third-party providers to control rising ATM costs

The rising cost of delivering on consumer demands for efficiency is causing an increasing number of banks to outsource ATM deployment and fleet management.

July 21, 2014

Nigerian consumers are demanding greater efficiency from their country's banks, and the rising cost of delivering on these demands is causing an increasing number of banks to outsource deployment and management of their ATM fleets.

According to the Nigerian publication Business Day, bank insiders have said that third-party providers will be compensated on a per-transaction basis.

Nigeria's banks currently spend an average of $2,500 per machine annually on maintenance and support for the country's 12,000 ATMs. This compares with South Africa, where the figure is closer to $4,500.

“The industry is moving in the direction where a third party provider takes away all the headaches of managing ATMs from banks as a turnkey project," a source from third-party provider Inlaks Computers told Business Day.