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The ATM also rises
In the latest installment of 'On the High Road,' ATM Industry Association International Director Mike Lee finds a new ATM market dawning in South Africa.
January 9, 2002
Editor's note:ATM Industry AssociationInternational Director Mike Lee is traveling around the globe "On the High Road" to learn more about ATM issues. His latest report is from South Africa, where he finds convenience and security have universal appeal.
"Convenience and security,� replied Errol von Berg as he pocketed his cash after withdrawing it from a newly-installed ATM in the small village of Ngodwana in Mpumalanga in the north east of South Africa.
Mpumalanga is Swahili for rising sun and it was a warm, still evening in Africa as I asked him why he had chosen to use this new, independently deployed ATM rather than the two long-established ATMs in the village's only shopping mall nearby.
The new ATM is in a well-lit area, sensitively presented and attractively positioned alongside an Engen petrol garage right next to a Quick Shop convenience store. But what struck me about this ATM was how effectively it had marketed itself -- as a result, sales in the convenience store next to it had increased by 10-15 percent since its installation, with �pay day bonanzas,� according to the shop and petrol garage owner, Mike Coen.
With a milestone recently reached of more than one million ATMs worldwide, according to Retail Banking Research Ltd., the leading dedicated ATM research group, it is clear that the sun is rising not just in Mpumalanga, but on the ATM industry as a whole as this amazing machine becomes a global icon.
Impressed by the way the ATM is marketed in South Africa in order to increase traffic to machines and push up monthly transaction volumes, I tried to find out more. Certainly, I have not seen as much emphasis on drawing attention to the uses of ATM in any other country.
Brand new day
Let's take our new machine at Ngodwana as an example. A small village with a population of about 2,000, it has grown up around the region's huge Sappi pulp and paper mill, so its inhabitants are mostly employees, including factory workers and laborers. Our new machine is a Triton model installed by ATM Solutions which went active on March 1.
It is clearly identified from the road by a large banner reading �ATM Here Now.� Directly outside the machine, which has been installed in a small lobby that is open 24 hours a day, was signage saying �ATM available inside.� ATM Solutions have also put the ATM on a tourist route map of Mpumalanga.
The presentation of the machine to the public, including its surround, is clean-cut and attractive. Fidelity Cash Management Services provide the cash and ATM Solutions, Triton's exclusive African distributor, services the machine, which is linked to the national Saswitch interchange network.
�It's a great community service,� shop owner Mike Coen enthused, �and sales of convenience items like bread and milk at my shop have gone through the roof since the ATM became active."
"Convenience,� Von Berg had answered. It was certainly true of this machine at Ngodwana -- near the petrol garage, next to a store, clearly identified from the road, open all day and all night. It had given our machine instant popularity in the village.
Tooting our own horn
But isn't that same convenience the very essence of the ATM, lying at the heart of its 30-year exponential growth from the first machine installed by Barclays Bank in north London in 1967 to more than one million machines today?
Yet, let it be said loud and clear, that this is an industry that does not market its achievements and its strengths nearly as much as it should!
An example of how poorly the ATM industry markets its strengths is that precious few bank clients know they can withdraw foreign currency through the ATM while visiting other countries, doing away with the need for traveler's checks. I have recently drawn foreign currency from ATMs in Belgium, Holland, Germany, the U.S. and South Africa with my UK Visa card and it makes you feel at home in that country like nothing else could to have free access to their different currencies. The transaction time is no more than 15 seconds longer than normal.
Has this wonderful example of banking convenience through the ATM been widely marketed?
Better marketing and better presentation of the ATM machine worldwide will dramatically increase transaction volumes for the world's 1 million-plus machines. Steven Kark, managing director of ATM Solutions, which is pioneering independent deployment in South Africa, explains the secret of their growth since their first installation last year: �We have gone into places where the traditional banks have feared to tread and capitalized on retailer demand for offering their clients extra value-added services."
ATMs are also promoted in South Africa through advertisements on national media like television and radio. Banks like Standard Bank produce glossy pamphlets for their clients on such issues as how to avoid becoming a victim of ATM crime. My own personal opinion is that South Africa is leading the way in presenting and marketing ATMs through distribution of pamphlets, advertising on national media and through signage at ATM locations -- please let me know on mikelee@atmiaeurope.com if you know of countries where this is happening on a larger scale!
Nice and safe
The commendable Standard Bank pamphlet on protecting oneself against ATM crime brings me to the second element which attracted Von Berg to the new ATM at Ngodwana: security. It was well lit. It was in a busy location where villagers put fuel in their cars and shopped at the convenience store and shopping mall. It looked safe.
Yet how many ATMs do you know that are in poorly lit areas? Or in areas that look deserted after hours? And South Africa has a high crime rate. Unfortunately, ATM crime is on the increase in many parts of the world, threatening to undo some of the advantages brought about by the ATM's phenomenal convenience.
Mark Coons, CEO of American Special Risk, is spearheading the international insurance program of the ATM Industry Association. He narrates the following three ATM crimes that really happened in North America:
"Thieves broke into a building after hours gaining entrance to a crawl space above the ceiling. They proceeded to drill a hole in the ceiling gaining entry to the establishment. They then managed to determine that the ATM alarm had a �dead spot' which enabled them to break into the ATM without being detected, The thieves made off with $12,600 in cash and destroyed the ATM.
Other thieves drove a stolen van through a plate glass front door of a bingo hall, jumped out, unplugged the ATM and carried it to a waiting pick up truck. The culprits were quickly apprehended by the police, with no cash loss; however, the machine was badly damaged resulting in a $9,000 claim.
A pick-up truck was backed through a glass doorway at a convenience store. Two men exited the vehicle and tied a chain around the ATM and attached it to the bumper of their truck. Fortunately, the ATM was so well bolted, the bumper was torn off the truck, leaving the police with the bumper -- and the license plate! The thieves were later apprehended. No cash was stolen, but over $4,500 of damage was caused to the ATM.
In response to an escalation in ATM crime, ATMIA is hosting an ATM security conference and exhibition in London on June 1, at which Mark is speaking. Find out more by visiting http://www.trademediagroup.com/security2001
Convenience and security. This sums up the appeal of the ATM. The banking convenience of ATMs is unassailable. Let's all pull together to work out a co-ordinated industry strategy to ensure the security of ATMs becomes equally unassailable.
In the meantime, should we not sing our praises to this global icon a little more loudly, now that there are more than one million machines in the world, everywhere from mega-cities like London to villages in Africa like Ngodwana?
Included In This Story
ATM Industry Association (ATMIA)
The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.
Triton Systems
Triton FI based products • NO Windows 10™ Upgrade • Secured locked down system that is virus/malware resistant • Flexible configurations - Drive-up and Walk-up • Triton's high security standards • NFC, anti-skim card reader, IP camera and level 1 vaults are all options • Triton Connect monitoring • Lower cost
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