Revealed: Banks expend N390bn on ATMs acquisition | Bizness Watch
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Revealed: Banks expend N390bn on ATMs acquisition

In its bid to ease the payment system, the nation’s banks have so far invested a whopping N390 billion in the acquisition of Automated Teller Machines (ATMs) deployed across the country.A recent report revealed that as at the end of October, there are about 12,100 active ATMs performing transactions across the country at bank branches, hotels and airports.It was gathered that the cost of ATMs is determined by their functionalities which include mono-functional, cashless and multi-functional ATMs.

A mono-functional ATM is the type mostly deployed by banks in the country which dispenses cash as well as carrying out other transactions such as payment of utility bills and cost $20,000. This type of ATM is the one mostly deployed by banks in the country.

Multi-functional ATMs whose cost is between $50,000 and $100, 000 are those that, aside dispensing cash, also accept cash deposit as well as cheque. There are few of this type deployed in the country.

Cashless ATMs, as the name implies, does not accept or dispense cash are but rather carry out electronic payment transactions only and it costs some $3,000.

The two major brands of ATMs deployed by the banks are NCR and Wincor Nixdorf.

Meanwhile, system failure at the Nigerian Interbank Settlement System (NIBSS) has reportedly caused malfunctioning of ATMs of Stanbic IBTC, GTBank and other banks, investigations have revealed.

It was learnt that the error occurred when its customers who had withdrawn money from the banks’ ATMs got credit notices or alerts instead of debit alerts.

When some of the customers noticed the credit notices, they took advantage of the error and embarked on a withdrawal spree as words spread that Stanbic IBTC ATMs were dispensing cash without customers’ account being debited.

But by the time some honest customers informed the bank, the defective credit alerts had ramped up to the tune of N100 million.

An industry source said, “To minimize its losses, when Stanbic IBTC got to know about the unfortunate situation, it immediately debited customers’ account to recover that amounts they had illicitly withdrawn.

“However, NIBSS would have to cover the losses for those customers whose account balances were insufficient to cover the illicit withdrawals they had made.”

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