Big four bank Absa has bought around 850 automated teller machines ATMs) from Bytes Technology unit Bytes Managed Solutions for an amount understood to be in the region of R100 million.
Bytes had run and managed the Absa-branded ATMs on behalf of the bank as part of Absa's overall cash machine network. Bytes, an NCR agent, had owned the ATMs and also took responsibility for filling them with cash, transferring deposits to Absa, and handling the cash - taking a percent of transaction fees in return.
Bytes CEO Rob Abraham notes the company exited that part of its business because it did not see owning ATMs as core to its operations. He adds that, at any one time, about R300 million of Bytes' cash was tied up in the ATMs. "We are not a bank; we are an IT services company."
The Altron subsidiary will continue to maintain ATMs, which is Bytes Managed Solutions' core business, says Abraham, noting banks continue to invest in the ATM channel. He adds its NCR unit is seeing growth of around 50% each year.
In September, FNB announced it had replaced its old Mini ATMs with 960 Slimline ATMs across SA. The new FNB Slimline device includes touch-screen technology. Absa has also announced plans to become a fully-digital financial services provider, focusing on technology-driven initiatives to meet customer needs, while Nedbank anticipates ATMs playing a more important banking role in the future.
Craig Bond, chief executive of retail and business banking at Barclays Africa, notes the deal will allow Absa to improve its customer experience as part of plans to reshape the branch network, optimise the ATM footprint and invest heavily in digital products and innovation.
"Absa has South Africa's largest ATM network, and we will continue to expand this with new-generation cash dispensing and accepting devices."
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