Banking boom in rural areas

Satellite- and GPRS (general packet radio services)-enabled portable banks and mini-ATMs are being rolled out to give easy access to banking to the rural parts of the country, and are benefiting small business owners in the process.

This emerged during a road trip with First National Bank (FNB) to the previously unbanked southern townships of Johannesburg yesterday.

Since 2003, FNB has rolled out 18 portable branches and 1 354 mini-ATMs at a cost of around R600 million. The bank has set aside a further R350 million for infrastructure spend in the 2005-2006 financial year.

The portable branches are modular constructions providing all the services and benefits of a normal bank outlet.

Clients have access to two tellers, two customer service consultants and two ATMs, and generators are used to supply power, while satellite communication connects the branch to the bank`s mainframe systems.

The portable branches cost about R1 million each, can be moved from one location to another and take up to two weeks to erect.

"More than 60% of money set aside for branch banking infrastructure will be spent in rural and developing areas to address the need for improved access to banking," says FNB CEO Michael Jordaan.

"The first portable branch was opened in Mogwase, in North West, and because of its success, a permanent structure has been opened in its place, allowing the unit to be moved to a new location within the province," says FNB head of infrastructure, Kabelo Monchusi.

"The mini-ATMs use cellphone technology, GPRS, to connect the device to the bank`s systems," explains FNB`s CEO for self-service channel, Mark Arnold.

The ATM makes use of a 12-volt battery in areas where there is no electricity.

"For security reasons, a person who draws money gets two receipts; one that shows how much he has left in the bank, one for how much he has drawn, and the third receipt comes out at the store owner`s machine," says Arnold. The store owner then gives the client the money he has withdrawn.

Clients can also use the devices to buy prepaid services from Vodacom, MTN, Cell C and Telkom.

Small business owner Thabang Ntseno has rented the FNB mini-ATM for R250 a month. He says the installation of the ATM has doubled his profits because not only does he make money out of transactions, but customers also tend to buy more from his store.

"Customers can now draw money, don`t have to travel long distances to access cash and can immediately buy goods from my store, which is good for my business," says Ntseno.

"I get about 10 people daily who make transactions from the ATM. From that I make about 60c for every transaction made."

Soweto petrol filling station owner Emmanuel Mathshiza says the portable branch has brought more customers to his business.

"The branch has helped the elderly and the disabled a lot, as they can now apply for bank accounts at an accessible area, also getting help from people who speak their language.

"In return, people who draw money from the ATMs come to fill up their tanks and buy household goods from my store, thus helping me to grow my business," Mathshiza says.