FNB applies sophisticated technology to offer banking throughout rural SA

First National Bank (FNB) has been innovative in seeking new ways to make banking more accessible to South African consumers and in so doing has been the first South African bank to roll-out the Mini-ATM extensively throughout the country.

The initiative began in 2002, and now FNB is taking this technology a step further in tailoring the device to the unique needs of the rural environment, with the use of cellular GPRS (General Packet Radio Services) technology.

Mike Arnold, CEO of FNB Self Service Channel, explains: "The Mini-ATM is a low-cost device, installed in a local retail store, that prints out a voucher which is exchanged for cash at the till point in the store. This device is intended for rural areas where the transaction volumes and lack of infrastructure are not suitable for a full-sized ATM."

"It`s the perfect solution for the African environment," says Arnold. "Deeply rural areas and a lack of basic infrastructure are common obstacles in providing key services. The FNB Mini-ATM overcomes this with the ability to run on as little as a 12-volt battery and a connection to the bank`s systems via GPRS cellular technology."

With lightweight portability and ease of installation among the key features of the device, FNB`s Mini-ATMs can be rapidly deployed in the relevant areas. As a result, FNB has successfully installed over 1 400 Mini-ATMs in retail stores around SA, and a further 147 in neighbouring African countries where FNB is represented.

Technologically, the terminals differ from full service ATMs in that they use an IP communication protocol. The use of IP enables the terminals to use communication networks such as GPRS, GSM and Telkom`s voice over IP dial service.

"The emergence of the GPRS data service by the cellular network operators was seen as a new opportunity by FNB since GPRS promises a number of advantages," adds Arnold.

"The major benefit of GPRS technology is that communication costs are lower and transaction times are quicker, which means faster moving queues during busy times. With GPRS the terminal is always connected to the network; this effectively removes any delays experienced on each and every transaction caused by dialling, authenticating and logging on to the network. It also means that the terminal can be remotely monitored."

"In addition, the data speed of GPRS is higher than that of analogue modems. The GPRS-enabled Mini-ATM terminals are experiencing a practical speed increase of four times that of analogue devices. This not only helps speed up transactions but will also significantly decrease the time taken to download new software to the terminal."

"Since GPRS has no reliance on landlines, it allows FNB to rapidly deploy Mini-ATMs to new sites where there was previously no access to banking services. In addition to providing access to banking services, rural communities benefit from such technology because funds are kept within the local community.

"Traditionally individuals had to travel over 50km to do their banking and then would buy goods in that specific town. Now consumers can access funds in their local communities and spend money in their own town, helping the local community to thrive," concludes Arnold.