FNB invests R100m in new ATMs

First National Bank (FNB), together with partners MTN, Diebold and Banking Machine Services, will spend R100 million on the roll-out of new ATMs targeted at small to medium retailers.

The bank says the ATMs will feature updated software that is expected to add "intelligence" to the options offered to customers and improve the customer interface.

Speaking at the launch, FNB ATM CEO Mike Arnold explained the investment would add to the organisation`s network of 2 600 general ATMs and 1 500 mini ATMs.

"The internal pilot was launched in October 2005, followed by an external pilot in February this year. From this we are confident we can begin roll-out from next month, with the first 500 ATMs in stores within the following six months," he said.

Referring to the length of time ATMs had gone relatively unchanged in the marketplace, Arnold said new technology would enable the bank to improve the speed, efficacy and friendliness of the devices.

"Research showed 60% of our customers have only one account, yet we still asked them to choose from the four generic account types to withdraw from. This experience - along with many others - will be intuitively dealt with at the new terminals. After all, why waste our customers` time unnecessarily?"

The new in-store ATM sees the operating system upgrade from IBM`s OS/2 to Microsoft`s Windows XP; the networking environment from SNA over fixed-line to TCP/IP over mobile; the monitoring from Pasmon and NCR Gasper to Microsoft Operations Manager; and the applications from Pascal to Java.

Although these technology changes will be limited to the in-store ATMs, Arnold expects FNB`s extended network of ATMs and mini ATMs will be upgraded incrementally.

Having recently brought its withdrawal time down 10 seconds to 26 seconds - compared to the 30-second average among competitors - FNB says the same transaction can be completed in 20 seconds at one of the new ATMs.

Arnold said the bank will embark on a risk/reward sharing model which will enable retailers to benefit from increased footfall in the store and a cut of the ATM-specific revenues.

Customers will also find the ATMs far friendlier as a result of the in-house developed application software that makes use of graphic capabilities, simpler language, icon links and personalised greeting and product offerings from the bank, he added.