Absa Bank and Bytes Specialised Solutions (Bytes) have launched a large-scale roll-out of off-premise ATMs, which will see the Absa ATM footprint - in especially previously disadvantaged areas - increase by about 1 000 ATMs a year, at a cost of R400 million in the next two years.
The Absa and Bytes joint venture will increase Absa ATMs by approximately 10% to 12% per year in the next two to three years. The banking group already has the largest footprint of over 7 000 ATMs (including ISO ATMs) in the country.
Bytes will supply the ATMs, the accompanying technology and manage the post implementation service delivery.
BSS is a division of the listed Bytes Technology Group. Absa is an important client of the group and is serviced by most Bytes divisions, which focus on specific but complementary aspects of enterprise technology.
Venete Klein, Executive director of Absa, says the joint strategy between Absa and BSS will make a notable contribution to government's directive of bringing banking services to within a 10km radius of every South African.
"We believe the ATM market is in an infant stage and the growth opportunities are immense. The population we reach will have access to a range of future services that go beyond the traditional transactions associated with ATMs," she adds.
The ATMs are increasingly being introduced to the retail and oil and petroleum industries, where the ATMs are hosted according to flexible franchise models.
This model turns the off-premise ATM into an annuity income stream for the franchisee, and gives customers the benefit of convenient and safer access to banking services, thus further promoting the convergence of services between the financial and retail industries.
Absa will be assured of modern technology and service with availability that is expected to be the best in the local ATM market.
BSS currently maintains an average availability of 97% across its current installed base of almost 600 off-premise ATMs, through a national network of field engineers from Bytes' sister-company, Bytes Managed Services.
BSS managing director, Douglas Ramaphosa, says: "We are sufficiently resourced to maintain this standard across the newly-installed Absa ATM base."
The ATMs will all be NCR (National Cash Register) devices. NCR is prominent in global markets with advanced ATM technology, and BSS is its exclusive representative in southern Africa.
In conclusion, Klein says: "In a country where ATM security is an ongoing concern, Absa is particularly impressed with NCR's progress to protect the ATM hardware, software, cash and end-user."
NCR machines also stand up to the harsh environmental conditions that prevail in some parts of our country.
She says: "We are confident that BSS will deliver and we are very comfortable with BSS as strategic partner in our growth initiatives with ATMs."
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