With players in the mobile technology field constantly innovating when it comes to dealing with money, ATMs are starting to look a little antiquated, says Bevan Ducasse, CEO of wiGroup.
SA already has a number of great money transfer solutions, says Ducasse, and the challenge is now to find ways for mobile apps to convert credit into cash, and vice versa.
"Mobile money is growing tremendously," he says. "Every one of the big four banks as well as Capitec has a mobile banking solution, and we have MTN and Vodacom offering money transfer services as well. The problem of how to enable people without traditional bank accounts to transfer money has been solved. If someone has a cellphone number, you can send them money."
However, there is still a gap between cash and electronic funds, with limited solutions to move money from a bank account to paper notes in a wallet, or to deposit cash into an account. "At some point, you still need to be able to deposit and withdraw cash," he says.
The next logical step, believes Ducasse, is for retailers to team up with mobile banking operators to broaden the idea of what an ATM can be. "Everything points to the retail footprint in South Africa being the answer.
"Retailers already have all the infrastructure that's needed," he notes. "They have the bricks-and-mortar presence in every small town, the communications networks, the cash, the security and the customers. Opening up retail points of sale to act as cash deposit and withdrawal points is a no-brainer."
Everyone would stand to benefit from such a partnership, argues Ducasse. "For the retailer, there is increased foot traffic into the store as well as the opportunity to earn a small fee per transaction. For the banks and mobile transaction operators, there is the chance to offer a better service to a larger market, at a fraction of the cost of rolling out an entire new ATM network, especially considering rolling out into Africa. And for consumers, there is greater flexibility and access to their money."
This vision is far from unrealistic, says Ducasse, since the technology needed to enable this is already in place. "Within the next 12 months to three years, I expect to see consumers being able to walk into their local branch of most national retailers, and to transact with the bank of their choice."
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