Spaza shops to offer banking
First National Bank (FNB) is partnering with spaza shop owners to introduce a non-cash-dispensing ATM with deposit capability in a bid to deliver banking services to rural communities.
The bank said the non-cash-dispensing ATMs are currently in pilot phase and the extent and areas of roll-out would depend largely on the outcomes of the pilot.
This version of ATMs can perform a variety of transactions such as airtime and electricity purchases, paying traffic fines and performing card cancellations.
For cash withdrawals, the customer receives a voucher that is presented to the retailer to release the cash. The bank then credits the retailer’s account.
The ATMs are a smaller version of the standard ATM which FNB introduced in 2013 as a way of bringing banking services directly into communities.
The bank said the roll-out of the new generation of ATMs seeks to improve access to banking in rural parts of South Africa and broaden financial inclusion.
For easy access, the ATMs are placed on the door step of communities through spaza shops and other general retailers.
Lee-Anne van Zyl, chief executive of FNB Points of Presence, said there were many communities with limited or no access to banking services because they were far from urban centres.
The model essentially integrates small businesses into the banking ecosystem as the device forms part of their business, potentially increasing traffic to their stores. – ANA