Banks extend their reach in partnership with stores
Withdrawing cash at till points is often more convenient and safer for consumers
THE PARTNERSHIP between South African banks and retail stores that allows customers to withdraw cash at the tills has seen banks expanding their reach to places where it was not feasible for them to install ATMs.
Absa Retail and Business Bank managing executive for physical channels Tshiwela Mhlantla said yesterday that Absa was continuously working on delivery models that were more accessible and affordable to their client base.
“This includes partnering with retail stores, who also have a large network of stores available, where withdrawals at tills can be supported.
“It supports accessibility of cash services for customers as it is not always cost effective and feasible to place ATMs at all points where there is a need for cash, especially in areas where there is lower demand for cash.
“The ability to withdraw cash within a store also has benefits to customers as it is often more convenient for customers and was also safe,” said Mhlantla.
Absa said that, against the background of the Covid-19 pandemic, there had been a decline in cash withdrawal volumes at ATMs and till points. Their recent data suggested that ATM withdrawals were returning to normal levels, with cash withdrawals at till points also showing positive year-on-year growth.
FNB Easy chief executive Philani Potwana said its customers could withdraw cash using Cash@Till at no extra charge.
FNB said many of their customers were heeding the bank’s call to withdraw at tills, as, before the lockdown, they had noted an increase in the number of Cash@Till withdrawals and the average number of Cash@Till withdrawals per customer.
Potwana said that in the early months of lockdown the volume of these withdrawal was hampered due to reduced economic activity, but they had since seen a strong rebound, with activity almost at pre-lockdown levels.
“Looking at withdrawals prior to lockdown, we experienced constant growth in Cash@Till withdrawals. ATM withdrawals on a total level remained relatively flat year-on-year, with lower value withdrawals reducing due to the adoption of Cash@Till, and higher-value withdrawals showed positive growth,” said Potwana.
Head of card and payments at Standard Bank Ethel Nyembe said the lender was not necessarily encouraging customers to move away from ATMs, but, by adding the tills withdrawal option, they were giving them access to an expanded distribution network, creating greater convenience.
“As safety remains critical to our customers, we have seen a 20 percent increase as customers tap their cards at POS (point of sale) devices. We expect that this trend will continue, yet those customers needing cash will also continue to use tills or ATMs, based on their convenience,” said Nyembe.
Capitec said it had continued to see a high demand from clients for withdrawals at till points so far this year.
“Withdrawals from till points and ATMs decreased during lockdown, as we saw a significant shift towards digital banking. For the period March to August 2020, our digital banking transactions increased by 52 percent,” the bank said.
Nedbank’s head of transactional products, Philippa Weimer, said withdrawals increased in places where cash could be obtained and improved convenience for clients.
“Prior to lockdown ( March to June), cash withdrawals were increasing, although these severely reduced during lockdown. As the restriction levels have eased, Nedbank is seeing a return to volumes aligned to 2019 year-on-year usage,” said Weimer.