Automated Teller Machine (Atm) in Nigeria: the Present, the Future. Essay Example
Automated Teller Machine (Atm) in Nigeria: the Present, the Future. Essay Example

Automated Teller Machine (Atm) in Nigeria: the Present, the Future. Essay Example

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  • Pages: 3 (787 words)
  • Published: October 5, 2017
  • Type: Essay
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1. INTRODUCTION

There is no contesting the fact that the introduction of ATM has changed the face of electronic payment in Nigeria. This essay hopes to appraise the advent of ATM driven payment with regard to the present and future.

2. ORIGIN OF ATM IN NIGERIA

Automated Teller Machines was introduced into the Nigerian market in 1989, as a matter of fact, the very first ATM in Nigeria was installed by National Cash Registers for the defunct Societe Generale Bank Nigeria in 1989. 2. 1 BANKS AND ATMSBanks in the country are now adopting Self Service technology because it is cost effective in the long run. System in Nigeria In the past few years, Nigerian banks and the financial services industry in particular, have embraced the concept of e-money.

Changes are beginning to take place in the Nigerian financial landscape and c

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ustomers are increasingly raising the hope of expectations for quality customer services. They offer convenience to customers and provide banking services well beyond the traditional brick and mortar service period.They also ensure that a lot of cash is still within the banking system where it can be managed and channelled into productive use, instead of bulk withdrawals that we use to witness in the past. It is good for customers to withdraw cash that they need by eliminating the risk of loss through theft and fire. All in all it is has been win-win scenario for all the parties concerned.

2.PROBLEMS FACING ATM IN NIGERIA

Normal challenges facing other businesses in Nigeria – like power outages, telecoms breakdown and others do affect electronic payment platform like ATM services in Nigeria.There are also staff training issues that are to b

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sorted out, training and re-training of staff displaced by automation and customer/consumer education still lags behind. With regard to Power, most ATM machine run on generators, UPSes and inverters to back up PHCN, in some extreme cases, depending on how mission critical is the application as a matter of fact, some card companies only use PHCN as a back up. Customer education would still continue to be a problem as some customers do not know he basics of adaptation and use of new technology.

Some ATM points still witness a long queue because the ratio of ATM per 100,000 of Nigerians is still small compared to global standard. Lastly, the fear automation seems to be the beginning of wisdom for most staffers as it is often touted as a curse of huge job loss hence sending fear signals to some staffers.

2. SUGGESTED SOLUTIONS TO THE PROBLEMS

First, staff should not only be exposed to training at intervals, they should be exposed to the mechanism of the process of e-payment.

The issue of power should be addressed so that ATM companies would not continue to run on generators and Upses, this would impact on cost of doing business as well as smoothness of service delivery. The public should be continually be educated on the dynamic use of ATM as well as other non traditional services it can offer. Issuance of ATM licenses should be deregulated so as to increase the ratio of user/customer ratio. Employees’ fear of loss of job whenever aggressive automation is being pursued should be allayed.

2. ADVANTAGES AND DISADVANTAGES TO STAFF

The advantages of ATM includes: 4 hours banking; Enhances cashless society; Safeguards against theft;

Reduces cash in circulation and hence allowing cash to be in banks; Enhances self service solution and Reduces long queue in banking halls. The major disadvantage is threat to people’s job which often comes with automation of any kind.

2.  IMPACT ON BANK AND CUSTOMERS IN THE PRESENT AND FUTURE

With an unprecedented level of customer reach and powerful data warehousing solutions that help each company use an information to better understand and serve each customer in a clearly defined market.It could serve as a good database for companies which can help companies turn customer transactions into mutually beneficial customer relationships.

At present customers enjoy 24 hour secured banking but with time other services like making payment and other transactions on ATM as well other sundry services. 3. 0CONCLUSION It can be concluded that ATM as a means of e-payment has come to stay, while it penetrates on a daily basis the future payment in Nigeria would likely depend on virtual banking with promising return on investment for banks.

REFERENCES

  1. http://www.sunnewsonline. com/webpages/features/ceomagazine/2006/apr/10/ceomagazine-10-04-2006-001. htm http://www. nairaland. com/nigeria/topic-13569.
  2. 0. html Johnson M. (2005), Overview of Electronic Payment System in Nigeria; Strategic and Technical issue, CBN Bullion April/June APPENDIX – Growth of ATMs in Nigeria YearNo. of ATMs 20003 200143 200268 2003Not Available 2004193 2005352 2006996 Source: CBN Economic Report for the first half of 2005; and Report of The Technical committee on Electronic Banking, 2003.
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