ATM: The Gains, The Pains

By Toluwani Olamitoke

A customer accessing the machine.
Photos: Kuburat Alolade-GaiyuOVER the years, the financial regulatory authorities had been brainstorming on how best to evolve the most cost-effective ways of turning the nation into a cashless society in view of the enormous risk posed by cash-oriented business culture.

Taking a cursory look at the consolidation exercise of the Central Bank of Nigeria (CBN), this did not only produce 25 mega banks, but also initiated the introduction of innovative strategies, one of which is the Automated Teller Machine (ATM).

Giving details of the ATM operations, Mrs. Bisi Ajayi, a bank official with the UBA, Lagos, explained that “ATM is an electronic device used for automatic financial transactions in a public domain without recourse to bank tellers or human clerks.

“Every ATM card is secured with a Personal Identification Number (PIN) which grants accounts holders access to their accounts.”

According to her, “Most ATMs are connected to interbank network which thus enable people withdraw and deposit money from machines not belonging to the bank where they have their accounts or in the country where their accounts are held.”

Looking at the society today, the adaptation to the use of ATM card has grown to appreciable level where even market women and artisans are now getting familiar with the service.

Pointing out the advantages of ATM service, Mrs. Ajayi highlighted that ATM service obviously discourages the practice of carrying cash during long distance travels. This is necessary due to the dangers associated with such practice.

“Again, rather than having to queue up at a bank to withdraw money each time, most customers can cash across the nearest branch of any bank, slot in their cards and pick whatever amount desired to meet their obligations.

“Apart from its ability to render services 24 hours everyday and dispense crisp notes to customers always, the main objective of providing ATM service is to decongest the banking hall,” she emphasised.

In the quest to reduce the number of customers in the banking halls and simultaneously encourage the customers’ patronage of ATM, some banks have employed a stringent means of dissuading customers from making over-the-counter withdrawal that falls below a specified amount.

It is gathered that while some banks allow a maximum pay out of N60,000 a day, and a maximum single payout of N20,000, some others have a slightly higher maximum payout per day.

With reference to available information, Oceanic Bank and Intercontinental Bank allow the use of their ATM cards five times a day, with a maximum payment of N100,000 a day.

At the entrance of some banking halls, customers are greeted with notices spelling out the penalty attached to making considerably small withdrawals from clerks at the counter. And the penalty is that of effecting deductions from their accounts.

Going by research, among the available modern banking services such as electronic banking, Internet banking, Point of Sales (Pos) transactions, money transfer, the ATM service has emerged as the most popular with 96 percent awareness. ATM awareness also ranked higher than awareness of current accounts and slightly below savings accounts.

On the benefits derived from making use of the ATM service, Saturday Tribune spoke with some users of the service.

Dr. Femi Adelegan, an optician with Felan Eye Clinic, Bariga, Lagos, said: “The easy withdrawal of cash, transfer of funds from one account to another and the stress-free process of making balance enquiries are some benefits I derive from the use of ATM.”

To Mrs. Fatima Adisa, an Ibadan-based textile dealer, “ATM service allows for twenty-four hours access to my bank account.” In her words, “When I have a function during the weekend, I go for the service. This dispenses crisp notes which are for party use.”

“I don’t need to keep money at home due to the availability of the ATM service. All I do is to withdraw the amount needed on getting to my destination when I go on a business trip,” said Mr. Peter Onocha, a business man.

But with this new technology on ground, it is observed that at a time customers are getting excited over the service, banks appear to be relapsing into the old habits of inefficiency and failure to meet customers’ expectations through quality services.

Some users of the ATM machines told Saturday Tribune of the unpleasant experiences they have faced while operating the ATM.

“I was in urgent need of cash, so I decided to rush to the nearby bank to avail myself of the ATM service,” explained Mr. Jide Obe, a civil servant. “As soon as I inserted the card with all the necessary documentations, power supply was cut before the machine could dispense the cash.

“I went into the bank to lodge a complaint, and it was discovered that the amount I wanted to withdraw had been deducted from my account. It took much explanations, filling of forms and a long waiting to be paid the cash over the counter. I left the bank discouraged on the use of the ATM.”

Gideon Adams, a student of Chemistry with Lagos State University, Ojoo, while describing his ordeal said, “I had to sit for an examination by 12.00 p.m. in school, so I rushed to the bank to withdraw a small amount for my upkeep for the week.

“I inserted the card and it got stuck in the machine. I immediately lodged a complaint with the bank officials in charge of the machine. When all they did to withdraw the card was without success, I had no option than to leave the scene and run back to school to sit for my examination. I lived on my friends throughout the week, while it took a while to have my card back. The scene was an embarrassing one.”

“The populace have been experiencing unwarranted frustration in the hands of ATM service providers,” exclaimed Mrs. Bisi Alonge, a nursing sister with the University Teaching Hospital, Ibadan, UCH.

According to her, “The ears of many account holders are now accustomed to the reoccurring melody of ‘Network is unavailable, please try later,’ or the rehearsed exasperating explanation of security personnel at the gates of financial institutions, ‘No cash now,’ ‘Cash just finished’; or worse: ’They have not yet loaded cash.’ I have often times resigned to going to join the queue in the banking hall and thereby spending much time in collecting a little amount. To worsen matters, deduction is made from my account at this withdrawal. The system is frustrating,” she expressed.

Mr. Muyiwa Sulaimon, a fashion designer, condemned some banks on the ATM service. According to him, “Some banks’ ATMs are situated right inside the banking halls thereby making it impossible to access them after these banks’ working hours.

Ironically, these banks parade themselves as providing ATM service 24 hours a day,” he lamented.

Mr. Obe said, “It needs to be pointed out that Nigeria is not the only country providing such services. Except the management of the banks want us to believe they acquired cheap ‘Tokunbo ATMs’ that are susceptible to faults, there is need for a concerted effort to ensure the machines are working.”

Mr. Aigbeni, a technologist based in Lagos said, “It’s high time the CBN conducted an enquiry into the age, life span and capacity of the machines being deployed by our banks. This will ensure that they are not just another avenue for free money to the relevant officers charged with the responsibility of acquiring them considering Nigerians’ unbridled appetite for used items.”

Many stakeholders also feel that banks especially need to beef up security at ATM points. These stressed that this was important in order to safeguard not only the cash being withdrawn but also the lives of customers withdrawing cash. There is no disputing the fact that the presence of armed security personnel at ATM locations would not only scare away fraudsters and potential criminals, but also increase customers’ confidence in patronising ATMs at odd hours.

Recounting how he was duped by con men also known as “419,” Mr. George Egbokhare, a clerk based in Lagos relayed his experience:

“I went to withdraw some amount to pay a part of my fee for my postgraduate course. The queue was long. There were some guys hanging around near the machine. My thought was that they were waiting for someone on the queue.

“On withdrawing my money, I headed towards the bus stop to board a cab. One of the guys I saw at the ATM point walked towards me and asked how to get to a certain place – which I described to him. That was the last I knew. When I came to myself, I realised I had been robbed of the money on me while my wife’s valuables at home had also been stolen. I want to believe they used juju on me and I lost my bearing.”

Mrs. Dolapo Onaolapo, a nursing mother and youth corps member also gave an account of her experience.

“I was at my bank around 10.00 a.m. on Saturday before Easter to withdraw some cash via the ATM service. On inserting my card, I was informed the machine was out of cash that early in the day. I left the bank premises disappointed while racking my brain on where to get money to meet my kids’ demand for the Easter celebration since my husband was not around.

She added, “It is sometimes believed that this kind of situation occurs as a result of the laxity on the part of the staff who fail to sort and load cash into the machines; more so as it can only accept or dispense crisp currency notes.”

Some bank officials who somehow get to know customers’ ATM PIN numbers also tamper with the accounts. Not left out of the fraudulent practice are IT experts – especially those who supply the machines. These have a way of manipulating the machines which on the long run gives access to customers’ accounts.

Responding to the diverse complaints of customers, Mr. Oluwaseun Adebowale, a manager with one of the third generation banks, explained that ATM was a new concept in Nigeria and naturally, some teething problems should be expected.

“However, we are working round the clock to combat problems faced by customers with the use of ATM machine,” he said.

Said the bank manager: “The occasional seizure of customers’ cards by the machine is as a result of mistakes made by the customers. When customers fail on three occasions to register the proper PIN, the machine automatically suspects fraud and then seizes their card.”

On the issue of deductions without payout, he said: “This occurs when there is a break in the link. What we tell our customers is to make sure they check their balance first. It is not a guarantee, but it will tell you that fund is not available. Once you see that at the point of checking your balance, you don’t go ahead to withdraw.”

He further added : “The ignorance on the part of customers is also a problem. We need to enlighten our customers more on how to operate the ATM.

“Customers should always keep their ATM cards away from their mobile phones or any magnetic materials to avoid the loss of data from the cards, thereby invalidating them.”