The last twenty years have seen major steps taken in the advancement of financial inclusion through a variety of ATM-centric initiatives. The South African banks were early leaders in tackling the issue. The initiative by Standard Bank was through a research driven strategy. In 1994 it launched a new approach to the mass market through specially designed outlets and products developed specifically for the target sector. The strategy was based on leveraging the capabilities of their ATM systems, which had already been developed to a very high level of functionality. The sub-brand, 'AutoBank E' was developed and applied to a network of customised branches and lobbies to reflect a distinctive targeted service proposition. In 2003 Standard Bank joined other players in signing the Financial Sector Charter, a national initiative that included a commitment to provide better physical and product access to banking services. The number of ATMs operational across South Africa has continued to grow and over the last five years the network has added more than 6,000 machines to finish at 28,670 in 2014, according to RBR of London. The situation in India is equally as dynamic. Banks such as HDFC and ICICI have invested heavily in ATM facilities with ever increasing functionality, supported by customer relationship management systems targeting their existing clients. But they have also been mindful of the need for greater financial inclusion across the country's vast population of 1.3 billion people. Satisfying this need is a key government objective and great pressure has been exerted for more on-the-ground representation. Consequently, over the last five years the number of ATMs operating in India has more than trebled. RBR report that from under 60,000 in 2009, the national network had grown to 187,300 by 2014.

The ATM has often played a key role in providing a source of cash for the unbanked member of staff whose employer wishes to streamline their payment of salaries and wages. The prepaid payroll card product offers the employee the experience and benefits of an actual or quasi bank account, usually with the opportunity to operate it free of charge. Hitherto, employees in receipt of a pay cheque may have been required to use the services of an encashment agency, where they would have paid a fee for the service. Whilst situations vary by marketplace, the USA is an example of where the law ensures that employees must be given the ability to access their earnings without charge. In the Gulf, the Emirates NBD Salary Prepay card was an early example of the synergy between such programmes and the ATM. Unbanked employees were given reloadable payment cards which allowed them to access their earnings in cash through an ATM, as well as enjoying all the benefits available to holders of any Visa card. MasterCard have also been active in the Gulf working with National Pay to launch the DubaiCard prepaid card. These chip-and-PIN cards are available to anyone and can be issued and activated instantly through kiosks located across the United Arab Emirates, where they may also be reloaded.

Looking to the future, the mobile will continue to play a major role in achieving greater financial inclusion through its ability to work with other digital channels. The mPesa service in in Kenya has already shown how the ATM can operate in a mixed network of machines and agents.

Around 70% of Kenyans have some form of mobile phone but no bank account. Not only has Safaricom's mPesa provided a mobile wallet service to its 19 million users (around 40% of the population) but it has also delivered their service in a manner which is financially viable. This includes reaching out to a high volume, low value segment of the population which is often remotely located. Those banks that have faced and dealt with this challenge have become global leaders in the development of financial services for the mass market.

Deploying full scale branches in low value markets may not be viable. However, with the extensive functionality now available, including integrated video face-to-face contact, the case for deploying ATMs is becoming more attractive. The ATM is providing ever increasing levels of service for the customers of financial institutions, and it continues to play a major role in progressing the objective of greater financial inclusion for the unbanked.

David is an approved ATMIA consultant. You can learn about the services he provides by visiting our consulting page: https://www.atmia.com/education/atm-consulting--training/atmia-consultants/index.cfm/david-j-cavell/?detail&id=9.

Editorial disclaimer: The opinions expressed by the author are not necessarily those of ATMIA.