Case study

Johannesburg-based ATM Solutions grew from a belief that the deployment of stand-alone cash machines in non-traditional areas could prove as successful in South Africa as it had in the USA. Since 2000 the company has installed more than 2,700 cash machines in locations traditionally avoided by the banks, such as petrol stations, convenience stores, smaller shopping centres, supermarkets, and hospitals, as well as corporate sites, such as the Johannesburg Stock Exchange. ATM Solutions provides retailers with in-store cash dispensers and manages the deployment and maintenance of the machines under rental contracts. The retailer receives a share of the transaction revenue and can either choose to fill the machine itself, thereby avoiding bank deposit fees, or rely on ATM Solutions to manage the cash. ATM solutions also helps other banks develop their own ATM networks. For example, installing and managing all the cash machines at branches of KwaZulu-Natal-based bank, Ithala.

• More than 2,700 cash machines installed since year 2000.
• Compound annual growth since investment of 30% in sales and 70% in EBIT.
• Approximately 200 jobs created.
• Additional job creation among suppliers.
• 40% share of the ‘off-site’ cash machine market.
• 31 cash operation centres nationwide.
• Expanding internationally into sub-Saharan Africa.
• Helping to bring financial services to rural communities previously neglected by the established banking infrastructure – around 60% of the group’s cash machines are outside metropolitan areas. Local access to cash helps stimulate the local economy.
• Installation of subsidised strategic machines in several rural locations, such as Qumbu, Tsolo, Black Rock and Kuruman.
• Potential to offer other financial services, such as a card system, to customers traditionally underserviced by banks.