allAfrica.com: Nigeria: ATM Network Failure Among Banks Remains a Challenge (Page 1 of 1)

THE adaptation to the use of ATM card as an alternative and faster means of withdrawing instant cash has grown to appreciable level among Nigerians where even market women and artisans are now getting familiar with the service.

Although the new technology which was seen as a bail out option having reduced the number of customers at the banking hall, making Nigeria a cashless economy, network failure among banks has remained unabated across the country, especially in commercial nerve centres where the technology has been deployed

This development, according to Vanguard Computers & E-Business findings has left users worse off whenever they want to withdraw money for their personal socio-economic activities Worst still, apart from network link failure among banks, and absence of cash in the ATM cash point of different banks, seizure of ATM card according to findings have become the order of the day. Ironically, once an ATM card is stocked in a machine, technically the user of the card has the option of taking it the following day.

With the ATMs technology springing up by the day, it has been 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 by not investing in robust infrastructure. With the ugly trend becoming a source of worry to both the users and the stakeholders in the Nigerian IT sector even as bank operators appear helpless to address the problem of robust IT infrastructures.

So instead of tackling these challenges head on, majority of banks, according to finding are busy expanding their branches across major commercial cities in the country without investing in smart ATMs infrastructures that can have enough carrying capacity to take care of large number of users. Like every other network, especially in the GSM network, once the ATM cash point is over used, according to findings, network failure will take over leaving customers in queues for many hours.

In most cases, because of the frustration, endless wait which often times lead to customers struggling for line which may end in physical combats.

This development, according to findings, has continued to worry both banks operators, and the users leaving them worse off whenever they use the technology deployed all over the world to withdraw instant cash anytime of the day.

With this, a visit to majority of ATMs cash points last week in major commercial nerve centres in Lagos, especially in Ikeja and Victoria Island where there are many users by Vanguard Computers & E-Business, it was observed that part of network failure is a result of inadequate ATM cash points either in banking hall or in strategic positions outside most banks Even though users who are not familiar with the technology may spend minutes battling with the system, the truth of the matter, according to keen observers is that banks have not really invested in enough infrastructure to support the network problem that has persisted.

A cross section of Nigerian ATM users who spoke to Vanguard Reporter last Monday in Lagos lamented the continuous network failure among banks, saying that something has to be done to save e-payment platform in Nigeria from eventual collapse .

"I think that the truth of the mater is that banks have not invested in what I will call smart ATMs. The banks are not sensitive to the plights of customers who wait endlessly on the queue many just for the sake of withdrawing money. Banks must know this" Sunday Oguomere, a civil servant told Vanguard in an interaction in front of Skye Bank at the Computer Village Ikeja last Monday.

According to him, Banks should deploy more ATM cash points at the strategic locations across the country where users will access, adding that it will reduce the issue of over using one ATM cash point that may result in network failure. While commending Skye ATM for being the best in the industry, he was of the opinion that the regulatory authorities, especially the CBN should come out with some kind of policy to enforce compliance. For Caroline Okeke, a student of the University of Lagos, Akoka, using ATM to withdraw these days can be frustrating.

"Why should one spend more than two minutes to withdraw money in the first instance. It is sad that banks are not sensitive to the plight of ATM users. They need to build more ATM cash points in strategic locations" she said.

With all these, the regulatory authorities may not have come out with a framework for regulatory guideline to enforce compliance. But expressing concern on this development, the Director General of National Information Technology Development Agency, (NITDA), Prof.. Cleopas Angaye, had in a recent IT event in Lagos warned that Nigerian banks must brace up to the challenges of building a robust IT infrastructure to support ATM now exciting users across the country Adequate infrastructure, reliable help-desk and enlightened populace, the NITDA boss said are factors to deal with if e-payment must be a success in the Nigerian environment, adding that Nigeria must prepare for e-payment as one of the requirements of the 21st knowledge economy.

"But trust is still a serious issue in e-commerce. Nigeria needs to migrate from traditional to mobile banking. "NITDA believes that banks in Nigeria have done well by adopting IT and we believe that much can be achieved. We are preferred to continue to continue providing the enabling environment.

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