Addis Ababa, Ethiopia: Three Ethiopian private banks have signed a Memorandum of
Understanding (MoU) to launch an Automated Teller Machine (ATM) and
Point of Sale terminal (PoS) network in a move described as "the first
significant cooperation between competing banks in Ethiopia’s
fast-growing banking sector”.

By signing the MoU, Awash International Bank S.C., Nib International
Bank S.C., and United Bank S.C. Banks agreed, in principle, to launch
the network, which would be managed and operated by the Ethiopia-based
IT Service Outsourcing Company, Off shoring 2.0.

The joint venture will allow over one million of their customers to
withdraw cash and make payments for purchases. The MoU signify gains
both in quality banking technology and in cost-effective
operations."It is not just about Card Payment System, the Fettan ATMTM
network will provide unparalleled access and coverage for the rest of
the population that are unbanked and under-banked," Leikun Berhanu,
President of Awash International S.C. says at the signing ceremony at
the Intercontinental Hotel here.

Another signatory, President of Nib International Bank, Amerga Kassa
also backed the united way so as to reach maximum number of Ethiopian
private bank customers."No single bank in Ethiopia can afford to
provide extensive geographical coverage and access, or create the
know-how to do this properly," he says.

"As a result this will lead to slow acceptance of Card Payment system
by consumers, and it makes total business sense to unite," he added.
Fettan ATMTM will install over 140 ATMs and over 340 PoSs at every
branch of the Consortium Banks across Ethiopia including all domestic
airports serviced by commercial service, shopping complexes and
merchants.

"Through Fettan ATMTM easier adoption of business and technology
innovation enables participating members to offer unprecedented
transaction services to their customers anywhere 24 hours a day,"
Berhanu Getahun, president of United Bank says on his part.

The Fettan ATMTM network also aimed to lead sharing on a variety of
other innovative products and services including 'Debit Cards", which
the member banks' customers would be able to use to purchase goods in
specified shops and hundreds of ATMs nationwide.

The signatories however says the Fettan ATMTM Consortium would develop
detailed business proposals to be discussed with each bank's board
prior to final decisions on investments and service implementation.
CEO and Founder of Offshoring, Technology Services PLC, Yemiru
Chanyalew part says shared technology for banking and cash machine
services are common in many parts of the world.

He says, since banks need to transact payments and communicate
information efficiently and securely; the Fettan ATMYM Consortium
planes to provide these services in Ethiopia .

"There are gains from economies of scale as fixed costs are shared
across more transactions and more efficient technology can be used" he
says Yemiru added they were not decided yet on technical platform,
"but within six months, we plan to finish on the platform and will
enter to the market with the technology." According to the Founder of
Technology Services PLC who facilitated the formation of the
Consortium, the preliminary figure invested for the networking would
be around 40 million Ethiopian birr, subject to change given
unpredictable market situations.

 

 

 

.