The Central Bank of Kenya (CBK) numbers show that there is an increase in the number of bank agents and a move towards cashless payments which has resulted in a gradual decrease in the growth of the value of withdrawals done through automated teller machines (ATMs).
While the total value of ATM withdrawals have been going up every six months, the pace of growth has been slowing since the first half of 2010, although the value of transactions done electronically and through bank agents has been going up.
According to the data, the value of transactions done through ATMs rose by 11.98 per cent to Sh75.66 billion as at the end of June this year from Sh67.56 billion in the six months to June last year.
The value of transactions between July and December last year rose by 15.95 per cent to Sh73.25 billion from Sh63.18 billion over the same period in 2010 after they had risen by 34.52 per cent from Sh46.96 billion between July and December 2009.
More Kenyans are withdrawing money from commercial bank agents and mobile phone payment systems than from ATM machines, new data by the sector regulator has shown.
The Central Bank of Kenya (CBK) numbers show that there is an increase in the number of bank agents and a move towards cashless payments which has resulted in a gradual decrease in the growth of the value of withdrawals done through automated teller machines (ATMs).
While the total value of ATM withdrawals have been going up every six months, the pace of growth has been slowing since the first half of 2010, although the value of transactions done electronically and through bank agents has been going up.
According to the data, the value of transactions done through ATMs rose by 11.98 per cent to Sh75.66 billion as at the end of June this year from Sh67.56 billion in the six months to June last year.
The value of transactions between July and December last year rose by 15.95 per cent to Sh73.25 billion from Sh63.18 billion over the same period in 2010 after they had risen by 34.52 per cent from Sh46.96 billion between July and December 2009.
In the first half of 2010, the growth rate was 24.1 per cent from Sh54.45 billion in the six months to June 2009.
Bernard Matthewman, chief executive officer of Paynet group - which operates the PesaPoint payment access points - attributed the slower growth in the values withdrawn at ATM’s to an increase in bank agency networks and the use of alternative points to make transactions.
“What you have seen is a slowdown in ATM growth and transfer of some of that to the (commercial bank) agent infrastructure,” he told the Business Daily, adding that despite the slower growth, the use issuance of plastic card money and their usage was on the increase on other platforms.
The agent banking model was introduced by the regulator in 2010 as an alternative to physical branches and machines to help lenders to effectively serve customers in a cost effective manner and reach those in underserved areas.
As at the end of June this year, 10 commercial banks had contracted 12,054 active agents.
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