Banks operating in the state suspended 227 ATMs from operating in 2019, bringing the total assets owned by banks at the end of December 2019 to 5076 devices compared to 5303 devices at the end of December 2018, according to the latest data issued by the Central Bank, which shows that the year 2019 witnessed the largest The number of ATMs has decreased since 2016.
Two banking experts said that the banks are accelerating the pace of smart transformation, in line with the country's strategy, noting that in 2019 the biggest decline in the number of ATMs, in addition to the mergers that took place between banks and unification of devices.
They explained that the culture of "no cash" or lack of preference for carrying cash has become prevalent, and the customer has become preferable to pay his purchases and transfer his money through his mobile phone, noting that operating the ATMs requires a technical system that entails a high operational cost to the banks, in addition to the banks The devices that are not popular with customers stopped working.
La Cache Culture
Banking expert Awatef Al Harmoodi said that the banks aim primarily to deliver their services to customers in an easy and easy way, which has witnessed a great change in recent years.
She added that the culture of "no cash" or the lack of preference for carrying cash has become prevalent, and the customer now prefers to pay his purchases and transfer his money through his mobile phone.
Al Harmoudi stressed that the proliferation of the large number of ATMs, which prevailed for years ago, is no longer justified now, as banks conduct periodic studies showing the percentages of users of their ATMs, areas of density, and high demand, and then stopped the work of devices that do not receive demand or use them poorly .
She pointed out that the operation of ATMs requires a sophisticated and integrated technical system, pointing out that the cost of the devices is not in buying and installing them, but rather requires advanced systems for depositing and withdrawing cash, and monitoring its movement around the clock, and this is an expensive process for banks, so it is natural for banks to stop devices Which are used only in simple proportions, or do not benefit from a large segment of dealers.
Smart transformation
For his part, banking expert Muhannad Awni said that banks are accelerating the pace of smart transformation, in line with the country's strategy, so the year 2019 witnessed the largest decline in the number of ATMs, in addition to the mergers that took place between banks and the unification of devices.
He added that the largest percentage of customers currently use smart phone applications to transfer money, pay purchases and pay bills, in addition to the bank's website.
Aouni agreed that maintenance and monitoring of ATMs is costly for banks, in light of the decline in demand for them by customers who have become obtaining their banking services in a variety of simple ways, without the need to travel by car to withdraw cash, and to pay obligations and dues that can be paid via mobile phone.
"Central": a new regulatory framework to protect the financial consumer
The Central Bank announced that it had recently launched a process of expanded consultation with relevant stakeholders in the UAE, aimed at developing a new regulatory framework to protect the financial consumer.
He added that this new framework would ensure the protection of financial consumers in the country through a set of requirements that all financial institutions that are subject to the supervision of the Central Bank will have to fulfill. It is also expected that this new framework will contribute to enhancing the quality of disclosure and transparency standards, ensuring a timely response to customer complaints, and obliging financial institutions to provide an effective dispute resolution mechanism.
Central Bank Governor Mubarak Rashid Al-Mansoori said that the bank will proceed through this process in laying the necessary foundations for a new regulatory framework for financial consumer protection, based on a set of principles that relate to consumer protection in general.
The principles to be considered within this framework include those related to disclosure and transparency, regulatory oversight, institutional governance, market and business behaviors, consumer data and information protection and consumer privacy, and principles of responsible financial practices, complaints management, conflict resolution and consumer education will be taken into account. , Awareness, financial inclusion, and commitment of Islamic financial services to the principles of Islamic law, to ensure a comprehensive and effective framework is available. Abu Dhabi - Emirates Today
- 5076 ATMs owned by banks at the end of December 2019.