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There has been a growing preference for using cash recycling machines (CRMs) in recent years since the introduction of the technology in Bangladesh in 2017.
The machines that had been set up by financial institutions, to help clients deposit, withdraw and transfer money instantly almost doubled in the last financial year.
CRM-based transactions increased to Tk6,069 crore in June from Tk2,928 crore in the same month last year.
Banks have been increasingly installing CRMs throughout the country to offer core banking services to consumers while decreasing their dependency on physical branches, providing them with the option to carry out banking and transactions from anywhere at any time, as the machines provide 24-hour service.
In 2021-22, banks installed 917 such machines, taking the total to 1,821, up nearly 99% from a year ago, data from the central bank showed.
Even the rural parts of the country witnessed a significant increase in the number of CRMs, as financial institutions installed 159 CRMs outside big cities and towns in FY22, leading to a 120% year-on-year rise from 133 CRMS in the previous financial year.
In contrast, around 745 CRMs were installed in urban centres, taking the total number to 1,529- an increase of almost 95 % from the previous year, as per central bank data.
Currently, 16 banks are using CRMs across the country.
Insiders say, with the growing use of CRMs, cash deposit machines (CDMs) for depositing cash only, and automated teller machines (ATMs), which are used for fund withdrawals only, can soon become a thing of the past.
According to the central bank data, there were 1,699 CDMs across the country at the end of FY22.
There were about 1,664 CDMs at the end of FY21.
On top of that, no new CDM was set up in the rural areas since December when the number of such machines fell to 505.
In contrast, the number of ATMs increased 6% year-on-year to 13,036 as around 699 new ATMs were installed by financial institutions since June last year.
In June of this year, users used ATMs to transact Tk28,456 crore, a year-on-year increase of 58%.
It was Tk 18,059 crore in the same month of 2021.
According to a private banker, CRMs cut the necessity for many customers to visit branches, reducing pressure on banks, and bringing down the frequency of cash loading, which in turn brings down the operational cost of financial institutions.
Therefore with the increasing number of CRMs providing the facility of both real-time deposit and withdrawal, CRMs will replace ATMs in the next five to seven years.
“The operating cost is being rationalized. It is also the best source for an instant cash deposit in both cards and accounts,” Karim said.
Moreover, as banks are increasingly relying on providing services and customers digitally for convenience, the number of branches increased by only 2% to 10,980 in the last fiscal year.
Banks set up 192 new branches last financial year, with a majority of them in rural areas.
Some 107 branches were set up in rural areas, raising the total number of outlets beyond cities and towns to 5,243.
The number of total branches in urban areas stood at 5,737 and 85 new branches opened in FY22.
All except one branch provide full-fledged online services.
(DT)
