![[Ethiopia] Dashen Bank to install 100 ATMs to entice customers](Dashen.jpg)
[Ethiopia] Dashen Bank to install 100 ATMs to entice customers
In a move meant to entice more customers and step up to growing competition in the banking sector, Dashen International Bank has announced plans to buy a hundred automatic teller machines (ATMs) to be placed in hotels, supermarkets and other areas.
The machines are expected to cost the bank over $1.4 million based on the market price for a single ATM – roughly $14000.
Last year, the bank bought 50 ATMs at a cost of $700000.
The purchased ATMs are not only situated within the branch premises or in very close proximity of the branch, but also at other convenient locations, such as shopping centres, airports, railways stations and petrol stations.
Among the ATMs, sixty are expected to stand in hotel lobbies and supermarkets, while the rest will be attached on walls in various locations across the country.
The purchased ATMs enable the customers of the bank to enjoy cash withdrawals, balance enquiries and mini statement requests.
Reducing the operating expenses of the bank and increasing market penetration are the objectives of the purchase, according to Robel Alemayehu, E-Banking service department director at the bank.
Since April 2016, Et Switch integrated the ATMs of all banks in the country. This enables all cardholders to use any of the ATMs available in the nation.
“The objective of ET Switch is not to stop banks needing to buy ATMs, but rather to increase their availability,” said Robel.” We are working to increase the cardholder population ratio of the country.”
Currently, Dashen has 320 ATMs, with a customer base of over 1.4 million.
“The system of handling the purchase of such items differs in the case of Dashen compared to other banks,” said one of the bidders who wished to remain unnamed. “We simply put in our offer and will be told the result only if we are awarded the contract.”
“The bank has no tradition of notifying bidders that are not awarded,” the bidder added.
In terms of market share, the bank controls 16pc of the private banking industry, which is nearly equal to its nearest competitor, Awash Bank.
Dashen, established 22 year ago by 11 businessmen and professionals, is currently building a new headquarters in the financial district of the capital.
Dashen Bank provides ATM services for Visa cardholders and other international service providers, like MasterCard, UnionPay and American Express. It is the only bank to acquire Amex Cards in Ethiopia.
The total number of ATMs has now reached around 1,400 throughout the country. The Commercial Bank of Ethiopia (CBE) possesses more than 50pc of the ATMs in the country. while the number of ATM cardholders is around 3.2 million – only 4per cent of the population.
