Financial frustration navigating ATM scarcity in Malawi’s capital

By Chisomo Sumani

Lilongwe 19 July, Mana: In the heart of Lilongwe, Malawi’s vibrant capital city, a simple task like withdrawing cash often turns into a hack of trouble for National Bank of Malawi (NBM) members.

With a population of over a million people, the city from Game stores, all the way to its outskirts is serviced by merely a few National bank auto teller machines (ATMs).

As the morning sun rises over the city, long queues start forming at these few crucial cash points, reflecting a critical infrastructural gap that impacts the lives of residents every single day.

National Bank of Malawi with lots of members established in 1971, has grown to become a leading player in the financial industry in the country. However, limited access to ATMs in the city without realising it, economically affects the country as it slows down access to cash there by infringing economic activities and affecting the overall economic growth in the city.

ATMs provide ease of access and enables clients to bank without getting into the banking hall with services offered at ATMs which includes withdrawals, deposits into one’s account and transactions such as balance check and payments/top ups.

With few and frequently damaged ATMs customer spending has also been limited, especially to the users of the machines, as people limit their purchases to avoid the hassle of finding an ATM.

For small-scale businesses without access to credit card machines, the problem is even more pronounced. Both merchants and consumers suffer from long lines and the inability to complete transactions, from running from long lines to failure to purchase goods through these machines, both merchants and consumers stand affected.

In large areas like Area 23 and along Area 25 road, individuals be it the elderly and disabled individuals who rely solely on the bank face significant challenges in accessing cash as ATMs are not widely available or conveniently located. This forces them to travel long distances or hand their ATM cards to un-trusted people for money collection.

Elisa Kabango, is a customer of National bank who is a victim to such occurrences and he expressed his worry.

He said: “We frequently find only one operating machine especially during month end and sometimes they are all out of service. This forces some to cash out a lot of money in advance which also attracts thieves.”

People incur additional costs, such as transportation expenses, to reach ATMs with an inclusion of wasted time and frustration due to long hours of delay, something which most customers complain about.

In response, Public Relations Officer for NBM, Akossa Hiwa said the bank reviews its service offering to customers by continuously researching on customer needs to ensure their services are conveniently accessed.

“While the bank would love to be omnipresent other factors for the supporting services such as reliable, power data network amongst others do affect the final choice of locations where ATMs can be installed.

“We also take an evaluation of the size of market to be served to form a viable business case,” she explained.

Hiwa further said that National bank seek to continuously educate the public on the adoption of digital means of transactions through card payments, funds transfers, Mo626 pay as well as proper handling of cash as ATMs require good quality notes to operate optimally.

“We thank all our customers and we hereby assure them of the bank’s commitment to continuously improve the way they are served,” she said.

ATMs have long reduced staffing levels and increased efficiency, contributing to the improvement of Malawi’s financial status. However, until the infrastructural gaps are addressed, customers will continue to face significant challenges in accessing money.

Reported by Chisomo Sumani

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