Competition expected as Diebold enters Kenya’s independent ATMs market

A Diebold ATM: The ATMs will soon be available in Kenya with Tracom as the distributor.
A DIEBOLD ATM: The ATMs will soon be available in Kenya with Tracom as the distributor.

Competition in the independent ATMs scene, which has up till now been controlled by Paynet Group’s PesaPoint ATMs, is set to go a notch with the entry of a new player, Diebold, in the market.

The US-based firm, Diebold, has entered the local market through a partnership with Tracom. As part of the deal, Tracom will be in charge of distribution as well as installation of Diebold ATMs in the country.

Diebold comes into the local market at a time when there is rising threat of automated teller machine (ATM) fraud, a situation that calls for innovative technology solutions that financial institutions can adopt to address security challenges.

“Providing a secure environment for ATM users is essential to maintain consumer confidence in this important channel,” said Xavier Bianne, vice president sales, Diebold Europe, the Middle East and Africa (EMEA). “To address the security requirements of financial institutions, Diebold has taken a leading role in ATM security and the prevention of ATM frauds and attacks. By integrating leading-edge security features directly into the design of our Opteva family of ATMs, we have engineered what just might be the most sophisticated, advanced ATM security solution in the business.”

In April the Central Bank of Kenya (CBK) and the Kenya Bankers Association (KBA) launched a plan to have all banks migrate to more secure magnetic ATM cards and plastic cash by September 30 following increased cases of fraud.

“For emerging markets such as Africa, which has been witnessing a massive rise in ATM fraud over the past few years and where financial self-service activities are set to increase exponentially, ensuring protection against security threats is critical, as the extent of market growth will be closely linked to the level of transaction security offered to customers,” said Paul Njau, managing director, Tracom Services Ltd.

ATMs and plastic cards remain the most convenient way for bank customers to have access to their money with the CBK data indicating there were more than 10.7 million ATMs, credit and debit cards in circulation at the end of 2012.The value of ATM transactions alone was Ksh 156, 891 million last year up from Ksh 140, 825 million in 2011.

Kenya’s Tracom Services Limited has two research and development centres, based in Kenya and France. As part of its efforts to deliver operational efficiency and, overall, business value for its customers through technology, Tracom closely works with partners who have a knack for technology innovation. Diebold, on the other hand, is a global provider of innovative self-service technology, security systems and related services.