Bank of Baroda has said it will replace most of its Automated Teller Machines (ATMs) with Cash Recycler Machines.
The move seeks to cement the banks move towards digitising its operations at a time when technology continues to influence the global financial system.
Cash Recycler Machines, which mainly take cash deposits, have in the last two years become the face of banking with a few other banks such as Stanbic and Absa operating some at different banking points.
The digital economy has had cross-cutting changes in most of the global economy with services becoming more automated than ever.
Financial Technology experts have argued that the smart use of technology is now an integral part of the success in business.
In a commentary published along the Baroda results for the year ended December 31, 2019 last week, Mr Ashwini Kumar, the bank’s managing director, said they would leverage on technology to change the bank’s ATM operations.
“We aim to expand our footprints in emerging markets within the country. In order to leverage on technology, the bank is going to replace ATMs with cash recycler machines in different parts of the country which will provide 24/7 cash deposit facilities,” he said, noting the bank had achieved good growth in 2019.
However, the bank during the period posted a decline in profits from Shs73.420b in 2018 to Shs45.312b, which indicated a 38.28 per cent decline.
Total deposit increased by Shs136.4b, representing a growth of 10.48 per cent over the previous year while advances net of impairments increased by Shs47.08b in the period under review.
During the period, Baroda’s total business including deposits and advances increased by Shs184.72b, indicating a growth of 8.94 per cent over the previous year while total asset increased by 9.43 per cent to Shs1.875 trillion in 2019 from Shs1.713 trillion in the same period in 2018.
Bank of Baroda is a listed company. The bank’s board also resolved to recommend a dividend payout of Shs25b for the year ended December 2019 with each share allocated Shs10.
However, the Central Bank recently, in a circular, suspended all bonus and dividend payouts, which indicates that Baroda might have to delay paying dividends to shareholders.