Commercial banks are continuing efforts to improve public service regarding transactions and cash provision following branch closures in mountainous and remote areas that have created difficulties in securing cash access.
The problem is particularly acute in mountainous regions where elderly residents rely on cash for daily transactions, as they are not familiar with new technology systems that banks are promoting to reduce operational costs.
Banks are focusing on installing new ATM machines primarily in mountainous and remote areas where bank branches no longer exist, as well as increasing cashback points where customers can obtain up to €100 per transaction.
Several months ago, 11 new ATMs began operating in Argaka, Salamiou, Pissouri, Astromeritis, Pelendri, Lythrodontas, Eptagonia, Parekklisia, Avgorous, Frenaros and Xylotymvou.
Information indicates that some new locations see considerable ATM usage, whilst others process transactions worth only a few euros.
For banks, installing an ATM involves not only transportation and commissioning but also cash replenishment, maintenance, repairs and other costs that burden operational expenses. Despite this, banks will shortly install an additional three to four ATMs in cooperation with JCC at locations showing demand.
Beyond ATMs, cashback points offer an alternative option at retail businesses including supermarkets, bakeries, kiosks, petrol stations and other locations, where customers can obtain up to €100 per transaction.
Although initial problems occurred, particularly from kiosk owners and shops in remote areas, the initiative is gradually gaining public acceptance, leading to plans for significant expansion of such points.
Some business owners initially objected because their turnover did not allow them to provide €100 to every customer requesting it after making a transaction. This occurred mainly in remote-area shops with small populations.
However, the broader initiative appears to be working and expanding. Two years ago, only 40 such cashback points existed across Cyprus, whilst 451 currently operate. The target is to reach 700 points within the next two years, aiming for maximum geographical coverage to serve more people in remote and mountainous areas.
The broader issue of public service regarding banking transactions is expected to return for parliamentary discussion, as banks have sent responses and data requested by members of Parliament’s Commerce Committee, and the matter will return to prominence when the House resumes operations.