The busiest airport in Lagos is offering free WiFi. Sort of

Murtala Mohammed International Airport in 2005. Image: Getty.

Brilliant. As of Monday, Lagos' main airport finally has free WiFi.

Murtala Muhammed International Airport will be the first public airport to have it in Nigeria. The departing Minister for Aviation announced it via twitter last Wednesday morning.

But then, he back-tracked slightly. Obviously when someone says “free”, they mean, "for a bit".

Nonetheless, the development is a welcome one in a country where 27 per cent of the population own a smart phone, and only 1 per cent own a home landline. The duality of lagging development but rapidly increasing use of technology has made the house-phone a non-existent phenomenon in West African cities.


The Lagos State Government recently announced its plans to create WiFi hubs in three public parks, too. But the announcement gave no clue as to when this would happen; neither was it clear whether it would be free in the 20 minute sense of the word or some other.

Whilst it is not exactly a WiFi blitz on Africa's largest city, it reflects a belated impetus on the part of government policy to catch-up with the modern realities of increasingly tech-savy Nigerians. Public WiFi availability in the city is scarce, but its potential to help grow Lagos' economy is huge. According to the World Bank, for every 10 per cent of broadband penetration, a country’s GDP grows by 1.28 per cent. Or, in less technical termsL the more WiFi, the more capacity to make money.

It is yet to be seen whether the new government in Lagos, which will kick off on Friday, will quicken or even continue the current plans. But the surge in smart phone usage in Lagos will hopefully be persuasive.

 

Incidentally, Murtala Muhammad International Airport is the ninth of the ten busiest airports in Africa. Here are the rest:

AIRPORT

CITY

COUNTRY

IS THERE WIFI?

OR Tambo International

Johannesburg

South Africa

Free wifi

Cairo International  

Cairo

Egypt

Free wifi

Cape Town International

Cape Town

South Africa

Free wifi

Mohammed V International

Casablanca

Morocco

Of course. But it'll cost you

Murtala Muhammed International

Lagos

Nigeria

Free? For 20 minutes? Sure, knock yourself out

Hurghada International

Hurghada

Egypt

No wifi

Jomo Kenyatta International

Nairobi

Kenya

Sorry, it'll cost you here too

Sharm el-Sheikh International

Sharm el-Sheikh

Egypt

FREE WIFI!

Bole International

Addis Ababa

Ethiopia

SURF SURF SURF!   FREE FREE FREE

 

 
 
 
 

The ATM is 50. Here’s how a hole in the wall changed the world

The olden days. Image Lloyds Banking Group Archives & Museum.

Next time you withdraw money from a hole in the wall, consider singing a rendition of happy birthday. For today, the Automated Teller Machine (or ATM) celebrates its half century.

Fifty years ago, the first cash machine was put to work at the Enfield branch of Barclays Bank in London. Two days later, a Swedish device known as the Bankomat was in operation in Uppsala. And a couple of weeks after that, another one built by Chubb and Smith Industries was inaugurated in London by Westminster Bank (today part of RBS Group).

These events fired the starting gun for today’s self-service banking culture – long before the widespread acceptance of debit and credit cards. The success of the cash machine enabled people to make impromptu purchases, spend more money on weekend and evening leisure, and demand banking services when and where they wanted them. The infrastructure, systems and knowledge they spawned also enabled bankers to offer their customers point of sale terminals, and telephone and internet banking.

There was substantial media attention when these “robot cashiers” were launched. Banks promised their customers that the cash machine would liberate them from the shackles of business hours and banking at a single branch. But customers had to learn how to use – and remember – a PIN, perform a self-service transaction and trust a machine with their money.

People take these things for granted today, but when cash machines first appeared many had never before been in contact with advanced electronics.

And the system was far from perfect. Despite widespread demand, only bank customers considered to have “better credit” were offered the service. The early machines were also clunky, heavy (and dangerous) to move, insecure, unreliable, and seldom conveniently located.

Indeed, unlike today’s machines, the first ATMs could do only one thing: dispense a fixed amount of cash when activated by a paper token or bespoke plastic card issued to customers at retail branches during business hours. Once used, tokens would be stored by the machine so that branch staff could retrieve them and debit the appropriate accounts. The plastic cards, meanwhile, would have to be sent back to the customer by post. Needless to say, it took banks and technology companies years to agree common standards and finally deliver on their promise of 24/7 access to cash.

The globalisation effect

Estimates by RBR London concur with my research, suggesting that by 1970, there were still fewer than 1,500 of the machines around the world, concentrated in Europe, North America and Japan. But there were 40,000 by 1980 and a million by 2000.

A number of factors made this ATM explosion possible. First, sharing locations created more transaction volume at individual ATMs. This gave incentives for small and medium-sized financial institutions to invest in this technology. At one point, for instance, there were some 200 shared ATM networks in the US and 80 shared networks in Japan.

They also became more popular once banks digitised their records, allowing the machines to perform a host of other tasks, such as bank transfers, balance requests and bill payments. Over the last five decades, a huge number of people have made the shift away from the cash economy and into the banking system. Consequently, ATMs became a key way of avoiding congestion at branches.

ATM design began to accommodate people with visual and mobility disabilities, too. And in recent decades, many countries have allowed non-bank companies, known as Independent ATM Deployers (IAD) to operate machines. The IAD were key to populating non-bank locations such as corner shops, petrol stations and casinos.

Indeed, while a large bank in the UK might own 4,000 devices and one in the US as many as 12,000, Cardtronics, the largest IAD, manages a fleet of 230,000 ATMs in 11 countries.


Bank to the future

The ATM has remained a relevant and convenient self-service channel for the last half century – and its history is one of invention and re-invention, evolution rather than revolution.

Self-service banking and ATMs continue to evolve. Instead of PIN authentication, some ATMS now use “tap and go” contactless payment technology using bank cards and mobile phones. Meanwhile, ATMs in Poland and Japan have used biometric recognition, which can identify a customer’s iris, fingerprint or voice, for some time, while banks in other countries are considering them.

So it’s a good time to consider what the history of cash dispensers can teach us. The ATM was not the result of a eureka moment of a single middle-aged man in a bath or garage, but from active collaboration between various groups of bankers and engineers to solve the significant challenges of a changing world. It took two decades for the ATM to mature and gain widespread, worldwide acceptance, but today there are 3.5m ATMs with another 500,000 expected by 2020.

Research I am currently undertaking suggests that ATMs may have reached saturation point in some Western countries. However, research by the ATM Industry Association suggests there is strong demand for them in China, India and the Middle East. In fact, while in the West people tend to use them for three self-service functions (cash withdrawal, balance enquiries, and purchasing mobile phone airtime), Chinese customers consumers regularly use them for as many as 100 different tasks.

Taken for granted?

Interestingly, people in most urban areas around the world tend to interact with the same five ATMs. But they shouldn’t be taken for granted. In many countries in Africa, Asia and South America, they offer services to millions of people otherwise excluded from the banking sector.

In most developed counties, meanwhile, the retail branch and the ATM are the only two channels over which financial institutions have 100 per cent control. This is important when you need to verify the authenticity of your customer. Banks do not control the make and model of their customers’ smart phones, tablets or personal computers, which are vulnerable to hacking and fraud. While ATMs are targeted by thieves, mass cybernetic attacks on them have yet to materialise.

The ConversationI am often asked whether the advent of a cashless, digital economy heralds the end of the ATM. My response is that while the world might do away with cash and call ATMs something else, the revolution of automated self-service banking that began 50 years ago is here to stay.

Bernardo Batiz-Lazo is professor of business history and bank management at Bangor University.

This article was originally published on The Conversation. Read the original article.