One of the world’s most distant countries, Tuvalu has announced its first ATM at the headquarters of Tuvalu’s National Bank in the village of Vaiaku, Funafuti, the country’s main island.
At Tuesday’s ceremony, the island nation showed historic changes of 12,000 people, which had never accessed an e-bank before. Attended by Prime Minister Feti Theo, the governor general, traditional leaders, members of the parliament, and representatives of the diplomatic and business sectors, the event celebrated the longstanding move towards financial modernization.
Until now, all Tuvalu banks have been made in cash. On payday, workers must queue at the bank to withdraw their pay. This is a process where long lines and access are often restricted after the bank closes at 2pm. Daily transactions in groceries, hotels and services remain almost entirely on a cash basis.
“Today is not only marking important opportunities, but it is historic as banks move into a whole new era not only in terms of services but also in terms of strategic orientation,” Theo said in his keynote address.
According to Siose Penitala Teo, the bank’s general manager, the total cost of ATMs launched in 2021 and the total cost of the SALE rollout exceeded $3 million.
“We were in the analog space the whole time. These were our dreams,” Theo said. “These machines aren’t cheap, but with government support and pure determination, we were able to deploy this service for people.”
The Prime Minister initially worked with external advisors, but later contracted with Fiji’s Pacific Technologies to Fiji to distribute and install the system. Five ATMs will be installed and 30 sales terminals will be installed throughout the island.
“We investigated the various options and conducted due diligence to find a cost-effective solution tailored to our customers’ needs,” Theo said. “That’s how we sourced ATMs and POS systems that are currently operational.”
For now, only prepaid cards are available on the machine. Teo said customers need to obtain a prepaid card before using ATMs.
The bank will then deploy debit cards issued by Tuvalu with the aim of providing visa debit and credit card capabilities that can be used overseas for travel and online purchases.
With many people having around 6,000 bank customers with multiple accounts, the introduction of e-banking is expected to ease congestion, reduce cash reliance and improve access to financial services across the outer island.
“We provide free services until people understand that,” Theo said. “We’ll look at the pricing in time, but now it’s about accessibility and progress.”
