Fully Inter-operable ATMs for Ease of Elderly and Those with Mobility Needs

15 Dr Tan Wu Meng asked the Prime Minister what are the measures that MAS takes to ensure that the automated teller machines (ATMs) of local banks are fully interoperable to enable cash withdrawals and bank transactions to be more accessible to the elderly and those with mobility needs.

The Deputy Prime Minister (Mr Tharman Shanmugaratnam) (for the Prime Minister): I thank Dr Tan Wu Meng for his question. First, let me say that we have seen a very significant increase in the number of automated teller machines (ATMs) over the last decade. In fact, the total number of ATMs increased by 65% in the 10 years to 2015. Taken as a percentage of the resident population, the number increased by 47%, a very significant increase over 10 years. As a result, 90% of Housing and Development Board (HDB) households have a local bank ATM within 500 metres of their homes.

If I compare this, for instance, to Hong Kong, which is the closest to us as a densely populated city-state, the coverage of ATMs in Singapore is about 38% greater on a geographical basis, in other words, per kilometer (km), and also significantly higher on a per capita basis.

This coverage that I have mentioned is based on households' access to two local bank networks, that is, the Development Bank of Singapore (DBS)/Post Office Savings Bank network on one hand, and the United Overseas Bank/Overseas Chinese Banking Corporation network on the other. But each of these two ATM networks has a high coverage in their own right. In other words, each of them has at least 90% of HDB households having access to their ATM networks within 500 metres of their homes.

Furthermore, I should say that ATMs and bank branches are not the only ways in which people get convenient access to cash, and access to cash is, in fact, the main usage of ATMs today. Cash-back services at retail outlets enable customers to make cash withdrawals from their bank accounts when they make purchases at these outlets. For example, the three local banks have partnered 7-Eleven stores to provide cash-back services. That is quite convenient because they are in most neighbourhoods. DBS has also partnered eight other large retailers, such as Giant, Sheng Siong, Cold Storage and SingPost outlets to provide cash-back services.

So, to repeat, there has been a very significant increase in the ATM network in the last decade. There are currently, if I add the cash-back services and other banking touchpoints that exist, there are currently more than 3,600 banking touchpoints across the island. These are bank branches, ATMs and non-bank cash withdrawal points, taken together.

Nevertheless, we continue to monitor the accessibility of basic banking services in Singapore for different segments of the population. We know that the older population will become increasingly important. We also continue to work with the banks to promote awareness of the various other touchpoints besides the banks and ATMs. And we continue to promote, particularly for the younger and middle-aged population, the use of digital payments and other digital basic banking services.

Mdm Speaker: Dr Tan Wu Meng.

Dr Tan Wu Meng (Jurong): I thank the Deputy Prime Minister for his answer. I was wondering if the Monetary Authority of Singapore (MAS) might want to explore different ways of measuring the distance to the nearest ATM, if MAS is not already doing so. For example, distance according to "the crow flies" versus distance traversed on the ground by able-bodied pedestrians or, for that matter, barrier-free distance on the ground. These various metrics may be useful to understand how different segments of the population will be affected, especially as our population ages.

Mr Tharman Shanmugaratnam: I think that is a good point. The figures I mentioned are based on distances by how "the crow flies". I am not sure if this is wild crows or domestic crows, but I can check on that and let the Member know. It does make sense to look at walking distances and, in fact, we are using third-party software to try and estimate how long it takes and how far it is on walking routes in the various neighbourhoods.

Mdm Speaker: Mr Dennis Tan.

Mr Dennis Tan Lip Fong (Non-Constituency Member): I thank the Deputy Prime Minister for the answer. Just one supplementary question. Are there ongoing efforts on the part of the Ministry to encourage the banks and the two ATM networks to continue to consider the possibility of a closer association, so that there could be a better prospect of Singaporeans being able to benefit from the total number of ATM machines?

Mr Tharman Shanmugaratnam: I would not foreclose the issue. It is a commercial issue between the two bank networks, and there are considerations that are not just to do with branding, but some cost-benefit issues involved. There are also, for instance, issues of queues if you were to make everything completely interoperable. But we are not foreclosing the issue from MAS' point of view.

I just want to repeat the point that currently, each of the two local banks' ATM networks has a very high degree of coverage. They are competing with each other in the same neighbourhoods, but each of them has got at least 90% of HDB households having access to their ATMs within 500 metres of their homes. But it is something which we would continue to look at.

Mdm Speaker: Mr Png Eng Huat.

Mr Png Eng Huat (Hougang): I just have one supplementary question. Since there is already 90% coverage, for the remaining 10%, will the Ministry be working with the banks to ensure this 10% will be taken care of as well?

Mr Tharman Shanmugaratnam: My sentiments are in line with Members on this. We do want to have adequate coverage of basic banking services. We have to break that down into cash withdrawals, cash deposits, transfer of funds and different services which are used by different segments of the population. An ATM is not the only solution. It does cost something and it is not the only solution. We should maximise availability of other cash withdrawal touchpoints across the island. I am glad that the banks are doing this, not just with 7-Eleven stores but other stores, in a way that is convenient to residents.

So, let us take a holistic view, maximise access for the normal, basic transactions people need to make and be mindful of the older population because we do not want them to walk too far when they have to make a transaction. But it is not just a matter of ATM networks.

Mdm Speaker: Ms Sun Xueling.

Ms Sun Xueling (Pasir Ris-Punggol): Mdm Speaker, I would like to seek a clarification. For the distance of 500 metres for each household that the Deputy Prime Minister has mentioned, does that apply to families in new towns or is that a number for mature estates?

Mr Tharman Shanmugaratnam: It is a national average. Let me reiterate one point. We have, in fact, the densest network of ATMs internationally. Of course, it is not easy to compare across countries because there are very obvious geographical differences, but if I compare it with Hong Kong, which is the closest to us in its geographical and density characteristics, we have significantly more ATMs than Hong Kong, in fact, more than one-third more ATMs per kilometre. I am not saying that that is the only benchmark. We do want to improve the availability of basic banking services around the island. We will look at the ATM network to see whether access can be further improved, but it is not the only solution.

Mdm Speaker: Mr Cedric Foo.

Mr Cedric Foo Chee Keng (Pioneer): May I ask the Deputy Prime Minister whether or not the strategy of MAS is towards cashless society for Singapore? It seems to me that with our mobile penetration being very high at 150%, and with eight million mobile phones within our small city-state, clearly, that should be the strategy. If so, why would ATMs matter so much in the future?

Mr Tharman Shanmugaratnam: I am glad Mr Cedric Foo has raised this point and it is something which I referred to earlier. We are mindful of the fact that, for the older population, this does not come easily, so we do need to provide physical access. But the key strategy going forward is to maximise the use of digital modes, be it Internet or mobile, every way in which we can move away from cash and also improve the efficiency or the whole system, which means bringing down the cost of the payment system as a whole. That is the key strategy; and the Member has put it very well.

Mdm Speaker: Ms Chia Yong Yong.

Ms Chia Yong Yong (Nominated Member): Mdm Speaker, I have a supplementary question for the Deputy Prime Minister. In considering the issue of accessibility and increasing the number of banking touchpoints, given the vulnerability of the elderly as well as persons with mobility needs, it is important that the Government should also consider enhanced security measures.

Mr Tharman Shanmugaratnam: I agree. That is a very good point.