Who needs a card to use an ATM?

SMS sent to initiator with 2nd part of 8-digit code

Do you really need to have an ATM card before using the machine to withdraw cash?
Is it possible to give a user a mobile money 'feel' that is enabled by an ATM machine?

I was intrigued this morning when I learned of Fidelity Bank's cardless ATM transaction. It's a transaction that enables an individual to transfer money from his or her Fidelity account, so that a non Fidelity Bank customer (recipient) can withdraw the money, using the bank's ATM!

How it works?
The initiator sends a short code to their telco (for now, this works for MTN and Vodafone subscribers). This connects them to their account(s). After choosing the account, they enter the phone number of the recipient, then specifies the amount to be transferred.

A SMS is sent to the recipient with the first part of an 8-digit code, needed for the withdrawal. The 2nd part of the code is sent to the initiator.
This is a security measure. The recipient therefore has to contact the initiator for the second part of the code.

Recipient at the ATM
The welcome screen has an option 'Cardless transaction', that the recipient chooses.
He/She then enters their phone number, followed by the 8-digit code, then the amount that was transferred.
The recipient has to withdraw ALL the amount that has been transferred.

Then viola!

Mobile banking has come to stay, and technologies/innovations such as this are welcome interventions.

I stumbled on this info while researching on ATM usage in Ghana. It was an assignment for the workshop I'm attending.

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