Times change, new technologies emerge, trends evolve, and behaviours adapt. During the past five decades, Bank of Valletta has been through a constant journey of transformation in all aspects of its operations, but one significant area of evolution is undoubtedly the core banking transformation, which has seen BOV move from simple, over-the-counter servicing to a broader service experience that incorporates more modern channels such as electronic banking.
Since the introduction of the very first ATM in 1989, the bank went on to transform itself into a leader and catalyst of innovation with the introduction of card payments at retail outlets, the evolution of telephone banking, later developing into internet and mobile banking, to the more recent onset of wearable technology.
In November 1989, following months of preparation and hard work, BOV rolled out the installation of the first ATMs in four different branches. These were situated at Republic Street, Valletta, The Strand, Sliema, and at the Paola and Mosta branches. Additional ATMs were installed in the following years, with a full fleet of ATMs installed across Malta and Gozo by the late ’90s.
The installation of the first ATM was the culmination of a long process which involved the preparation and groundwork across various units within the Bank, together with the input of external stakeholders.
At the end of 1988, the bank signed an agreement with PTL Limited, a local supplier to provide the new ATMs, entrusting the expertise of De La Rue London for the provision of the first debit cards, and entered into an agreement with Telemalta to provide data line installations.
Staff members across various units were directly involved, especially the Information Technology Services Department (ITSD) which oversaw the ATM project. Several infrastructural works also had to be done for the ATMs to be placed within the façades of the bank’s branches.
Back then, staff members who formed part of the team at ITSD during this milestone recalled with a sense of pride and nostalgia the long hours and sleepless nights that preceded the long-awaited day of the first ATM installation. It was considered a nationwide project, a huge innovation for the time, and those who were in the driving seat of the project, felt proud to be ahead of time.
During the first month following the installation of the first four ATMs, daily on-site visits were conducted together with a software engineer from the supplier. Front-liners were given constant training on how to service ATMs which back then provided four basic services: cash withdrawals (up to Lm100 daily), envelope deposits, cheque book requests and deposit book requests.
Bank’s staff members at the branches where the ATMs were installed used to assist customers so that they could easily get used to the new technology. Customers responded very positively, so much so that the card base grew at a very fast pace in the first months after the introduction of the service.
The evolution of ATMs continued throughout the years. In 1990, the first off-site ATM was installed at Bulebel Industrial Estate, introducing the concept of having an ATM that is not installed within branch premises. In 1992, BOV ATMs started accepting international cards such as Visa and Mastercard, thereby widening the customer base significantly and opening up the service to even more possibilities.
In 2007, mobile top-ups became available through ATMs and in the following year, the fleet was gradually upgraded to accept instant deposits. With each step of the way, BOV confirmed its position as innovator, as well as its commitment to continue providing its customers with more service options that were never previously available.
In 2011, BOV was the first to introduce drive-through ATMs, a concept which is still exclusive to the bank today. Then in 2014, the bank introduced “talking ATMs” for the visually impaired, where one can connect an audio device and would be able to hear voice prompts when effecting cash withdrawal transactions.
With the inception of ATMs, debit and credit cards were introduced, which led to a natural transition to cashless payments over the years. In fact, in 1992 Bank of Valletta launched the very first epos machine and gradually these were distributed in retail outlets. Card payments became even more popular and with the evolution of technology, epos machines continued to advance.
Magstripe cards were the first to be launched and subsequently, Chip and PIN technology was introduced across the BOV card suite in 2009 changing the way from swiping cards to inserting them in an appropriate slot in the epos machine and making payments even more secure by entering the PIN for every transaction.
Fast forward to 2017, and BOV was the first to introduce contactless technology. From swiping or inserting cards in the machine, technology moved to tap-and-pay. By the beginning of January 2020, just in time before the COVID-19 pandemic hit, BOV was once again the first to migrate all VISA cards to wearable technology through an e-wallet, making payments even safer from a health perspective when the handling of cash was being discouraged by the health authorities. Initially, BOV VISA cards were enabled on Apple Pay, Garmin Pay and BOV Pay apps, then in 2022, Google Wallet replaced the BOV Pay app for Android users.
As technology continues to advance, Bank of Valletta is positioned to continue meeting evolving customer requirements. Looking ahead, some further enhancements are already in the pipeline, with BOV customers soon able to use contactless technology at our ATMs, enabling wearable and mobile phone devices to serve as a replacement for the physical card even while affecting ATM transactions.
Eventually, in the not-so-distant future, the production of physical cards will diminish, in line with our ESG targets. In the meantime, an eco-friendly version of debit and credit cards will soon be introduced, where cards will be made of recycled PVC.
BOV is already piloting soft POS technology, where mobile devices will replace the traditional machines at merchants and retail outlets. It is a continuously evolving journey, from a bold start many years ago, that is still active and evolving today, with even more exciting developments planned for the future.
This article was first published in the BOV 50th Anniversary magazine.