Portugal is Expanding Banking Access in Rural Areas with the 'Social ATM' Project

The Portuguese government has launched a new social banking project called "Multibanco + Perto" for citizens in rural areas who lack access to bank branches or ATMs. Supported by the Ministry of Economy and Regional Cohesion, this initiative aims to integrate the population in disadvantaged areas into the financial system by providing them with the opportunity to carry out at least basic financial transactions. Digital payment terminals (SmartPOS) are being used within the scope of the project, which is carried out in partnership with the Bank of Portugal, SIBS, and the National Association of Parishes (ANAFRE). These devices are designed to have the capacity to perform approximately 90% of the public's most frequently used transactions. Officially launched on Sunday, this pilot application aims to ensure social and regional equality across the country.

The digital terminals in question meet important daily financial needs such as cash withdrawals, bill payments, and adding balances to mobile phones and public transportation tickets. Furthermore, this system allows citizens to check their account balances and recent transactions, offering basic banking services in a comprehensive manner. One of the most notable features of the project is its flexible structure developed for the elderly or individuals with mobility restrictions. The ability of these devices to be brought directly to people's homes to provide services ensures that those who are physically unable to go to ATMs can also benefit from this service. Consequently, a major inequality in access to banking services is eliminated, and the risk of financial exclusion is significantly reduced.

The first official protocol of the project was signed in Tó, a parish of the Mogadouro municipality in the Bragança district. Residents living in this small village with a population of approximately two hundred previously had to travel exactly 18 kilometers to the nearest municipal center to withdraw cash. Now, thanks to these terminals, they can easily perform all the financial transactions they need by simply going to their parish center. Later this week, the same terminals will be opened for service in various parishes of the Mértola municipality in the Beja district, followed by the Coriscada parish of Mêda in the Guarda district. These locations are among the areas identified as having the most critical levels of ATM coverage in a report published by the Bank of Portugal in 2022.

The Bragança district, located in northeastern Portugal, stands out as the region most affected by the lack of banking services in the country. According to statistics, only 25 of the 236 parishes in the district have banking or payment services in their immediate vicinity. This system, which will be introduced in 30 more parishes during the pilot phase, serves as a testing ground for evaluating the system's effectiveness and potential future expansion steps. When examining data nationwide, the scale of the situation becomes clearer; it is reported that there are 1,276 parishes without access to any bank branch or ATM within a 5, 10, or 15-kilometer radius. This geographical deficiency has turned into a serious social problem concerning approximately 41% of the Portuguese population and directly affecting more than 740,000 people.

According to the model announced by the government, parish administrations (juntas de freguesia) will be responsible for the daily management of these devices and the smooth operation of the system. In addition, operational processes such as providing the cash withdrawn by citizens and transferring the necessary liquidity to the system will be carried out by local governments. Minister of Economy and Regional Cohesion Manuel Castro Almeida emphasized that this project brings technology to the population in the country's inland regions, offering them previously inaccessible services and strengthening socio-economic inclusion. In the upcoming periods, depending on the results of the pilot application, the installation of traditional fully automated ATMs in addition to or instead of the smart terminal application in some parishes may be considered. It was announced that the ultimate goal is to ensure that almost all individuals living in Portugal benefit from modern, secure, and accessible banking services.