Data from JETS Limited, the company managing the MultiLink network, reveal that over 83% of transactions at Jamaica’s automated banking machines (ABMs) are small-value withdrawals of $25,000 or less. This trend underscores the heavy reliance of Jamaicans on ABMs for everyday cash needs, rather than significant withdrawals.
The data show that 42.46% of all withdrawals fall between $100 and $5,000, with 40.49% ranging from $5,000 to $25,000. This pattern reflects the financial behavior of the majority of Jamaicans, who access cash mainly for daily expenses. According to Edmundo Jenez, CEO of JETS Limited, this was a key factor behind reducing the ABM withdrawal limit to $100,000 last year.
“We found that the demand for cash through the network was primarily for smaller sums,” said Jenez. “This adjustment not only met customer needs but also addressed operational challenges, such as machines running out of cash too frequently.”
Adjustments for Efficiency
While the network-level limit on withdrawals is capped at $100,000, individual banks can set their own limits at proprietary machines. Customers requiring larger withdrawals—accounting for less than 2% of transactions—must seek alternative solutions.
Jenez explained that the limit was introduced to mitigate the rapid depletion of cash reserves in ABMs. Machines, capable of dispensing up to 40 notes per transaction, previously allowed withdrawals of up to $200,000, causing operational inefficiencies.
“Large withdrawals drained the machines faster than we could reload them, so the limit was cut in half,” Jenez said.
Evolution of Banking Notes
The shift toward small-value transactions is reshaping the currency dispensed by ABMs. Lower-denomination notes, such as the $100 bill, are being phased out. By late 2024, only 66 ABMs still dispensed $100 notes, and the $50 bill had already disappeared from circulation in machines.
“We expect $100 notes to vanish entirely from ABMs within a year,” Jenez noted, citing the growing demand for higher denominations such as $500, $1,000, $2,000, and $5,000. Inflation has further accelerated this trend, as smaller denominations lose purchasing power.
Improvements in the ABM Network
The Bank of Jamaica’s efforts to enhance ABM efficiency are yielding results. By October 2024, 95% of Jamaica’s installed ABMs were operational—well above the 90% minimum required by the central bank. The number of functional machines rose to 855 out of 900 installed.
Deputy Governor Jide Lewis highlighted significant progress in recovery times for out-of-service machines, which dropped from an average of six hours to three. However, the central bank’s standards require urban ABMs to recover within one hour and rural ones within three hours, leaving room for further improvement.
“The recovery time is heading in the right direction,” said Lewis. “Banks are making strides, but they still need to meet the required operational and cash-dispensing targets.”
A Shift in Banking Priorities
Jamaica’s evolving banking landscape reflects changing consumer habits and economic conditions. The dominance of small-value transactions has not only influenced withdrawal limits but also prompted shifts in cash distribution strategies. With ongoing improvements in ABM performance and compliance, customers can expect a more reliable banking experience in the coming years.
