For many people in Portugal’s most remote communities, withdrawing cash or paying a utility bill can mean travelling several kilometres to the nearest ATM. A new pilot project, Multibanco + Perto, aims to change that by bringing essential banking services directly to local parish councils.

The initiative, launched by the Government in partnership with the Bank of Portugal, SIBS and the National Association of Parishes (ANAFRE), is designed to improve access to banking services in areas where there are no nearby bank branches or Multibanco machines, idealiste reports.

The first terminal has been installed in the parish of Tó, in the municipality of Mogadouro, where residents previously had to travel around 18 kilometres to carry out basic banking transactions.

How the service works

Rather than installing traditional ATM machines, the project uses digital SmartPOS terminals capable of carrying out most of the services people would normally access through a Multibanco machine.

According to the Government, the terminals support around 90 percent of standard ATM operations, including cash withdrawals, balance enquiries and bill payments.

Available services include:

  • Cash withdrawals;
  • Payment of utility bills and other services;
  • Payments to public entities, including taxes and fees;
  • Mobile phone top-ups;
  • Loading compatible public transport passes;
  • Balance enquiries;
  • Viewing recent account transactions.

Customers use their bank cards in the same way they would at a conventional ATM.

Cash provided locally

Unlike traditional ATMs, the new terminals do not store cash.

Instead, participating parish councils provide the money needed for withdrawals, with transactions processed electronically through the banking system. This allows residents to access cash locally without the need for a dedicated ATM.

The Government says the approach offers a practical alternative for communities where installing and maintaining a conventional cash machine may not be viable.

Addressing banking deserts

The project targets areas with limited access to banking infrastructure, particularly in remote parts of Portugal.

According to a 2022 report by the Bank of Portugal, 1,276 parishes, around 41 percent of the country’s territory, have no banking services available within a radius of five, ten or fifteen kilometres, whcich affects around 740,000 people.

By expanding access points through parish councils, the Government estimates that an additional 700,000 people could gain easier access to essential banking services.

The portable nature of the SmartPOS terminals also allows parish staff to provide services to residents with reduced mobility by taking the equipment to their homes when necessary.

Pilot phase under way

Following the launch in Tó, the pilot is being extended to several other parishes, including São Miguel do Pinheiro, São Pedro de Solis and São Sebastião dos Carros, Espírito Santo and Santana de Cambas in the municipality of Mértola, and Coriscada in the municipality of Mêda.

The initial phase will assess how the service is used before any decision is made on a wider national rollout.

The Government has also indicated that the pilot will help determine the most suitable long-term solution for each community. While SmartPOS terminals may be appropriate in some locations, others could ultimately receive a traditional Multibanco ATM if demand and local conditions justify the investment.

Residents looking for existing Multibanco machines can continue to use the location feature available through the MB WAY app, which identifies nearby ATMs using a smartphone.