Fast-expanding banking facilities in rural areas and small towns, growing number of bank card users, and supportive RBI policies are boosting the growth of the ATM business
Remember the days when queuing up at the cash counter of a public sector bank to even withdraw a Rs 100 note from your bank account was the norm? When sudden power failures or the cashier going away for a tea break kept several clinging on to the teller window in anticipation?
Well, things changed slowly, but slowly for bank customers after the introduction of automated teller machines (ATMs) in India in 1987, when HSBC Bank installed the first such machine in one of its branches in Mumbai.
The launch of ATMs was milestone in the country’s banking system, and today we cannot imagine our lives without this piece of technology. It is now increasingly percolating to rural areas and small towns, even as they dot nooks and crannies of big cities. While we withdraw money from these machines almost daily, we hardly think about what goes into manufacturing, maintaining, and managing the ATM machines and kiosks. About what makes this industry a shining example of India’s liberalized economy.
| Quick Facts on ATMs |
According to estimates, there are 1.7 million ATMs in the world. |
| It is believed that a new ATM is installed every five minutes globally. |
| India has around 40,000 ATMs. |
| Public sector banks alone have around 30,000 ATMs in India. The rest belong to the private sector and foreign banks. |
| Deployment of an ATM requires an investment between Rs 6 lakh and Rs 10 lakh. |
| Canada has 532 ATMs per million people, Hong Kong 402, China 66, while India has only 40. |
| 30 percent of ATM transactions are non-cash. |
| The ATM industry is projected to witness a CAGR of over 18 percent by 2013. |
The business of managing ATMs
Managing ATMs involves a wide range of services that are provided to banks by various specialist companies to keep customers satisfied. It is not just the deployment of the ATMs for the respective bank; there exist innumerable other services like installation of support devices like generators and UPSs, their maintenance, installation and configuration of networks and switches, VSAT devices for ATM-Bank-ATM or other types of communications, establishing and managing data centers, cash forecasting, reconciliation, transactions processing, managed services, and much more.
| Opportunity Areas |
| Manufacturing |
| Managing |
| Network services |
| Field services such as security and cash transactions |
| Manpower training and recruiting |
To simplify, beyond manufacturing, site implementation and installation of ATMs, the services in this industry can be divided into four main categories:
1. Transaction process: This includes management of transactions with due authentication. This involves managing the chain of communication 24x7 through switches from an ATM to the bank and its core services to cross-check with the account details of the person using the machine, verifying and authenticating the identity, and allowing the customer with go ahead signals back to the ATM.
2. Managed services: As we know, there are several other entities involved apart from the ATM in the given space: AC, the generator, the UPS, the electronic camera, furnitures and fixtures, lighting, etc. Monitoring of all these entities through different vendors comes under managed services. A proper back office is required, along with other crucial services under this category, like managing technical faults, troubleshooting, and providing the bank with information like location-wise cash forecasting for ATMs, and accounting and reconciliation.
3. Field services: These include cash-in-transit, vaulting, providing physical security, site maintenance with first and second level of servicing, and housekeeping activities. First-level maintenance (FLM) includes resolving light problem areas pertaining to equipment like currency jam, receipt jam in the machine, ACs, lighting. Second-level maintenance (SLM) goes into more serious technical issues with the ATM blockage, repair work of UPS, machine failure, and repair of VSAT devices.
4. Asset-related services: Banks prefer outsourcing these services to companies that offer packages for managing their ATMs and providing end-to-end solutions. There are two motives behind this. First, the banks can concentrate on their core functions of banking services rather managing IT infrastructure and troubleshooting. Second, outsourcing assets like an ATM, furniture and fixtures, ACs, generators, etc, is a more economic option than owning the required assets. Service providers further delegate the work to other respective vendors. For example, a service-providing agency delegates the order of ACs to an AC manufacturer/vendor; for electronic/physical security, it is delegated to security providers; and so on.
| Manufacturers/Managers |
| Company: NCR Corporation Services: Manufactures and installs ATMs, manages the ATMs, etc. India headquarters: Mumbai ATM manufacturing facilities in India: Pudducherry, Bangalore |
| Company: Diebold Systems Services: Manufactures and installs ATMs, manages the ATM’s, provides with physical/electronic security, etc. India headquarters: Mumbai ATM manufacturing facility in India: Goa |
| Company: Wincor Nixdorf Services: Manufactures and installs ATMs, manages ATMs etc. India headquarters: Mumbai |
These categories and services may be perceived differently by different work profiles. Hence, the placement of services are subject to the general understanding of ATM managing services. “Product-related services that include first- and second-level maintenance services and field-related services occupies around 99 percent of a bank’s demands of outsourcing,” says Sathyan P. Gopalan, managing director, Wincor Nixdorf, a Germany-based ATM manufacturer-cum-manager.
| Service Providers |
| Company: Euronet Services India Main services: Complete ATM management India headquarters: Mumbai |
| Company: CMS Computers Main services: Cash processing, cash management, cash-in-transit, vaulting, first-/second-line management, electronic/physical security, ATM management, etc. Headquarters: Mumbai |
| Company: Brink’s Arya Main services: Cash management, vaulting, electronic/physical security, etc. Headquarters: Mumbai |
| Company: Writer Corporation Main services: Cash management, transit services, maintenance, electronic/physical security, etc. Headquarters: Mumbai |
| Company: Security and Intelligent Services (India) Main services: Vaulting, cash-in-transit, electronic/physical security, etc. Headquarters: New Delhi |
| Company: Premier Shield Main services: Cash management, vaulting, processing, transit, electronic/physical security, etc. Headquarters: New Delhi |
In an ideal situation, the bank finalizes the area/location for an ATM installation, but for an ATM OEM the standard prerequisites are: basic shape and size of the room, for example, 8x10 sq. ft area, height of minimum 7 ft, AC outdoor unit permissions, society and municipality approvals, etc., says Gopalan.
Subscribe to this comment's feed
written by KISHAN GOPAL, June 12, 2011
CITY- NEW DELHI
STATE- DELHI-
PINCODE- 110059
ADDRESS. A 79 GULAB BAGH , UTTAM NAGAR
PLEASE FEEL FREE TO CONTACT NO. - 9211615226
written by MAJETI MASTAN RAO, May 30, 2011
written by Tirlok Chand Bedi, May 27, 2011
I have a prim location on road in agra at rambagh(vijay talkies) near punjab national bank.I am owner of vijay talkies. I will give my space for ATM using only..
written by ganesh, May 21, 2011
contact
9312886091
written by Paramjit Singh, May 21, 2011
at Doraha ,Near SBI BANK, Main GT ROAD DORAHA(LUDHIANA)PUNJAB PIN CODE 141421.
interested party can contact
09417269405,9463269805.
e-mail - gurpreet.singh8982@hotmai.com
written by Krishan, April 10, 2011
No ATM available in this area. Perfect place for ATM rental.
Contact: Krishan +91-9990376926
written by hari vazirani, March 19, 2011
i have 180 sq.ft.space available here good location in chembur camp.chembur(east).installing ATM machine.call me on 9820075898
written by Thirumalesh, March 09, 2011
We have 2500 sq ft of commercial space ideal for banks and also ATM's on South cross road, Basavanagudi, Bangalore.
Please contact me at 9900173696
written by akhilesh kumar, March 05, 2011
i have space to install atm in delhi that is (10*12) square feet.
at najafgarh road , uttam nagar,new delhi.
interested party can contact
9278808110,9999766180.
email id akhileshkumar369@yahoo.com
akhileshkumar369@gmail.com
written by Pabitra Mandal, February 07, 2011
written by karunesh, February 02, 2011
The site is ideal space for ATMs, or for any office space in the heart of city New Bombay
written by puneetj, January 30, 2011
I have a location where i would like HDFC Bank to install its ATM.
Area: 9*15 and 18*15 , On Road, Ground Floor, Porsche Locality
Polytechnic, School, Departmental Strores, Shops, Other Commercial Business and Houses all at walking distance.
Location is Dehradun(Rajinder Nagar).
Kindly contact if interested.
Puneet Jham(+919818762669)
written by Anis Ahmed, January 30, 2011
written by kanchan , January 23, 2011
i have nine spaces in delhi i am intersted putting the atm machine on my shops.intested person please call me urgenty om my mobile no:8800338430,8826223509
written by Sachin Sapra, January 12, 2011
contact no : 9811575755,9971014014
written by Vinesh Verma, December 16, 2010
INTERESTED PERSON MAY CONTACT
CELL NO. +91-9412962795
written by Sameer Ghag, December 08, 2010
Myself Sameer and i have commercial place in Mumbai (Malad) and i am interested in leasing it to a Bank who can have their ATM in this place. I was not so sure whom to approach to check if one of the banks would be interested to have their setups at my place.
Your input in-terms of whom to approach in this regard to inspect the place will be greatly appreciated.
written by Ankush, November 22, 2010
The site is ideal space for ATMs, or for any office space in the heart of city Agra
written by urvashi, November 20, 2010
written by Ruchi Singh, November 17, 2010
9313393403
written by SUNIL GULATI, November 14, 2010
written by PANKAJ BHARGAVA, November 07, 2010
PLEASE GUIDE ME AS I LIKE TO LEASE IT OUT FOR INSTALLING ATM. THE LOCATION CAN BE PRIME AS FAR AS FOREIGN TOURIST IS CONCERN.
written by nfl football jerseys, October 11, 2010
Hope visiting this page will grab your trust, all anyone really wants is a trustworthy supplier who they can count on to deliver on quickly, correctly, and top quality every time!
written by Ramesh P Nagda, October 07, 2010
written by Priyanka, August 18, 2010
I am looking to lease space for Bank ATM but not sure what is the procedure & whom to contact.
Would appreciate any inputs in the same regard.
Thanks,
Priyanka
priyanka.dhawan5@gmail.com
written by Sunny, August 17, 2010
Rajiv/Sunny
written by sushil kumar jain, July 25, 2010
Ph:-9999023251
Ph:-8802191872
written by sushil kumar jain, July 25, 2010
or onthis email id:jain.qwerty.mohit@gmail.com
written by manoj gupta, April 16, 2010
i am manoj gupta i have space availabe for bank atm prime location in dda complex c-10, dsice complex kalyan puri new delhi-110091
contect
011-22772429
mob*- 9350616968
written by manoj gupta, April 16, 2010
contect
011-22772429
09350616968
manoj gupta
written by Vinay, March 05, 2010
Call
Vinay Nangia 9810083505
written by Vipin Kumar Gupta, February 01, 2010
Interested person can contact
Gopal Gupta - 9818284232.
Vipin Gupta - 9899121083.
written by kshitij kumar chulet, November 19, 2009
written by Mitul, July 24, 2009
I want to know the effect of this rule as well as the new rule (that money can also be withdrawn from the swipe machines at the point of retail with a limit of Rs1000 per day).
written by Deepak Jha, July 20, 2009
This article is really of help.
I do have a similar problem as of Hemant. May I also seek assitant about the concerned autjority in this regard. Also what are the necessary details to be furnished to approaching Bank's.
Thanks,
Deepak
deepakjha85@gmail.com
written by Murali Chakravarthy, July 11, 2009
yes, ATMs and cash management are going to play an important role in future, both for the baking sector and the people. It is really a big leap in the history of ATMs with the linking of all the Bank's ATMs to a central network and making the withdrawals free from any ATM. I think, RBI has set the right trend in the right direction. Still lot more is there to be done in spreading the area net work and see that these ATMs are rachable in the rural areas and where ATM numbers are a few.
I am graduate, aged 57 years, having an experience of 30 plus years in managing an SSI, 7 years in a cash management company taking care of the operations and admin for two years in that. Now would like to get involved in identify the weaker areas ATMs/cash management - like locations, operations, etc.,and would like to get involved in manpower training and motivating them in the right direction. If any suitable opportunities are available, I would be interested in filling up the slot. Please respond to my given email id
written by Hemanth, June 11, 2009
My father owns a commercial place in Bangalore which has a good footfall and would be interested in leasing it to a Bank who can have their ATM in this place. I was not sure whom to approach to check if one of the banks would be interested to have their setup. This article gave some light to my struggle.
Your input in-terms of whom to approach in this regard to inspect the place will be greatly appreciated.
Thanks
Hemanth B Chandrashekar
Cell: 96110 89000
E-Mail: hemanth.chandrashekhar@gmail.com
written by Ashish Kolarkar, June 06, 2009
| < Prev | Next > |
|---|
MOBILE NO. 09416223452
EMAIL- tpanwar02@gmail.com
panwarpk31@rediffmail.com