2013-09-03 10:07:24 - Mounting growth of white-label ATM terminals especially in rural areas and a stronger emphasis on financial inclusion will lead to increased installations of ATMs in the country in the future.
New Delhi: 02/09/2013- ATM’s have gained significance as a delivery channel for banking transactions in India. Rising economic development, rise in the income levels (especially in the urban areas) and the evolution of class banking to mass banking have driven the industry growth during the past decade. In India, ATM industry has grown at an exponential rate year on year. The first ATM launched in the Indian banking industry was installed by HSBC Bank based in Mumbai in 1987. However, presently almost every bank provides ATM facilities to their customers. ICICI banks, SBI group, Axis Bank, Punjab National Bank are some of the leading banks providing ATM facilities to the customers across India.
The arrival of ATM’s in India has
changed the methodology of withdrawing money, transferring funds from card to account, applying for various loans, paying various bills, booking air, train and movie tickets. While ATM enables a variety of transactions for customers, their major utility has been for withdrawal of cash and balance enquiry. However, nowadays ATMs are viewed as more than cash dispensing machines. The customers use ATMs to recharge their mobile phone pre-paid connections; pay their utility bills, for even mutual fund transactions.
Financial transactions through ATMs including withdrawal of money from ATM, cash deposits, bill payments as well as booking of railways, airways, hotels and other tickets form a major share in the form majority of the share in the total number of transactions through ATMs in India. On the other hand, non-financial transactions including balance inquiry or taking out the mini-statements and PIN change are picking up fast in the ATM industry scenario and are likely to hold considerable share in the future.
An inclination in the trend of outsourcing ATM functions and activities such as ATM site selection and installation of machines, site up keeping, card issuance and management, transaction processing, ﬁeld services and other solutions to connect ATMs by service providers has been highlighted in the country. With banks outsourcing their ATM services to a third party, they can concentrate more on core banking. There is better efficiency in ATM maintenance and certainly a speedy deployment alongside low cost with outsourcing ATMs.
Despite of the growth in number of ATM terminals in India over the past 10 years, the rural areas in the country has remained majorly under served in terms of the ATM terminals. Rural areas accounted for only 10.1% of the total number of ATMs deployed in the country in FY’2013. This has been because challenges such as high cost of setting up bank branches, low transaction volumes and inability of conventional ATM’s to serve rural folks have slowed down the rise in the banking channels in rural India. However, with an increase in financial inclusion by providing financial services to the lower sections of society at an affordable costs, expansion of multi-vendor ATM’s and solar powered ATM’s in semi-urban and rural areas in the country will lead to further development of ATM industry in the country.
According to research report, ‘India ATM Industry Outlook to 2018 - Increasing Penetration of White Label ATMs to Intensify Growth’, with the rise in the trend of outsourced ATMs in India, the original equipment manufacturers and vendors will also get adequate scope for handling ATM machines. Banks are gradually expected to reduce their ATM operation and are anticipated to emphasize on their core business.
“The ATM industry in India is projected to grow at a CAGR of 19.1% over the period FY’2014-FY’2018. The expansion of multivendor ATM’s, increase in the solar-powered ATM’s specially in semi-urban and rural areas and the emerging trend of White-label ATM’s in the country will aid the future growth of the industry”, according to the research analyst, Ken Research.
The report provides detailed overview on the ATM industry in India and aids readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help ATM manufacturing companies, banks and the outsourcing companies, Cash management, security solutions companies, M2M managed services companies and financial services consultants to align their market centric strategies according to ongoing and expected trends in the future.
For more information on the industry research report please refer to the below mentioned link: