The Road Ahead
The estimated total market size of ATM products in India is close to Rs. 350 crore, while the services revenue (AMC) is about Rs. 500 crore. According to a new RBR report on Global ATM Market and Forecasts Till 2011, India, along with other BRIC countries, is likely to invest heavily in ATMs during this period.

According to the report, Asia-Pacifics 476,000 ATMs account for 31% of the 1.5 mn installed ATMs worldwide, as compared to North Americas 451,097 ATMs, which accounts for 29%, and Western Europes 329,000 ATMs, at 21.3%.

Currently, in India, all the three equipment vendors, NCR, Diebold, and Wincor are also providers of services. NCR is a market leader with about 50% market share, seconded by Diebold at 44% and Wincors at 6%. There are four major networks, of which Cashnet and NFS charge Rs. 20 for a cash-withdrawal, while MITR and Cashtree charge Rs. 18 and Rs. 10 respectively.

Most banks today are proactively looking at focusing on their core business by outsourcing the management of the ATM to service providers. Outsourcing is becoming a preferred norm, with banks not wanting to spend in-house resources on day-to-day operational management of its ATM network.

At present, the penetration of ATMs is significantly higher in tier-1 towns than tier-2. Equipment vendors see deployment of the self-service channels, which are better suited to meet specific needs and challenges of the rural environment, as the key to go forward.

While ATMs have become an intrinsic part of the urban mindscape, the challenge lies in penetrating deeper into the rural areas across the country.