How ATM Managed Services Market Is Positioned in India?
Traditionally, people in India used to be highly dependent on local money lenders and public sector banks for withdrawing cash or for taking up the loans for fulfilling their cash requirement. After introduction of private banks such as HDFC, UTI (Axis Bank), ICICI and IDBI bank, these banks have started expanding their ATMs since the year 1994. Currently ATM management services market is at a developing stage. The ATM Managed Services Market is moderately fragmented among top 6-7 players which constituted ~% of the revenue share though there are number of smaller players existing in the market. Indian government during August, 2014 has initiated the scheme of opening up of bank account at zero balance under Pradhan Mantri Jan Dhan Yojana (PMJDY). This led to expansion in the number of transactions performed in an ATM as debit card users in India increased significantly. India ATM managed services market size in terms of revenue has increased from INR ~ million in FY’ 2016 to INR ~ during the year FY’ 2021.
RBI passed the law to increase the penetration of ATMs in rural areas of India to meet the desired aim of financial inclusion which further supported the growth of ATM managed service market. Over the span of last five years, the number of ATMs installed has increased by ~ ATMs from ~ as of 31st March 2016 to ~ as of March 31st 2021. As of 31st March 2021, approximately ~% of the ATMs are being outsourced by the banks as Banks observed that outsourcing an off-site ATM is much more cost effective instead of managing them by the banks. It is clearly witnessed that banks have been increasing the number of ATMs which they outsource to MSPs, which has been counted as primary reason for increase in revenue garnered by ATM managed services market.
Government announced demonetization of currency in November, which led to shortage of currency circulation in the economy and impacted ATM managed service market during FY 2017. The ATM managed services industry was again affected during FY’2021 due to the lockdowns and restrictions caused by the COVID-19 global pandemic.
How are the ATMs being managed in India?
In India, there are four types of ATMs which exist for the management. These are namely Managed Services (MSPs), Brown label ATMs (Completely Outsourcing/IADs), ATMs managed by banks and White label ATMs. Majority of ATMs are from managed services which were recorded at ~ ATMs as on 31st March 2021. However, Brown Label ATMs has been recorded as ~ in numbers as of 31st March 2021. These ATMs are owned by banks and further deployed to ATM management companies for their management.
As of 31st March 2021, ~ ATMs are entirely owned and managed by banks which are less as compared to number of brown label ATMs operated in India. On the other side, penetration of White label ATMs in India is quiet low as compared to other ATMs operating in the market as only ~ ATMs are installed in India as of 31st March 2021.
White label ATMs in India have their penetration majorly in semi-urban and rural areas as government is encouraging non-banking entities to open white label ATMs in these areas to reduce the shortage of ATMs and financial services in rural areas of the country. It was recorded that as of March 31st 2021, ~ White label ATMs exist in rural centers, ~ WLAs in semi urban centers, ~ in metro centers and ~ in urban centers.
Which Type of ATM Machines are Operated in India?
In India, ATM machines are primarily of two types which are Cash dispensing machine (CDM) and cash recyclers. Cash dispensing machine have dominated the number of ATMs as they have high percentage share as compared to number of cash recycler machines recorded at approximately ~% as of 31st March 2021. However, number of cash dispensing machines operating in India was observed to be ~ as of 31st March, 2021.
Majority of the ATM cash recycler machines have been observed in the Metro cities and urban areas as people are using these ATMs to save their time in reaching out to a particular bank branch and standing in a queue to deposit the money. However, cash recyclers are not widely present in rural areas owing to limited know how of the machines.
Major players in the market which manufactures the CDM are NCR Corporation, AGS Transact, Hitachi Payments and others. During FY’2021, it was recorded that State Bank of India had the most of number of Cash Recycling Machines deployed which was ~ number of machines, followed by Axis Bank and Bank of India with ~ and ~ number of cash recycling machine units installed.
Overview of the Indian economy
Indian Economy’s long-term growth potential is positive due to the penetration of young population, corresponding low dependency ratio, robust savings and investment rates, and increasing globalization of the economy. India is world’s sixth largest economy by nominal GDP and third largest by purchasing power parity (PPP) during 2020.The country is positioned at 162ndrank in the World in per capita GDP (nominal) with USD ~as of 2021.
Key Segments Covered in the Report:-
ATM Managed Services Market
Market Size – By Revenue
Market Segmentation – By Type of Service Offerings (Site Management, Cash Management, ATM Supply, Transaction Processing, Repair and Maintenance, Cash Reconciliation Statement, Content and Electronic General Management)
Market Segmentation – By Business Model (Managed Services, Brown Label ATM, Managed By Banks, White Label ATM)
Market Segmentation –By ATM Machine (Cash Dispenser and Cash Recycler)
Market Segmentation – By Model (Fixed Pay, Variable Pay)
Market Share of Major Players in the ATM Managed Services Market
Cash Management Market
Market Size by Revenue
Market Segmentation (ATM Replenishment, CIT, CPD and Others)
Market Share of Major Players – By no. of ATM Replenished
Market Share of Major players – By Revenue
ATM Supply Market
Market Size by Revenue
Market Share of Major Players by no. of ATMs supplied
Key Topics Covered in the Report:-
India ATM Managed Services Market Size (FY’2016-FY’2021)
India ATM Managed Services Market Overview
India ATM Managed Services Market Segmentation by Type of ATMs (Managed Services, Brown Label ATM, Managed By Banks, White Label ATMs)
India ATM Managed Services market Segmentation by Type of ATM Machine (Cash Dispensing and Cash Recyclers)
India ATM Managed Services Market Segmentation by Service Offerings (ATM Repair and Maintenance, ATM Site Management, Transaction Processing, Cash Reconciliation Statement, Content and Electronic Journal Management)
India ATM Managed Services Market Segmentation by Business Model (Fixed Pay Model and Variable Pay Model)
India ATM Cash Management Services Market Segmentation by Services (ATM Replenishment, CIT, CPD and Others)
India ATM Managed Services market Ecosystem and Value Chain Analysis
Snapshot on India ATM Cash Management Services Market.
Decision Making Process and Tender Process Applicable In India ATM Managed Services Market
Trend and Developments In India ATM Managed Services Market
Issues and Challenges In India ATM Managed Services Market
Impact of Demonetization and COVID-19 on the ATM Managed Services Market
Current Deployment and Future growth of Cash Recycling Machines in India
Recent Investment Details (Mergers, Acquisition and Partnerships) In India ATM Managed Services Market
Complete Competition Analysis Including Heat Maps &Strength and Weakness Of The Major Companies
Competitive Landscape of Major Players in India ATM Managed Services Market
SWOT Analysis of India ATM Managed Services Market
Future Outlook and Projections of India ATM Managed Services Market (FY’2021-FY’2026E)
Time Period in the Report:-
Historical Period: FY’2016-FY’2021
Forecast Period: FY’2022E–FY’2026E
Key Target Audiences:-
ATM Managed service providers
Cash management companies
White Label ATM Management companies
Public and Private Sector Banks including Payments Banks
Reserve Bank of India (RBI) and NHB
ATM Switch companies
Cash Reconciliation Companies
Digital Payments Merchants
VC & PEs, Investment Bankers
Tata Communication Payment
Writer Business Services
For More Information, refer to below link:-
Saudi Arabia ATM Managed Service Market Outlook to 2023 – By ATMs (On-Site ATM, Off-Site ATM, Mobile ATMs), by Service (Cash Management Services, ATM Repair & Maintenance, ATM Site Maintenance), By ATM Machine (Cash Dispensers, Cash Recyclers) and By Cash Management Services (Cash Replenishment Service, Cash-in-Transit, Others – Cash Processing, Cash Vaulting, Cash Reconciliation & Cash Forecasting)
Indonesia ATM Managed Service Market Outlook To 2023 – By ATMs (On-Site ATM, Off-Site ATM, Mobile ATMs), By Service (Cash Management Services, ATM Repair & Maintenance, ATM Site Maintenance & Others- Journal Management & ATM Reconciliation), By ATM Machine (Cash Dispensers, Cash Recyclers) And By Cash Management Services (Cash Replenishment Service, Cash-In-Transit, Others – Cash Processing, Cash Vaulting & Cash Forecasting)
Ankur Gupta, Head Marketing & Communications