CMS Info Systems expects number of ATMs will rise – BusinessLine
CMS Info Systems expects the number of ATMs in the country to expand and also foresees more banks choosing to go for managed services by third parties to operate them.
“There is tremendous headroom for the market to grow. CMS is a large player in the segment and we are very positive about the market,” said Manjunath Rao, President, managed services business, CMS Info Systems.
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CMS Info Systems expects the number of ATMs in the country to expand and also foresees more banks choosing to go for managed services by third parties to operate them.
“There is tremendous headroom for the market to grow. CMS is a large player in the segment and we are very positive about the market,” said Manjunath Rao, President, managed services business, CMS Info Systems.
The managed services or brown label ATM market was about ₹6,800 crore in 2020-21 and is expected to reach a size of ₹17,090 crore by 2026-27, he said.
The company has won contracts worth ₹13,000 crore for brown label ATMs and managed services with its key customers including State Bank of India, ICICI Bank and HDFC Bank.
According to Rao about 86,000 ATMs were outsourced by banks in 2020-21 with private banks being the early adopters of brown label ATMs.
However, public sector banks are also now looking at this seriously and lenders including SBI, Bank of Baroda and Bank of India have issued requests for proposal for about 20,000 brown label ATMs in the last 18 months.
Order book
In terms of remote monitoring also, CMS Info Systems is very upbeat about the potential given the priority to security at ATMs.
As of July 31, 2021, CMS had an order book of 14,920 ATM remote monitoring sites from two bank customers. It has already deployed services at about 6,000 sites
“By sometime in 2022, we will be probably the largest remote ATM monitoring service provider,” Rao said.
The number of sites for ATM remote monitoring is expected to increase from 4 lakh in 2020-21 to about 5.8 lakh by 2026-27.
India is the world’s third largest ATM market with about 2.12 lakh ATMs deployed as on October 31, 2021 as against 2.09 lakh ATMs as on October 31, 2020.
Meanwhile, CMS is also in the process of expanding three other new business areas, which include remote monitoring outside of the ATM and banking sectors, end-to-end currency management and financial services distribution.
