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Executive Summary


The industry research publication titled ‘India ATM Managed Services and Outsourcing Market Outlook to 2019 - Spurred by Expansion of the ATM Network’ presents a comprehensive analysis of market size by value of the ATM Managed Services and Outsourcing Market in India, market segmentation by number of ATMs existing in the country by different models and by value, Outsourced ATMs in India by different banks. The report entails the market share analysis and company profiles of major players in the market and market dynamics. Comprehensive analysis on growth drivers, issues and challenges in the market, recent trends and developments and cost components and services rendered to banks by the service providers and recent investments in the sector has been presented in the report along with the future analysis.

The ATM industry in India is rapidly transitioning from the traditional methods of ATM operations into the internationally accepted ones. Companies operating in other sectors in India as well as abroad are eyeing the Indian ATM managed service and outsourcing market since the market offers immense potential.

While during 2008 and 2009, the transaction based model gained momentum, the revenue of the managed service market grew robustly till 2011. In the year 2012, bids for the deployment of ATMs for Public Sector Banks (PSBs) were invited. This period dampened the growth of the market since service providers quoted very low fee per transaction. Out of the 63,000 ATMs that were to be deployed, only 30,000 were actually deployed since it became difficult for companies to make the contract possible after bidding low. The ATM managed services and outsourcing market is as of now witnessing decent growth, which is expected to continue, at least in the short run.

It is estimated that INR ~ million was generated by service providers under the ATM managed services model, while INR ~ million under the brown label ATM model in FY’2014, which increased to INR ~ million and INR ~ million respectively during the period April 2014 to October 2014. The ATM managed services market can be further sub-divided on the basis on fixed pay model and variable pricing model. Although the fixed pay model has traditionally dominated the market, transaction based pricing is increasingly being resorted to by banks. Reasons behind the same being more quality service delivery on part of the service provider and overall cost benefit to the bank. In terms of revenue, INR ~ million was generated by service providers from the fixed pay model, while INR ~ million from variable pricing of ATM managed services from April 2014 to October 2014.

The cash management market in India is concentrated with the top four players capturing nearly ~% of the market. CMS Info Systems has been the clear leader in the cash management market since several years and commanded ~% share in FY’2014 with revenue of INR ~ million. The market size of ATM cash management system in India was estimated to be INR ~ million in FY’2011 which inclined to INR ~ million in FY’2014, thus showcasing a CAGR of ~% from FY’2011-FY’2014.
The business of ATM outsourcing has been growing exponentially in India as the ATM industry continues to move from banks’ managed ATMs to end to end deployment by service vendors. Managed services companies are increasingly venturing into the ATM deployment space, backed by private equity funding from investors. The managed services and outsourcing market is characterized by high level of competition. Market presence of the players tends to fluctuate as contracts for ATM management are entered into and expire within an average of 4-5 years.

Major players operating in the ATM managed services and outsourcing business include Prizm Payments, Tata Communications Payment Solutions, AGS Transact Technologies, Financial Software and Systems (FSS), Fidelity National Information Services (FIS) and Others.
From the period FY’2015-FY’2019, it is anticipated that the complete outsourcing ATM market will grow robustly at a CAGR of 34.3% and contribute ~% to the overall revenue of the ATM managed services and outsourcing market by FY’2019. Furthermore, it is believed that in the long run, completely outsourced ATMs will take over the ones under managed services, since cost benefit to the bank under this model is greater as compared to the managed services model.

Key Topics Covered
in the report

- India ATM Managed Services and Outsourcing Market Size by Value
- India ATM Managed Services Market Segmentation by Fixed Fee Model and Variable Fee Model
- India ATM Outsourcing Market Segmentation by ATMs Outsourced by Major Banks in India
- Major services rendered to banks
- Growth Drivers and Issues in India ATM Managed Services and Outsourcing Market
- Trends and Developments in India ATM Managed Services and Outsourcing Market
- ATM cost components and Services Rendered to Banks
- Company Profiles of Major Players
- Investments in the Sector
- India ATM Managed Services and Outsourcing Market Future Outlook and Projections

Table Of Contents

India ATM Managed Services and Outsourcing Market Outlook to 2019 - Spurred by Expansion of the ATM Network
TABLE OF CONTENTS

1. India ATM Managed Services and Outsourcing Market Introduction
Banking Industry in India
Overview of Indian ATM Industry
Advent and Reasons for Outsourcing ATM Services
2. India ATM Managed Services and Outsourcing Market Growth Drivers and Opportunities
2.1. Growing Number of ATMs in India
On-site and Off-site ATMs in Rural, Semi-urban, Urban and Metropolitan Areas
2.2. Advantages Attached to ATM Outsourcing for Banks/Financial Institutions
2.3. Increasing Issuance of Debit Cards
2.4. Increasing Number of Financial and Non-Financial Transactions on ATMs in India
2.5. Government Initiatives Towards Financial Inclusion
3. India ATM Managed Services and Outsourcing Market Issues and Challenges
3.1. Low Penetration of ATMs in India
3.2. Highly Competitive Market
3.3. Reduction in Number of Free Transactions at ATMs
3.4. Electricity Outages
3.5. Fixed Revenue for Service Providers in Contracted ATMs
3.6. Barriers to Business Operations in India ATM Managed Services and Outsourcing Market
4. Current ATM Management Models in India
4.1. Brown Label ATM Model
4.2. ATM Managed Services Model
General Eligibility Criterions for Availing Tenders by Banks for ATM Managed Services and Outsourcing
4.3. White Label ATM Model
5. India ATM Managed Services and Brown Label ATM Market Size, FY'2012-YTD October 2014
5.1. By Revenue, FY'2012-YTD October 2014
6. India ATM Managed Services and Outsourcing Market Segmentation
6.1. India ATM Managed Services Market Segmentation by Fixed Pay and variable Pay Models, FY'2012-YTD October 2014
6.1.1. By Number of ATMs, FY'2012-YTD October 2014
6.1.2. By Revenue, FY'2012-YTD October 2014
6.2. India Brown Label Market Segmentation by ATMs Outsourced by Different Banks, till October 2014
7. Major Cost Components and Profitability Analysis of Brown Label ATMs
8. India ATM Cash Management Introduction and Market Size
8.1. Market Share of Major Players in ATM Cash Management in India, FY'2014
9. India ATM Managed Services and Outsourcing Market Trends and Developments
9.1. PSB's ATM Outsourcing Deal and Impact on the ATM Managed Services and Outsourcing Market
9.2. Decreasing Management of ATMs by Banks
10. Major Investments in India ATM Managed Services Market, 2011-2014
11. Market Share of Major Companies in India ATM Managed Services and Outsourcing Market, FY'2014
12. Company Profiles of Major Players in India ATM Managed Services and Outsourcing Market
12.1. Tata Communications Payments Solutions
12.1.1. Company Overview
12.1.2. Service Offerings
12.1.3. Future Plans
12.1.4. Performance Indicators
12.2. Prizm Payments
12.2.1. Company Overview
12.2.2. Service Offerings
Card and Transaction Analytics
ATM Site Identification
Central Operations
ATM Second Line Maintenance
12.2.3. Future Plans
12.2.4. Performance Indicators
12.3. AGS Transact Technologies
12.3.1. Company Overview
12.3.2. Service Offerings
12.3.3. Performance Indicators
12.4. Financial Software and Systems Private Limited (FSS)
12.4.1. Company Overview
12.4.2. Product and Service Offerings
Card Management
Financial Inclusion
ATM Deployment and Management
ATM Managed Services
12.4.3. Performance Indicators
12.5. CMS Info Systems
12.5.1. Company Overview
12.5.2. Service Offerings
12.5.3. Future Plans
12.5.4. Performance Indicators
13. India ATM Managed Services and Outsourcing Market Future Outlook and Projections, FY'2015-FY'2019
13.1. By Revenue, FY'2015-FY'2019
13.2. By Number of ATMs, FY'2015-FY'2019
13.3. Cause and Effect Relationship Between Dependent and Independent Factors in India ATM Managed Services and Outsourcing Market
14. Analyst Recommendations
Service Providers- Potential Entrants and Existing Companies
Government
15. Appendix
15.1. Market Definitions
15.2. Abbreviations
15.3. Research Methodology
Data Collection Methods
Approach and Assumptions
Final Conclusion
15.4. Disclaimer

LIST OF FIGURES

Figure 1: Evolution of ATM Outsourcing in India
Figure 2: Growth in Number of ATMs in India, FY'2009-FY'2014
Figure 3: Credit and Debit Card Base in India in Million, FY'2009-FY'2014
Figure 4: Number of Financial and Non-Financial Transactions on ATMs in India in Million, FY'2012-YTD October 2014
Figure 5: Number of Accounts Opened Under Pradhan Mantri Jan Dhan Yojana (PMJDY) in Million, September 2014-November 2014
Figure 6: ATM Penetration in India, FY'2009-FY'2014
Figure 7: ATM Management Models in India
Figure 8: Division of ATMs in India by Different ATM Management Models in Percentage (%), FY'2012-YTD Oct 2014
Figure 9: Brown Label ATM Model in India
Figure 10: ATM Managed Services Model
Figure 11: India ATM Managed Services and Outsourcing Market Segmentation by Managed Services and Brown Label ATM Model on the Basis of Revenue Contribution in Percentage (%), FY'2012-YTD October 2014
Figure 12: India ATM Managed Services Market Segmentation by ATMs under Fixed Pay and Variable Pay Models in Percentage (%), FY'2012-FY'2014 and Seven Months Ending October 2014
Figure 13: India ATM Managed Services Market Segmentation by Fixed Pay and Variable Pay Models on the Basis of Revenue Contribution in Percentage (%), FY'2012-FY'2014 and Seven Months Ending October 2014
Figure 14: Share of Major Banks in Outsourced ATMs in India in Percentage (%), October 2014
Figure 15: India ATM Cash Management Market Size by Revenue in INR Million, FY'2011-FY'2014
Figure 16: Market Share of Major Players in India ATM Cash Management Market in Percentage (%), FY'2014
Figure 17: Number of ATMs Managed by Banks, FY'2012-YTD October 2014
Figure 18: Market Share of Major Players in India ATM Managed Services and Outsourcing Market on the Basis on ATMs Managed and Deployed in Percentage (%), FY'2014
Figure 19: Tata Communications Payment Solutions Revenue from ATM Managed Services and Deployment in INR Million, FY'2012-FY'2014
Figure 20: India ATM Managed Services and Outsourcing Market Future Projections on the Basis of Revenue Contribution in Percentage (%), FY'2015-FY'2019
Figure 21: India ATM Managed Services and Outsourcing Market Future Projections on the Basis of Number of ATMs in Percentage (%), FY'2015-FY'2019

LIST OF TABLES

Table 1: Number of On-site and Off-site ATMs in India, FY'2009-FY'2014
Table 2: Number of ATMs in Rural, Semi-urban, Urban and Metropolitan, FY'2009-FY'2014
Table 3: Number of ATMs in India under Different ATM Management Models, FY'2012-YTD Oct 2014
Table 4: General Eligibility Criterions for Availing Tenders for ATM Managed Services and Outsourcing
Table 5: India ATM Managed Services and Outsourcing Market Size and Segmentation by Managed Services and Brown Label ATM Model on the Basis of Revenue in INR Million, FY'2012-YTD October 2014
Table 6: India ATM Managed Services Market Segmentation by ATMs under Fixed Pay and Variable Pay Models in Number, FY'2012-FY'2014 and Seven Months Ending October 2014
Table 7: India ATM Managed Services Market Segmentation by Fixed Pay and Variable Pay Models on the Basis of Revenue Contribution in INR Million, FY'2012-FY'2014 and Seven Months Ending October 2014
Table 8: Number of ATMs Outsourced by Major Banks in India till October 2014
Table 9: Major Fixed Cost Considerations in Setting-up an ATM in India
Table 10: Major Variable Cost Considerations in Operating a Brown Label ATM in India in INR
Table 11: Financial and Non-financial Transaction Fee Mix and Profitability Fluctuations Thereof
Table 12: Revenue of Major Companies in India Cash Management Market in INR Million, FY'2014
Table 13: Deals in India ATM Managed Services Market, June 2011-December 2014
Table 14: ATMs Managed and Deployed by Major Service Providers in Number till FY'2014
Table 15: Banks Serviced by Major ATM Managed Services Providers
Table 16: Service Offerings of Tata Communications Payment Solutions Ltd.
Table 17: Tata Communications Payment Solutions Ltd. Number of ATMs Managed and Deployed and Revenue from ATM Business, FY'2014
Table 18: AGS Transact ATMs and Cash Deposit Systems
Table 19: AGS Transact Technologies Revenue in INR Million and Number of ATMs Managed and Deployed, FY'2013 and FY'2014
Table 20: Financial Software and Systems (FSS) Revenue in INR Million and ATMs Managed and Outsourced, FY'2013 and FY'2014
Table 21: CMS Info Systems ATM Service Offerings
Table 22: CMS Info Systems Revenue in INR Million, FY'2012-FY'2014
Table 23: India ATM Managed Services and Outsourcing Future Projections on the Basis of Revenue in INR Million, FY'2015-FY'2019
Table 24: Number of ATMs under Brown Label ATM Model and ATM Managed Services, FY'2015-FY'2019
Table 25: Cause and Effect Relationship Analysis between Industry Factors and Expected ATM Managed Services and Outsourcing Market Prospects

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