AGS Transact Technologies achieves installation base of 25,000 ATMs in India

Succeeding in its endeavour of easing the increasing burden on banks in managing the operation of ATMs, AGS Transact Technologies Ltd, a leading ATM outsourcing and payments' company, announced that it has achieved an installation base of 25,000 ATMs in India, thereby becoming the fastest growing service provider in the business.

Rapid expansion has been witnessed in the ATM network in India, which is primarily ascribed to the entry of 'brown label' concept. This concept enables banks to set up a large network of ATMs in a short span of time in partnership with its service provider. AGS has been declared as the leader in outsourcing business by a recently released report by Ken Research titled "India ATM Industry Outlook to 2018 - Increasing Penetration of White Label ATMs to Intensify Growth". The company has managed to achieve the 'numero uno' position in the outsourcing business by providing the best technology and outsourcing solutions to the banks across the country. Partnering with Wincor Nixdorf, one of the worlds' leading providers of IT Solutions and Services for banks and retail businesses, AGS has successfully deployed around 25,000 ATMs for over 80 leading public and private banks in India.

The Indian banking sector today is grappling with the issue of financial inclusion. Operating cost of providing financial inclusion and charges levied on the users are important dimensions of the process. Technology can play an important role in reducing operating cost of providing banking services, particularly in the rural and unbanked masses. AGS Transact Technologies Ltd is taking a step forward together with Wincor Nixdorf towards financial inclusion by offering technologies that could drive growth to the unbanked masses.

The ATM network of a bank has now become a strategic asset and AGS has gained significant market share in the self-service terminals space and continues to add modern and contextual product and service offerings with the purpose of delivering value to its customers. According to an industry report by RBR, the ATM installations, which were at 80000 in 2008 will go up to approx 1,75,000 by 2015. Another research project carried out jointly by IBA and BCG Group estimates that the high growth rate of ATM additions over the past decade is set to continue with a projected 160-190K additions to the ATM network up to 2020 as opposed to the 41000 additions over 2001-09.

In the last decade, the banking sector has transformed into a technology driven domain. The ATM market is set to continue to grow. Penetration of ATMs in semi-urban and rural areas is still very low but the usage of ATMs in India is bound to increase manifold with financial inclusion as a top priority.

Commenting on the achievement, Mr. Ravi Goyal, Chairman and Managing Director, AGS Transact Technologies Ltd. said, "The installation of 25,000 ATMs across India is without a doubt something significant for us at AGS Transact Technologies Ltd. We are proud to be the fastest growing service provider in the business and excited about achieving sustainable, profitable growth."

With a rise in the number of installed ATMs in the country, the volume and complexity of work associated with managing operations has become a growing burden on financial institutions. Gauging the need, AGS commenced its outsourcing business, offering banks the dual benefits of managing costs and improving efficiency. The banks that we have partnered with are at ease when it comes to attaining financial inclusion", he added.

Mr. Lim Khoon Hong, Senior Vice President, Region Asia Pacific, Wincor Nixdorf Singaporesaid, "Partnering with AGS has been a real benefit to Wincor Nixdorf, giving us a competitive edge in the India market. It is all about trust and relationships in bringing out the best partnership desired. We are able to remain focus working out clear directions and targets, while at the same time bringing new innovations and value-added initiatives to the India market with our German technology. Wincor Nixdorf is looking forward to continue in giving them the utmost support, bringing this achievement to greater heights.

AGS is successfully deploying ATMs for leading private and public sector banks under this model. Banks such as ICICI Bank, Axis Bank, Dhanlaxmi and Ratnakar Bank, HDFC, Dena Bank, Corporation Bank, Yes Bank, etc. have adopted this system. Post implementation of this business model, banks have witnessed substantial reduction in capital investment ignited by non committal of Capex.

Source : Equity Bulls

Keywords