CashLink foresees demand for low-cost dispensers

THE ECONOMIC TIMES (30-10-2006)

CashLink Global Systems, a part of HMA Group, expects the demand for low cost cash dispensers to pick up, driven by third party deployers of automated teller machines. Mr Harish k Murthi, Chairman, HMA Group, said as the ATM market matures, the share of cash dispensers, about 10-15% of the estimated 20,000 ATMs in the market, would expand. “The automation story is still unfolding in Indian banking sector,” he said. The growth of cash dispensers would be driven by third party deployers(or ISOs, independent sales organizations).

Smaller banks tend to go for ISOs for their ATM needs, especially for off-premise machines. ISOs in turn prefer cash dispensers for the cost advantage it offers. While regular ATMs could cost Rs 3 lakh to Rs 8 lakh, cash dispensers come for Rs 2.5 lakh to Rs 4.5 lakh, Mr Murthi said. As the number of ATMs grow, the transactions per ATM would come down.

This would put pressure on margins, making companies seek ways to cut costs, he said. CashLink, which started its operations about 18 months back, primarily provides third party maintenance service for ATMs, and presently takes care of a network of 500 ATMs across 50 locations.

It also markets US-based Triton’s low-cost ATMs in the country. It has sold about 50 machines so far. “The numbers are small. But we see a huge potential going forward,” he said. The growth would get a further boost if the central bank approves white label ATMs, he said.