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India's ICICI Bank to sell ATM ads to help pay for network upgrade

October 14, 2001

INDIA --ICICI Bankplans to generate revenue by selling advertising space on its ATM screens, as part of its move to increase its ATMs from 608 to 850 by the end of 2001.

The bank plans to increase its ATMs by two machines per day, and hopes to defray the upgrade cost by selling ads. According to a report in The Asian Banker, an eight- to nine-minute advertising slot on the ATM welcome screen will cost 1,800 rupees ($37.50) per machine monthly. The bank's general manager, O P Srivastava, told Asian Banker that the company will promote brands that match the profile of the customers using their ATMs. "As a 50:50 ratio exists between in-house ads and other brands through the ATM screens, ICICI Bank will also use its ATMs to promote its own products like house and car loans, mutual funds and bonds," he said.

After a merger with Bank of Madura, which was approved by The Reserve Bank of India in February, ICICI will become one of the largest private-sector banks in India. A study by the Retail Banking Research consultancy estimates world ATM installations will rise by 45 percent from about 800,000 machines in 1998 to approximately 1.15 million by 2004. Asia Pacific has the largest growth market with nearly 32 percent global share in 1998, which accounted for 253,000 installations. About 142,500 of these are in Japan. According to the same study, the banking industry worldwide has invested more than $30 billion in purchasing ATMs and cash dispensers.