News

More Indian banks outsourcing ATMs to Euronet

February 15, 2004

MUMBAI, India - Euronet Services India Ltd., the Indian arm of Euronet Worldwide, has bagged a contract to manage the ATM services of Development Credit Bank (DCB).

According to a CXOtoday report, Euronet also expects to soon finalize ATM management contracts with Bank of Punjab, Centurion Bank and Karnataka Bank.

DCB is the latest bank to outsource its ATM management to Euronet. Three others which have previously outsourced their complete management of their ATM programs to Euronet are IDBI Bank, Standard Chartered and Citibank.

UTI and Corporation Bank have outsourced only their shared ATM services to Euronet India under its Cashnet network. With the addition of the newest financial institutions, Cashnet now includes about 3,000 ATMs.

(See related stories Euronet in shared ATM network deal with 4 Indian banks and Euronet making India hub of Asia/Pac operations)

Loney Antony, Euronet Services India's managing director said the firm uses VSAT connectivity for individual ATMs and VSNL leased lines for last mile connectivity.

There is a growing trend among Indian banks to outsource their IT infrastructures, including ATMs, according to the CXOtoday report.

"After the initial IT investments from the banking sector, it's time for customer retention and expansion of the customer base. Therefore there is a massive surge in ATM banking," Antony said.