How about running an ATM for a living? (my bold)
Rabin Ghosh
Friday, April 21, 2006 23:07 IST
Bank offers schemes to individuals, organisations.
MUMBAI: If it is right for pizzas, apparel brands, and computer training institutes, why not for the banks too?
Taking the franchisee model to the next level, state-owned Punjab National Bank has unveiled a scheme whereby it would be possible for an individual to set up and operate an automated teller machine (ATM) - even at his own premises — on a revenue share basis.
Till now, banks would own and operate the ATMS themselves.
Like a typical franchisee model, the scheme would run on a revenue share model sans loyalty fees, since there is no sale of product or service.
"Our ATMs are doing great business across the country. So there’s good benefit to be had for investors," said a PNB official in Delhi.
Such a deployment brings down the cost of an ATM.
According to bankers, cost of setting up an ATM (minus the real estate cost) ranges from Rs 10 - 15 lakh, which includes cost of the machine, connectivity, air conditioner, interiors etc. The running cost for an ATM (minus the lease rentals) ranges from Rs 65-70,000 per month. Lease rentals could range from Rs 10,000 to several lakhs a month depending upon the location and kiosk size.
Hence if the responsibility of setting up of an ATM is passed to an individual, then the bank can save the deployment cost upfront.
The bank saves the capital and the individual now has a new revenue source. And they happily lived ever after?
Not quite. There are several naysayers who point out that with companies like Euronet, FSS, and Efunds setting and taking maintenance responsibilities of a bank’s entire ATM network, such a model might end up increasing the number of interfaces for the bank.
"Can an individual meet the minimum SLA (service level agreement) requirement? Or would the entrepreneur would in turn need to tie up with an ATM service provider," asked a bank official.
Loney Anthony, managing director, Euronet Services India, said they are working on a concept of white branded ATMs, wherein the ATMs would not be branded by a bank and would honour customers of multiple banks.
This would free the user of searching for an ATM of his network. The company hopes to deploy such a network in about a years time, by when the regulatory approvals is expected to arrive.
nilremerlin
