ABN Amro, Euronet ink deal for ATM outsourcing

ABN Amro Bank has outsourced its entire automated teller machine (ATM) operations in the country to ATM services provider, Euronet India.

Apart from outsourcing management of the existing network of 90 ATMs, the bank has also engaged Euronet to set up another 200-300 ATMs for it in 12 months.

Euronet will invest Rs 40-60 crore to increase ABN Amro's ATM network as per the bank's expansion plans. Euronet did not disclose the value of the outsourcing deal with ABN Amro.

The bank plans to add 200-300 ATMs in the next one year, said Paul Abraham, ABN Amro Bank's chief operating officer for India and Middle East.

The ownership of existing ATMs will continue to be with the bank. The new ATMs will be complete end-to-end solution provide by Euronet, which will not only own the ATMs but will also lease properties for housing ATMs.

The locations for new ATMs will be selected by the bank itself, while the rest of the logistical implications will be taken care by Euronet.

As per an agreement, announced today, Euronet India will take over the operation of the bank's ATMs and provide end-to-end ATM outsourcing services, which include network management and monitoring, help desk and related maintenance work from its operations centre in Mumbai.

"With the addition of ABN Amro Bank (India), Euronet now provides ATM outsourcing services for five out of the six multinational banks operating in the consumer banking space," said Loney Antony, managing director, Euronet India.

The Indian subsidiary of Nasdaq-listed Euronet handles 5,500 ATMs in shared network with 14 million cardholders accessing them. It also handles on-line shared ATM facility provided by a group of 12 Indian banks.

So far, Euronet has such ongoing alliances with Deutsche Bank, IDBI Bank and Development Credit Bank (DCB).