Uti Bank Seeks Advt Revenue From Atms

The next time you use the ATM you may see a premium car or an FMCG staring at you as you wait for the cash to be dispensed or your request to be processed.

UTI Bank is among the first in the domestic banking industry to capitalise on the sizeable investments made in its ATM network as it looks at the possiblity of third-party advertisments on its ATM network.

According to UTI Bank's senior vice-president Hemant Kaul, "We would like to utilise the ATM channel for creating a new revenue stream by promoting complimentary brands to advertise."

The bank is looking at advertisements of premium cars, fast moving consumer goods, etc.

 

"The brands should also be looking at the same age or appeal to the same set of customers the bank is targetting at," says Kaul. According to Kaul, in a sample survey done by the bank, around 80 per cent of the customers who used ATMs were below 39 years. Also around 80 per cent of the of the customers have an income of more than Rs 1.5 lakh per annum and 50 per cent of these had incomes of more than Rs 3,00,000 per annum.

The bank is looking at making use of the time gap between when the customer makes a request and when it gets processed. Internationally, there are two models for advertising through this channel.

"Some banks price it at per ATM per month, while others follow the model of transactions done through the ATM per month. We would be able to offer the advertiser different schemes like -- from a single ATM, to a particular region or city," said Kaul.

The bank has been able to move around 90 per cent of their withdrawal volumes through the ATMs. The amount of withdrawals through the ATMs of the bank have increased from Rs 19 crore in March, 2000, to around Rs 90 crore in May, 2001.

The bank has as of now 341 ATMs across the country and plans to increase the figure by another 200-250 by the end of the year.