FSS bags Rs 110 crore ATM contract

Financial Software & Systems (FSS) recently announced that they have been awarded an ATM outsourcing contract worth Rs 110 crore by Bank of Maharashtra and Vijaya Bank, two leading public sector banks in India. The contract will involve end-to-end deployment and management of 525 ATMs for the banks across India.

“We are delighted to win the ATM outsourcing orders from Bank of Maharashtra and Vijaya Bank. Our company has been a leader in payment systems for over a decade, and we derive our strength from customer banks. With this order, FSSNet, our outsourcing services arm, is poised for rapid growth. The Indian banking industry is witnessing consolidation and focus on core competency, and outsourcing of non-core functions such as end-to-end management of ATMs will help achieve these,” said Rudhraapathy J, Director, FSS.

While Bank of Maharashtra has chosen the outsourced model for the ATMs over a five-year period, Vijaya Bank has opted for the own-ATM model, with a contract for ATM-managed services for eight years. In the first model, the ATMs and related services are outsourced to the third-party service provider, whereas in the second, the ATMs are owned by the bank and the services are outsourced. The ATM outsourcing contracts will include comprehensive maintenance, network monitoring, site security, cash forecasting and replenishment, and help desk reconciliation and settlement services.

For banks, the deployment and management of ATM networks and related EFT operations require substantial manpower and skills, besides considerable upfront investments and operating costs. Outsourcing of retail infrastructure management and financial transactions help in focussing on core business with optimum manpower, improved performance and reduced operational costs.

FSS will install ATMs and related equipment at the sites selected by the banks. It will drive them from the FSS centre in Chennai with back-office and disaster recovery support from Mumbai. Services provided by FSS include online transaction authorisation, ATM and debit card management functions, interchange support, transaction-reporting and back-office systems.

Said Mani Mamallan, Vice-president, ATM Infrastructure Management, FSS: “Infrastructure forms the backbone of any service provider. We are geared up to provide the full range of services in ATM deployment, transaction-processing, card management and back-office support, and will be able to meet the expectations of the banks.”