The Dhanalakshmi Bank to outsource ATMs from Euronet

Mumbai: The Dhanalakshmi Bank Limited, a leading bank in South India has announced that it will completely outsource its ATM requirements from Euronet Services India (Euronet).

The bank is the first of the South Indian banks to opt for end-to-end ATM outsourcing and deployment comprising of site selection, implementation, maintenance, ATM installation and managed services.

Euronet will provide asset management services including procuring all the assets viz. ATM, VSAT, UPS, air conditioner, ATM site construction, for which the bank will pay monthly service charges. Euronet will also manage the entire ATM backbone and network installation and management. The company's leading switching software, Arksys, will be provided on an ASP basis. Its ATM management services will include cash management, cash replenishment, help desk, first line maintenance, second line maintenance and ATM operations. Euronet will also provide the VISA gateway services and help Dhanalaxmi Bank launch its debit card programme.

Says Loney Antony, managing director, Euronet, "Euronet has just completed its first full year of operations and the Dhanalakshmi Bank deal is a manifestation of our success. Apart from the backbone, we would also provide card management including issuance of ATM debit cards and its management through Visa Gateway. In today's outsourcing era, it makes immense sense for banks to focus on core competence and leave ATM deployment and management to service providers."

TR Madhavan, managing director and chief executive officer, Dhanalakshmi Bank, said, "The end-to-end ATM outsourcing agreement with Euronet is part of the innovation that Dhanalakshmi Bank is known for. We intend to aggressively penetrate our business in this region with a bouquet of value added services. We have always ensured that the customer remains the focus of all our activities and today's deal will provide a nationwide network of services to our discerning customers."

To begin with 100 ATM's will be outsourced to Euronet. Dhanalakshmi Bank will also connect to Cashnet, which operates around 3,000 ATMs spread across 200 cities, through its tie-up with leading banks like IDBI Bank, UTI Bank, CitiBank, Standard Chartered Bank and Corporation Bank.