Banks are outsourcing higher Capex obligations and to aid their...

Banks are outsourcing higher Capex obligations and to aid their ROI’s. referred to as BLA model.

This is an excerpt from the CMS Info Systems (CMSINFO.BSE) research


ATM Deployment Data by the company DRHP

Approximately 110,000 new ATMs will be cumulatively added, with an additional 198,000replacement demand; more than half of these will be deployed under the BLA model. 365,000 ATMs are likelyto be installed, driven by pent-up demand and the need to address under-penetration in the SURU regions, as wellas a shift from CAPEX to OPEX-based deals for banks (e.g. BLAs), and with additional upside expected giventhe increase in interchange fees. The total ATMs (incremental requirement) is expected to increase from 43,000in Fiscal Year 2022 to 61,000 in Fiscal Year 2027, predominantly driven by the replacement of ATMs. In orderto address this demand for new and replacement ATMs, banks are likely to prefer a BLA operational model – onethat can reduce CAPEX costs as well as ensure that the demand for the market is met. This is one of the keydrivers for the BLA market which is expected to grow from 86,000 ATMs in Fiscal Year 2021 to 180,000 ATMsby Fiscal Year 2027.

Benefits The company that can derive from this Managed Services business Which Provides BLA Services( When banks out Source the ATM deployment via BLA model) they managed service segment will benefit out by installing and maintaining these ATM’s if they win the contracts and tech solutions segment will benefit by AI remote monitoring revenue
And cash management will benefit by ATM replenishment service.