Over the last year and a bit, myself, Tony, Marty, Dr D and others have talked about TSN/TSI being more than just an ATM business. Personally I saw the ATM side as serving the present and a cash cow to develop the business. Demonitisation I believe was a hurdle to that, but naturally accelerated the digital transformation IMO.
I may be way off, but the traditional BPO model in India seems to be changing. Head count and manpower used to be the growth divers. AI changes the dynamic, where reach and service power is derived from the platform and its ability to "learn".
We talked about big data and how that could be used to qualify people for loans ages ago, ICIC Bank is using such a system across its ATMs now. Chatbots and offerings by banks and other business will, IMO, be made based on machine learning of behaviours of clients in real time. Leveraging platforms such as IBM's Watson etc through clever API's is the future IMO.
Naturally, with AI and high volume/lower margin digital transactions there will be consolidation in the industry. That is why I see a need for a rush to scale and am encouraged by Monhish's views. Time will tell, but happy to hold longer as the direction accords with my views.
Cheers
TSN Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
