IBM inks $40 million deal to transform the way people withdraw from ATMs

IBM and Bank Tech India Payments entered a $40 million deal, under which the IBM will manage ATMs for seven years.

BTI Payments, which is a White Label ATM (WLA) operator, has entrusted IBM to transform its IT Infrastructure and deploy and manage an incremental 4,000 Automated Teller Machines (ATM) across the country.

This IT Infrastructure transformation will help reduce operational and capital expenditure while adding business value.

In February last year, RBI gave licence to BTI Payments for WLA deployment to drive ATM penetration in rural India.

According to industry estimates, 60 per cent of India’s rural population does not have access to formal banking and financial services.

Meanwhile, BTI Payments wants to exceed the RBI target of 9000 ATMs by March 2017.

This collaboration with IBM will help BTM Payments scale technology deployment to roll out enhanced functionality in shorter timeframes.

“We are committed to supporting the government’s initiative of serving the ‘rural under banked’ population in the country and redefine financial services delivery in India. With technology being the core of financial services business, we needed a strategic partner like IBM with proven service management expertise in the financial sector”, said K. Srinivas, MD, BTI Payments.

(Image: Reuters)