White label ATMs – Branding opportunities for NBFCs

ATMs play a significant role in connecting the customers with the bank. Most people hardly walk into the banks after they open the account, instead it is the ATMs they frequent for their banking needs.

Recently RBI allowed non-banking entities to own and operate ATMs on behalf of banks which will be called as White label ATMs. This provides excellent opportunity for the Non-banking Financial Companies (NBFCs) to be part of the every day transaction between the banks and the customers and use it to enhance their own brand.

Having large ATM networks in itself will implicitly create positive brand image, differentiate with other NBFCs and build trust overtime as people use them for their daily transactions.

Apart from the transaction fee, NBFCs can also use these white label ATMs to create awareness about their products through advertisements inside the ATMs.

Already NBFCs Muthoot Finance and SREI Infrastructure Finance have announced their plans to setup White label ATMs. Lets see how the NBFCs innovatively use their ATM networks to build their brands and sell more of their service.

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