ATMs of Corporation Bank would not only serve as a source to acquire customers of other banks but also as an advertising medium. By adding 2,000 ATMs this year, the bank expects to take its ATM network to 3,250 by the end of the current financial year (March 31, 2012).
Mr Ramnath Pradeep, Chairman and Managing Director, Corporation Bank, said the additional 2,000 ATMs would be set up in locations where the bank has little or no presence. It is a key area where customer acquisition can take place, he said.
The new ATM project has been outsourced to a third party and the bank will only pay depending upon the number of hits. “With the Reserve Bank of India limiting the number of free transactions to five, we see a potential to earn when other bank customers use Corporation Bank ATMs, he said.
When a customer uses another bank ATM it costs the customer's bank Rs 17-18. By setting up these cashing dispensing machines in tier II and III cities and where footfalls are high, such as malls and multiplexes, it would not only cut costs but also help generate income.
Mr Pradeep said that when more and more other bank customers transact in Corporation Bank ATMs, details of these customers will be available with the bank. This information can be used for cross-selling, he said. It costs about Rs 300- 400 to acquire a customer.
Cost of advertising
Having a hoarding in tier II and III cities costs about Rs 30,000- 50,000 a month. By setting up ATMs in locations where there is little presence of the bank, these cashing dispensing machines would act as free advertising for the bank, he said.