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N.S. Vageesh

CHENNAI, Nov. 30

A COUPLE of years ago, when we asked a private bank executive about what the prospects of mobile (cellphone) banking for his bank were, he misunderstood the question, leading to a hilarious situation.

Saying that it was still premature to introduce such services, he confessed "Our customers are just beginning to develop some confidence in us, since we are a new private bank. Now if they see their money/bank moving away, even that confidence will evaporate!"

What seemed to be a comedy of errors then seems be coming strikingly close to reality now. A couple of banks have announced plans to launch mobile ATM services. Bank of India, for instance, intends to launch a mobile ATM service in Mumbai in about a fortnight's time and a little later in the other metros. Recently, ICICI Bank has said that it is exploring the option of installing an ATM on a train - The Palace on Wheels, run by the Rajasthan Tourism Development Corporation.

Mr D. Krishnamurthy, General Manager, Bank of India says that the idea of having a mobile ATM came up while wondering about the ideal location where the ATMs could be placed. The bank had to consider whether the ATM would receive sufficient hits per day (banks say, that around 150 to 200 drawals/visits by customers is required everyday for it to pay for its costs). That again depended on the type of area, and the competition from other banks - either through branches or through their ATMs.

So, why not have a moving ATM, which would stay in different locations for a few hours every day? The bank could use it to gauge the reception and then decide to graduate to a full-fledged branch, if necessary.

Mr Krishnamurthy said that the bank has already garnered experience in operating mobile branches - in rural areas in Bihar, Orissa and Punjab, where a mobile van with cashier, clerk, guard moves bag and baggage to different villages for a few hours every week. Computers and wireless connectivity ensured that records were also updated immediately at these mobile locations rather than being done manually at the end of the day.

Mr Harish K. Murthi, Chairman, HMA Diebold, manufacturer of the ATM, says that a mobile ATM is basically a convenience product, which can be used at events such as cricket matches, or exhibitions where footfalls may be high and there could be spontaneous usage. He says that the cost of a mobile ATM is not significantly higher than the ordinary stationary installations.

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