ATM managed services are a complete set of services offered to financial institutions, banks, and other commercial organizations that deploy ATM machines. ATM servicing and repair, electronic journal & content management system, transaction processing, cash management, ATM deposit automation, software maintenance, and cash reconciliation services are among the services provided. For example, according to a survey done by Coherent Market Insights' analysis, debit card use is expected to climb to 60% in 2019 from 51% in 2018. As a result, all financial institutions and commercial organizations engaged in ATM-managed services in order to improve the market user experience. For example, under the PradhanMantri Jan DhanYojana, the Government of India (GOI) launched a plan in August 2014 to create a bank account with a zero balance (PMJDY). The number of debit card users and card transactions rose dramatically as a result of this program. Banks are implementing additional security measures to ensure that the actual card being used by the customer is genuine and not a duplicate. For example, the Reserve Bank of India (RBI) required in January that banks convert their outdated magstripe cards to EMV cards. EMV chip cards have features such as improved authentication, which helps to prevent unauthorized and fraudulent transactions. People are choosing ATM cards as a result of these advantages, which supports the expansion of the ATM-managed services industry.
The high cost of new technology for modernizing ATMs has become a key commercial problem. It is quite difficult to change the operating systems (OS) in all ATMs from Windows XP to Windows 10 or Windows 7. The Windows 10 operating system provides several advantages like as security, remote assistance, and improved customer experience. To ensure regulatory compliance, all financial institutions are converting their ATMs to the most recent operating system. For example, Microsoft intended to discontinue support for a version of Windows in January 2020, and as a result, financial institutions upgraded to the most recent version of the operating system. All of the financial institutions were unable to fulfill the deadline since it demanded more financial and time resources. The cost of upgrading the system is determined by several factors, including the system's age, the time of replacement, and the feasibility of the update. One of the primary elements driving the ATM managed services market growth is technological advancement.