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New FIS Study Finds that Demonetization Has Changed ATM usage by Indian Consumers

A recent study by FIS of ATM usage by consumers in India revealedthat in the days following demonetization, the average value of ATM withdrawals doubled, while the frequency of withdrawals declined.  The study found that while cash has remained the predominant mode of payment for household payments, other digital options have picked up momentum. The study also highlights that in the months following demonetization, cash availability at ATMs was a key concern and long queues at ATMs resulted in lower customer satisfaction.

In terms of choosing an ATM to use, the study found that consumers prefer usingATMs run by their own bank. Location, proximity and availability of cash are also important factors for Indian consumers while choosing an ATM

“As disruptor fintech firms fill emerging needs in the financial services space, one of the differentiators that banks have,isthe ATMs are installed in every nook and corner of the country,” says Radha Rama Dorai, managing director for ATM and allied services, FIS India. “Rather than competing with digital disruptors, banks should change the rules of the game and enable multiple services on the ATM and make them more efficient. It’s time to reposition the ATM as a full-fledged service outletas compared to the cash dispenser status that it istoday.”

“Currently, ATMs are the primary channel for just a few services,” she continued. “Clearly there is scope to shift other services from bank branches to multi-function ATMs, including cash deposits, depositing cheques, updating passbooks,ordering cheque books, making utility payments, funds transfer etc. Banks should also ensure that ATMs are well stocked with the preferred  denomination notes and banks should consider installing cash recyclers. This would address customers’ concerns about availability while reducing bank staff workloads and operational costs.”

The survey was conducted in India between May and June 2017. The sample size of 723 was distributed between online (500 respondents) and in person survey (223 respondents). The key criteria for the survey to commence was the respondent shouldperform cash withdrawals at least twice a month using their ATM/ Debit card.

About FIS

FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 53,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit

Follow FIS on Facebook ( and Twitter (@FISGlobal).

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