New Delhi, India, June 25, 2012—
IFC, a member of the World Bank Group, is investing $2.7 million as equity in Vortex Engineering to help the company expand its network of automated teller machines across India’s rural and semi-urban areas where people have limited or no banking services.
Widespread installation of low-cost, easy-to-use ATMs in rural areas will facilitate cash withdrawal, especially for the zero-balance, no-frills account holders, helping them access banking services that are otherwise proving difficult because of high cost. Vortex’s innovative, solar-powered ATMs combine ease of use with rugged design.
“IFC’s assistance in implementing technology-led banking services would eventually help us take our offerings to other developing countries,” said Vijay Babu, CEO of Vortex Engineering.
Thanks to a government push to extend banking services, the ATM market in India is expected to grow three-fold over the next three years, with the bulk of machines bound for remote areas. In addition, banks are increasingly focusing on reducing costs by setting up ATMs instead of full-service branches.
“The investment will help in taking basic banking and financial inclusion schemes to rural and semi-urban areas in India,” said Thomas Davenport, IFC Director for South Asia. “Bringing banking close to home means a lot in a country where less than one-fifth of over 600,000 villages have a banking touch-point.”
Vortex is India’s only developer of low-cost ATMs especially designed for rural markets. Its machines have low capital and operational costs and consume significantly less power than conventional machines. Vortex’s machines accept soiled notes, unlike other ATMs that can operate only with fresh notes, and also can authenticate customers through fingerprints. The use of solar power also helps in rural markets lacking access to electricity supply.
About IFC
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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