branchless banking
DESCRIPTION
A Little world is one of the fastest growing companies with a annual growth rate of 600%. The company has pioneered the concept of branch less banking by using mobile phone platform. The cost of operating a brank branch in India has now been reduced to 50$ per month. See the presentation and find out yourself how the concept works.TRANSCRIPT
Harnessing the Power of Abundance via the Mobile Phone as an Ultra Versatile Rural PC
Banking the Unbanked
SANKALP AWARDS
High Impact Category
Additional Information Requirement
Zero Microfinance and Savings Support Foundation | A Little World
Sonjoy Mohanty| [email protected]| +919920142626
touch a billion people
through innovative technologies and alliances
at the bottom of the pyramid
for delivering multiple financial services
at the lowest cost
through mainstream financial institutions
Vision
Sr. No Categories of Financial Inclusion Penetration Target in 3 years Market Size (Mn)
1 Social Security/Pension 20% 40
2 National Rural Employment Guarantee (“NREG”) 25% 90
3 Self Help Groups(Government and Bank Linked) 20% 35
4 Self Help Groups( MFI) 10% 25
5 Kisan Credit Cards 10% 55
6 Farmer Co-operatives and Federations 20% 20
7 Domestic Money Transfer/ Foreign Inward Remittances 15% 50
8 Scholarships to Students 15% 08
9 Third Party Collections ( MFIs, Insurance, FMCG, Other’s) 15% 90
10 General Purpose No Frills Accounts(Saving’s/Withdrawal’s)
15% 80
11 General Purpose Loan/Credit Accounts 15% 75
The Opportunity
The exclusion of a vast majority of Indian population gives a massive opportunity to scale and rapidly increase operations
A Little World.
Mobiles phone acts as a core Bank branch
Mobile phone used for opening accounts on-the-spot by local CSP
Biometric identification Smart cards not needed for
biometric authentication in local service area
Voice Prompts during enrollment and transactions
Printout at the end of each transaction
The Business Proposition : ZERO Platform for Branchless Banking
Leveraging RBI’s Business Correspondent (“BC”) model to set up a technology driven ‘Bank-in-a-Box’ in every village, at no capital cost to the partner Bank
Use new generation low-cost NFC mobile phones as Point of Sale (“PoS”) terminals for secure offline transactions using biometric authentication
Use existing General Packet Radio Service (“GPRS”)data coverage of mobile operators for batch synchronization with bank’s back-end systems
Provide robust account management systems to Banks who do not have one Use cashless transfers, post-transaction settlements, and negotiated overdrafts to progressively reduce handling of cash to
the minimum needed cycles Open no-frills free bank accounts with photo and biometric ID for every villager, at minimal cost to the bank Offer a full suite of financial services in village (under brand ZERO):
Deposits, withdrawals, transfers Disbursal of Pensions, NREG wages, other Government benefits Loans (via Bank / MFIs / directly as a BC) 3rd party deposits, collections (MFI loan repayments, utilities, mobile recharge, deposits for Fast Moving Consumer
Goods (“FMCG”), Pharma, Fuel, Fertilizers) Other banking products as a Business Facilitator to the partner bank. Insurance products Full cycle of MFI transactions
Business Proposition …contd.
ALW’s expansion strategy It has a well established presence in 21 states and
intends to cover the whole of India and also expand internationally
ALW intends to use its existing affiliation with Zero Microfinance and Savings Support Foundation (“ZMF”) to create the pre-eminent last mile delivery infrastructure in villages
Going forward ALW intends to use the rural infrastructure created by ZMF for distribution of multiple products and services catering rural demand for e.g. micro insurance, mobile recharges , green goods etc
• It intends to continue its growth strategy of deepening its penetration in current areas of operation, as well as broadening its national outreach
• After the initial pilot phase in early 2007, ALW increased its presence to 21 states covering a total of 119 districts. The current customer base stands at 3.75 Mn, with over 25,000 accounts being added every day. ALW has created 6,530 points of presence till Feb 2009.
Future Growth Goals
Growth in Revenues and Enrolments
FY2013 GoalsCustomer Base: 100 Mn CSP : 151,500
The ZERO platform provides access to financial and non-financial services from mainstream financial institutions. This would make banking, insurance and other such services reach the unbanked population which is otherwise unfeasible for the institutions to provide directly. By the end of FY 2013, 100 Mn people are projected to be on the ZERO platform. In addition, the no-frills bank accounts with foolproof biometric authentication would be used to ensure timely disbursements of cash benefits to the underprivileged under various government schemes such as housing assistance, employee guarantee disbursements, pensions, scholarships etc. Currently the cost for disbursement under these schemes is estimated to be very high in the absence of usable bank accounts of the beneficiaries. Bank accounts in major public sector entities like SBI which can be accessed right inside the village saves cost of disbursement for the Government; reduces time lag between eligibility and disbursal; and by ensuring that the benefits reach the right person every time, helps eliminates middle-men and widespread corruption.
Social Impact
Anurag Gupta (Founder and CTO, Director) [email protected] Gupta, 46, has been instrumental in the conceptualization of the ZERO platform for branchless banking, and in bringing key banks such as SBI and industry majors such as Nokia and NXP to support the implementation Financial Inclusion in villages. An Architect by education, Anurag is the founder of A Little World and Zero Microfinance and Savings Support Foundation – a not-for-profit Section 25 Company which today acts as a Business Correspondent to 22 banks in 21 States across India.
Sonjoy Mohanty (CEO) [email protected] Mohanty, 45, an MBA from IIM, Lucknow and MA in Business Economics from Delhi University, has over 20 years of work experience handling Marketing, Sales, General Management, P&L and Board Responsibilities. Sonjoy was recently the Managing Director & CEO of Kerala Ayurveda Limited before joining ALW. Over last decade, Sonjoy held positions of the Chief Officer, Customer Acquisition and Relationship Centers at Bharti Airtel; Chief Marketing Officer, Bharti Televentures, Infotel Business; Chief Officer, Customer Acquisition and Retention, Escotel; and Director Marketing, Caltex (Chevron Texaco). Sonjoy started his career with Asian Paints.
Rajesh Bahl (Director- Finance & Insurance) [email protected] Accountant, Rajesh has extensive experience in the field of finance and insurance. Prior to joining ALW, worked as Sr VP at Reliance Life incharge of strategic planning along with additional charge of administration and legal functions along with Finance. Prior to Reliance Life, Rajesh has worked at AIG as VP(Audit) and as Planning Analyst in Pepsi.
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Core Management Team
Lokanath Panda (Head- Product Strategy, Director) [email protected] Lokanath started his career with software development in wireless telecom systems. He got involved with the entrepreneurial activities at A.Little.World in 2003. He co-founded mChek Inc., a mobile-to-mobile payment system. He later joined the financial inclusion initiative for implementation of an innovative mobile and biometric based payment system. Lokanath has a degree in Electrical Engineering from Sambalpur University.
Sarika Bondre (Head - Operations and Systems, Director) [email protected] is an Electronics and Communications Engineer with 10 years of experience in Process management, operations management and project management. She was part of the SMARS (Smart Rupee System) project team at IIT-Bombay. At ALW, she has been the key resource for the implementation of the Financial Inclusion in villages. She managed operations for GO-Mumbai, the smartcard based mass transit project, mChek, the mobile to mobile payment system and the SBI-Tiny financial inclusion pilot. She heads the responsibilities of Key Account Management (SBI), Program Implementation (ZERO Mass Foundation), and Backend Operations. Defining and managing processes is her core skill.
Shashank Choudhury (VP and Head- Banking Products) [email protected] of Banking Products at A Little World Shashank has worked with PNB, BoB and Axis Bank, with assignments in Rural Banking, Retail, Credit Management and International Trade and Forex before moving to Technology. From 2005 he was Vice President in Polaris Software Labs Limited at Mumbai, as Product Manager for Infrastructure Products contributing as Solution Architect for the top International banks.
Anup Nayar (Chief Officer, Micro-Credit & Payments) [email protected] has experience of over 17 years across industry verticals viz – Banking, Retail, Transaction processing, Telecom and Office Automation. Prior to joining ALW he has worked in Senior Management positions with Nortel, ICICI Bank, FSS and FINO. In his role as Chief Officer- Micro Credit and Payments, he would be responsible to lead the Micro-Credit initiative and also establish the footprint for varied Retail.
Core Management Team