ENTRY AS

PAYMENT BANK IN INDIA

2006: M Pesa launched. At this time, more than 70% of Kenya didnot have bank accounts

Facilitate person to person money transfer, sending remittance, bill payments etc.

Today, More than 75% of Kenya uses M Pesa system and More than 25% of Kenya’s GDP flows through M Pesa system

How it started…

Who are your competitors?Understanding Competition

Public Sector Banks

Private Sector Banks

Ten Other Entities who received Payment Bank

License

New Banks who have

launced or due

to launch

Current Players

Purpos

e

•Last mile gap between Bank Branch and customer.

Technology

•Mobile Banking to reduce cost of customer acquisition and service delivery.

Target Custome

r

•Migrant labour workforce, low income households, small businesses, other unorganised sector

Pillars of Future Prospects

Payment Bank

Remittances

Bharat Bill Payment System

Merchant Transaction

Financial ProductsRFID Tag for Toll Plaza

Mutual funds, insurance and

pension products

Payment & Deposit

Product Strategy

Add more business

correspondents

BC for other services

Partnered with several

government bodies

Association with the RuPay debit card, Visa etc.

Product Strategy

P-Place

• Unbanked rural India - less than 120,000 full fledged bank branches across 500,000 villages•Migrant workers in metros or other cities

PLACE

East, NE and Central India- Potential Unexplored

• NE, Central India and East India have tremendous potential• Region- under penetration of bank services• CRISIL Inclusix index- Below 40 across this

region vis-a vis 50.1 across India as on March 2013*• Bank Credit to GDP in this region less than

60% vis-a-vis 77% across India• Target customers- remote locations

Unchartered Territories

Advertising may influence consumers in many ways

Primary goal of advertising is to increase probability that consumers will behave or believe as the advertiser wishes

Promotion

Advertising StrategiesAdvertising Strategies

Television/ Music

Press

RadioBill Board

Online

Payment Banks

Strengths• Deposits up to

100,000- Low cost of funds

• Low funds involve- hence fraud risk minimal

• Innovative delivery

Weaknesses• Nothing new to offer• Lack of awareness• No existing customer

base to leverage• For new players- start

from scratch

Payment Banks

Payment Banks

Opportunities Threats• Technological threat• Operational risks-

cyber threat• Interdependence

upon efficiency of auxiliary services

• Competition

• Large untapped market

• Low cost transactions• Innovative products

1. Customer friendly and tailor made interfaces - public perception

2. Tie up with entities with local feel3. Multi product and multi service BC model4. Sharing of Government business of DBT on

fair sharing business model5. Cyber strength

Pillars of Future Prospects