SEI - CMM LEVEL 3 Certified & ISO 9001:2008

Financial Inclusion

Taking Banking Services to the Common Man

Financial Inclusion Branchless Banking&/or

Middleware Solution for

Banking & Finance Industry is discovering the immense capabilities and is increasingly adopting Mobile, POS & similar Hand-Held Devices to take banking services to the common man or better serve the existing customers.

As part of Technology Leadership, Virmati, has always thought ahead of times and invested in developing and bringing cutting-edge banking technologies to the Banks & Institutions; The Banks & Institutions can take a leap-frog in Technology Advancement & transform the Banking Experience of their customers.

Considering the varying nature of Banks, their Vision, Target Audience, Regional dis-similarities in Trade & Technology, Virmati has developed an excellent, robust framework to deliver end-to-end services of Branchless Banking or Financial Inclusion or Banking through Kiosks or Banking through Correspondents, whichever is the preferred mode.

There are subtle as well as significant differences in the functionalities, modes of delivery and many other aspects of each Variant (Branchless Banking or Financial Inclusion or Kiosk Banking or Correspondent Banking.

Broadly, we categorize the various variants into two major variants. In the ensuing pages, we elaborate the same. They are:

1. Branchless Banking:Here, the Bank or Institution aims to offer almost every Banking services offered in a “Brick and Mortar Branch Setup”. The same is provided through the help of a Kiosk Center or a Mobile VAN or a Correspondent Setup (Agent with Laptop & all Peripherals).

2. Financial Inclusion or Banking through Agent in un-banked areas:Here, the Bank or Institution targets to acquire customers and offer limited but growing list of banking facilities through a Hand-Held Device operated by an authorized Agent.

The idea is to introduce and to capture banking requirements in a target area or audience where so far it has not been viable to operate or where a low cost, viable Service Model is desirable.

I. Financial Inclusion or Banking Through Agents in Un-Banked AreasFinancial Inclusion is the very exciting and widely discussed topic in the Banking Circle across the globe, especially the Developing

Countries seeking Low-Cost High-Output Model of Banking.

The focus is to take banking services to the common man & also bring the people who have not banked before, into the mainstream

banking. Limited but highly convenient Banking Services are expected to be offered to the people thru this Mode of Banking.

We believe, the success of Financial Inclusion will be instrumental in the growth for any developing market/economy. And now, the

success of Financial Inclusion relies on the following:

A Robust, Secure and Comprehensive middleware / platform – (The Heart)

A Cost-effective, multi-purpose, all-weather Mobile or POS Device which is Hand-Held & which has requisite in-built software

which talks to the Middleware (a)

A Form of Connectivity between the device and the middleware. This could be offline & batch update mode also, but always

online connectivity will have more benefits.

An Interface between Middleware and the host Banking System of the Bank/Institution. This is to merge & aggregate all the FI

Business into a Central System.

Middleware / Platform

Hand Held Devices: Mobile or POS or any Other with In-Built Software or Browser Client for Laptops even

Capability to Interface with any Host Banking System

a.

b.

c.

d.

Virmati Offerings included in this scenario are:a.

b.

c.

About Virmati's OfferingsThe Financial Inclusion Technology & Solution is built around & considering Hand-Held Devices or POS Device. Such Device has

Biometric Support, Smart Card Support, Camera Support, Printer support & more.

For Connectivity, the device are GPRS/3G supported and hence, the Cellular or Radio or

GPRS will be the mode of connectivity for the particular POS device. This will be managed

from the available Connectivity Providers in the Region/Area. The Operations can be offline

also in a batch-mode, at the End-of-Day or at regular intervals from a Internet Connected

Kiosk/Laptop.

VIRMATI also provides for the interfacing to the host CBS system. This would be XML/Web

Service based Interfacing. This will be a joint matter between the Bank, Vendor of CBS

Solution and VIRMATI.

Since the Middleware has a Browser Client, the Bank/Institution can even create Micro Branches with a laptop, connectivity data

card & other attachments of smartcard readers, biometric readers, camera & printer (Often Called Kiosks or Quest Centers).

Customer

Customer

Customer

BC / Agent 01with Device,Tools & Cash Box

Cash

BoxCashBox

BC / Agent 02with Device,Tools & Cash Box

BC / Agent n...with Device,Tools & Cash Box

BC / Agentwith Device,Tools & Cash Box

Cash

Box

Cash

Box

BC / AgentsDevice

www.virmatifi.com(Webserver)

Data through GPRS

InternetData in Pen Drive through internet

BC / AgentsDevice

Laptop

Desktop

BC / AgentsDevice

Data throughLAN Internet

InternetModem

Internet

Step 01Customer Interaction

Step 03Bank or

Draw Cash

Step 02Online or Offline

Processing

Project Scene In Detail

II. Branchless Banking

The concept of Branchless Banking originates from the idea to offer same or

similar banking experience without the “Brick & Mortar” Branch Office of a

Bank.

The concept is larger than Financial Inclusion, in terms of Operations &

Services envisaged.

Here the Banks create Extension Counters or Kiosks, most probably on an

outsourcing basis. Some Banks may call this as “Quest Center” or “Extended

Banking Services Center”

Branchless Banking also relies on quite the same components as Financial

Inclusion, but with some different context:

A Robust, Secure and Comprehensive middleware / platform – (The Heart)

A cost-effective, multi-purpose POS Setup or a Kiosk Setup which talks to

the Middleware (a). Typically this will have Laptop or Desktop or Tablet,

with peripherals like scanner, biometric reader, smart card reader, printer

& more.

A Form of Connectivity between the Center and the Middleware. This

could be offline & batch update mode also, but always online connectivity

will have more benefits.

An Interface between Middleware and the host Banking System of the

Bank/Institution. This is to merge & aggregate all the Branchless Banking

activities into a Central System.

The middleware for Branchless Banking is more exhaustive & has more

functional aspects compared to a Financial Inclusion Middleware. Also in other words, Financial Inclusion Middleware can be

upgraded with a more advanced Branchless Banking Middleware.

Similarly, the Kiosk Solution or the POS Solution differs and is more advanced to work in sync with the Branchless Banking

Middleware.

a.

b.

c.

d.

Highlights of the Financial Inclusion SolutionIt is based on Mobile and GPRS Connectivity. In India, they say, Mobile Signals reach all remote 3,00,000 villages. So, this

technology with its device allows online working in all parts of India.

The same can be true for any remote locations or places, anywhere.

Technology allows for real-time & online working and it can support almost every Branch Function of the Bank, done in a

“Brick & Mortar” Mode. For example, opening a new customer, opening a new account, opening a new Fixed/Time Deposit,

Guarantees and so on.

Since it is online, the transactions get recorded immediately. The transactions' pin gets printed on the receipt as well. So, this

ensures total control and blocks any chance of fraud or misdoings.

In absence of connectivity, the Operations can continue in “Offline Mode” & later be sync-ed processed into the middleware.

There will be no issue of Data Integrity or Reconciliation in Offline Mode also.

The Technology saves a lot in logistics. The Hand Held Device need not be taken to any branch. No data or logs need to be

synchronized. There is no waiting for day-end for the sake of any synchronization. There is no data uploading & downloading

thereafter. Because of all this, there are no delays, there are no issues of reconciliation, and there are no issues of data

integrity.

It is Multi-lingual; so it can give transaction or any receipt or even audio output in any local language of the region.

Bank can outsource the Project Implementation to an Agency, to act as Authorized Banaking Agents & serve the target

audience.

FI Platform/Middleware

From VSTL

Bank’s CBSHost

VSTL’sofferings

POS(GPRS)

Users

(Biometric)ATM

(Biometric)Kiosk

Quest Centers(Laptop)

Highlights of Branchless Banking Solutiona.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

l.

m.

n.

Through SIM/GPRS or any other mode of connectivity, it will be 100% online (24x7) with the Middleware and thereby the

Host Banking System, say the Core Banking (CBS). The Interface to Bank's CBS can be achieved through various mechanisms.

The Kiosk or POS Device will give almost all functions, which are carried out at a Branch. This includes:

Opening a New Customer

Opening a New Account

Opening a new Fixed/Time Deposit

Closing a Fixed/Time Deposit

Making Bill Payment for any Utility or Government.

Giving a Cell Company's Topup or Recharge, and any such eCommerce

The Solution is 100% Browser based giving an excellent performance & experience.

It can capture as well as display the signature and photograph, for the account holder or for the person consuming the

service.

There will be USB Ports for connecting more Devices. Thus, an LCD Monitor or USB Printer or USB Mouse or Scanner can be

attached, as may be required.

Identification can be based on Smart-Card, Bio-metric or PIN.

Impact Printing/Thermal Printing is offered & the receipts can Bilingual (in Local Language)

Audio Support is also offered, for example to convey balance. Audio can be Bilingual (in Local Language)

There is Touch-Screen. For greater ease, virtual key board is also provided.

We already have both Offline and Online modes and there is a seamless switchover between the two. And still, we have

retained the flexibility that the Device or Laptop need not be carried to the Branch.

The Switch Over is done in such a way that the mode can be changed any number of times, depending on the connectivity

status and the need or situation.

We ensure the data integrity on the switch over.

The Middleware as well as Device In-Built Solutions also are or can be linked to the portal for any Cell Companies and DTH

Companies' to offer Topup & Recharge Services.

Virmati's own portal can be linked which even offers ticketing services of Indian Railways & some Bus operators.

1.

2.

3.

4.

5.

6.

Branchless Banking

Thus, Virmati's Offerings are Comprehensive & Smart offering a greater business potential, customer patronage & viability in

operations.

Virmati Offerings included in this scenario are:Middleware / Platform

Kiosk or POS Devices with In-Built Software (Or even Browser Client for Laptops)

Capability to Interface with any Host Banking System

The Bank or Institution mainly decides on:Outsourcing of Kiosks or POS Terminal to offer Branchless Banking to Customers/Prospects

Connectivity Partner for Kiosks or POS Setup to link with Middleware

Branchless Banking

Functions supported on Branchless Banking Middleware.

All these functions are supported by appropriate client application (browser based):

GPRS supported POS

Browser through Web (Laptop)

a.

b.

Functionality of FI &/or Branchless Banking

Branchless Banking Middleware

VSTL MiddlewareApplication

VSTL DB

CBS DB

Bank Host Gateway 1

Bank Host Gateway 2

ISO 8583

XML WebServer

Bank Data Center

Mobile Tower

Internet Cloud Internet Cloud

SIM Card With GPRS/DataPlan

Portable / Hand Held Device

Data Cardor USB Stick

(2G/3G)

Laptop at KioskBanking Center

Smart Card Reader

Printer

Biometric Reader

Camera

KIOSK

POS

Customer Opening Including KYC Norms

Account Opening

New FD Opening

Display Photograph

Display Signature

Transfer

RD Installment

FD Interest Payment

Loan Installment

Cash Deposit

Cash withdrawal

Railway Ticket

Bus Ticket

Insurance

Bonds / Mutual Fund Investment

Utility Payment

Top-Up / Recharge

Clearing Cheque Collection

Debit Card Request

Capture Biometric Image

Smart card Write

Interface of Schemes like

Pension NREGA

Party Statement

Balance Query

Capture Photograph

Smart card Swipe

Cheque Book Request

Stop Payment

Solution Architecture

Financial Inclusion(Usually Linked)

Branchless Banking(Branchless [Exhaustive] All in FI + more)

Web BasedCore Banking

System

GUI BankingFor Banks/Credit Societies/Micro Finance Institutions

Forex Management Treasury Mangement for Banks/FI/NBC

Any Branch Banking for non web-based Banks

ISO – 8583 Switch for Bank/FI

Credit Appraisal & Monitoring System

TM

TM

TMTM

cams.net

TM

Credit Appraisal & Monitoring System

Cheque Truncation SystemBank/Clearing Corporation

Mobile Banking Back Office Management for Banks/ FI

Legal Suit & File System Reconciliation

Cheque Truncation SystemCheque Truncation System

tsTM

TMTM

TM

TM

Our Banking & Finance Product Basket

A-2/3, Arjun Tower, Ring Road Cross, Satellite, Ahmedabad-380015, Gujarat, IndiaPhone: +91-79-26733163/65

Virmati Software & Telecommunications Ltd.

“9”- Garden View Corporate, Opp. Bodakdev AUDA Garden, Off SindhuBhavan Road, Bodakdev, Ahmedabad - 380054, Gujarat, IndiaPhone: +91-9979850333 / +91-79-65250333

Corporate Office Registered Office

BC 2WithPOS Device

BC 1WithPOS Device

BC 3WithPOS Device

BC 2WithKiosk

BC 1WithKiosk

BC 3WithKiosk

Web Services Layer

SecurityLayer

Middleware Application

Banking Card Management Back Office MIS Report

Middleware Data Store

Ex

tern

al

CB

S A

PI

/ In

terf

ac

e

Mid

dle

ware

Fro

nt-

En

d

Encryption Validation Verification

VSTL Middleware

RO / ZO MIS Reporting

Card Printing Department

Banking CBS Host

Web: www.virmati.com Email: info@virmati.com / marketing@virmati.com

Middleware Architecture

(BC = Business Correspondent / Agents)