JAIPUR 16 DEC 08 TECHNOLOGY FOR FINANCIAL INCLUSION Indian Institute of Banking & Finance N D RAO.
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Transcript of JAIPUR 16 DEC 08 TECHNOLOGY FOR FINANCIAL INCLUSION Indian Institute of Banking & Finance N D RAO.
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JAIPUR16 DEC 08
TECHNOLOGY FOR FINANCIAL INCLUSION
Indian Institute of Banking & Finance
N D RAO
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TECHNOLOGY FOR FINANCIAL INCLUSIONWhy do we need to talk about it
Extremely large target populationCurrent Banking systems service merely 33% of total population
Customer profile differentVery low Literacy levels and Awareness
Business Processes need re-engineeringExisting processes can not produce desired results
Independent Delivery AgenciesDeployment of Business Correspondents/ Facilitators
Latest trends in TechnologyCost-effective state-of-the-art technologies are available today
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TECHNOLOGY FOR FINANCIAL INCLUSIONProfile of Financial Inclusion Technology
Capture Customer details and facilitate Unique Identification
Provide non-repudiable and user-friendly authentication mechanism
Ensure reliable connectivity upto the last mile
Offer Financial products tailored for the target group
Support comprehensive Credit Information System
Support use of multimedia and innovative User Interfaces
Work in rural environmental conditions
Low Capital and Maintenance costs
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TECHNOLOGY FOR FINANCIAL INCLUSIONFinancial Inclusion Processes
CUSTOMER ACQUISITIONIdentificationEnrolmentAccount Opening
BANKING TRANSACTIONSCash DepositCash WithdrawalGovernment Benefits/ PaymentsTransfersRemittancesMicro Finance
NON-BANKING TRANSACTIONSMicro InsuranceInvestmentsValue-added Services
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TECHNOLOGY FOR FINANCIAL INCLUSIONCard Based Identification
Why Cards?
Choice of Cards
Magstripe Card
Contact Smart Card
Contactless Smart Card
Plain PVC Card
Plain Laminated Card
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TECHNOLOGY FOR FINANCIAL INCLUSIONCard Based Identification
MAGSTRIPE CARD
Data laid out on a magnetic strip at the back of the card in three tracks. A magnetic stripe card may have any of these tracks, or a combination of these tracks. Track 3 is used for financial transactions. ISO Standards are used for encoding the data in the tracks.
Approximate Cost Rs10 - Rs15
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TECHNOLOGY FOR FINANCIAL INCLUSIONCard Based Identification
CONTACT SMART CARD
Smart Cards have embedded microprocessor in a contact area, comprising several gold-plated contact pads, which can store and process data. They can receive input which is processed — by way of the ICC applications — and delivered as an output. Capacity: 8K – 64K
Approximate Cost Rs75 - Rs120
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TECHNOLOGY FOR FINANCIAL INCLUSIONCard Based Identification
CONTACTLESS SMART CARD
The chip communicates with the Card Reader through RFID (Radio Frequency Identification) induction technology. These cards contain an Antenna but not gold-plated contacts and require close proximity to the Reader to complete transactions. Capacity 1K - 4KApproximate Cost Rs125 - Rs200
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TECHNOLOGY FOR FINANCIAL INCLUSIONCard Based Identification
PLAIN PVC CARDPLAIN LAMINATED CARD
Plain Cards which can carry Customer Information, a photograph, hologram and a barcode if necessary
Approximate Cost Rs2 – Rs10
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TECHNOLOGY FOR FINANCIAL INCLUSIONAuthentication
USER/ CUSTOMER AUTHENTICATION
WRITTEN AUTHORIZATIONSignature/ Thumb impression
PIN BASED AUTHORIZATIONWhat you have - What you know
BIOMETRIC AUTHORIZATIONFingerprint/ Iris/ Voiceprint
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TECHNOLOGY FOR FINANCIAL INCLUSIONTHE RIGHT CHOICE
OPERATIONAL CONSIDERATIONS
COST CONSIDERATIONS
REGULATORY CONSIDERATIONS
USE SMART CARDS OR CARDS SMARTLY?
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TECHNOLOGY FOR FINANCIAL INCLUSIONCONNECTIVITY ISSUES
OFF-LINE/ ON-LINE/ REALTIME
INTEGRATION WITH BANK SYSTEMS
INTERNET/ V-SAT/ MOBILE COMMUNICATION
LAST MILE CONNECTIVITY - GROUND REALITIES
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TECHNOLOGY FOR FINANCIAL INCLUSIONHANDHELD DEVICES
A simple Handheld device
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TECHNOLOGY FOR FINANCIAL INCLUSIONHANDHELD DEVICES
A Handheld device with Value-added Services
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TECHNOLOGY FOR FINANCIAL INCLUSIONINNOVATIONS
MOBILE TECHNOLOGY
2-D BARCODES
BIOMETRIC LOW COST ATM
SUPPLY CHAIN SYSTEMS
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TECHNOLOGY FOR FINANCIAL INCLUSIONLOW-COST ATM
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TECHNOLOGY FOR FINANCIAL INCLUSIONA Typical Architecture
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TECHNOLOGY FOR FINANCIAL INCLUSION
QUESTIONS