Financial inclusion means extending basic banking services at affordable prices to the low income and disadvantaged groups.
Purpose: to connect the excluded with the formal banking system in order to help them obtain an understanding of the financial services available and equipping them with the confidence to make informed financial decisions.
Basic services include deposits / withdrawals, credit, remittance, investment, insurance etc.
No frills account: An account with ‘zero’ or minimum balance with maximum balance of Rs. 50,000/-at any given point in time and total credit in a year not exceeding Rs. 1,00,000/-.
Banks can restrict the nature of services offered, number of transactions permitted etc.
Business Correspondents are organizations or individuals that organize and offer one or more points of transaction outside of bank branches. The BCs organize and manage a network of such transaction points in partnership with a bank.
Technology Vendors provide hardware and processing capacity and connectivity which can link clients to BCs and BCs to the bank.
Customer Service Points are individuals, shops or other outlet points responsible for the direct contact with the clients. CSPs open bank accounts, conduct KYC, cash out withdrawals, receive payments and in some cases, extend credit.
Little. World. Pvt Ltd (ALW) raised Rs 28.5 crore in second round of financing in 2008
SBI bought 20% stake in ALW for Rs.80 Cr, which valued at Rs.400 Crore in total.
ZERO MASS FOUNDATION crosses
3 million mark
A Little World among Top 10
Innovative Companies of India
Collaborated with all major banks
Competitors in the fray.. BC Products Offered Partner Banks Customer Service Points Technology Partner Clients Reached Eko Aspire Foundation Savings, Remittances SBI Eko Financial Services Ltd. mobile phone based SMS, MIFOS for backend Basix Savings, Remittances, Micro-credit, Micro-insurance Axis Bank A Little World 8000 Drishtee Savings, Loans SBI, HDFC 450 For SBI – ALW For HDFC – Magnetic strip card and POS Swadhaar Finaccess Savings ICICI, Citi 9 FINO 6009
Presence in 21 states and intends to cover whole of India and also expand internationally
U se existing affiliation with Zero ZMF to create pre-eminent last mile delivery infrastructure in villages
ALW to use 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.
25000 new accounts open everyday by ALW
Continue growth strategy of deepening its penetration in current areas of operation, and 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. 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 Goals Customer Base: 100 Mn CSP : 151,500
SBI Tiny is SBI’s initiative for Financial Inclusion
An extensive ID profile is created on the card. Some information fields are compulsory and others are optional. Optional fields can also be captured in the future and written post-issuance on the card with control of the back-end system.
Pre-created information slots on each card:
First Name; Middle Name; Last Name; Gender; Date of Birth; Occupation; Marital Status; Blood Group; Caste; Full Address (Home/Business/Permanent/Correspondence); Yr. of Marriage; Yr.of passing (SSC); Mother's Name; Father's Name; Spouse's Name; No. of children; Handicapped (Y/N); Fingerprint (Left); Fingerprint (Right); Phone (Res); Mobile; Passport No.; PAN No.; Other SBI A/C No.; Driver Lic. No.; Vehicle Type; SHG No.; NREGS No.; National ID;Voter ID; Employee ID; Pension ID; Insurance Policy No.; Email ID; Income Group; Loyalty;Nominee Name and Relationship with card holder.