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A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
A Little World:  Doing a world of good
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A Little World: Doing a world of good

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  • 1. A Little World Doing a World of Good
  • 2. Team Muthoot Presents
  • 3. Definitions
      • 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.
  • 4. A few misconceptions
    • Financial Inclusion (FI) is the latest ‘fad’.
    • FI is only social service; not a good business proposition.
    • FI simply means opening as many bank accounts as possible.
    • Everyone handles money. Therefore, everyone is financially literate.
  • 5. Framework
  • 6. Facts & Figures
    • 51.40% Farmer households financially excluded.
    • 73% Farmer households having no access to formal sources of credit.
    • 64% Share of Central, Eastern and North Eastern regions in the total financially excluded farmer households in the country.
  • 7. Financial Inclusion Targets
    • By 2012: Cover at least 50% (55.77 million) of the excluded.
    • By 2015: ‘Include’the remaining.
    • 250 new households per branch per annum to be covered by all semi-urban and rural branches of banks and RRBs.
  • 8. The Essential Components
    • 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.
  • 9. A Little World Pvt Ltd
    • Developer of ZERO, India’s first domestic payment system with specific focus on reaching out to masses with lowest available communication infrastructure.
    • Zero Microfinance and Savings Support Foundation -appointed as a Business Correspondent by 15 Banks – SBI, PNB, DENA, UBI etc.
    • Manages field force, account creation, appointment of Customer Service Points (CSPs), management of cash etc.
    • Collaborates with strongly placed local organizations, district and state administration to ensure smooth deployment and operations.
    • ZMF creates the last mile operations network in villages and front-ends the delivery of full-featured transactional services on behalf of Banks. 
  • 10. What does ALW offers?
    • Leverage RBI’s 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 POS terminals for secure offline transactions using biometric authentication, Provide robust account management systems to Banks
    • Use GPRS data coverage of mobile operators for batch synchronization with bank’s back-end systems
    • Use cashless transfers, post-transaction settlements, and negotiated overdrafts to reduce handling of cash to the minimum needed cycles
  • 11. What does ALW offer?
    • Open no-frills free bank accounts with photo and biometric ID for every villager, minimal cost to the bank
    • A complete set 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 FMCG, Pharma, Fuel, Fertilizers)
      • Other banking products as a Business Facilitator to the partner bank. Insurance products, MFI transactions
  • 12. Ground Report
    • Mobile Phones as core Bank branch
    • Mobile phone is your aid for opening accounts on the spot by local CSP
    • Biometric Identification is provided
    • Smart Cards not needed for biometric authentication in local service area
    • Voice prompts during enrollment and transactions
    • Printout at the end of each transaction
  • 13. Little World - Achievements
    • 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
    • in India
  • 14. 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
  • 15. The SWOT Analysis
  • 16.
    • ALW’s expansion strategy
      • 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
  • 17. SBI Tiny is SBI’s initiative for Financial Inclusion
  • 18. ZERO TECHNOLOGY PLATFORM for SBI-Tiny
    • 1. ID Profile:
    • 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.
  • 19.
    • Following is printed on card:
    • Photograph; Sex, Date-of-Birth; Issuance Date; Name; Card Number; Address; SBI-Tiny;
    • ZERO; Disclaimer (usually at Back); Helpline Number; URL
    • Enrollments carried out in villages, and card printing carried out centrally.
  • 20. Multiple Applications
    • Using the common ID profile of the cardholder, the ZERO framework allows the following
    • categories of applications to be activated on the customer card:
    • • Micro-Savings (SBI-Tiny no-frills pre-paid account)
    • • Micro-Credit (including Kisan Credit Cards, GCC)
    • • Micro-Insurance
    • • Cash Withdrawals
    • • Cashless Payments to Merchants
    • • SHG saving-cum-credit accounts and attendance systems
    • • Salary disbursements for schemes like Employment Guarantee Scheme
    • • Passbook
    • • EMIs
    • • Government Benefits
    • • Utility Payments
    • • Coupons, Vouchers and Tickets
    • • Loyalty Points
    • • Automatic Fare Collection Systems (eg.: GO-Mumbai transit e-purse and passes)

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