micro-entrepreneurs, are also potential microfinance clients,
The annual credit demand goes further up to an estimated 245.7 million individuals and USD51.4 billion (INR 2.1 trillion) in annual on-lending requirements.Source: Inverting the Pyramid- Changing the face of Indian Microfinance</li></ul>Demand Expectations & Target Group<br />
Innovation in the SectorZERO Platform<br />ZMF creates the last mile operations network in villages, under pre-defined service agreements with Banks and front-ends the delivery of full-featured transactional services on behalf of Banks for Financial Inclusion on the ground. <br />Zero Microfinance and Savings Support Foundation, is closely affiliated to ALW, has been appointed as a Business Correspondent by 15 Banks, and provides field operations for the ZERO platform. <br />
How the system works<br /><ul><li>The Phone, when the card is swiped, shows the account details on the screen.
For verification, there is a fingerprint reader.
A printer gets the details of the transactions.</li></li></ul><li>Differentiation points<br /><ul><li>Mobile phone as core Bank branch
Smart cards not needed for biometric authentication in local service area
Mobile phone used for opening accounts on-the-spot by local CSP
Voice prompts during enrolment and transactions
Printout of each transaction</li></li></ul><li>Scope of Operations<br /><ul><li>Enrolment of customers for no-frills zero-balance savings accounts and other account types that may be specified by the Bank.
Enrolling, training and equipping of Customer Service Points (CSPs) in villages to provide various kinds of transaction services
Cashless payments at local and remote merchant establishments.
Lending activities on behalf of the Bank (as an MFI) Other service as may be advised by the Bank in writing to ZMF, and which ZMF agrees to perform</li></li></ul><li>Current TieUps<br /><ul><li>Total commission: Rs.25, out of which Rs 6.25 is taken by CSP (Customer service place), Rs.8.75 by Zero microfinance, and the rest by bank.
Platform is simple, secure, cost effective and has the potential to provide multiple services to the customer via a single channel.
Apart from SBI, ALW has established tie-ups with 14 banks in the country
ZMF- Within the Sandbox<br />Global Scale- <br />Overseas partner with TCGME Bahrain. <br />It can also expand by exploiting mobile banking oppurtunities on a global level.<br />Social Equity- <br />Acting as a hassle free an sure link between the migrant workforce in cities and their kin in hinterlands. <br />Ensuring that the benefits disbursed by various Governmental programmes like social security pensions and wages under NREGA reach the intended beneficiaries quickly and at a lesser cost.<br />Rule of Law- <br />It is in compliance with all legal frameworks of the law and banking system<br />
ZMF-Within the Sandbox<br />Environmental Sustainablity-<br />saving of paper, thus trees, as negligible documentation is needed. <br />Transparency & Fairness-<br />All transactions are instant through mobile, eliminating all middleman. <br />Payment is ensured to the the eligible recepient only<br />New Price Performance Level- <br />Effective price model. <br />Also it is favourably comparable to probable substitute services- Traditional money orders(20rs+5% of sent amount), iMO(150-330rs).<br />
Impact-Social Equity<br />ZERO is a popular end-to-end technology driven platform for branchless banking, with plug and play access for banks to rollout their services and, hence increase their outreach. <br />This would make banking, insurance and other such services reach the un-banked population, which is otherwise unfeasible for the institutions to provide directly.<br />
The Way Forward->Recommendations<br />Beyond the basket of credit and other financial products and services, ZMF can also <br />Provide low income customers with livelihood services, <br />including agricultural and business development consulting services,<br /> to help microfinance clients use their loans and manage cash more effectively.<br />Text enabled operations To avoid going to the actual ZMF centre.<br />