INNOVATION I- Zero Mass Foundation<br />
Need Drivers<br />
Reason of growth of Last Mile Money exchange services<br />Microfinance loans serve the low-income  population in multiple...
  infusing credit to smooth cash
flows and mitigate irregularity in accessing food, clothing, shelter, or education;
cushioning the economic impact of shocks such as illness, theft, or natural  disasters.
Serving as an alternative to the loans offered by the local moneylender priced at 60%  to 100% annual interest,2
Prevention of the borrower from the debt trap. </li></li></ul><li>Growth in the Microfinance sector in India<br />
Present Geographic Expansion<br />
<ul><li>The market size for microfinance in India is in the range of 58 to 77 million clients.
This translates to an annual credit demand of USD5.7 to 19.1 billion (INR 230 to 773 billion) assuming loan sizes between ...
The low-income but economically active population including
small and marginal farmers,
 landless agricultural laborers, and
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) ...
Innovation in the SectorZERO Platform<br />ZMF creates the last mile operations network in villages, under pre-defined se...
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Innovation i zero mass foundation

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Innovation i zero mass foundation

  1. 1. INNOVATION I- Zero Mass Foundation<br />
  2. 2. Need Drivers<br />
  3. 3. Reason of growth of Last Mile Money exchange services<br />Microfinance loans serve the low-income population in multiple ways by:<br /><ul><li> providing working capital to build businesses;
  4. 4. infusing credit to smooth cash
  5. 5. flows and mitigate irregularity in accessing food, clothing, shelter, or education;
  6. 6. cushioning the economic impact of shocks such as illness, theft, or natural disasters.
  7. 7. Serving as an alternative to the loans offered by the local moneylender priced at 60% to 100% annual interest,2
  8. 8. Prevention of the borrower from the debt trap. </li></li></ul><li>Growth in the Microfinance sector in India<br />
  9. 9. Present Geographic Expansion<br />
  10. 10. <ul><li>The market size for microfinance in India is in the range of 58 to 77 million clients.
  11. 11. This translates to an annual credit demand of USD5.7 to 19.1 billion (INR 230 to 773 billion) assuming loan sizes between USD100 and 250.
  12. 12. The low-income but economically active population including
  13. 13. small and marginal farmers,
  14. 14. landless agricultural laborers, and
  15. 15. micro-entrepreneurs, are also potential microfinance clients,
  16. 16. 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 />
  17. 17. Innovation in the SectorZERO 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 />
  18. 18. How the system works<br /><ul><li>The Phone, when the card is swiped, shows the account details on the screen.
  19. 19. For verification, there is a fingerprint reader.
  20. 20. A printer gets the details of the transactions.</li></li></ul><li>Differentiation points<br /><ul><li>Mobile phone as core Bank branch
  21. 21. Smart cards not needed for biometric authentication in local service area
  22. 22. Mobile phone used for opening accounts on-the-spot by local CSP
  23. 23.  Voice prompts during enrolment and transactions
  24. 24. 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.
  25. 25.  Enrolling, training and equipping of Customer Service Points (CSPs) in villages to provide various kinds of transaction services
  26. 26. cash deposit & withdrawal,
  27. 27. transfer of money,
  28. 28. payment of utility bills,
  29. 29. disbursal of loans & collection of loan installments, and
  30. 30. cashless payments at local and remote merchant establishments.
  31. 31. Engaging the CSPs to provide enrolment services for opening no-frills account
  32. 32.  3rd party cash collection
  33. 33. Cashless payments at local and remote merchant establishments.
  34. 34. 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.
  35. 35. Platform is simple, secure, cost effective and has the potential to provide multiple services to the customer via a single channel.
  36. 36. Apart from SBI, ALW has established tie-ups with 14 banks in the country
  37. 37. Dena Bank
  38. 38.  Andhra Pradesh GrameenaVikas Bank
  39. 39. Punjab National Bank
  40. 40.  Axis Bank
  41. 41. Punjab & Sind Bank
  42. 42. Oriental Bank of Commerce
  43. 43. United Bank of India
  44. 44. Other Partnerships:-
  45. 45. Nokia (NFC mobile)
  46. 46. NXP Semiconductors (RFID)
  47. 47. SagemSecurite (Biometrics)
  48. 48.  SmartTrust (WIB application)
  49. 49.  Watchdata (SIMs)</li></li></ul><li>Innovation Sandbox<br />
  50. 50. 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 />
  51. 51. 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 />
  52. 52. 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 />
  53. 53. 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 />
  54. 54. THANK YOU<br />Team SCAMPER<br /><ul><li>ShauryaBhushanTyagi
  55. 55. Sukeshasajwan
  56. 56. SomyaBhargava
  57. 57. SonaliAbrol</li>

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