Download presentation
Presentation is loading. Please wait.
1
TECHNOLOGY FOR FINANCIAL INCLUSION
N D RAO Indian Institute of Banking & Finance JAIPUR 16 DEC 08
2
TECHNOLOGY FOR FINANCIAL INCLUSION
Why do we need to talk about it Extremely large target population Current Banking systems service merely 33% of total population Customer profile different Very low Literacy levels and Awareness Business Processes need re-engineering Existing processes can not produce desired results Independent Delivery Agencies Deployment of Business Correspondents/ Facilitators Latest trends in Technology Cost-effective state-of-the-art technologies are available today
3
TECHNOLOGY FOR FINANCIAL INCLUSION
Profile 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
4
TECHNOLOGY FOR FINANCIAL INCLUSION
Financial Inclusion Processes CUSTOMER ACQUISITION Identification Enrolment Account Opening BANKING TRANSACTIONS Cash Deposit Cash Withdrawal Government Benefits/ Payments Transfers Remittances Micro Finance NON-BANKING TRANSACTIONS Micro Insurance Investments Value-added Services
5
TECHNOLOGY FOR FINANCIAL INCLUSION
Card Based Identification Why Cards? Choice of Cards Magstripe Card Contact Smart Card Contactless Smart Card Plain PVC Card Plain Laminated Card
6
TECHNOLOGY FOR FINANCIAL INCLUSION
Card 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
7
TECHNOLOGY FOR FINANCIAL INCLUSION
Card 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
8
TECHNOLOGY FOR FINANCIAL INCLUSION
Card 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 - 4K Approximate Cost Rs125 - Rs200
9
TECHNOLOGY FOR FINANCIAL INCLUSION
Card Based Identification PLAIN PVC CARD PLAIN LAMINATED CARD Plain Cards which can carry Customer Information, a photograph, hologram and a barcode if necessary Approximate Cost Rs2 – Rs10
10
TECHNOLOGY FOR FINANCIAL INCLUSION
Authentication USER/ CUSTOMER AUTHENTICATION WRITTEN AUTHORIZATION Signature/ Thumb impression PIN BASED AUTHORIZATION What you have - What you know BIOMETRIC AUTHORIZATION Fingerprint/ Iris/ Voiceprint
11
TECHNOLOGY FOR FINANCIAL INCLUSION
THE RIGHT CHOICE OPERATIONAL CONSIDERATIONS COST CONSIDERATIONS REGULATORY CONSIDERATIONS USE SMART CARDS OR CARDS SMARTLY?
12
TECHNOLOGY FOR FINANCIAL INCLUSION
CONNECTIVITY ISSUES OFF-LINE/ ON-LINE/ REALTIME INTEGRATION WITH BANK SYSTEMS INTERNET/ V-SAT/ MOBILE COMMUNICATION LAST MILE CONNECTIVITY - GROUND REALITIES
13
A simple Handheld device
TECHNOLOGY FOR FINANCIAL INCLUSION HANDHELD DEVICES A simple Handheld device
14
A Handheld device with Value-added Services
TECHNOLOGY FOR FINANCIAL INCLUSION HANDHELD DEVICES A Handheld device with Value-added Services
15
TECHNOLOGY FOR FINANCIAL INCLUSION
INNOVATIONS MOBILE TECHNOLOGY 2-D BARCODES BIOMETRIC LOW COST ATM SUPPLY CHAIN SYSTEMS
16
TECHNOLOGY FOR FINANCIAL INCLUSION
LOW-COST ATM
17
TECHNOLOGY FOR FINANCIAL INCLUSION
A Typical Architecture
18
TECHNOLOGY FOR FINANCIAL INCLUSION
QUESTIONS
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.