Solution for Financial Inclusion

Introduction:

financial

Financial inclusion stands for delivery of appropriate financial services at an affordable cost, on timely basis to vulnerable groups such as low income groups and weaker sections who lack access to the most basic banking services. Access to banking and basic financial services is vital for economic development and people’s progress out of poverty. Establishing the business correspondent model to achieve financial inclusion was visionary and held the promise of making banking available to everyone in India.

Government’s recent initiative:

Pradhan Mantri Jan-Dhan Yojana (PMJDY):

PMJDY is ensuring access to various financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension to the excluded sections i.e. weaker sections & low income groups. This deep penetration at affordable cost is possible only with effective use of technology.

PMJDY is a national mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility.

Biometrics role in Financial Inclusion:

Biometrics is an automated method of recognizing a person based on a physiological or behavioral characteristic. Biometric technologies are becoming the foundation of an extensive array of highly secure identification and personal verification solutions

Advantages of using biometrics:

  • Authentication made easy
  • Very high accuracy
  • Safe and secure
  • Verification time is extremely quick
  • User friendly system

Solutions for FI from Precision Biometric:

Precision’s Financial Inclusion solution integrates biometric and ICT technologies to deliver mainstream banking services like savings, withdrawal, remittance, loans, insurance etc., to the marginalized sections of unbanked and under-banked population in rural areas in a cost effective and secure manner.

Precision financial inclusion solution is the answer to bridge the gaps of last minute connectivity, online transactions, power requirements and security.

Precision’s biometric division has developed successful FI solutions that are well received by reputed organizations in India like SBI,BOI & Union bank of India.

Front end technologies/solutions from Precision group for the Financial Inclusion:

These front-end technologies are being used by banks and BCNM’s in India in the deployments set up to further the cause of financial inclusion.

They are:

  • STQC certified fingerprint scanner
  • In-house developed Bluetooth enabled thermal printer
  • Implementation using a Kiosk model
  • Biometric tablet

Precision’s robust and scalable technology platform ensures that the difficult task of achieving quality service at rural levels is made considerably easy. The technology is designed and developed to suit the usability of diverse population of India.

Precision’s Financial Inclusion Solution addresses:

      -The issues of lack of physical and technology infrastructure
      -High cost of Opex
      -Secure authentication faced by the banks in rural areas
    -Banking services at the customers’ door steps

Features of Precision’s financial inclusion solution:

  • Precision has supplied and implemented in 40,000+ areas that has led to the opening of 3 crore accounts including people who were unbanked
  • Customers & banking correspondents can enroll the application through Biometrics
  • Mobile and lightweight
  • Efficient delivery of services with low cost of intermediation
  • Leveraging technology to the maximum extent possible
  • The solution can also be used for other services like ticketing etc.,

Fact Check:

In a survey of 2,932 villages with a population of greater than 1,000, only 39% are covered through customer service points (CSPs) according to State Level Bankers’ Committee (SLBC). Field work reveals that only 7% of the villages have transaction ready CSPs; only 4% have CSPs available to transact every day. A little over 2% of the appointed CSPs are doing more than 10 transactions a day, and less than 4% are earning more than Rs. 2,000 a month; with a median monthly income as low at Rs.1,500 – and so quite likely to quit the business soon. – Microsave India focus note

Financial Inclusion - How it has helped the unbanked? : Case Study

Small savings solutions create big impact for the underserved. Kamala lives in Kunathoor, a small village 25 km from Trichy, Tamil Nadu.She and her husband own six buffaloes, and earn an income by selling milk. Kamala first heard about opening savings bank account through Kiosk banking from her fellow villagers. She opened an account immediately and began depositing her savings there. She puts money in her savings account every week, even if she only has 10 rupees to deposit. This is her first savings account at a bank; before this, she used to hide money in rice bags. With her savings account at the kiosk banking, Kamala can be assured that she is saving money in a safe place and can access it if she chooses to grow her business or needs to pay for an emergency expense.

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