The millions of villagers who migrate to India’s teeming cities in search of jobs have to navigate a host of challenges. Not least of them is figuring out how to safeguard their earnings and send any extra rupees back home. This age-old story is getting an update with help from specially designed banking machines called Tijori, which means “safe” in Hindi.
The self-service technology was developed as a partnership between NCR Corp. and Financial Inclusion Network and Operations (FINO), a rapidly growing business that brings financial services to India’s poor.
In neighborhoods like those that provided the backdrop for Slumdog Millionaire, the formerly unbanked are developing the savings habit through use of micro- deposit machines. Accessible around the clock, the machines can also be used to make lowcost remittances to rural villages, where family members can safely withdraw funds without a middleman. On both ends of the transaction, consumers use biometric cards to access accounts.
Scott Sobel, vice president of emerging markets for NCR, says most of the R&D work for the new concept took place in India. Local context and consumer feedback were essential for figuring out how to serve a potentially huge audience that has limited literacy and speaks multiple dialects. Environmental factors were another issue. “There are times of the year when it’s dry and dusty. During the monsoon season, it’s wet and humid. The technology has to withstand these extremes,” he says.
Instead of being deployed in formal bank branches, the initial machines were piloted and rolled out in more accessible locations such as FINO branches and corner stores in urban slums of Mumbai and Delhi. “That’s where the unbanked audience is already comfortable,” Sobel explains. “They know and trust the families and individuals who run these businesses.” Shopkeepers have been trained in how to use the machines so they can pass along those lessons to customers. Automated voice prompts and graphical interfaces help customers overcome literacy challenges and build confidence in using technology, which builds a sense of empowerment in their lives, Sobel adds.
The initiative is in line with fino’s philosophy of bringing best-in-class products and services to India’s “micro-customers.” As CEO Manish Khera explains: “FINO’s commitment to the special cause of delivering financial services to the base-ofpyramid customers in difficult terrains is challenging but definitely possible with support of our banking partners. The key to addressing this challenge is innovation and commitment to sound business logic.”
Scalability is another factor when dealing with a market that numbers in tens of millions. So far, there are 100 micro-deposit machines in place, with another 100 expected by 2011. That number could grow rapidly. FINO currently enrolls 20 million customers and adds an average of 50,000 daily. Yet an estimated 40 percent of India’s 1.2 billion people do not have a bank account, according to the Commonwealth Secretariat. With government encouragement, the country’s largest banks and partners like FINO have been testing products ranging from mobile banking to “branchless” banks located in village post offices and similar outposts.
Read more stories by Suzie Boss.