ICT SOLUTIONS FOR FINANCIAL INCLUSION NABARD

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					ICT SOLUTIONS FOR FINANCIAL INCLUSION
– EXPERIENCE SHARING BY STATE BANK OF INDIA

                        Venue: IDRBT, Hyderabad
                             17th February, 2009
                           Contents
1.       TECHNOLOGY INITIATIVES
                                  a) Project
                                  b) Scope
                                  c) Technology & Process

2.       SBI’s INITIATIVES FOR INCREASING AWARENESS OF RURAL
         MASSES

3.       CAPACITY BUILDING OF BUSINESS CORRESPONDENT /
         BUSINESS FACILITATOR

4.       CAPACITY BUILDING OF OTHER STAKE HOLDERS

5.       RURAL CREDIT PROCESSING CENTRES – RCPC

6.       INITIATIVES IN NORTH EAST, HILLY & OTHER BACKWARD
         REGIONS

     2                                             STATE BANK OF INDIA
                 TECHNOLOGY INITIATIVES : OUTLINE

PROCESS                   TECHNOLOGY
                                                    OUTREACH
                          PARTNERS
 Despite different           A Little World        Smart Card & POS
technology channels          FINO                  PC- KIOSK
with different front         EKO                   Mobile phone
ends, the backend            TCS
interface, processing,                             PRODUCTS
accounting,
reconciliation,                TECHNOLOGY         Savings
technical model etc.,           INITIATIVES       Recurring deposit
are only one and linked                           Remittance
to CBS. Our approach                              SB-OD under finalization
is across delivery
infrastructure presence
                                   CUSTOMER BASE
PERFORMANCE TRACKING
                                    61 districts & 17 states covered
 Channel management               Presence in North East, hilly & other
  Software introduced              backward regions – 21 districts , 9 states
 Computation of                   Card base– 18 lakh against target of 40
  Remunerations to BC/BFs          lakh to be achieved by Mar 31st 2009

 3                                                         STATE BANK OF INDIA
                    Process : SMART CARD & POS based

                 WIRELESS -                     Tech vendor
                   GPRS                         BACKEND




                         Started with ALW
       POINT            Chip less cards introduced                   SBI’s
       OF SALE           Issues: Scalability of                    GATEWAY
       DEVICE           technology vendor
                         Engaged FINO as tech vendor
       BC               and BC. Enrollment started.
                         Testing on with ATOM ; to join
             DATA       as tech vendor and BC
                                                               SBI CORE BANKING
CASH
            SMART

  CUSTO
            CARD       Tech details vary ;
                                                    SBI                       SBI
   MER                 multiple channels            BRANCHES
                                                                   SBI
                                                                   BRANCHES   BRANCHES


  4                                                              STATE BANK OF INDIA
                 Process : SMART CARD & POS based
                  ENROLLMENT
Data entry in laptop/POS. Photo and capture in camera, finger print FP scanner.
Account creation – POS Backend & then Core banking. Relaxed KYC.
Zero balance No-Frill accounts.

                 CARDING
Customer and account data to Card manufacturer
Keys by POS backend vendor
Card manufacture and distribution

                       BC ACTIVATION
Agreement & compliance processes. BC’s Account in Core banking
Biometric card to CSP (BC’s agent). POS enabled.
Office, cash , forms and Stationary provided.


Customer Operations with smart card
Session start by BC finger print validation
Operation by CSP, Customer finger validation for debits
Savings, RD, Remittance available Offline and online operations
Business hour and cash holding limit system controlled



  5                                                               STATE BANK OF INDIA
                   Process : PC- KIOSK internet based


               internet                          KIOSK HOST




                            Pilot in Ahmedabad &
                           Chennai Circle.                             SBI’s
         PC
     INTERNET              Plan to tap the Kiosks under             GATEWAY
       KIOSK               CSC scheme across the
                           country.
 BC         DATA           Finger Print device to be
                           provided by the bank.

              VALIDATION
                                                                 SBI COREBANKING
CASH
            FINGER
                           Another diversity at all
                                  layers
     CUST                                             SBI           SBI        SBI
     OMER                                             BRANCHES      BRANCHES   BRANCHES


 6                                                                STATE BANK OF INDIA
                 Process : PC- KIOSK internet based
ENROLLMENT
Data entry/photo in PC/webcam. Finger print capture in FP scanner attached to PC.
Account creation – link branch – Core banking. Zero balance No-Frill accounts.
Operations after account opening in Core banking

BC AGENTS
Configured in kiosk host. Operational limits
CSP limit administration by BC online over web


CUSTOMER OPERATIONS

Session start by BC finger validation. Operation by CSP.
Customer finger validation for debits and balance query.
Savings available ; Remittance, term deposits and overdraft to be provided later.
Only real-time online operations.
Business hour and cash holding limit system controlled


OTHERS
All other features like Smart card channel



  7                                                               STATE BANK OF INDIA
            TECHNOLOGY INITIATIVES : Process – MOBILE BASED

  WIRELESS -
                                  Application Host- Vendor’s
    USSD

                                                                       SBI
                                                                     Gateway

  BC’s                                                                Online in
 mobile                                                               future
                 CURRENT STATUS
 phone
                  Routed Offline to Technology
 BC                Vendor                                            SBI
                  3 security checks: Mobile                     Core banking
                   number, Booklet & Security PIN
                  Low cost entry for all
CASH   MOBILE
       PHONE
     CUST
     OMER
                          Different people : diversity in tech: front,
                            back and interface to accommodate
 8                                                             STATE BANK OF INDIA
              TECHNOLOGY INITIATIVES : Scope


 Rural masses, Urban poor & migrant population

 61 districts & 17 states covered

 Presence in North East, hilly & other backward regions
  – 21 districts & 9 states

 Card base – 18 lakh (target of 40 lakh by Mar 31st 09)

 Our approach is to ensure sustainability across the
multitude of “diverse, delivery infrastructure” present in the
country.



  9                                              STATE BANK OF INDIA
SBI’s INITIATIVES FOR INCREASING AWARENESS OF RURAL MASSES

 The Bank has conducted various initiatives to spread both
 Credit/banking awareness & ICT related product awareness
 among the masses.
     Organizing Campaigns at village level to educate rural customers
      about various financial offerings of SBI.
     Organizing meetings with village residents at Gram Panchayat level
      along with Village Sarpanch, wherein the Sarpanch introduces the BC
      (CSPs) & their products to the villagers
     Collaborating with the ‘Influential’ people in the villages(teachers,
      Social workers, NGOs) in educating the rural customers about SBI
      offerings.
     Organizing Road Shows, Skits etc. to create awareness about the
      advantages of Saving money and using it for better utilities
     Announcements on two-wheelers and other vehicles about SBI
      offerings and informing the customers about the site & schedule of
      enrolment camps in the village

     10                                                  STATE BANK OF INDIA
                      CAPACITY BUILDING OF BC/BF
 Origin: RBI Circular( Jan 06); Framing policies / Operating Guidelines
   Preparation of Manuals & Dissemination of Guidelines
   Selection Committee ; Eligible Entities / Individuals   Present Status
   Scoring Sheet & Due Diligence                           1 National BF
   Market Reports; Involvement of CMAs                     6 National BCs
   Support through CMS/Kiosk host system for               4000 Regional BCs /BFs
                                                            Over 10,000 CSPs
    unrelated third party CSP administration for
    Technology vendors.
   Tracking of Performance through technology enabled softwares- CMS.
   Registering Code number in CMS & CBS.
   Sensitivity operating staff on process involving CBS/CMS for performance
    monitoring & payment of commission.

Training: Programme drawn up & training held at SBLC
 Stationary/Account opening forms/pamphlets & Check list of
  product/process provided
 Interaction with Branches/LBOs/RBOs/RCPCs/RACPC/SMECC

    11                                                         STATE BANK OF INDIA
                      CAPACITY BUILDING OF BC/BF
               The Process

(BF) From sourcing to sanction– Account
opening - Disbursement- Repayment
                                                              Risk
(BC) Enrollment/personalization of Card -                  Mitigation
Uploads




 Offline/Online - Biometric Validation


                                               Tagging            Business –
                                             accounts to          Segment &
                                                Code              Product wise :
  Reports/ Reconciliation - Interface –
                                              numbers                         •BC/BF
  Vendor server / CBS server
                                                      Performance             •CSP
                                                       Monitoring             •Circle


                                                                 Payment of
     Assisting Cash management at CSP                            Commission
                                            Introduction
                                               of CMS

   12                                                           STATE BANK OF INDIA
      CAPACITY BUILDING OF OTHER STAKEHOLDERS
   Operating Staff :
        Learning contents developed & e-copies made available on the
         web/intranet for permanent reference.
        Sensitization of all AGMs/Branch staff towards Technology Solutions.
         Training including technical hands-on on Channel Management
         Software.
        Banks own staff involved in Vendor Software – Escrow Activation &
         Recovery Testing.
        Special training for CM(Rural), OMRs, MRT leaders & CMAs. On the
         job training provided to the concerned staff.
   Vendors:
        Loan to Technology vendor for procurement of machinery , thus
         increasing their capacity.
        Multiple Vendor Technologies enabled for online transactions with the
         bank’s system. Auto reconciliation & MIS support for CSP level
         reconciliation management through gateway software.



    13                                                      STATE BANK OF INDIA
      RURAL CENTRAL PROCESSING CENTRES – RCPC
Framing policy & Operating guidelines.
Compilation & distribution of Manuals.




                                                      P R O C E S S
Setting up RCPCs – target Circle wise.                                       CURRENT
Linkage of channels – Branch /BC/BF/MRT.                                      STATUS
Placement & Training of staff.                                                  126
Monitoring of launch of RCPC.                                                  active
Processing of all loans in all segments –                                      RCPCs
PER/SME/AGRI.




                                                      F L O W
Productivity/TAT norms laid down.
Monitoring of performance/TAT/ productivity.
Gradual scale up
Infrastructure & Processing Methodology is in place                   Success in implementing
and being fine tuned                                                   the RCPC structure &
                                                                        processes to help in
Foundation for credit data & loan services already                     laying the foundations
laid down                                                                for the Rural credit
Workflow/Origination/Processing software being                                 bureau.
arranged

 14                                                                      STATE BANK OF INDIA
INITIATIVES IN NORTH EAST, HILLY & OTHER BACKWARD REGIONS
NORTH -EAST                                         Cumulative position at end
                                                    of the quarter (Dec 08)
   No. of rural/semi urban branches           :                    409
   No. of ATMs                                :                    151
            Rural                             :                      40
            Semi urban                        :                     111
   No. of RTGS enabled branches               :                  484
   No. of No-Frill Accounts opened             :              249575
   No. of SHGs linked                         :                35565
   No. of BC Outlets                           :                   79
   Business Facilitators (As on 30/09/2008)   :                   76




    15                                                        STATE BANK OF INDIA
 SBI TINY Card report for Hilly, North East & Backward regions
State                District                         SBI TINY Card
(As on 11.02.2009)                                    Enrollments
Himachal Pradesh     Una                                      6766
Meghalaya            West Garo Hills                          6,646
Mizoram              Aizwal                                   3,038
Assam                Jorhat (Titabar)                       13,229
                     Darang Dist., Assam (Drishtee)           1,832
Uttaranchal          Chamoli                                  4,665
                     Pauri                                    4,981
                     Pithoragarh                            10,700
Chhatisgarh          Raipur                                     892
Jharkhand            Hazaribaug                               8,080
                     Dhanbad                                  5,682




 16                                                      STATE BANK OF INDIA
 SBI TINY Card report for Hilly, North East & Backward regions
State                District                       SBI TINY Card
(As on 11.02.2009)                                  Enrollments
Rajasthan            Alwar                                  2,390
                     Jaipur                                 2,010
                     Jodhpur                                2,043
                     Dausa                                   11
West Bengal          Nadia                                 10544
                     Hugli                                  196
                     Dakshin Dinajpur                       432
                     Murshidabad                            187
                     North 24 Parganas                      806
                     Nadia Dist. (Shree Sanchari)           2769


  Total Districts - 21
  Total SBI Tiny Card Enrollments - 87,899


 17                                                    STATE BANK OF INDIA
          WAY FORWARD : VISION - MARCH 2012

   No. of unbanked villages to be covered : 1 lakh

   Customer base to increase by 4 crores

   No. of rural branches to go up to 10,000

   No. of ATMs in rural areas to go up to 6,000

   Focussed shift towards smart cards, mobile banking,
    internet banking & kiosk banking platforms.

   Micro insurance & micro mutual funds to provide a complete
    basket of services.



    18                                             STATE BANK OF INDIA
     THANKYOU




19          STATE BANK OF INDIA

				
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