Branchless Banking

Eko in partnership with Centurion Bank of Punjab has launched "Abhilasha" - No Frills Savings Accounts in Uttam Nagar, New Delhi. This is a pilot project under Reserve Bank of India's Business Correspondent circular. This pilot project started on 25th of February 2008 and we have close to 800 customers right now. Uttam Nagar is a 12sq km area with 5 ATMs, while we have setup 30 cash points.

"Abhilasha" customers avail of deposit and withdrawal facility without the customer ever having to visit the ATM or branch thus enabling low cost "Branchless Banking" using mobile phone as a channel. The innovative offering enables customers who have mobile phones to be banked - a first step towards profitable financial inclusion.

Customers can open their accounts and transact (deposits / withdrawals) at multiple Eko Cash Points in their locality. They have all the protections extended just like any other depositor with a bank under RBI regulations. Eko extends 3-level security to the customers for their financial transactions using their mobile phone, PIN number and Signature Booklet (filed for patent). We are leveraging the behavior of prepaid talk-time recharge by telecom subscribers.

The model is such that money is deposited to the bank, through the distribution chain of Eko Cash Points, even before the savings are mobilized from the retail customers. Hence the scope for fraud in collection of savings from these small depositors is hugely reduced. Subsequently, Eko Cash Points mobilize savings from retail customers. This is very similar to the hugely successful "prepaid model" used by the telecom companies for cash management.

We are trying to simplify opening of a bank account to as simple as getting a prepaid mobile connection and looking to ensure greater outreach of financial services. We wish to extend this low-cost infrastructure to financial institutions across India on a progressive basis.

Category:

Nonprofits & Activism

Tags:

• Financial
• Inclusion
• Branchless
• Banking
• Mobile
• Money
• Transfer
• mBanking