27 kiosk banking

Kiosk banking

CONTENTS

1. Introduction

2. What is kiosk ?

3. Difference between ATM and kiosk

4. Functions and Features of kiosk

5. Kiosk as a CRM tool and brand promotion

6. Kiosk used in some the banks

6.1 ICICI BANK

6.2 Vision for the future of the icici web kiosk initiative.

6.3 STATE BANK OF INDIA

7. Future of Kiosks

7.1 In India

7.2 World Wide Scenario

7.3 cheque transaction

7.4 postal kiosks

7.5 sit down kiosks

7.6 laser touch kiosks

8. Advantages of kiosks

9. Kiosk the next step in self service banking

10. Working of kiosk banking

11. Survey report analysis

12. Hypothesis

13. Research methodology

13.1 Primary data

13.2 Secondary data

14. Conclusion

M.COM PART-1 (BANKING & FINANCE)

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Kiosk banking

OBJECTIVES OF STUDY

To Understand the concept of kiosk banking.

Study kiosk banking in india.

Study kiosk banking in global scenario.

Study the evaluation & need of kiosk banking.

To find out what should be done to boost kiosk banking in india.


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Kiosk banking

INTRODUCTION

Traditionally, banking in India has been all about branches. Till a decade back, it was hard to

imagine that banking could be done from outside a bank branch.

In the last decade, the Indian banking system has evolved to provide several types of remote banking

channels. The objective of all types of remote banking is to provide extra convenience to customers

and save service cost to the bank.

The self-service culture is fast catching on in the banking space. The late 1980s saw the emergence

of an ATM culture in India, which saw the migration of 75-90% of banking transactions away from

bank branches. Over the past decade, customers have overcome their awe of entering a closed-door,

air-conditioned ATM outlet to perform personal banking transactions such as cash withdrawals,

balance enquiry.

With banks introducing newer services on ATMs like bill payments and mobile top-ups, it is not

surprising to see serpentine queues outside ATMs. This has forced banks to devise methods of

shifting non-cash transactions out of ATMs into self-service kiosks, installed beside the ATM

machines.

The latest buzzword is that banks are contemplating introduction of kiosks alongside ATMs that are

tamper-proof and spill-proof, or are enabled to perform activities like cheque truncation, internet

banking and printing of account balance statements.


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Kiosk banking

WHAT IS KIOSK?

The kiosk is a revolutionary new face of banking

A kiosk is a booth with an open window on one side. Some vendors operate from kiosks, selling

small, inexpensive consumables such as newspapers, magazines, lighters, street maps, cigarettes, and

confections.

An electronic kiosk (or computer kiosk) houses a computer terminal that often employs custom kiosk

software designed to function flawlessly while preventing users from accessing system functions.

Computerized kiosks may store data locally, or retrieve it from a computer network . Some computer

kiosks provide a free, informational public service, while others serve a commercial purpose.

Touchscreens, trackballs, computer keyboards, and pushbuttons are all typical input devices for

interactive computer kiosk.

A kiosk requires a simple user interface that can be used without training or documentation, and the

hardware must be capable of operating unattended for long periods of time. Sources estimate that

kiosks can help achieve almost 90% transaction automation in retail banking. Kiosks can perform all

non-cash transactions like balance enquiry, internet banking, printing of bank statements, demand

drafts, fund transfers, utility bill payments, cheque truncation and information display.

The company has developed educational content online for children in local languages, which is

available for a subscription of Rs 50 to Rs 100 a month. A printer and software for desktop

publishing ensures that you can publish marriage or invitation cards or even a CV for a nominal Rs

10 to Rs 12 a piece.

And as PCs our loaded with Windows Media Player - many local kiosks owners have converted

themselves into mini movie halls - offering movie shows at a nominal Rs 2-3 a show.

From railway reservation systems to insurance companies, from retail outlets to e-governance, kiosks

are now accepted as a medium of information and have caught the fancy of users.


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http://en.wikipedia.org/wiki/Interactivity

http://en.wikipedia.org/wiki/Input_device

http://en.wikipedia.org/wiki/Computer_keyboard

http://en.wikipedia.org/wiki/Trackball

http://en.wikipedia.org/wiki/Touchscreen

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Data

http://en.wikipedia.org/wiki/User_(computing)

http://en.wikipedia.org/wiki/Kiosk_software

http://en.wikipedia.org/wiki/Kiosk_software

http://en.wikipedia.org/wiki/Confection

http://en.wikipedia.org/wiki/Cigarette

http://en.wikipedia.org/wiki/Map

http://en.wikipedia.org/wiki/Lighter

http://en.wikipedia.org/wiki/Magazine

http://en.wikipedia.org/wiki/Newspaper

Kiosk bankingCorporate / HR

Banking

Hospitality

Entertainment

Industrial

Education

Telecom

E government

Medicals

Retail

Hotels

Shopping malls

Museums

Town Halls

Cities and communities

Research facilities

Insurances

Public authorities

Commerce

Airports

Fueling stations

Media

Fairs

Estates

Kiosks can be used in the following areas


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Kiosk bankingDIFFERENCE BETWEEN ATM AND KIOSK

ATM :-

ATM's are unmanned banking terminals

where customers can access their bank

accounts. The ATM/ debit cards are used

at ATM's. Customers need to slip in their

card & enter their unique PIN number;

post which they get access to their account.

They can then withdraw or deposit money,

make bill payments, etc on their account.

After finishing the transaction, a

transaction slip is generated confirming the

transaction done.

ATM banking has reduced the need to

carry regular cash as well as for

emergency. It is an extremely safe mode of

remote banking as long as the PIN is

unique & protected.

KIOSKS:-

This is the latest development on the remote baking front, also known as 'Touch-screen' banking. A

kiosk is a self- service banking terminal that can be operated with both credit & debit cards. The

Debit/credit card can be swiped at against the card reader at the kiosk and account accessed post

entering the ATM PIN. Currently, very few banks like Citibank offer this facility to their customers

at select ATM centers across the country.

Unlike an ATM, which is primarily used for cash transactions like withdrawals, deposits, etc, a kiosk

is primarily used for non-cash transactions like cheque book request, printing bank account

statements, funds transfer etc.

The number of transactions a particular location is expected to be able to support is key here along

with the types of transactions required. An ATM and a Kiosk can both easily perform the same non


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Kiosk bankingcash and non deposit transactions however the real differentiators come down to how much time/

input the transaction takes (Financial Kiosks have full keyboards and document printers, ATMs

generally don`t) and queuing considerations (at an ATM, most people just want to get their cash and

go).

FUNCTIONS & FEATURES OF KIOSK

CHEQUE DEPOSIT

A unique feature of the banker is its cheque deposit capability. On depositing a cheque at the kiosk, it

issues an immediate receipt, with a scanned image of the cheque, with every detail listed. The cheque

is endorsed at the back, while the transaction details are generated for the bank’s MIS.

PERSONAL INQUIRIES

The bank allows you to check your account balance, print a mini statement and make cheque book

requests.

INTERNET BANKING

Connect to the internet and carry out transactions through E-banking, with the help of bank. View

details of your account and make transactions online.

CUSTOMER TOOL SUPPORT

The provision of a web cam in the kiosk allows a personalized experience where a help desk agent

can be reached via video conferencing, to answer any of your service related queries. Video hosts,

financial calculators and loyalty programs can also lead to improved customer utilization of your

services.


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Kiosk bankingMARKETING TOOL

Bank can serve as your outdoor tool to gather first hand consumer info through contests and surveys.

The presence of such a kiosk at high traffic areas increase visibility of your brand and services,

leading to increased exposure for your offerings.

MIS REPORTING

The data that is generated from the kiosk transaction are further used for MIS reports and database

creation. This leads to minimizing back-end operations of the bank.

OPTIONAL FEATURES

A number of optional features can be enabled for the banks. These options include bill payment.

Advertisement streaming, customized branding of the interface and vending of prepaid soft pins.

FEATURES OF KIOSK MACHINE

There are many features in kiosk

machine like:

Touch and non-touch display

Integrated full page thermal

printer

Barcode scanner

Magnetic card reader

Integrated speaker

Video camera

Key board with trackball

Cash accepter

Hardware of kiosk machine

Motherboard


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Kiosk banking CPU

RAM (128 MB to 512 MB)

HDD 40 GB

Sound card

Operating system win XP, win 2000, win 98

KIOSK AS A CRM TOOL AND BRAND PROMOTION

KIOSK AS CRM TOOL

With cutthroat competition in the banking sector, banks are increasingly turning to technology in

order to sustain their existing customer base. The biggest advantage for banks is the burgeoning

network of ATMs that has already popularized the concept of using such devices. This has led to the

ready acceptance of the kiosk as an ideal information tool. Kiosks cannot replace cash dispensers like

ATMs, deploying a kiosk within or in the vicinity of the branch can result in significant cost-savings

for the bank. “The cost of deploying a kiosk is almost one-fourth the cost of an ATM.

KIOSKS FOR BRAND PROMOTION

Though kiosks in the financial sector are largely used to cater to information pertaining to customers,

players have also paid special consideration to the design and multimedia tools deployed in the

kiosk. For instance, the Birla Global Finance kiosk (designed to correspond with the corporate’s

colours and logo) serves as a means of brand communication. As kiosks can be customised, a

corporate can mould the kiosk in the shape of its brand. One more reason why kiosks can be an

effective marketing tool for corporates.

KIOSK ARE USED IN SOME OF THE BANKS.

ICICI BANK


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Kiosk banking

ICICI Bank is teaming with Californian computer services firm Wyse Technology and Bangalore IT

consultancy Comat Technologies to deliver electronic banking services to remote and isolated

communities in India.

The three firms will manage a project which is being introduced by an international consortium of

banks - including the World Bank - technology firms, and local government departments.

They plan to establish Internet centers in around 5000 villages in Karnataka that will provide the

local population with electronic access to financial services along with education, health care and

legal services.

Each centre will house five to ten maintenance-free thin client terminals and will be connected to the

Internet by either land lines or satellite links. The consortium plans to introduce Web centers to other

rural areas across the country following the pilot project in Karnataka.

Sriram Raghavan, president, Comat Technologies, says: "This is the first time these communities

will be able to access and interact with leading private enterprises, such as ICICI Bank

Nachiket Mor, executive director, ICICI Bank, adds: "Internet based channels are key to the delivery

of financial services in rural India. ICICI Bank has over 2000 rural Internet kiosks across India and

we plan to increase this number significantly to cater to people at all levels of economic

development."

ICICI Bank plans to cover over up to 200 districts in 2007. The bank has decided to set up at least

one touchpoint within every 3-5 kilometers of rural and semi-urban areas. The touchpoint could be in

the form of branches at the district level, franchisees at the block level and kiosks at the village level.

The bank is planning to start at least 50 branches and have at least 8-10 franchisees for every branch

and an equal number of kiosks against one franchisee. Apart from the vanilla liability and asset-

based products, ICICI Bank is now focussing on product areas such as remittances, trade services

and having a transaction support team in place for its rural customers.

Going forward, The bank is also examining the possibility of putting in place a helpline to address

farming related queries, online agro-commodity based information and live mandi prices through

price tickers. The channel is designed in a hub and spoke structure with full service bank branches

being the hubs and rural internet kiosks acting as the spokes. Kiosks are owned and operated by rural

entrepreneurs, thus ensuring a high level of customer interaction. They also serve as a one-stop shop


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Kiosk bankingfor a wide range of services such as agricultural extension. The bank has established over 3,000

kiosks across the country, including Andhra Pradesh, Rajasthan, Tamil Nadu, Karnataka, Kerala,

Maharashtra, Gujarat and UP.

VISION FOR THE FUTURE OF THE ICICI WEB KIOSK INITIATIVE.

Currently, five to seven middle managers, under the aegis of ICICI Bank Executive Director

Nachiket Mor, who also heads ICICI Bank's social initiative group, are administering the ICICI web

kiosk initiative. Ultimately, these individuals hope that the web kiosk initiative will become a

separate business unit.

More broadly, these individuals believe that kiosks are harbingers of social change. Their

proliferation is about empowering the 742.4 million Indian

villagers by providing them with access to information and markets, as well as the opportunity to

reduce their dependence on informal financial services like local moneylenders. Freeing poor

villagers in India from the shackles of dependence on outdated information and costly intermediaries

costly middlemen is the first step in empowering them to ascend from below the poverty line to a

better life.

GROWTH

To increase the number of customers in rural areas, ICICI increased the number of kiosks through

which villagers can access its financial services. Thus, in conjunction with n-Logue and Drishtee,

ICICI was operating 500 kiosks by the end of 2005 and then 1500 by the end of 2006. It also plans to

begin doubling the number of kiosks every year for the next three to five years, beginning in three to

six months.

STATE BANK OF INDIA


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Kiosk bankingTHE rural Internet kiosk concept appears to be picking up with bankers moving forward by

extending financial assistance for setting up such kiosks.

Fifty rural Internet kiosks are to be opened at Paruvachi village in Bhavani taluk on Tuesday. The

entire proposal is being financially assisted by state bank of India.

Speaking to Business Line, the bank's Deputy General Manager, Mr. W. Chanti Babu, said that some

of the interior villages had the facility of the kiosk and the villagers were able to establish a link with

the outside world. "Some of our branches in the interior villages send the weekly update via the Net,

as these areas cannot be reached even on mobile phones. The branch heads forward the details

through the rural Internet kiosk," he added.

The loan for establishing such kiosk is emerging as a focus area at present.

Banks like HDFC bank have developed self-service kiosks in their premises to inform customers of

their offerings.

Banks like Citibank and IDBI Bank have already installed kiosks within their ATM outlets. Citibank

kiosks offer customers the facilities of balance enquiry, fund transfers and statement printing. IDBI

Bank has kiosks called ATM Next, where the ATMs are connected to the bank’s website and

customers can avail of information on interest rates and loan products.

GROWTH OF KIOSK

SCENARIO IN INDIA:


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Kiosk banking

Information technology has the potential to address the unmet needs of Indian villagers, from

education to market access, from telecom to healthcare, from financial intermediation to

entertainment. Nasscom, the trade group for India’s software houses, estimates that there are

hundreds of programs across India that focus on creating low-cost digital solutions to the problems

of the poor. Many of such programs are private initiatives. Nasscom President Kiran Karnik views IT

as a “bridge between rapidly growing new India and the lagging old India.” Computer kiosks are the

building blocks of this bridge. These kiosks represent a paradigm shift in the delivery of services to

rural India by serving villagers directly instead of via intermediaries.

7,000 such kiosks, consisting of one or two personal computers linked to the internet by satellite,

phone, or wireless link; already exist. With a weekly growth rate in excess of 100 new kiosks, by

2007, there could be as many as 300,000.India’s robust fiber-optic network, sufficiently well-

developed to provide wireless coverage for up to 85% of the country, is facilitating this rapid growth

rate. Moreover, the increasing prevalence of such kiosks is already helping to bridge the particularly

wide digital divide in India.

Apart from government sectors, the maximum potential for the usage of kiosks lie in sectors like

banking. “The market till now was biased towards kiosks purely used for information purposes but

now transactional kiosks are slowly catching up. The total Indian market size for kiosks is estimated

at $13-14 million (Rs 62-67 crore) in 2002.” Sources estimate that the kiosks market holds good

potential with the figure being reckoned as Rs 300 crore.

The kiosk market is currently growing at a rate of 18-20 percent, largely driven by the banking and

financial sector Kiosk as a CRM tool.

In Bangalore to collect monthly pension of Rs 125, people travel 13 km from village Kadadakatte to

taluk headquarters Bhadravathi, spending Rs 30 and using up the whole day.

Soon, they will have a kiosk which will allow them to withdraw the amount under 10 minutes.

Thanks to Nemmadi, a Karnataka government egovernance initiative, this certainly would give peace

of mind to villagers.

Kiosks will offer 39 different citizen-centric services, ranging from pension, caste certificate,

death/birth certificate, land documents to utility payments.

The state government has a mandate of setting up 800 e-kiosks in rural areas by January 31, 2007.


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Kiosk bankingEach of these kiosks will cover a population of a lakh.

The number of kiosks would later be increased to 5,000, so that there is one for every 10,000 to

20,000 people. By October 1, 25 pilot kiosks will be up and running.

The project has an outlay of Rs 30 crore and will be executed through a public-private initiative. 3i

Infotech, the IT arm of ICICI, is the key technology and networking partner.

"The government will be the facilitator, while private players will bring in

infrastructure and investments,"said Rajeev Chawla, secretary, e-governance

From the above chart

we can understand that

only 7.6% of kiosks are installed for the banks and financial services. So we can say that kiosk is

more used in other sectors like in Retail, Food services, Hospitality etc.

FUTURE OF KIOSKS IN INDIA


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Kiosk bankingThough rapid growth in the kiosk market will primarily be driven by the banking sector, other

sectors like retail and tourism are likely to adopt a more gradual approach. But in any case, the

concept of kiosks is all set to go the ATM way—explosive growth in numbers and usage

There are many banks who are going to introduce kiosk in there banks premises very soon, as kiosk

is becoming day to day need and very soon Punjab national bank, Abgudaya bank and many other

banks are going to start kiosk service.

7,000 such kiosks, consisting of one or two personal computers linked to the internet by satellite,

phone, or wireless link; already exist. With a weekly growth rate in excess of 100 new kiosks, by

2007, there could be as many as 300,000.

In ruler area people will not face any problem in interacting with banks, soon there will be kiosk

machines of banks in each and every village and they don’t have to travel long to get there pension

or to with draw money from banks or to pay there life insurance premium.

WORLD WIDE SCENARIO:

With over 1.2 million ATM's installed around the globe, the lowly non-cash/ATM financial kiosk

rests in shadows. Nevertheless, financial institutions continue to look towards interactive kiosks to

provide a growing list of services, and why not? Many are finding the interactive kiosk to be a

powerful and low cost delivery tool in an increasingly competitive landscape. Self-service kiosks

provide the link between meeting with your old banker friend, and an integrated retail delivery and

customer relationship management (CRM) strategy so important to the progressive financier.

The industry association Kiosks.org has estimated that financial related self-service kiosks comprise

at least 10% of the self-service market, and expected growth figures for the next few years are close

to 40%.

Spearheading a new generation of financial service kiosks is Charlotte, NC- based kiosk provider

Source Technologies. Over the past several years the company has risen through the ranks of the

kiosk world with the development of a proprietary line of kiosks offering everything from bill

payments services for the unbanked, to a kiosk system that has over fifteen non-cash transaction


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Kiosk bankingcapabilities. Nearly 50% of our business is now dedicated to the financial kiosk area the market for

conducting self-service financial transactions is growing significantly

The new Financial Kiosk Terminal Source Technologies has developed is the mother of the all-in-

one kiosk. Their ST-3200 Walk-up unit features the ability to do standard ATM transactions, plus:

check cashing, money transfers, cash deposits, check printing, money orders, statement printing,

couponing, and ticketing. The ST-3200, from a hardware standpoint, features a 15" touch screen

(optional 21") and many other options such as MPEG full motion video, voice and audio capabilities,

a digital camera, and even a phone center

HIGH-TECH KIOSKS IN HIGH-TECH LANDS

Touch screen kiosks are a common sight abroad. In fact, the absence of a kiosk in important public

places is an inconvenience of sorts out there. Retail chains and banks widely use kiosks not only for

customer convenience but also to conduct important market surveys. The world’s leading financial

centres like Wall Street and London Stock Exchange also use touch screen systems.

Kodak has placed more than 35,000 Picture Maker kiosks worldwide, with over 22,000 in the United

States and Canada and 6,000 in Europe, Africa and the Middle East region.

World wide

kiosk is growing

very fast with in

a few years kiosk

has captured a

market as


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Kiosk bankingshowed in a chart the growth rate is very high. Every day some or other company is introducing the

kiosk machine so it is increasing day by day.

Healthnotes Inc. (HNI) is the premier provider of credible, easy-to-use health and lifestyle

information for Web site and in-store touchscreen kiosk initiatives. More than 6,500 supermarkets,

pharmacies, and natural product stores in the United States, Canada, and the United Kingdom use

Healthnotes Retail Solutions to improve customer service, build loyalty, and increase sales. HNI also

generates behind-the-counter applications that are licensed to e-commerce and health-related Internet

sites worldwide.

Healthnotes branded the new kiosk the EasyAnswers Touch screen and will sell it to retailers

bundled with its kiosk software products, Healthnotes Healthy Living and Healthnotes Pharmacy.

Pennsylvania-based Clemens Family Markets is the first store to make the EasyAnswers Touch

screen available for its shoppers, incorporating the new kiosk in 20 of its 21 suburban Philadelphia

locations.

CHEQUE TRANSACTION

With the RBI preparing to run the pilot project on cheque truncation in the National Capital Region,

banks are now gearing up to put up kiosks that can conduct both front and rear scanning of cheques

and also read the Magnetic Ink Character Recognition (MICR) number. Cheque truncation

doesn’t aim at eliminating the physical cheque. Kiosks would only capture the image of the dropped

cheque and send it for clearing to the nodal office.

After verifying the position of funds in the account, the amount would be credited to the depositor’s

account. Such kiosks would cost banks around Rs 5-6 lakh each. This could speed up the procedure

of clearing cheques. Currently, customers enjoy the facility of dropping the physical cheques into

drop-boxes at ATMs, which are then picked up by the bank’s personnel and deposited at branch.


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Kiosk banking

POSTAL KIOSKS

Banks and service providers are in talks with the department of posts & telegraph and

courier companies like DHL and Fedex to install kiosks enabled to perform postal

transactions. Currently, a PSU bank and a couple of private banks are invading this

space to launch either co-branded (between the bank and post office) or bank-branded

kiosks at outlets like post offices and courier centres. As against the normal cost of up

to Rs 5 lakh, postal kiosks would cost banks a little above Rs 7 lakh. The bank is keen

to enter into the postal kiosk space primarily because post offices are located in prime

locations across the country, which would boost the bank’s geographical presence.

“Primarily, such a kiosk would dispense stamp leaflets after weighing the parcel and

calculating the exact value of stamps that require to be attached for mailing the

specified parcel. It would then ask the customer for his preferred mode of payment

and he can then swipe his credit or debit card on the attached EDC machine to render

the charges,” said AGS Infotech’s president and CEO, Sunil Udupa. Kiosks could

also release stamps on demand and provide franking facilities and will hit the market.

SIT-DOWN KIOSKS

Statistics prove that customers perform less than 1% of transactions through internet

banking as a large population of banking customers doesn’t have access to internet

facilities at home. Hence, banks have rolled out sit-down kiosks that provide

customers the facility of internet banking and printing of account statements covering

transactions over past three months within these outlets.

Normally, customers have to either call the customer care representatives of banks or

visit the branch for a copy of the statements. Also, an additional fee is charged by

banks for issuing these statements, say Rs 100 per page at the branch, and Rs 75, if

requested through the call centre. Printing of statements at kiosks would require

TY.BCOM (banking & insurance)18

Kiosk banking

customers to pay nominal amounts.

LASER TOUCH

Banking today is more customers centric and is evolving to exploit all customer

interactive channels. ATM, Kiosk Banking and Internet Banking are just the

beginning of an era in interactive banking. Customers are today more discerning than

ever before. They want a wide variety of services tailored to their needs, with

flexibility in service and 24hours access.

Laser Touch - the kiosk banking software is an answer to customer interactive

banking.

Kiosks let you transact with your customers wherever they are, anytime, at their

convenience.

Laser Touch Kiosk Banking software operates through a touch screen based kiosk

placed in the lobby of the bank, shopping malls and off-site market locations. Kiosks

will be connected to the Kiosk Server located at the Data Center.

Kiosk Server will be interfaced to the Banks Core System for providing online real

time services to its customers such as Balance Enquiry, Statement Printing, Stop

Payments, Standing Instructions etc. It is fully customizable to integrate with any core

automation software currently used by the bank. It can also facilitate printing of

statements, information and tokens. It can be connected to the branch through leased

telephone lines and provide online information and services by accessing data from

the branch's computer systems.

Laser Touch reduces transaction time and provides privacy to the customer's

operations. Customers desiring to use the kiosk have to register with the bank for a

PIN (Personal Identification Number), which is a password for accessing account

information and bank's services thought he kiosk. Laser Touch has all the security

features required to prevent unauthorized access to the system's resources. The

software can provide valuable customer preferences data to upgrade products and

services in the future.


Kiosk banking

ADVANTAGES OF KIOSK

Migrated customers from teller-based transactions to on-line banking to

reduce costs.

Enhance customer satisfaction by providing needed Web-based services in the

branch office.

Increase revenue and "share of wallet" by offering additional products and

services via cross-sell and up-sell opportunities.

Educate new and existing customers about service & product offering.

Initiate and provide rewards in the form of loyalty.

Provide service 24 hours a day, 7 days a week, in centralized locations

Provide additional training and educational services to employees.

KIOSKS - THE NEXT STEP IN SELF-SERVICE BANKING

That is the buzz around many of the financial institutions in the country. Not too

many years ago, before the advent of the web and the numerous other technologies

that have spawned from it, touch screen kiosks were typically confined to

metropolitan areas. These wooden boxes of yesteryear were cutting edge for their

time and provided a service that many museums, rest stops, and corporate receptions

areas found useful. The problem was, without an easy means of updating the content

or monitoring the kiosks to insure constant up-time and reliability, that many people

saw kiosks with blank screens or outdated content that lacked the intuitive

interactivity offered in kiosks today.

That was then, this is now. Kiosks have taken on an incredibly different purpose and

have the technology to back it up. Not too different from the fledgling days of ATMs,

kiosks got off to a slow start. We all know the amount of control ATMs have over our

everyday life now, but did we know it 20 years ago? Better yet, have we realized that

kiosks are simply the next step in the same premise that got ATMs started so many

years ago.


Kiosk banking

The case for banking kiosks can be best summed up into one word…MORE.

By utilizing kiosks in bank branches or even non-traditional locations such as malls or

grocery stores, banks can increase their customer base as well as increase the level of

service they offer existing clients. By utilizing kiosks in branches, tedious tasks that

eat away at a bank teller's time can be farmed out to the touch screen kiosk. Now

without a wait or a fee, customers can print out statements, transfer funds, pay bills,

and more from the interactive banking applications running on the kiosk.

Kiosks are leveraging the bank's investment in online services by utilizing the bank

services available online. Now instead of telling a customer it is out there and they

must find it and use it, banks are able to personally introduce their customers to their

online services. Bank tellers can now spend ten minutes demonstrating the kiosk to a

customer, and rest assured that the bank will never have to print out another

statement, again.

The trick is getting the customers signed up in the first place. One prime example was

Franklin National Bank in Tennessee. After the first four months of their four kiosk

pilot test, the number of eBanking customers grew 72%. This is the type of thing that

has created the buzz in the eBanking world. Banks are now learning to enhance their

overall Internet investment with the single most important advertising medium.

Banking convenience, non-interest generated revenue, increased carrying capacity,

customer retention, and the list goes on and on. Whatever the reason, banking kiosks

are here to stay.

WORKING OF KIOSK BANKING

Disclosed herein is a dedicated Internet banking kiosk system, in which a plurality of

group of kiosk devices are connected to an bank host computer, which are installed in

bank branches, respectively, using on-line authentication key, thus being capable of

performing bank tasks, and a method of providing Internet banking service using the

dedicated Internet banking kiosk system. The dedicated Internet banking kiosk system


Kiosk banking

is configured in such a way that an authentication key issued by a bank is stored on a

portable recording medium, a customer, having visited the bank, inserts the recording

medium into a kiosk device so as to conduct the procedure of authentication, and only

an authentication customer conducts all banking tasks. Furthermore, the dedicated

Internet banking kiosk system is used as a device for displaying a variety of guidance

information or advertisement information for bank when the system is in a standby

state in which no Internet banking users are present, and is used as a dedicated

Internet banking kiosk system in an operating state.

TY.BCOM (banking & insurance)

BANK HOST COMPUTER

KIOSK KIOSKKIOSK

BANK HOST COMPUTER

BANK HOST COMPUTER

22

MAIN BRANCH

KIOSK KIOSK

CUSTOMER’S ARE OPERATING THE INTERNET KIOSK MACHINE

KIOSK

Kiosk banking

CASE STUDY :- SWEET GAINS FOR SUGARCANE FARMERS

Warana Nagar, situated about 35 kms from Kolhapur (Maharashtra), has prospered by

virtue of the co-operative sugarcane factory in the region. The Warana Co-operative

Society carried out a project of deploying 54 village information kiosks that have

successfully streamlined the production process of sugarcane there. The project

has helped farmers save time and money spent on administrative transactions. The co-

operative society pays farmers for their crops in four installments, which are credited

directly to their bank accounts. The farmers visit the kiosks to obtain the payment

slips and determine the status of their bank accounts. In addition, farmers can

purchase fertilizer at depots located next to the kiosks, paying cash or on credit. If

they buy using credit, they get a receipt for their purchase at the kiosk. Money spent

on transport of the crop to the sugar factory and the harvesters’ bill is also entered in

the system. This project is said to have brought savings of about $750,000 (Rs 3.6

crore) to the co-operative. The estimated cost of the project was $600,000 (Rs 2.88

crore)


Kiosk banking

SURVEY REPORT ANALYSIS

The survey was done on 31st august 2007 on awareness of kiosk banking and it was a

customer survey, I had done Analysis on that survey, it is as follow:

1.Do you know what kiosk banking is?

There are 18% of people who are not at all aware of kiosk banking, they want to know

about kiosk banking and remaining 82% are aware of kiosk banking, so we can say

the kiosk banking is getting popular day by day.

2.Kiosk and ATM are same?

There are 8% of the people who think that kiosk and ATM are same as they are not

aware that ATM provide cash transaction, mini statement, cash deposit but kiosk

provide non-cash transaction like transfer money to other account, cheque request,

statement etc. but 92% of people think that there is some difference between ATM &

kiosk.

3.Do you know which bank provide kiosk service?


YES8%

NO92%

YES

NO

YES

82%

NO

18%

YES

NO

24

Kiosk banking

As kiosk banking is not more famous in India people are not more aware of the banks

those who provide kiosk banking there are 12% who says the IDBI banks provide

kiosk service, 26% of people says that Citibank provides kiosk service, and there are

34% of people who says that ICICI bank provide kiosk service, and 28% of people are

aware that all this banks provide kiosk service.

4.Have you ever used kiosk machine?

There are 57% of the people who have not used kiosk machine and there are 43% of

people who have used kiosk machine, those who have used kiosk machine say that


CITIBANK26%

IDBI BANK12%ICICI

BANK34%

ALL 28%

CITIBANK

IDBI BANKICICI BANK

ALL

NO57%

YES43%

YES

NO

25

Kiosk banking

every bank should provide kiosk service because it is easy to use and people can get

more facilities.

5.Which one is better?

Kiosk and ATM both are very usefull to people, both are better as per the requirement

of the customer. ATM is usefull for the people who do not transact more with bank

and who need cash every time. And kiosk machine are usefull to the people who

transact more with bank because it does not provide cash transaction and does the

payment with card or by cheque. But people think that new technologies should be

welcomed for the betterment of the banking sector. Kiosk are easy to use and they are

faster then ATM and provide many services.

People also say that kiosk machine should be installed at every railway station so that

the customer can get full benefit of service.

In future kiosk banking should gain more importance.


ATM

50%

KIOSK

50%

KIOSK

ATM

26

Kiosk banking

CONCLUSION

Finally I would like to conclude that kiosk banking is a very new invention in banking

sector which is usefull everywhere and in large volume like in Corporate / HR,

Banking, Hospitality, Entertainment, Education, Telecom, E government, Medicals,

Retail, Hotels, Shopping malls, Museums, Town Halls, Cities and communities,

Research facilities, Insurances, Public authorities, Commerce, Airports, Fueling

stations, Media. As it is a new technology in banking sector we should welcome it for

betterment of the banking sector. In India kiosk banking is developing in rural areas

where people are very much satisfied with it. It is up coming trend in India. kiosk

banking will gain more importance in future.

In a global economy with distributed workforces, kiosks can also help companies to

better serve the needs of different type of customers – their valued employees. Where

there are large numbers of employees at satellite sites without access to PCs, kiosks

can help to extend employee self-service from the desktop to the factory floor. The

result equal access to HR information for all enhanced employee satisfaction and

substantially lowers HR costs.

Kiosks are proving their value by producing a powerful return on investment for all

variety of organizations.


Kiosk banking

RESEARCH METHODOLOGY:

The research methodology in data collection is through:-

PRIMARY SOURCES

SECONDARY SOURCES

This report is based on primary as well secondary data, however secondary data

collection was given more importance ,one of the most important uses of research

methodology is that it helps in identifying the problem, collecting, analyzing the

required information data and providing an alternative solution to the problem .

Primary Sources: accumulating knowledge and help from friends, professors, etc.

Secondary Sources: Gathering data through websites, newspapers, etc.

Data sources:

Research is totally based on Secondary data, primary data can be used only for the

reference, and has been collected by interacting with various people .The secondary

data has been collected through various and website

HYPOTHESIS


Kiosk banking

1. The hypothesis being put forth for this study about KIOSK banking is that awareness

of KIOSK banking is 57%, there are still many people who do not know about

kiosks and the amenities provided by them.

2. Commercial banks are coming up with new innovative ideas and schemes for

increasing their customer base and fulfilling the needs of the general public.

3. In ruler area people will not face any problem in interacting with banks, soon there

will be kiosk machines of banks in each and every village and they don’t have to

travel long to get there pension or to with draw money from banks or to pay there life

insurance premium.

BIBLIOGRAPHY


Kiosk banking

www.Netkey.com

www.qualitynet.net

www.touchscreen-kiosk.com

www.drishtee.com

www.google.co

www.yahoo.com

www.rediff.com

www.timesofindia.com

www.economictimes.com


http://www.economictimes.com/

http://www.timesofindia.com/

http://www.rediff.com/

http://www.yahoo.com/

http://www.google.co/

http://www.touchscreen-kiosk.com/

http://www.qualitynet.net/

27 kiosk banking

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