role of technology in fianacial inclusion

8/3/2019 Role of Technology in Fianacial Inclusion

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What is the Profile of Financial Inclusion Technology ?

Capture Customer details and facilitate UniqueIdentification

Offer Financialproductstailored forthetargetgroupSupportcomprehensiveCredit Information System

Workinruralenvironmentalconditions

Supportuseofmultimediaand innovative User

Interfaces

LowCapitaland Maintenancecosts


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Card Based IdentificationChoiceofCards

1. Magstripe Card

2. Contact SmartCard

3. Contactless SmartCard

4. Plain PVCCard

5. Plain Laminated Card


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HANDHELDDEVICES


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A Typical Architecture


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Mobile Banking :-yMobile Bankingisthetermused for

performingbalancecheck , accounttransactions , paymentsetc . Viaamobiledevicesuchasmobilephones .


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Cost Advantage : -y Throughbranch Rs. 35 40 / transaction .

yATM transaction Rs. 15 20 / transaction .

y Internet Rs. 10 15 / transaction .

y Throughmobile Rs. 2 -5 / transaction .


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How it works : -


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RBI Guidelines : -

yAboutmPin .

y Everybankshould providemin 4 digit PIN .

y HDFChasalreadyprovided 6 digit PIN .


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Types of services covered : -

y For paying

1. Utility Bill payments ,2. Mobile Bills ,

3. Insurance Premiums ,

4. Credit Cards bills ,

5. Getting physical currency

6. Instant Transfers .


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24 / 7 Services :- Customer Notifications/Alerts

Exchangerates Enquiries

Account Balance Enquiries

Cheque book Request Fullstatementsrequests

Mini Statement Enquiry

StopCheque Instructions

Bulk SMS toCustomers

FundsTransfer Persontopersonpayments

Persontobusinesspayments

Businesstopersonpayments

Stopcard instructions


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What is an ATM ??yAn automated teller machine (ATM) is a

computerized telecommunications device that

provides the customers of a financial institution /bank with access to financial transactions in a publicspace without the need for a human clerk or bankteller round the clock (24 hrs a day)


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ATM Cardy On most modern ATMs, the customer is identified by

inserting a plasticATM card with a magnetic stripe or

a plastic smartcard with a chip, that contains aunique card number and some security information.

y Security is provided by the customer entering a

personal identification number(PIN).


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Functions ofATMy 24-hour access to cash

y View Account Balances & Mini-statements

y Order a Cheque Book / Account Statementy Transfer Funds between accounts

y Refill your Prepaid card

y Pay your utility bills

y Deposit cash or cheques

y Change your PIN

y Learn about other products


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Structure ofATMy Card reader

y Keypad

y Speakery Display screen

y Receipt printer

y Cash dispenser


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Precautions while using ATM / ATM

Cardsy Don't write down your PIN. If you must write it down,

do not store it in your wallet or purse.

y

Store your ATM card in your purse or wallet, in anarea where it won't get scratched or bent.

yAfter your transaction, take your receipt, card andmoney away. Do not stand in front of the machineand count your money.

y Stand directly in front of the ATM keypad whentyping in your PIN. This prevents anyone waiting touse the machine from seeing your personalinformation.


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A T M


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Credit Cards : -y WHAT IS ACREDITCARD ?

yAcredit card ispartofasystemofpaymentsnamedafterthesmallplasticcard issued tousersofthe

system. Itisacard entitlingitsholdertobuygoodsand servicesbased ontheholder'spromisetopay forthesegoodsandservices . Theissuerofthecard grantsalineof

credittotheconsumer(ortheuser) fromwhichtheusercanborrowmoney forpaymenttoamerchantorasacashadvancetotheuser.


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Benefits to customers : -y Themainbenefittoeachcustomerisconvenience.

Compared to debitcardsand checks, acreditcard

allowssmallshort-termloanstobequicklymadetoacustomerwhoneed notcalculateabalanceremainingbeforeeverytransaction, provided thetotalcharges donotexceed themaximumcreditline forthecard.Creditcardsalsoprovidemore fraud protectionthandebitcards.


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Parties involved : -y Cardholder:Theholderofthecard used tomakeapurchase;the

consumer.y Card-issuingbank:The financialinstitutionorotherorganizationthat

issued thecreditcard tothecard

Merchant:Theindividualorbusinessacceptingcreditcardpayments forproductsorservicessold tothecardholder.

y Acquiringbank:The financialinstitutionacceptingpayment fortheproductsorservicesonbehalfofthemerchant.

y Independentsalesorganization: Resellers(tomerchants)ofthe

servicesoftheacquiringbank.y Merchantaccount:Thiscould refertotheacquiringbankorthe

independentsalesorganization, butingeneralistheorganizationthatthemerchant dealswith.

y CreditCard association: Anassociationofcard-issuingbankssuchasVisa, MasterCard, Discover, American Express, etc


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CREDIT CARDS & DEBIT CARDS


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Debit Cardsy What are Debit Cards?

y

A debit card is much different than a credit card. You do not have to apply for creditwhen you get one, which means that your credit history has no bearing on youracceptance.

y This is not a short-term loan likeyou get with a credit card since it is linked directlytoyour bank account and is treated the same wayas cash.

y If you do not have the money in the bank, then you cannot make yourpurchase.


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What are the Benefits of a

Debit Card? Abletoreducetheriskofgettingintocreditcard debt, byensuring youre

spending yourownmoney, and notover-extending yourselfbygettingacreditcard balance youmaynotbeabletorepay.

Anypurchasethat youmakeon yourcard iscovered and protected by VISAsZero Liabilitypolicy

Itsalotmoreconvenient, easierand saferthancarryingcashorusing yourEFTPOS card.

Access yourtransactionrecords for yourcard onlineinstantlythroughinternet

banking.

You dontneed agood credithistory.Whenapplying fora VISA DebitCard, thebanks dont doacreditcheck, makingtheapplicationprocess fast(andpainless!).


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E BANKINGy

Whatis E-Banking ?y Theprovisionofbankingservicethroughelectronic

channelsand thecustomers canaccessthe datawithouttimeand geographicallimitations .

Development of E-Banking: -

1. Inmay 1995Wells Fargothe 1st banktooffercustomeraccesstotheiraccountsoverinternet .

2. ICICIwasthe 1st bankin Indiatoinitiatetheinternet

bankingrevolutionasearlyas 1997 underthebrand name INFINITY .


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What are the new payment technologies ?

y Cashand cheques arestartingtolooklikeghostsofpaymentspast.

y Creditand debitcardsarethepopularwaystopayrightnow, butsomenewtechnologiesareshowingup

totheparty, bothofflineand online.y Inoneofthemoreinteresting developments, Pay ByTouch hashad successinrollingoutabiometricsystemthatletscustomerspaywithaswipeoftheirfinger and PayPal recentlyintroduced PayPal Mobile,

whichletsuserssend and receivemoneyviacellphonetextmessagingand isalreadybeingused byMTV, the NBA Storeand other for-profitand non-profitcompanies .


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How the New Technologies Effect the

Financial Inclusion ?

y Increasesthebuyingcapacityofcommonman

y Increasesthestandard ofliving

y

Helpsincreasingthegrowthofcountry duetoincreasingspecial facilitiesofbankingsectors .

y Duetospecialbanking facilitiescommonmancanenjoyunlimited privileges .

role of technology in fianacial inclusion

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