© copyright ibm corporation 2007 ganaseva: branchless remote banking multi-service delivery model...

© Copyright IBM Corporation 2007

GANASEVA:BRANCHLESS REMOTE BANKING MULTI-SERVICE DELIVERY MODEL

FOR REACHING THE RURAL PEOPLE

By

Dr S S Satchidananda Ph.D.,

Head, Risk Solutions and Research

Financial Services Sector

IBM India, Bangalore


OUTLINE

Integrated Approach for Rural Services Delivery

Establishing DIGITAL Rural Information Infrastructure

Banking & Services Delivery Model


Current Scenario

Plethora of rural technology initiatives Concerns:

- Well intentioned attempts with un-established relevance - Incomplete / Partial solutions- Insufficient BPR and mere “ mechanization”s- ICT as an embellishment- peripheral / PR exercise - Increase in Access difficulties ,Transaction cost, - Taking Technology to People rather than taking service to the people.


BENEFITS OF AN INTEGRATED APPROACH

ACCESS + COST -

TIME _ CHOICE +

QUALITY + GROWTH / POVERTY ALLEVIATION +


IRCS DRIVERS

New Wealth generation thru new investment, trade and commerce enabled by ICT

Commercial gains thru market enlargement and growth Economic integration of the Rural and the Urban areas & overall welfare

improvements Development as business


INTEGRATED SOLUTION ARCHITECTURE

Investment

Health

CounselingCareer

guidance

Infrastructure

Matrimonial

Astrology

Trade

Education

Bill payment

Utilities

Citizen services

Banking


INTEGRATED FRAME WORK

Banking service delivery as the core function Utility service provision as second layer Other services as outer layer: governance information, education,

health Entrepreneur- based operations:

- Private initiatives or PPP initiatives- Immense potential for innovation


TECHNOLOGY ELEMENTS

Online Transaction Processing Electronic platform Utility services Applications Information services Applications Applications for other services


WHY BANKING SERVICES AS THE CORE?

Need for money for carrying on livelihoods Need for increasing capital formation in rural areas Need for Banks to broadbase their portfolio Payment system infrastructure Supply leading role of banking in development.


MULTIPLE DEPLOYMENT STRATEGIES

Computerization of operations of existing entities Use of Technology- enabled, appropriate delivery channels:

- Cyber Kiosks- ATMs- Mobile ATMs- Smart cards- Broad bands


MAJOR TASKS

Ensuring Financial viability

Long term sustainability

Solution development with provision for flexibility / adaptability for local

needs environment and infrastructure.

Consensual & functional approach: Innovation, Commitment & Effective

leadership.

Long term strategy rather than PR or Quick fix approach.


all-purpose ecommerce technology platform and channel stewardship

Kick starting the value chain of ebanking and ecommerceThru Information Services &“Service Intelligence” Thru enabling transactions between & among the banks & other service providers and all the unbanked people and the banked peopleThru collection management of bank receivablesThru enabling the payment and other services on the same platformThru enabling the proactive delivery of banking & other services at the doorsteps of the rural people using appropriate non-branch channels (mobile service systems, kiosks, cell phones, broadband etc., )


BENEFITS OF REMOTE RURAL SERVICE DELIVERY SYSTEM

Greater & faster access to high quality banking & other services Lower transaction costs thru sharing

(non-duplication + outsourcing +automation+BPM) Lower investment cost for ecommerce Empowerment of the rural people thru access & choice Improvement in productivity & growth of unbanked Comprehensive & cost effective method for delivery of banking and other

services


Rural Information Infrastructure for Banking and other Services

Dr. S.S. Satchidananda, Ph.D.Head, Risk Solutions & Research, FSS, IBM India, Bangalore


NEED

Collecting comprehensive data about the social and economic aspects of the 700 million rural people at the level of individuals in a self-validating and ready –to-use form

Updating the data on an ongoing basis Managing and processing this data and for making it available to the various users


CURRENT AND POTENTIAL USERS

Commercial banks ,cooperative institutions and other rural financing agencies Governmental authorities from village Planning & Development Agencies Private businesses International agencies


SOLUTION MODEL

Use of ICT for building and operating this information infrastructure involving collection, storage updation,consolidation and processing of the data and making customised offering

Entreprenurial model with provision for assurance review by public authorities or users or both

Pay for use business model


TECHNOLOGY

PDA with Specially made Applications for Data (Voice, Picture and Data)capture,verification and validation and updation

Data Center with Technologies for storage, processing and management Smart clients at the user-ends Threeway CDMA connectivity


PILOT PROJECT

Project : GANASEVA RCDS Location: IDAGUNJI Coverage: All adults in Select Five backward villages in Interior Karnataka User partners: Rural Financing Agencies, Syndicate Bank, SBI, PACS, Government forums


DELIVERIES

Model for Rural Information Infrastructure covering data content identification and methodolgy for validation and updating

Model for credit rating of rural individuals ICT model for implementing the Rural Information Infrastructure Successful demonstration of the technological feasibility User-proofing of the Implemented Model for making loans, etc.,


“GANASEVA” TECHNOLOGY- ENABLED RURAL SERVICES SOLUTION

INTEGRATED BUSINESS SOLUTION USING TECHNOLOGIES FOR DELIVERY OF RURAL

SERVICES RESEARCHED AND ARCHITECTED

SOLUTION TESTED AT HONAVAR, KARNATAKA, INDIA

FEATURES:

- OPERATIONALISING OF DIGITAL RURAL INFORMATION INFRASTRUCTURE

& ELECTRONIC PLATFORM FOR SHARED DELIVERY OF SERVICES

- REDUCTION IN TRANSACTION COSTS & DELIVERY TIME

- IMPROVEMENT IN QUALITY OF SERVICES

- INCREASING AVAILABILITY AND CHOICE OF SERVICES TO 700 MILLION RURAL

PEOPLE


Rural Individual Information

Data Collector IMDS

I n c e n t i v e s

Easier Access Lower Prices

Increases Choice

I n c e n t i v e s

Job & Profits

I n c e n t i v e s

Profits & Growth

I n c e n t i v e s

Cost SavingsBetter Identification

of TargetsBetter Profits

Faster growthEffective delivery

of services

National RII Data Grid

Banks/PACS

Governments

NGOs

Credit Rating Agencies

Other Service Providers

Village Knowledge Centers


IMDSEntrepreneur

MSDSEntrepreneur

FacilitatorEntrepreneur

END User

Bank1

Bank2

Bank3

Bankn

ConnectivityProviders

Entrepreneur

I n c e n t i v e s

Home DeliveryAvailability

Choice of BankChoice of Products

Growth

I n c e n t i v e s

ProfitsBusiness Growth

I n c e n t i v e s

Cost savingsBusiness Growth

Choice of businessChoice of Clientele

Better Quality Assets


SUGGESTION!

Establishing Digital Rural Information Infrastructure (DRII) for every village in India as the basis for governance, development & commerce using GANASEVA model

Issuing Smart Identity Card to every citizen based on the DRII which can be used by the person for all purposes requiring authentication

Initial application of the DRII for the providing banking ( account opening, loaning and cash at doorstep services through the coop banks & PACS using the ready-to-use solution of the GANASEVA model

Data Centre for DRII may be established using available infrastructures e.g. BSNL Exchanges / at NIC Project can be taken up by the Private companies/ Government / on PPP model


THANK YOU


GANASEVA- An ICT Solution for Rural Services Delivery

Dr. S.S. Satchidananda, Ph.D.Head, Risk Solutions & Research, FSS, IBM India, Bangalore


Outline

Opportunity: Serving Rural India thru ICT Problem: Inadequacies and Inefficiencies in the Delivery of financial

services in rural areas GANASEVA Elements of the new Model Major Tasks Opportunities & Benefits


Current Scenario

Huge credit gaps, High transaction cost, Delays Systemic Issues

- Data Inadequacy/unavailability- Knowledge Gap about Rural People and Economy- Documentation difficulties- Bureaucratic delays- Lack of Accountability- High transaction costs- Access cost


Elements of the Model

Imaginative use of ICT services (shared information and delivery infrastructure)

Entrepreneur-based Operations (Outsourcing data collection and unbundling credit processes)

Human interface (local faciltator) Secure, un-intimidating human-aided interface (software support) Pro-active Delivery of Services (analytics)


End User Benefits

Better (faster, easier) and larger credit delivery to Rural India

Reduction in “Digital Divide”

Business for Banks and IT Companies

Greater rural productivity & income


MOBILE RURAL BANKING SYSTEM

IMDS MSDS BANKS/ NON BANKS/ SUPPLIERS CDMA NETWORK


MSDS INTERFACE


UNIQUE FEATURES

OUTSOURCING MODEL ONLINE TRANSACTIONS LEVERAGING TECHNOLOGY FOR VALUE CREATION ENTERPRISE MODEL NEW INSTITUTIONS LIKE RURAL CREDIT RATING LOCAL LANGUAGE INTERFACE VOICE SUPPORT FOR TRANSACTIONS


Summary

ICT for Rural India – an alternative solution

Common Information Infrastructure & shared delivery system

Reduction in transaction costs & delivery time

Improvement in Quality of Services

Increasing availability of services


THANKS!!!

THANK YOU FOR YOUR TIME AND PATIENCE !

© copyright ibm corporation 2007 ganaseva: branchless remote banking multi-service delivery model...

Documents