Download - ATM for India : STAGE 1 @ IDC
Aarif….
Aarif….Aarif….32
Construction worker from Lucknow, working in Mumbai
He is working on the metro railway project
He receives wage at the end of the day
Aarif lives in a shared room with other workers
He has a feature phone, a debit card , voter id and even an UID
But, no safe place to keep his daily wage
He has to send money home, every month to his Abba and Ammi
What does
Aarif do?
What does
Aarif do?
ATMfor India
M.Des | Project 3Rajarshi Ray
Guide: Prof. R.Sandesh | Co-guide : Prof. N.SadhuIDC IIT Bombay
Financial inclusion
“… the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost”
- Rangarajan committee, 2008
Standard banking facilities to all irrespective of their income and socio-economic background.
About Rs 60 billion/ day can be collected by Government
No one has access to this liquid cash to do business
This is a low cost fund* (rate of interest levied is low)
70,000 bank branches in India, but a large section of Indian population remains credit starved^
*Rate of Interest : SBI SB a/c = 4% Yes Bank SB a/c = 6% Fixed deposit SBI = 9.25%^ Business Line, The Hindu, January 24,2006
From STAGE 0
SPEED OF URBANISATION BY 2030
Goldman Sachs argues that the economic potential of Brazil, Russia, India and China is such that they could become among the four most dominant economies by the year 2050. This thesis was proposed by Jim O'Neill, global economist at Goldman Sachs.#
INDIA BRAZIL
Population
No. of ATMs
1,339,724,854*
70,000~
192,376,496^
2,20,000~
*March 1, 2011. Census result ^ July 1,2011. IBGE Official Estimate ~ Lipi data systems Ltd. estimate 2011#http://www.foreignpolicy.com/articles/2010/08/16/prime_numbers_megacities?page=0,1
15,32,097
From STAGE 0
Objective
To design a banking system to address the needs of low income migrant class with low literacy levels. (rural people in urban setup)
Project brief
1 User friendly system which is not feared
2 Facility to
deposit, transfer and withdraw money
3 Easy interface for easy comprehension by the semi-literate people comprising construction workers, daily wage labours et al.
Survey carried out by International Data Corporation for NCR
Source : http://www.inclusivegrowth.co.cc/Mobile-Banking.html
Types of Account*
*Indian Bank’s Association : http://www.iba.org.in/account.asp as on January 30, 2012~ Business Standard : http://www.rediff.com/money/2005/nov/17perfin1.htm as onNovember 17,2005
Savings Account
Current Account
• Common account for individuals• Non-commercial transactions• Day-to-day banking transactions• Earning return
• Cheque operated accounts • Mainly business purposes • No limits on the number of transactions permitted• No interest on the balances maintained
No Frills Account ~• Zero balance or low minimum balance accounts • Policy of 'financial inclusion' of the poorer section• To counter a trend whereby all banks want to target the 'affluent' class
From STAGE 0
What is SBI doing in response ?
Green Channel * • Paperless banking introduced by SBI• Customer need not fill up any pay-in slips or draw cheques • Saves paper, and thereby contributing to the concept of ’Green Banking’• Originally targeted at Senior citizens who prefer branch banking
*http://thebankingbible.com/know-about-green-channel-counter-of-sbi-1332 as on January 31, 2012^ Gathered from conversation with Mr. J.Mukhopadhyay, Relationship manager,
Personal banking, SBI, Santiniketan, WB
Banker to every Indian
ATM penetration of SBI has been successful over the years. In fact customers today demand for ATM cards.To cater to the needs of BPL customers certain banks in rural areas have banking hours from 11AM – 6PM instead of standard 10AM – 5PM.
Focus of SBI in banking is now on :1 Green Channel 2 Mobile Banking 3 Internet Banking ^
From STAGE 0
Source : http://www.zamanzar.com/Mumbai/Commercial-Property-Prices.html
Source : http://www.telecomindiaonline.com/
Source : http://priyankasblog.com/mobile-india-a-statistical-look-at-urban-indian-mobile-users/
Source : http://www.pluggd.in/smartphone-users-in-india-297/
Source : http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats /
Source : http://www.pluggd.in/smartphone-users-in-india-297/
Mira Road, Maharashtra
@ Mira road
Human Tellers
10-15 lakhs
150 +
Cash depositing machine
75-80 lakhs
Unprocessed Cash = 1 Crore
Population comprise• contractors• labours• sex workers • businessmen • grocery vendors et al
Unprocessed Cash v ICMC processed Cashv
Integrated CashManagement Centre
(@ Bandra & Dombivali)
To Banks
v
Unprocessed Cash Remittance+ =processed Cash
Overnight cash holding limitCRI = Cash Remittance Limit ≈ 75 lakhs for Bank X at Mera road (can be as high as 10 crore)
ATMs do not have facility of cash recycling
(Auto fill of dispense tray from deposit tray)
v
NIM = Net Interest Margin
Loan given out=>
Advances _ Deposit = SPREAD
BOC = Branch Operating CostCHC = Cash Holding Cost = 2%CHC = Advances – (Deposit + BOC)CTF = Cost of FundsCTF = Σ (operating expenses + HR +ATM maintenance etc)
=>Advances Deposit = +ve~BANK PROFIT
ATM Service vehicle*
*Source : Obtained from WRITER Securities, Mumbai through personal interaction
• Cash filling is done only during daytime to avoid risks• One service agency/ service vehicle caters to multiple banks and is not exclusive to a bank• Cash collected to fill into an ATM is collected from an authorised bank branch• Only engineering servicing is done during night, in case of extreme emergency • One service vehicle caters to 15-20 ATMs of different banks in the same locality • Servicing one ATM ideally should take 15 mins but extends to about 30mins.
CREW = + +
Driver Technicians Armed guard
Driver
TechniciansArmed guard
Plan
Elevation
Vault
Vault
The vehicles which are usually retrofitted to serve as ATM service vans are Mahindra Maxi truck, TATA LP 407, TATA Winger etc.
Conclusions from User study
1 Depositing cash is a necessity for the target class.
2 People with low literacy levels are comfortable using automatic systems. They are experienced with using mobile phones.
However, a sense of security and immediate assistance is desired.
3 Cash recycling might not be possible in Indian scenario.
4 ATM card is shared between family members
2010 2015 2020 2025 2030
50 K
100 K
150 K
200 K
Demand
Supply
Year
Num
ber o
f ATM
s
Δx1
Δx2
Δx2 << Δx1
NB -This graph is only to aid explanation
Comparison of demand and supply of ATMs
What
can be the
SOLUTION
?
What
can be the
What
can be the
SOLUTION
?
What
can be the
CONCEPTS
VRS ATM CONCEPT : 1
Card swipe
Receipt output
Transaction slotTelephone
VRS ATM : Visual Mockup
User works all day Earns wage
Keeps part of wage
Deposits rest in ATM with help of VRS.Gets receipt.
Authorised vehicle collects the money
> User arrives at VRS ATM kiosk
1 User picks handset + swipes card - VRS is activated ; Language of user automatically identified
2 VRS begins3
Namaskar !Welcome to Hello Bank. Please enter your secret codeafter you hear BEEP
User enters PIN4
For deposit press GREENFor withdraw press RED For transfer press BLUEAfter you hear BEEP
VRS continues5 User presses GREEN6
User enters 6508
Money will now be deposited in Karim chacha’s a/c
Enter notes through the slot one by one after you hear BEEP
VRS continues9
User presses GREEN;Deposit channel activated
6 VRS continues; VRS has pre-fed information about USER’s related accounts
7
To enter money in Ramu’s a/c dial 505; for Karim chacha dial 650; for Ammi dial 777 after you hear a BEEP
505 650 777
Note is drawn inReal time display on screen
10
100
Note is drawn inReal time display on screen
10
100
USER keeps inserting notes until his target amount is reached
11
900Karim chacha now has Rs. 900. To continue deposit, insert the note through slot after BEEP or Press BLACK button to exit12 VRS continues
13 USER presses Black button
Rs 900 has been deposited in Karim chacha’s account. Thank you for using HELLO BANK VRS !
14 Receipt printed with transaction record
Segregated System CONCEPT : 2
Colour coded hardware
Segregated system ATM : Visual Mockup
User works all day Earns wage
Deposits rest in Deposit box of ATM. Gets receipt
TWD
Authorised vehicle collects the money
D
Keeps part of wage
Segregated System : Variant CONCEPT : 2
Colour coded channels
Small low Resolutiondisplay
Hard buttons indicating denominations like 500, 100 etc.
ENTER PIN
USER swipes card. ATM asks for PIN
1
DEPO
WITH
Deposit or withdraw option appears corresponding to buttons
2
Low resolution display
Printed dummy
CounterHard button
√
USER presses Deposit buttonDeposit channel activated
3
INSERT NOTE
USER gets instruction to insert note through active Deposit channel
4
Deposit channel
Rs 500
USER inserts note of Rs 500Counter shows number
5 USER inserts note of Rs 100Counter shows numberDisplay shows total amount inserted
6
Counter
1
Rs 600
1
1
X X
Rs 600
USER presses X button5 Deposit channel deactivated.Transaction receipt generated.
6
1
Thank youX
1
Deposit channel deactivated
Dep
osit
Rs 6
00
ATM on wheels CONCEPT : 3
Human teller
Automatic channels
ATM mounted on channel slides out
Technician & Teller
Plan Private space generated for USER
Technician
Withdraw module
Deposit module
Transfer module
ATM on wheels : Mockup
User works all day Earns wage
Deposits rest in ATM Van. Gets receiptATM Van deposits money to bank
Keeps part of wage
ATM mobile app + depository module CONCEPT : 4
Smart phone with banking app
Receipt
Transaction channel
CONCEPT : 4Mobile Banking Depository Module
> User gets ‘free’ app installed on mobile on opening bank a/c
> User gets info through app; like balance enquiry transaction record etc From bank’s server FREE OF COST
> Bank has small depository & withdrawal modules installed
> User goes near ‘deposit module’ with app on mobile & Dials ‘SECRET’ access number
> Module Activated
1 2 3
54
BANK NAME
BANK NAME
> User puts in cash through activated channel
> Module Activated > Mobile keeps showing amount entered in real time
> Once complete user presses OK button
Module deactivates & Generates receipt > Transaction record is noted in user’s a/c via app
SP 7
5 6 7
100
800 OK
8
9
RECEIPT
700
SW
O
T
• Comfortability of a human teller• Extended banking hours
• Diverse language VRS is difficult• Added cost of VRS• Cost of real estate
• Gradual training of novice users towards automated banking systems
• Diverse language options may confuse users
• Clear hardware demarcation• Cost reduction due to low resolution display
• Increased cost due to new hardware• Cost of real estate
• Effective for areas with low transaction volumes• Split hardware can be installed separately
• Proper space to install might be difficult to find• Designing new hardware
• Same equipment can cater to many areas • Retrofitting • Presence of humans• Night banking
• Man power necessary• Special vehicle required • Low cash handling capacity
• High penetration capacity • Can promote banking; eliminate fear about banking
• Moderate chances of dacoity
VRS ATM Segregated ATM ATM on wheels Mobile app• Cost of hardware minimal • Live account updating on mobile phone application
• User must have appropriate mobile phone
• Very high chances of success as mobile usage becoming popular day by day
• Chances of dacoity low, as amount transacted in very low
Thank you