Presentation At UPAAM

20.07.2010

FINO Featured in Outlook Business

• Re 2/- only for State of the art banking

technology

• Opening of simple Banking Accounts to changing

lives of almost 1 crore people as of today

• 11 People – 11000 officers in less than 3

yearsyears

• FINO – FINO Fintech Foundation – FINO

Fintech Trusteeship Services Limited to

Financial Literacy Academy

• Growing more than 500% YOY

• Sectoral Entity – Mission 100% Financial

Inclusion

What Do We Do?

• Turn key

Projects

• Mission

Critical

Projects

• Reaching

out to

millions

• Nation

building

initiatives

FINO –A Sectoral Entity

FINO’s Presence

Our ClientsBankingBanking InsuranceInsurance

CorporateCorporate

MFIMFI GovernmentGovernment

Our Partners

Hurdles in Serving BoP

Information Gap

Illiterate Populace

Infrastructure

Accessibility & Reach

Information Gap

Infrastructure

9

Accessibility & Reach

Foolproof IdentityFoolproof IdentityFoolproof Identity

Illiterate Populace

Experience

Gained over

last 3 years

of study,

pilots and

rigorous

testing

Process Flow- Smart Card & POT Machine

1. Enrollment

ProcessData Collection System

Demographic Details

Biometric Details etc.

4. Transaction

data loadingTo Integrated

Core Banking System

Through phone line (PSTN)

2. Issuance of

Biometric Enabled

Multi-Function CardDiverse points of usage

Hand-held devices

ATMs, Point of Sale counters

PCs/Card Interface

3. Financial Transactions

Through Field DevicesSingle Device supports

multiple application

FINO’s Product Offering

FINO’s Service Offering

•• ServicesServices• Business Correspondent

• UID

• Social Security & Pension

• NREGA

• Corporates

• Bill Payments

• Reaching Isolated

Locations• NREGA

• Banking

• Micro Finance

Locations

• Credit Bureau

• Education

Product Delivery Medium

•Biometric Smart Cards

•POT Machines

•Mobile Phones

•Micro Deposit Machine

Micro Deposit Machine (MDM)

Customer Interactive Display

Keypad

Smart Card Reader

Voice Prompts

Keypad

Cash acceptor

Secure Safe

Biometric Reader

Transaction Receipt Printer

FINO Projects

NREGA

FINO RSBY

UID

NDDB

The Journey So Far

• Commenced operations June 2006

•1,000,000 Customers: March 2008

•2,000,000 Customers: July 2008

•3,000,000 Customers: November 2008•3,000,000 Customers: November 2008

•5,000,000 Customers: March 2009

•10,000,000 Customers: Jan 2010

•15,000,000: 8th June 2010

Customer Base

20

banks

9Govt entities, 4 Insurance

cos

22 States,233 Districts

36,562 Locations

8,456 Transaction Points

2 Mn. Monthly Transactions with Avg. monthly volume of 525 Mn.

16 Million Customer Base

Highlights: Average Transactions

Average Minimum Balance:

Rs 110.00 ($ 2.00)Rs 110.00 ($ 2.00)Average of 2 Transactions per Month

Biometric Smart Card

r r r r r y y g s s v v v v v v c

Serial number Gender Village Code

Year of Birth State Check Digit

Delivery MechanismsSmart Card

• 64 KB memory size with 15

pockets 16 digit Unique Reference

Number

• Personalised and Branded

• Acts like a combination of ATM

card and Passbookcard and PassbookHandheld & Mobile Device

• Standard readymade J2EE

compliant available hardware

• Software developed by FINO

• Integrated Card reader, Fingerprint

reader, Monochrome screen, Keypad,

Printer, Memory and Battery

• Audio Prompts (optional)

Key Learning

•Multiple Products required for long-term BCSustainability

•State Govt. Drive Federal Initiatives in India

•Public Mandates is a Key Driver Shaping PublicPolicies pertaining to FIPolicies pertaining to FI

•Financial Literacy Programs

•Bandhu/BC/DC Training

•Technology has to be Simple to Use, Scalable &Robust

•Cash & Project Management

Experience at Field Level

• Banks would never want to deal with 1000s of points directly

• Need of entities that can

� Set-up the BC network

� Manage risks – operational, reputation

�In turn have strong processes of member / bandhu selection

� Manage cash movement and financial risk

� Train, Cross-sell and make customer financially literate

There is no such “available” entity at present!!!

Business Correspondent Model (BC)

District

Coordinator

District

Coordinator

Block Block Block Block Block

Coordinator

Block

Coordinator

BandhuBandhu BandhuBandhu

Block

Coordinator

Block

Coordinator

BandhuBandhu

Field Management: Samvaad

I BC

Met (more than 1 time)

Met (1 time)

Not Met

Agra Amritsar Bangalore Rural Barddhaman

Laxmijkant Paliwal Parveen Kumar Raghavendra Jakir Hussian

Mukesh Inderjit Singh Bhimasenacharya Kishor Sadhu

Ramprakash Surjit Singh Babu Basudev Ghosh

Sashikant Bawa Singh Narasimhamurthy.K.N Sk Sultan

Praveen Sukhdev Singh Sampath Molla Md Ismail

Netrapal Kapil Meet Singh Narayanaswamy.A Rajat Kumar Mondal

Jugendra Jasbeer Kaur Narayanaswamy.G Intajul Haque

Santosh Gurmangat Singh Balaji Shetty Sk. Hedayatulah

Laljeet Navdeep Singh Suresh Sk Basiruddin

Pradeep Gurdev Singh Munigowda Ismail Mondal

Gautamsingh Gurpal Singh Jaganath Sk. Sirajul Haque

Chandra Ranjeet Singh Raghavendra Cm Sk. Basir Ahamed

Chandrabhan Venkatesh.G Sufiar Rahaman

Trivendra Srinath Sanat Karmakar

Mahesh Krishnappa Sekh Borjhan

Rajesh Wazir Ahmed Abdus Salam

Pramila Venu Suman Kalyan Dey

Nemi Arun H.N Bablu Mondal

Pittam Chandrashekar Reddy Subhamay De

Mohan Rajanna Gn Tapan Das

Dheerendra Anil Kumar.N Parvej Kamal Sikdar

Manjunath Sk. Nur Jamal

Laxpatu Badsha Alamgir Sekh

Rajashekar Amit Ghosh

Mahiruddin Haque

Pradip Nayek

Belowar Hossain Mondal

Hriday Ghosh

Bijoy Das

Choudhuri

Rabindra

Samir

Field Management:Samvaad II

AadhaarA Division of FINO Fintech Foundation

“Empowering needy women to become economically self reliant through

sustainable access to integrated financial services at minimal cost”

• A pilot for group lending at Satna, Madhya Pradesh.• A pilot for group lending at Satna, Madhya Pradesh.

• Rolled out operations on November 12, 2009.

• More than 1000 customers enrolled in 2 months.

• First milestone of 1 crore disbursement on

Jan 19,2010.

• 100% repayment till date.

Social Impact

Regular

Employment

and Prompt

payments

Healthcare for Bringing

People to Healthcare for

all

A unique

identity for

every Indian

People to

Connect to

the Economy

Benefits of the FINO System

• Customer validation through foolproof biometrics

• Offline transaction capability

• Electronic transaction Infrastructure

• Multi-application Smart card

• Fast payment and reporting

• Low cost and simple to use

Thank YouThank You