Description
This is a presenation exlaining about ICICI Bank's e finance from indian perspective in detail
e-Finance for Development - An Indian Perspective
Agenda
?
Development Banking in India ? ICICI - Development framework ? Sectoral initiatives ? Legal structure in India ? Going Forward
2
Development Banking in India
?
Priority Sector in India characterised by
? ? ? ? ? ? ? ?
Low capitalisation and limited assets Geographical diversity and high mortality Poor access to capital markets Non accessibility to credit history Cash intensity in transactions Cyclical fund requirement and high commodity risk Informal sector and uncorporatised High dependence on Govt. support/ subsidies
?
?
Poor financial disclosure on account of tax issues High risk perception has led to high borrowing costs
3
Agenda
?
Development Banking in India ? ICICI - Development framework ? Sectoral initiatives ? Legal structure in India ? Going Forward
4
ICICI Group - Development framework
?
Product lead approach for each sector
?
Small and Medium Enterprise (SME) ? Agriculture and Micro Finance ? Community Banking ? Internet and Electronic Banking
? ? ?
Product and delivery technology dependent Branch remote approach Central processing centres enable optimum monitoring
5
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
6
7
SME - Strategic framework
Concerns Improve Quality Exit weak accounts Improve yields Reprice on RaRoC benchmark Reduce delivery cost Web / call centre based delivery Aspirations Non capital intensive growth Liability/ fee income Cash management product Innovative delivery Smart / Credit cards Web / call centre delivery Service relationships Banker for services rather than credit
• • • •
• • •
• •
• • •
• •
8
SME - Service & Delivery
? Drop
box point ? High value cash transactions Branch Call centre
?Handles
? Information
? Logging
requests
Processes all trade related requests for a city Trade finance factory
exceptions ?Cross sells ?Monitors accounts
Processes all pure credit related requests
Customer
Account/ Relationship manager
Credit factory
? Provide
? For
all transactions except high value cash Internet
? Information
ATM
support backbone for ? Logging all transaction requests requests ? Services RPC/CPC doorstep “Processing centres*” deliveries
9
Online Products
Bill Junction Utility bill payments Pay Seal electronic payment system Corporate Infinity online transfer/ settlement system
e-banking in ICICI
ICICI Markets online FX, Debt, SME Portal
ICICI Direct and ICICI Select
Business Multiplier web interface
10
Agri - Micro-credit initiatives
?
Innovative structure for micro-credit in rural areas
?
Overcome the reach problem ? Lower administration costs
?
Channels for delivering micro-credit
?
Sugar companies ? Seed producers ? Input companies ? NGOs and micro credit institutions
These channels help build volumes, reduce costs and monitor credit risk
11
Agri - Farmer Service Centres (FSCs)
?
FSC provides one stop solution to the farmer
? ? ? ? ?
Agri extension support Inputs and other services Credit Market linkage Rural infrastructure
?
These FSCs are promoted by Agri Input suppliers , and avoids duplication of efforts by different players
12
Smart card solution for FSCs
Input Merchant Store
• Credit • Debit • e-purse
Farmer Service Center
Bank Account/ Credit History
Output Sale
Collect Money
Online update of Bank accounts
13
Smart Cards … An alternative
?
Difficulty in rural banking
?
Management of Cash
? ?
Cost of idle cash Cost of cash handling infrastructure
?
Geographical spreads
?
Solutions through
?
Elimination/ reduction of cash handling ? Innovation of low cost delivery channels
?
Smart Card - an ideal vehicle
14
Smart Cards at ICICI
?
Smart Cards launched in October 2000
?
Infosys Campus in Bangalore ? Manipal Academy of Higher Education (MAHE)
?
New Initiatives
?
Satyam Smart Card ? HPCL Petro Card ? Work on multiple application card - Debit, Credit, EPurse and Loyalty
15
16
Social Initiatives - ICICIcommunities
?
Give Online: On-line donation channel
?
Retail donors can donate to specific initiatives across India ? 100% of donations reach the initiative ? Prompt feedback on utilisation of grant ? Rs. 11.5 million towards Gujarat Earthquake
?
Shop the Cause: On-line shopping mall
?
Over 100 exquisite hand crafted products available ? The only facility of its kind available to non-profits in India
17
Innovations in Delivery Channels
?
Sustainable Access for Rural India (SARI) project
?
Partners: MIT Media Labs, Harvard University, IITChennai, I-Gyan, DHAN Foundation, ICICI Ltd ? Providing reliable Internet access through Kiosks in rural Madurai using corDECT WiLL ? 100 kiosks managed by entrepreneurs to be set-up ? Providing e-governance, communication and information services
?
Possibility of delivering banking services through Internet kiosks being explored
18
19
Internet Banking
?
First Bank in India to launch website - 1996 ? First Bank in India to launch Internet Banking - 1997 ? First Bank in India to launch online bill payment1999 ? Only Bank in India with million online customers ? Monthly average transactions per online customer7
20
Internet Banking - Statistics
? ? ? ? ?
117% increase in transaction volume since April 2001 More than 1 million contacts in February 2002 Coverage across 100 locations in the country 103% increase in internet banking registrants since April „01 84% increase in transactions since April „01
21
Channel Usage
Call Centre 4%
Internet 4%
Branch 41%
Call Centre 6%
Internet 5%
Cops 7%
Branch 35%
ATM 51%
Apr 2001
Br an ch Cash Tr an sact i o n s Jan-02 18% Apr-01 19% No n Cash Tr an sact i o n s Jan-02 41% Apr-01 50% A TM 82% 81% 33% 39%
22
ATM 47%
Jan 2002
Net Nil Nil 9% 6% 7% 5% 10% Nil COPS
Cal l Cen t r es
Retail Initiatives - Utility Payments
? ? ?
First bank to introduce this service in India Tie-ups with 50 utilities for online payments Talks with state governments/ municipalities to facilitate e-governance
?
AP Govt. initiative - eSevaonline ? Vizag Municipality - Saukaryam
23
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
24
e-banking related laws
?
e-banking governed by:
?
Information Technology (IT) Act, 2000 ? Internet Banking guidelines of the Central Bank
? ?
India is the 2nd country in Asia to initiate technology related act e-banking encouraged through:
?
Focussed legislation ? Access to IT skills, computers and incentives to ISPs
25
Salient features of IT Act
? ?
Drawn as per the UN Model Law for IT Legal recognition to
?
Electronic records ? Electronic contracts ? Digital signature
?
Appointment of certifying authority and controller
?
Issuer of public and private key ? Controller - repository of all the signatures
?
e-Governance- Filing of documents in e-form
26
Central Bank guidelines
? ? ? ? ? ?
Bank to have security policy approved by Board of Directors Introduction of logical access control systems Security buffers between bank system and internet Products to be compliant with domestic foreign exchange regulations Setting of inter bank payment gateway Mandatory disclosure of risks in internet based dealings
27
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
28
Creating the “e” wave - Statutory
?
Legal validity for e transaction
?
Consumer Protection ? Negotiable Instrument Act ? Acceptance of electronic based document
?
Full Account Convertibility ? Exchange Control Laws ? Strengthening the Intellectual Property Laws
29
Creating the “e” wave - Infrastructure
?
Encourage internet/ “e” usage
?
Voice over Internet ? Improvement in telecom infrastructure ? Tax incentives for internet based transaction ? Incentive for electronic settlement
30
Creating the “e” wave - Banking
? ? ? ?
Allowing appointment of third parties for banking Allowing variable interest rates on deposits Modifications in “service area approach” to encourage competition in the rural areas Undertaking specific initiatives to provide an impetus to rural banking
?
Computerisation of operations of banks especially the rural operations ? Land Records Computerisation ? Networking of Post Offices
31
Creating the “e” wave - Electronic
? ? ?
Standards for smart cards Guidelines on smart card interoperability Changes in Central Bank guidelines
?
Eligibility of clients ? Loading of value ? Provision of written reports and receipts
? ?
Govt. incentives to stakeholders Govt. encouragement for ATMs/ POS infrastructure terminals
32
e-enabling the economy Thank You !!!
doc_280196055.ppt
This is a presenation exlaining about ICICI Bank's e finance from indian perspective in detail
e-Finance for Development - An Indian Perspective
Agenda
?
Development Banking in India ? ICICI - Development framework ? Sectoral initiatives ? Legal structure in India ? Going Forward
2
Development Banking in India
?
Priority Sector in India characterised by
? ? ? ? ? ? ? ?
Low capitalisation and limited assets Geographical diversity and high mortality Poor access to capital markets Non accessibility to credit history Cash intensity in transactions Cyclical fund requirement and high commodity risk Informal sector and uncorporatised High dependence on Govt. support/ subsidies
?
?
Poor financial disclosure on account of tax issues High risk perception has led to high borrowing costs
3
Agenda
?
Development Banking in India ? ICICI - Development framework ? Sectoral initiatives ? Legal structure in India ? Going Forward
4
ICICI Group - Development framework
?
Product lead approach for each sector
?
Small and Medium Enterprise (SME) ? Agriculture and Micro Finance ? Community Banking ? Internet and Electronic Banking
? ? ?
Product and delivery technology dependent Branch remote approach Central processing centres enable optimum monitoring
5
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
6
7
SME - Strategic framework
Concerns Improve Quality Exit weak accounts Improve yields Reprice on RaRoC benchmark Reduce delivery cost Web / call centre based delivery Aspirations Non capital intensive growth Liability/ fee income Cash management product Innovative delivery Smart / Credit cards Web / call centre delivery Service relationships Banker for services rather than credit
• • • •
• • •
• •
• • •
• •
8
SME - Service & Delivery
? Drop
box point ? High value cash transactions Branch Call centre
?Handles
? Information
? Logging
requests
Processes all trade related requests for a city Trade finance factory
exceptions ?Cross sells ?Monitors accounts
Processes all pure credit related requests
Customer
Account/ Relationship manager
Credit factory
? Provide
? For
all transactions except high value cash Internet
? Information
ATM
support backbone for ? Logging all transaction requests requests ? Services RPC/CPC doorstep “Processing centres*” deliveries
9
Online Products
Bill Junction Utility bill payments Pay Seal electronic payment system Corporate Infinity online transfer/ settlement system
e-banking in ICICI
ICICI Markets online FX, Debt, SME Portal
ICICI Direct and ICICI Select
Business Multiplier web interface
10
Agri - Micro-credit initiatives
?
Innovative structure for micro-credit in rural areas
?
Overcome the reach problem ? Lower administration costs
?
Channels for delivering micro-credit
?
Sugar companies ? Seed producers ? Input companies ? NGOs and micro credit institutions
These channels help build volumes, reduce costs and monitor credit risk
11
Agri - Farmer Service Centres (FSCs)
?
FSC provides one stop solution to the farmer
? ? ? ? ?
Agri extension support Inputs and other services Credit Market linkage Rural infrastructure
?
These FSCs are promoted by Agri Input suppliers , and avoids duplication of efforts by different players
12
Smart card solution for FSCs
Input Merchant Store
• Credit • Debit • e-purse
Farmer Service Center
Bank Account/ Credit History
Output Sale
Collect Money
Online update of Bank accounts
13
Smart Cards … An alternative
?
Difficulty in rural banking
?
Management of Cash
? ?
Cost of idle cash Cost of cash handling infrastructure
?
Geographical spreads
?
Solutions through
?
Elimination/ reduction of cash handling ? Innovation of low cost delivery channels
?
Smart Card - an ideal vehicle
14
Smart Cards at ICICI
?
Smart Cards launched in October 2000
?
Infosys Campus in Bangalore ? Manipal Academy of Higher Education (MAHE)
?
New Initiatives
?
Satyam Smart Card ? HPCL Petro Card ? Work on multiple application card - Debit, Credit, EPurse and Loyalty
15
16
Social Initiatives - ICICIcommunities
?
Give Online: On-line donation channel
?
Retail donors can donate to specific initiatives across India ? 100% of donations reach the initiative ? Prompt feedback on utilisation of grant ? Rs. 11.5 million towards Gujarat Earthquake
?
Shop the Cause: On-line shopping mall
?
Over 100 exquisite hand crafted products available ? The only facility of its kind available to non-profits in India
17
Innovations in Delivery Channels
?
Sustainable Access for Rural India (SARI) project
?
Partners: MIT Media Labs, Harvard University, IITChennai, I-Gyan, DHAN Foundation, ICICI Ltd ? Providing reliable Internet access through Kiosks in rural Madurai using corDECT WiLL ? 100 kiosks managed by entrepreneurs to be set-up ? Providing e-governance, communication and information services
?
Possibility of delivering banking services through Internet kiosks being explored
18
19
Internet Banking
?
First Bank in India to launch website - 1996 ? First Bank in India to launch Internet Banking - 1997 ? First Bank in India to launch online bill payment1999 ? Only Bank in India with million online customers ? Monthly average transactions per online customer7
20
Internet Banking - Statistics
? ? ? ? ?
117% increase in transaction volume since April 2001 More than 1 million contacts in February 2002 Coverage across 100 locations in the country 103% increase in internet banking registrants since April „01 84% increase in transactions since April „01
21
Channel Usage
Call Centre 4%
Internet 4%
Branch 41%
Call Centre 6%
Internet 5%
Cops 7%
Branch 35%
ATM 51%
Apr 2001
Br an ch Cash Tr an sact i o n s Jan-02 18% Apr-01 19% No n Cash Tr an sact i o n s Jan-02 41% Apr-01 50% A TM 82% 81% 33% 39%
22
ATM 47%
Jan 2002
Net Nil Nil 9% 6% 7% 5% 10% Nil COPS
Cal l Cen t r es
Retail Initiatives - Utility Payments
? ? ?
First bank to introduce this service in India Tie-ups with 50 utilities for online payments Talks with state governments/ municipalities to facilitate e-governance
?
AP Govt. initiative - eSevaonline ? Vizag Municipality - Saukaryam
23
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
24
e-banking related laws
?
e-banking governed by:
?
Information Technology (IT) Act, 2000 ? Internet Banking guidelines of the Central Bank
? ?
India is the 2nd country in Asia to initiate technology related act e-banking encouraged through:
?
Focussed legislation ? Access to IT skills, computers and incentives to ISPs
25
Salient features of IT Act
? ?
Drawn as per the UN Model Law for IT Legal recognition to
?
Electronic records ? Electronic contracts ? Digital signature
?
Appointment of certifying authority and controller
?
Issuer of public and private key ? Controller - repository of all the signatures
?
e-Governance- Filing of documents in e-form
26
Central Bank guidelines
? ? ? ? ? ?
Bank to have security policy approved by Board of Directors Introduction of logical access control systems Security buffers between bank system and internet Products to be compliant with domestic foreign exchange regulations Setting of inter bank payment gateway Mandatory disclosure of risks in internet based dealings
27
Agenda
?
Development Banking in India ? e-initiatives in ICICI Group ? Sectoral initiatives ? Legal structure in India ? Going Forward
28
Creating the “e” wave - Statutory
?
Legal validity for e transaction
?
Consumer Protection ? Negotiable Instrument Act ? Acceptance of electronic based document
?
Full Account Convertibility ? Exchange Control Laws ? Strengthening the Intellectual Property Laws
29
Creating the “e” wave - Infrastructure
?
Encourage internet/ “e” usage
?
Voice over Internet ? Improvement in telecom infrastructure ? Tax incentives for internet based transaction ? Incentive for electronic settlement
30
Creating the “e” wave - Banking
? ? ? ?
Allowing appointment of third parties for banking Allowing variable interest rates on deposits Modifications in “service area approach” to encourage competition in the rural areas Undertaking specific initiatives to provide an impetus to rural banking
?
Computerisation of operations of banks especially the rural operations ? Land Records Computerisation ? Networking of Post Offices
31
Creating the “e” wave - Electronic
? ? ?
Standards for smart cards Guidelines on smart card interoperability Changes in Central Bank guidelines
?
Eligibility of clients ? Loading of value ? Provision of written reports and receipts
? ?
Govt. incentives to stakeholders Govt. encouragement for ATMs/ POS infrastructure terminals
32
e-enabling the economy Thank You !!!
doc_280196055.ppt