Towards financial inclusion- Article

priyanka1987

New member
Towards financial inclusion



One of the factors that has enabled expansion of the banking network has been the increase in the number of ATMs. The ATM explosion has been phenomenal. The banks' reach with the customers depends to a great extent on the number of places and the locations where they can install their ATM's.

The aim of the banks has been to increase their customer base. A huge potential customer base, which is still untapped, includes those residing in the rural areas. Further, being a multi-lingual country, only English-based ATMs were falling short of expectations in the drive to increase the customer reach. The concept of financial inclusion was not being met by banks.

Recently, a new trend in the ATM field has been initiated. This is called biometric ATMs. Biometric ATMs have multiple language capabilities and a voice-enabled navigation facility aimed at customers who cannot read. These ATMs can cater to sections for whom banking was a distant dream, either because of literacy, language or reach barriers.

The Reserve Bank of India (RBI) has already asked banks to spread the banking net in far off areas, rather than just concentrating in the urban centres. The banks need to be where the masses reside. The concept of financial inclusion needs to be followed and implemented in letter and spirit. The argument of the banks has been that it does not make economic sense in most cases to open a branch in remote areas. After all, the banks are also profit centres and need to make money to stay in business and create value.

Recently, biometric ATMs with multi-language voice navigation features for microfinance customers has been launched. Citibank has launched two biometric ATMs for microfinance customers in Mumbai and Hyderabad. Biometric ATMs authorise transactions by scanning the customer's thumbprints instead of a PIN code. ICICI Bank has already introduced biometric cards. Many public sector banks are also on the verge of launching biometric ATMs.

The ATMs would cater to the customers coming under the no-frills savings account with nil minimum balance and is offered directly or through a microfinance institution (MFI). The ATMs would be tailored to meet the needs of the under-banked, lower income segment. They will be encouraged to use biometric ATMs. They can also have free access to the other ATMs with a PIN code. Customers would not be charged for transactions on such ATMs.

Biometric ATMs have multiple language capabilities and voice-enabled navigation. The colour-coded buttons (yellow for deposit, green for withdrawal) guide customers through the transactions - balance enquiry, deposits and withdrawals.

The banks would have to tie-up with the MFIs. Further, the ATMs would be located at the offices of the MFIs or in areas where customers live or work. These ATMs would tend to obviate the requirements of the banks to open a full-fledged branch in the remote areas, which is a costly option. Rather, the ATM would cater to the banking needs of people, without necessitating opening a branch.


Regards,

Priyanka
 

jiten005

Banned
Towards financial inclusion



One of the factors that has enabled expansion of the banking network has been the increase in the number of ATMs. The ATM explosion has been phenomenal. The banks' reach with the customers depends to a great extent on the number of places and the locations where they can install their ATM's.

The aim of the banks has been to increase their customer base. A huge potential customer base, which is still untapped, includes those residing in the rural areas. Further, being a multi-lingual country, only English-based ATMs were falling short of expectations in the drive to increase the customer reach. The concept of financial inclusion was not being met by banks.

Recently, a new trend in the ATM field has been initiated. This is called biometric ATMs. Biometric ATMs have multiple language capabilities and a voice-enabled navigation facility aimed at customers who cannot read. These ATMs can cater to sections for whom banking was a distant dream, either because of literacy, language or reach barriers.

The Reserve Bank of India (RBI) has already asked banks to spread the banking net in far off areas, rather than just concentrating in the urban centres. The banks need to be where the masses reside. The concept of financial inclusion needs to be followed and implemented in letter and spirit. The argument of the banks has been that it does not make economic sense in most cases to open a branch in remote areas. After all, the banks are also profit centres and need to make money to stay in business and create value.

Recently, biometric ATMs with multi-language voice navigation features for microfinance customers has been launched. Citibank has launched two biometric ATMs for microfinance customers in Mumbai and Hyderabad. Biometric ATMs authorise transactions by scanning the customer's thumbprints instead of a PIN code. ICICI Bank has already introduced biometric cards. Many public sector banks are also on the verge of launching biometric ATMs.

The ATMs would cater to the customers coming under the no-frills savings account with nil minimum balance and is offered directly or through a microfinance institution (MFI). The ATMs would be tailored to meet the needs of the under-banked, lower income segment. They will be encouraged to use biometric ATMs. They can also have free access to the other ATMs with a PIN code. Customers would not be charged for transactions on such ATMs.

Biometric ATMs have multiple language capabilities and voice-enabled navigation. The colour-coded buttons (yellow for deposit, green for withdrawal) guide customers through the transactions - balance enquiry, deposits and withdrawals.

The banks would have to tie-up with the MFIs. Further, the ATMs would be located at the offices of the MFIs or in areas where customers live or work. These ATMs would tend to obviate the requirements of the banks to open a full-fledged branch in the remote areas, which is a costly option. Rather, the ATM would cater to the banking needs of people, without necessitating opening a branch.


Regards,

Priyanka

Hey, thanks for your help and sharing the information on Towards financial inclusion. Well, i have also a document and uploading it where you would get more information on Towards financial inclusion.
 

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