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Financial Inclusion Andhra Bank s Experience

Challenges!. Enrollment of large numbers Wide geographic spreadHigh maintenance costs for accountsSmall ticket size of transactionIlliteracy and use of vernacularProduct

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Financial Inclusion Andhra Bank s Experience

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    1. Financial Inclusion Andhra Bank’s Experience

    2. Challenges! Enrollment of large numbers Wide geographic spread High maintenance costs for accounts Small ticket size of transaction Illiteracy and use of vernacular Product & service pricing Trust and acceptance Lack of electricity Poor telecommunications The current challenges are finding the Business correspondent in rural places, awareness about bank to the customer, business correspondent selling the bank products, motivation to business correspondent The current challenges are finding the Business correspondent in rural places, awareness about bank to the customer, business correspondent selling the bank products, motivation to business correspondent

    3. Financial Inclusion through Smartcard Bank’s role in AP Schemes covered so far Social Security Pensions (SSPs) Wages under NREG Scheme SHG Linkage (Pilot) Geographic scope Indentified mandals in Warangal, Karimnagar, Medak, Mahaboobnagar, Chittoor, East Godavari One- district-one-bank Srikakulam and Guntur

    4. Our Technology Partners A Little World Pvt Ltd Pilot project in Geesukonda Mandal Warangal district Access Development Services (BC) & Atyati Technologies Districts of East Godavari, Srikakulam, Karimnagar, Mahaboobnagar, Medak, Chittoor, Guntur Fino Ltd. SHG Linkage – Pilot - in East Godavari

    5. Pilot Project – AP Govt - 2007 Andhra Bank was allotted 25 villages in Geesukonda Mandal (Warangal district). Government has extended financial assistance of Rs. 90/- per card Rs.10,000 per hand held device Service charges of 2% of the volume of cash disbursed.

    6. ALW –Solution One-Time Costs Cost of Smart Cards Per Card Enrollment Fees Per Card Cost of Photo Personalization Per Card Cost of Terminals- Per Terminal       Cost of Cashboxes One time Operating Costs Technology Operation fee Per Card Transaction Fee Amt Disbursed Cash Management Charges Amt Disbursed       Monthly fee per CSP Per Month Mobile (connectivity) expenses

    7. Salient aspects of our RFP Proven Technology Scalable and interoperable system Contact or Contactless smartcards Fingerprint image acquisition as per RBI norms End-to-end Solution (technology and banking services)

    8. The entire solution outsourced to a single Systems Integrator result in better efficiencies and effectiveness. Bank need not procure any hardware or software Bank need not procure any other resources Pay for the Vendor’s resources on usage basis. Integration of Banking and financial services Provided by the same vendor Payment for services based on gross value of customer transactions. Avoidance of risks from obsolescence of Technology and change of Methodology if any, will be handled by the Vendor. The merits of the approach

    9. Architecture suggested by Govt. of AP

    10. Technical Specifications - RFP Smartcard ISO 14443 / ISO 7816 EMV Compliant 32 K EEPROM memory Standard dimension PVC / Polycarbonate Card DES/3DES (key length 1024/2048) Hold User Certificates, Smartcard OS, Applications, etc

    11. Technical Specification - RFP Handheld devices Integrated system or 2/3 components ISO 14443 / ISO 7816 and ISO 18092 for read and write operations Built-in PKI support EMV Compliant Multilingual support Online & Offline capability Secured storage and communication Long hours of battery support

    12. Technical Specifications - RFP Fingerprint Scanner Image acquisition at setting level 31 of ISO/IEC 19794-4 Contact area 1 x 1 sq.inch Min. capture-size 13mm wide x 17 mm high Pixel density 500 ppi with + 5 ppi Pixel depth 8 bits 200 grey levels (dynamic range of scanned image) Sense live-scan plain finger impression Strong anti-spoofing features Protection from ambient light, residual images Standard for Data-Interchange - ANSI-378 Encrypt fingerprint minutiae with 3 DES Scanner surface to be resistant to dust, humidity, shocks, electronic discharge, ambient light, extreme temperatures, etc

    13. Responses to RFP

    14. Outsourcing Terms

    15. Progress in coverage Beneficiaries covered so far in AP Warangal District (pilot) 14,000 East Godavari District (enrolled) 150,000 Srikakulam District 20,000

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