FINO-MITRA:

FINO-MITRA (Mobile Based Information and Transactions), a comprehensive set of end-to-end offerings for enabling microfinance initiatives leveraging mobile as a platform for better mobile banking services to customers.

Services:

* Covers the entire range of services starting from operational tasks such as enrollment to complex transactions such as mobile commerce.

* Caters to the needs of the agents/ middlemen as well as the end users.

* Agents are offered Mobile Based Enrolment as well as Mobile Based POT.

* End users are offered Mobile Banking, Mobile e-wallet, M-commerce thus completing the solution ecosystem for enabling financial inclusion using mobile as a platform.

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Mobile Banking Strategy and Approaches:

The mobile banking strategy has 2 approaches

* Mobile banking for agent.

* Mobile banking for customers.

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Sustainability of Mobile Banking among the pyramid customers:

Initiatives to be seen to create a sustainable model are:

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* Robust Partnership:

o Using mobile phone as a channel for financial inclusion is definitely the way ahead due to the vast reach of the telcos irrespective of varied geographical locations and diversities

o A Telco-Business Correspondent alliance will go a long way in developing banking and financial solutions for the unbanked customer

o The private sector and government too needs to come ahead and support the Business Correspondents in their initiatives

o Once the market is tapped and the model of financial inclusion becomes scalable, all the stakeholders would benefit in the form of new revenue channels

* Innovative models:

o Since conventional modes of communication like a text sms do not work for base of the pyramid customers, newer modes of communication like voice alerts and IVR need to be looked at

o Since the customer already knows how to receive a call, receiving a voice alert on his mobile phone will be easier for him

o Further sending a voice alert in a regional language will be a value addition and help in building the trust of the customer

o IVR, being a self help channel, the customer can inquire/transact using his mobile phone/landline/PCO at his convenience

o The customer can choose to communicate in his preferred language while using the IVR solution

* Simple and Cost Effective Solution:

o Developing solutions for the base of the pyramid customers is no rocket science.

o The above information can be leveraged in developing a simple user experience for the end customer using mobile phone as a channel. Partnerships with educational institutions/research organizations can further enable organizations to strengthen their understanding of base of the pyramid customers

o Further it is important to understand that base of the pyramid customers do not have the ability to pay for expensive solutions, given the fact that they lead a hand to mouth existence. However they have a good savings habit, even thought the savings amount may be a meagre Rs.5/- to Rs10/-

* Training and Financial Literacy:

o Once it is known what works for the bottom of the pyramid customers a business correspondent can use its existing agent network to train the customer on the use of mobile technologies

o Financial literacy in terms of giving information about banking products and saving and investing can be carried out using voice technology and IVR, in addition to agent as a medium

Also, note that there always exists a financial need for the financially excluded customer, however difficult to match a banking product to address that need. This brings out the fact that more and more products tailor-made for financially excluded customer need to be in place. (For eg: No Frills savings account).