INNOVATION I- Zero Mass Foundation

Need DriversDelays in delivery.Longer time of delivery. Especially in far flung areas

GAPS IN INDIAN POSTAL SYSTEM

Quick money transfer possible only through Internet Banking. This is not feasible for the Target Group.

LIMITATIONS OF

BANKING

Traditional money otder charge is 20rs+ 5% of sent amount.Instant Money Order(iMO) service charges are between 150-330 LAC

K OF CHEAPE

R MONEY TRANSFER

Reason of growth of Last Mile Money exchange services

Microfinance loans serve the low-income population in multiple ways by:

providing working capital to build businesses; infusing credit to smooth cash flows and mitigate irregularity in accessing food,

clothing, shelter, or education; cushioning the economic impact of shocks such as

illness, theft, or natural disasters. Serving as an alternative to the loans offered by the

local moneylender priced at 60% to 100% annual interest,2

Prevention of the borrower from the debt trap.

Growth in the Microfinance sector in India

Present Geographic Expansion

• The market size for microfinance in India is in the

range of 58 to 77 million clients.

This translates to an annual credit demand of USD5.7

to 19.1 billion (INR 230 to 773 billion) assuming loan

sizes between USD100 and 250.

The low-income but economically active population

including

small and marginal farmers,

landless agricultural laborers, and

micro-entrepreneurs, are also potential

microfinance clients,

The annual credit demand goes further up to an

estimated 245.7 million individuals and USD51.4

billion (INR 2.1 trillion) in annual on-lending

requirements.

Source: Inverting the Pyramid- Changing the face of

Indian Microfinance

Demand Expectations & Target Group

Innovation in the SectorZERO Platform

ZMF creates the last mile operations network in villages,

under pre-defined service agreements with Banks and front-

ends the delivery of full-featured transactional services on

behalf of Banks for Financial Inclusion on the ground.

Zero Microfinance and Savings Support Foundation, is

closely affiliated to ALW, has been appointed as a Business

Correspondent by 15 Banks, and provides field operations

for the ZERO platform.

How the system works

The Phone, when the card is swiped, shows the account details on the screen. For verification, there is a fingerprint reader.A printer gets the details of the transactions.

Differentiation points

Mobile phone as core Bank branch

Smart cards not needed for biometric authentication in local

service area

Mobile phone used for opening accounts on-the-spot by local

CSP

 Voice prompts during enrolment and transactions

Printout of each transaction

Scope of Operations

Enrolment of customers for no-frills zero-balance savings accounts and other account types that may be specified by the Bank.

 Enrolling, training and equipping of Customer Service Points (CSPs) in villages to provide various kinds of transaction services cash deposit & withdrawal, transfer of money, payment of utility bills, disbursal of loans & collection of loan installments, and cashless payments at local and remote merchant

establishments. Engaging the CSPs to provide enrolment services for opening

no-frills account  3rd party cash collection Cashless payments at local and remote merchant

establishments. Lending activities on behalf of the Bank (as an MFI) Other

service as may be advised by the Bank in writing to ZMF, and which ZMF agrees to perform

Current TieUps

Apart from SBI, ALW has established tie-ups with 14 banks in the countryDena Bank Andhra Pradesh Grameena Vikas BankPunjab National Bank Axis BankPunjab & Sind Bank\Oriental Bank of CommerceUnited Bank of India

Other Partnerships:-Nokia (NFC mobile)NXP Semiconductors (RFID)Sagem Securite (Biometrics) SmartTrust (WIB application) Watchdata (SIMs)

Total commission: Rs.25,

out of which Rs 6.25 is taken

by CSP (Customer service

place), Rs.8.75 by Zero

microfinance, and the rest by

bank.

Platform is simple, secure,

cost effective and has the

potential to provide multiple

services to the customer via

a single channel.

Innovation Sandbox

ZMF- Within the Sandbox

Global Scale- Overseas partner with TCGME Bahrain. It can also expand by exploiting mobile banking oppurtunities on a

global level.

Social Equity- Acting as a hassle free an sure link between the migrant workforce in

cities and their kin in hinterlands. Ensuring that the benefits disbursed by various Governmental

programmes like social security pensions and wages under NREGA reach the intended beneficiaries quickly and at a lesser cost.

Rule of Law- It is in compliance with all legal frameworks of the law and banking

system

ZMF-Within the Sandbox

Environmental Sustainablity- saving of paper, thus trees, as negligible documentation is

needed. Transparency & Fairness-

All transactions are instant through mobile, eliminating all middleman.

Payment is ensured to the the eligible recepient only New Price Performance Level-

Effective price model. Also it is favourably comparable to probable substitute

services- Traditional money orders(20rs+5% of sent amount), iMO(150-330rs).

Impact-Social Equity

ZERO is a popular end-to-end technology driven platform for

branchless banking, with plug and play access for banks to

rollout their services and, hence increase their outreach.

This would make banking, insurance and other such services

reach the un-banked population, which is otherwise unfeasible

for the institutions to provide directly.

The Way Forward->Recommendations

Beyond the basket of credit and other financial products and

services, ZMF can also

Provide low income customers with livelihood

services,

including agricultural and business development

consulting services,

to help microfinance clients use their loans and

manage cash more effectively.

Text enabled operations To avoid going to the actual ZMF

centre.

Team SCAMPERShaurya Bhushan Tyagi

Sukesha sajwanSomya Bhargava

Sonali Abrol

THANK YOU