Deepak Chandnani, CEO of Obopay Inc., talks about their partnership with Nokia and their m-banking launch in India with Nokia Money three years ago. Nokia Money started out as a pilot in two cities and has now been rolled out to the National Capital Region.
Blog
Agent network for remittances and mobile wallets
David Hunter is the CEO of Ukash, a three-party payment scheme which allows people to buy products and services on the internet through e-commerce facilitated by Ukash merchants. Ukash has 3500 thousand merchants who are directly connected to their payment scheme and 420,000 locations where customers can buy Ukash vouchers across 51 countries.
David talks about the opportunity to leverage their agent network to offer wider financial services such as remittances and mobile wallets. He also discusses about competition in this space and shares experience of managing large and geographically widespread agent networks.
Customer adoption for mobile banking solutions
“Customer adoption has been one of the key challenges with most of the mobile banking implementations across the globe. Balachandran Unni, Director – Business Development for Nokia Money shares his learnings and experience on how to ensure customer adoption for a mobile banking solution. According to him, customer adoption has to a function of the following:
1. Product, which should be compelling and easy to use
2. Delivery, which channel and handset (mobile) agnostic
3. Customer service and education, through agents and call centre
Balachandran also discusses about how these functions have been incorporated in Nokia Money to ensure customer adoption.”
Is the Business Correspondent Model in Policy Paralysis?
Banking regulations and government policies have been, and will continue to be, vital determinants of the progress of e/m-banking and the impact it can deliver, particularly for bank-led models. At times, however, there has been a blurred dividing line, and even tension, between the roles of the regulator, (as guardian of the interests of consumers and banking institutions), and activist governments (providing policy direction as the largest shareholder in public sector banks). This can lead to some undesirable consequences. This Policy Brief examines the recent shift in policy direction for the business correspondent model in India and the associated challenges and potential consequences from a consumer standpoint.
The new Business Correspondent Network Manager selection process using a reverse auction approach takes no notice of consumer needs and aspirations for a wider range of products, differentiated services, assured quality, and service continuity. Pricing is still fixed, and does not recognise consumer willingness to pay market driven prices for quality products and services. The prescriptive nature of the reverse tender documents blocks off all avenues for innovation, as well as remuneration according to real cost of delivery. This Policy Brief investigates the merits, demerits and challenges of this approach and potential consequences from a consumer standpoint. It highlights detailed scenario analyses of different BCAs’ current and prospective earnings in a range of situations – rural and urban for both individual and BCNM-managed agents. In all situations BCAs are likely to see (often significant) reductions in their already limited and precarious incomes – suggesting that agent churn (already in the range of 30-40%) is likely to further increase.
Andhra Pradesh MFI Crisis and its Impact on Clients
This is a joint report focussing the impact of microfinance among the clients before and after the Andhra Pradesh crisis arising from the Andhra Pradesh Microfinance Institutions (Regulation of Money lending) Act, 2010. The report highlights the similar findings from quantitative study conducted by the Centre for Microfinance (CMF) at IFMR Research and qualitative study conducted by MicroSave. This paper features findings related to multiple borrowing, household indebtedness, loan purpose and client perspectives on availability of financing. Both studies validate the fact that the members of the community face issues raising credit in the absence of MFIs. Members of the community have reduced their spending on important aspects such as health, education and business because of non availability of adequate credit from alternative sources. Moneylenders are having a field day with the absence of MFIs. Members of the community are falling back to moneylenders who charge usurious rates of interest to meet their credit needs. The study also highlights the failure of MFIs when designing market led products and processes. MFIs, in the process of rapid scale up and single minded pursuit of exponential growth targets, ignored the needs of the clients. The study clearly shows the discomfort of the clients with inflexible repayments, interest rates and behaviour of the staff especially when it comes to repayment.
Public Relations Policy in MFIs – A “Nice To Have” or Necessity?
This Note highlights the increasing importance of public relations (PR) policies, and need for a structured approach to handle PR for a microfinance institution (MFI). The PR function has come a long way from being an external media communicator, to one that now plays the role of a “catalyst of change” – change in belief, perception of organisation’s internal and external public. As the financial services market for the low income segment grows, and matures, public relations will necessarily have greater influence over organisations’ strategic decisions. The key is appropriate, transparent communication measures, and effective relationship management, which will involve concerted efforts from all stakeholders. A well executed PR policy can play a game changing catalytic role in creating loyal customers, quality portfolio, and a strong market reputation.