India Post Payments Bank (IPPB) launched operations throughout the country. MSC supported IPPB in providing financial services to poor and rural communities. While GDS presents a useful channel for outreach, the challenge would be to build its capacity to handle digital technology while offering a range of financial services and managing its existing suite of postal services.
At the time of writing, MSC planned to undertake a diagnostic study to conduct an institutional assessment for IPPB and provide insights on the current stage of its operations and challenges. The MSC team would develop a GDS capacity and planning document and a management framework and enable G2P delivery. We would also develop a program M&E framework, an operational manual, and training of trainers (ToT) material for GDS and conduct the training. Further, we would revise the incentive structure for GDS, design three product roll-out plans, produce a DBT communication strategy document and develop a DBT customer protection and GRM framework.
MSC would also develop an MS Excel-based costing template, manuals for liquidity management and grievance redressal, and a product enhancement plan. We would prepare three marketing strategy documents, produce a merchant acquisition plan, and conduct periodic monitoring. Through MSC’s support, IPPB is expected to achieve four outcomes: an active, efficient, and capable CICO network, suitable product and channel lines using public infrastructure to support customers, specifically women, at the local level, streamlined G2P and bulk payment processes, and a comprehensive ecosystem of merchants to support customers at the last mile to drive digital transactions.
MSC provided technical assistance to Airtel Money to meet the following objectives:
1. Build a sustainable cash-in cash-out (CICO) agent network;
2. Develop a pro-poor communication strategy;
3. Enhance the digital financial services Airtel Money offers and improve the customer value proposition and experience.
We supported the Bangladesh Bank and Business For Poor in Bangladesh (BFP-B) in this Nathan Associates-funded study. The specific objectives of the study were to: 1) Understand the responses of the banking industry to licenses and regulations issued by Bangladesh Bank to trigger agent banking expansion; 2) Examine demand, supply, and regulatory issues in agent banking, and understand how these interact with other demand, supply, and regulatory issues in complementary markets, such as mobile financial service (MFS) and microfinance services; 3) Explore the customer data analytics (based on gender) of the existing agent banking customers covering CMEs and individuals and product penetration to understand the customer demand along with agent banking deposit and lending portfolios; 4) Understand the future market competition from other financial services providers and fintechs; 5) Combine deep understanding and experience of the evolution of local markets with knowledge of global insights and best practices; 6) Provide practical policy options that will help Bangladesh Bank further review the agent banking policy to address the market demand.
We assessed the efficiency of using iris-based authentication for conducting BAP transactions for agents (merchants) and customers compared to fingerprint-based authentication. We suggested recommendations to improve the overall experience for the agent and customer.
Idea Money intended to understand the risks inherent in its current account opening process that led to delays in opening accounts for customers. Idea Money engaged MSC to provide technical assistance to develop the as-is process for account opening, identify the process risks and implications of these identified risks on the channel, and provide recommendations for the upgraded platform.
A diagnostic study with IPPB agents revealed that 39% of agents struggled to operate a micro ATM. Only less than 50% of agents knew of the financial products offered by IPPB. Agents have limited capability to engage with customers. Specifically, postal agents with no training or experience in consumer sales find it challenging to “sell” products. Secondly, a lack of hands-on training hindered usage for those agents who were not digitally savvy. MSC designed comprehensive digital training content for IPPB agents, conducted a training-of-trainers to build self-sustainability, and helped IPPB set up training systems.