CGAP Technology Blog » Custom ATMs

Microfinance Technology Headlines for Dec. 11, 2007

Jim Rosenberg — Tue, 11 Dec 2007 15:08:30 +0000

Vodafone India Unveils Cost Cuts, IBM Deal
Vodafone has already taken a number of initiatives to grow in India, which has a population three times the size of Europe. In May, Vodafone launched two sub-$45 handsets, working with China’s ZTE Corp. (0763.HK), in a bid to make mobile phones more affordable to millions of Indians on low incomes.

Philippine ATM firm to extend network to rural areas
Philippines-based ATM vendor Encash plans to install 200 ATMs in remote areas of the country, a company spokesperson tells CardLine Global.

India’s mChek Enables Insurance Payments from Mobile
mChek has announced that “ICICI Prudential Life Insurance policyholders can now pay their premiums through their mobile phones, anytime and from anywhere. ICICI Prudential is the first life insurance company in the country to launch this unique service facility for its policyholders.”

Survey Shows Heavy Carrier Reliance on Transaction Fees for NFC
In a development that could long complicate the introduction of commercial services allowing consumers to make point-of-sale payments with their mobile phones, mobile network operators say they will derive POS payment revenue chiefly from consumer transaction fees.

Scotiabank Perú and N-Via Sign Agreement to Offer Mobile Money Transfers in Perú
Scotiabank Perú and N-Via USA Inc., a company specializing in financial services and money transfer, including prepaid debit cards, bill payment, mobile payments and mobile to mobile transfers, announced today an agreement to provide mobile payment services, with cash out options through Scotiabank Peru more than 400 service outlets in 27 cities across Peru.

Biometric ATMs for rural India…but what about the cash?

Jim Rosenberg — Wed, 10 Oct 2007 16:26:49 +0000

The Hindu has a great interview with NCR’s P. P. Manjunath Rao, who leads that company’s sales efforts for India. Recently the Indian subsidiary of NCR tripled its production of ATMs to nearly 900 units a day - and with just 28 ATMs per million people (compared to 200 ATMs per million in Mexico, for example) it would seem that there’s room to run for ATM providers. Rao tells the Hindu:

Using thumbprint and voice guidance in ATMs reduces literacy requirements to a considerable extent. Thus, establishing the identity of a rural depositor through biometrics makes it possible for illiterate or barely literate people to become part of the banking user community.

A simplified menu on ATMs coupled with possible audio guidance in local language enables easy use for rural masses. So far, bank ATMs are dependent on PIN (personal identification number) verification. The fingerprint authentication method is non-PIN based, and this requires enhancements to the standard switch environment. Though identification can be via face, voice, retina or iris, fingerprinting has the advantage of being a familiar concept worldwide.

Though exciting, widespread deployment will be a challenge. How to handle cash - what about banking agents? What is required for customer adoption? With lower levels of functional literacy, what about financial literacy? These are questions we at CGAP are working on with our research collaboration with Microsoft Research India, as well as our project partners.

Using Technology to Build Inclusive Financial Systems (Focus Note)

Gautam Ivatury — Sun, 29 Jan 2006 23:49:00 +0000

Focus Note No. 32, January 2006
Using Technology to Build Inclusive Financial Systems
Some of the innovations commercial banks need to service poor clients may be found in information and communications technologies (ICTs).This Focus Note addresses the following questions: Can banking technologies, applied innovatively in developing countries, make microfinance profitable for formal financial institutions? Will they reduce costs to such an extent that banks could profitably serve even those whom MFIs have mostly excluded to date, such as very poor and remote rural customers? Will these customers be comfortable using technology?

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