Banking for Future contest 2016

Branchless Banking Service through Mobile Van

Submitted By

Legendary Charterers
Nishant Udavant
Mob. No. 8149495564
Email - nishant.udavant.2017@nitie.ac.in
Sankalp Ichake
Mob. No. - 9589241651
Email sankalp.ichake.2017@nitie.ac.in
Shayondev Sengupta
Mob. No. - 7045813768
Email shayondev.sengupta.2017@nitie.ac.in

Problem Statement
Market expansion to rural areas and providing high end customer service with
the use of door step banking via Mobile Banking Van.
Project Description
Market expansion to rural area, where there are only 344 million bank accounts out of
833 million people. Whereas urban market is saturated with 348 million accounts for a
population of about 377 million.

Setting up Mobile Vans capable of providing Banking Services to remote places in India.
Banking on wheels will facilitate expansion without permanent infrastructure at place.
The vans will provide basic banking facility of opening account, cash deposits and
withdrawal. Every van will be provided an upper limit for total value of transactions that
should be carried out on that day (for e.g. Rs 1 Crore/day). Vehicles will be highly secured
by having a CCTV camera in place and a GPS based tracking system. The security service
can be allotted to a third party service provider. As of July 2014, Indian government has
allocated Rs 500 Crore for its Digital India campaign that aims to set up broadband services
in rural India. Vans can be loaded with VSAT (Satellite Internet) in the areas where the
internet services are not possible.

Target market - Existing Standard Chartered bank branches and the rural market around
branches are shown in Figure 1. Ludhiana, Jodhpur, Jaipur, New Delhi, Agra, Allahabad,
Patna, Kolkata, Guwahati, Bhubaneshwar, Nagpur, Mumbai, Pune, Hyderabad, Bangalore,
Chennai and Kochi can be the main source for departure of banking vans. The controlling
and monitoring task can be given to these cities or can even be transferred to other cities
where a branch exist. Likewise, every branch will have an annual target for total amount
of transactions that should be carried out in a specific area.

Credit facilities With focus on Priority sector lending specially. Private sector have 55%
of their loans for long term. These priority sector contributes to less (36%) NPAs, in
comparison to non- priority (64%). On the other side priority sector is in need to credit,
due to financial inclusion and various government schemes.

Remittance facility can be provided through 3 channels Fund transfer through mobile
van, money transfer through SMS and specific portal for fund transfer.
The map below shows the areas for Standard Chartered Bank to adopt this project
(marked in red oval).

Figure 1

USP
To provide Core Banking Services along with additional banking services for remote users
with full connectivity to internet. Users will be able to create and operate their account with
a complete infrastructure support from the vans in a real time basis. Technical personnel
inside the van will help the users to perform even the online tasks other than banking such as
bill payments, recharges etc.

Use Case Scenario

Figure 2
The channel for banking on wheels is as shown above. A branch will be responsible for the
arrival and departure of individual vans. Each van has to make a specific target assigned to it
by its branch. Whereas, the route of the van can be seen by all the branches as to provide
assistance if necessary. One van can cover one particular area or it can also be routed to
multiple areas.

REMITTANCE SERVICES

CREDIT FACILITIES

ACCOUNT FACILITIES

Virtual Assistance

CASH DEPOSIT & WITHDRAWAL

FACILITIES
Figure 3
The applications of this project will be as shown above.
Account facilities Basic account opening option like current account, savings account etc.
Cash deposit and withdrawal facilities Vans will be equipped with lockers to deposit and
withdraw cash.
Credit facilities Credit will be provided to farmers, small merchants, SMEs etc. to finance
their operations.
Remittance Services Real time cash transfer to and from villages or cities.
Virtual Assistance Bank representative in Van to facilitate required assistance