100% Financial Inclusion is a stated goal

1
100 Financial Inclusion is a stated goal

• - Telcos can be the biggest catalysts to achieve
  that

2
Hard facts about Soft Issues

• More experience in serving targeted customers
• Mobility penetration in non urban areas is higher
  and growing fast
• Huge investment in brand
• focus on high quality and integrity of service
  delivery
• Soft investment is more important
• Customer training and education
• Channel Management
• Familiarity of operating in a regulated
  environment
• KYC and QOS as per regulation
• Mobile technology is secure and accessible
• High levels of privacy/security at low cost of
  entry

3
Mobile subscribers growth pattern
Data interpreted
Source RBI 2006, COAI
4
Telco outreach
Estimates, Figures in 000s
Source National Census, RBI, COAI
5
High stakes for a Telco

• Invest large sums in developing brand
• Invest large sums in deploying technology
• Established financial strength and stability
• Large existing customer bases

Telcos have attained Customer trust
6
Unique Bank-TelCo partnership

• Best of both worlds
• TelCos existing relationship with customer
• TelCos knowhow on customer handling
• TelCos knowhow on customer education service
• Banks knowhow on Banking regulation, best
  practices AML
• Banks knowhow on Cash Management
• Cost optimization for banks
• Less viability for banks to run accounts with lt
  Rs. 5,000 AQB
• Ride the TelCos channel to achieve reach
• Using customer history for future product
  offerings. E.g. microfinance loans

7
Redefining roles Enable Financial Inclusion
TelCo
Bank

• Customer registration access
• Assist in KYC
• Acceleration of Penetration
• Customer Care
• Distribution Outreach
• Technology Solutions
• Creating usage avenues

• Open Accounts
• Implement AML KYC guidelines
• Customer grievance guidelines
• Custodian of customer monies
• Best banking practices
• Interest payments
• Offer range of Banking products

Equal partners balanced roles
8
Regulation consultative approach

• Proportionality
• Risk-based approach
• Mobile experience
• As different to traditional approach
• Innovation
• Innovative services may not fit well within
  existing regulation categories

Guiding principle - Customer security and benefit
9
Benefits of Success

• Regulator
• Achieving Financial Inclusion
• objectives faster
• Maintaining Control

• Customer
• Economic independence
• Preserves Confidentiality
• Greater Convenience
• Transaction speed

• Economy
• Extends economic inclusion to rural poor
• Starts rural people on the ladder of banking
• Reduces urban rural divide

• TelCo
• Additional revenue stream
• Customer stickiness

• Bank
• Increases reach at viable cost
• network benefits
• Additional revenue streams
• Lower costs

10
Thank you