ATM for INDIA

1. Aarif….

2. Aarif….
Aarif….32

3. Construction worker from Lucknow, working in Mumbai

5. He is working on the metro railway project

6. He receives wage at the end of the day

7. Aarif lives in a shared room with other workers

8. He has a feature phone, a debit card , voter id and even an UID

9. But, no safe place to keep his daily wage

10. He has to send money home, every month to his Abba and Ammi

11. What
does
Aarif
do
?

12. What
does
Aarif
do
?

13. ATM for India
M.Des | Project 3
Rajarshi Ray
Guide: Prof. R.Sandesh | Co-guide : Prof. N.Sadhu
IDC IIT Bombay

14. From STAGE 0
Financial inclusion
“… the process of ensuring access to financial services and timely and adequate
credit where needed by vulnerable groups such as weaker sections and low income
groups at an affordable cost”
- Rangarajan committee, 2008
Standard banking facilities to all irrespective of their income and socio-economic background.
About Rs 60 billion/ day can be collected by Government
No one has access to this liquid cash to do business
This is a low cost fund* (rate of interest levied is low)
70,000 bank branches in India, but a large section of Indian population
remains credit starved^
*Rate of Interest : SBI SB a/c = 4% Yes Bank SB a/c = 6% Fixed deposit SBI = 9.25%
^ Business Line, The Hindu, January 24,2006

15. From STAGE 0
SPEED OF URBANISATION BY 2030
Goldman Sachs argues that the economic potential of Brazil, Russia, India and China is such
that they could become among the four most dominant economies by the year 2050. This
thesis was proposed by Jim O'Neill, global economist at Goldman Sachs.#
INDIA BRAZIL
Population 1,339,724,854* 192,376,496^
No. of ATMs 70,000~ 2,20,000~
15,32,097
*March 1, 2011. Census result ^ July 1,2011. IBGE Official Estimate ~ Lipi data systems Ltd. estimate 2011
#http://www.foreignpolicy.com/articles/2010/08/16/prime_numbers_megacities?page=0,1

16. Objective
To design a banking system to address the needs of low income migrant class
with low literacy levels. (rural people in urban setup)
Project brief
1 User friendly system which is not feared
2 Facility to
deposit, transfer and withdraw money
3 Easy interface for easy comprehension by the semi-literate people comprising
construction workers, daily wage labours et al.

17. Survey carried out by International Data Corporation for NCR

18. From STAGE 0
Types of Account*
Savings Account • Common account for individuals
• Non-commercial transactions
• Day-to-day banking transactions
• Earning return
Current Account • Cheque operated accounts
• Mainly business purposes
• No limits on the number of transactions permitted
• No interest on the balances maintained
No Frills Account ~
• Zero balance or low minimum balance accounts
• Policy of 'financial inclusion' of the poorer section
• To counter a trend whereby all banks want to target the 'affluent' class
*Indian Bank’s Association : http://www.iba.org.in/account.asp as on January 30, 2012
~ Business Standard : http://www.rediff.com/money/2005/nov/17perfin1.htm as onNovember 17,2005

19. From STAGE 0
What is SBI doing in response ?
Green Channel *
• Paperless banking introduced by SBI
• Customer need not fill up any pay-in slips or draw cheques
• Saves paper, and thereby contributing to the concept of ’Green Banking’
• Originally targeted at Senior citizens who prefer branch banking
ATM penetration of SBI has been successful over
the years. In fact customers today demand for
ATM cards.
To cater to the needs of BPL customers certain
banks in rural areas have banking hours from
11AM – 6PM instead of standard 10AM – 5PM.
Focus of SBI in banking is now on :
1 Green Channel
Banker to every Indian 2 Mobile Banking
3 Internet Banking ^
*http://thebankingbible.com/know-about-green-channel-counter-of-sbi-1332 as on January 31, 2012
^ Gathered from conversation with Mr. J.Mukhopadhyay, Relationship manager,
Personal banking, SBI, Santiniketan, WB

20. Source : http://www.zamanzar.com/Mumbai/Commercial-Property-Prices.html

21. Source : http://www.telecomindiaonline.com/

22. Source : http://priyankasblog.com/mobile-india-a-statistical-look-at-urban-indian-mobile-users/

23. Source : http://www.pluggd.in/smartphone-users-in-india-297/

24. Source : http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats /

25. Source : http://www.pluggd.in/smartphone-users-in-india-297/

26. Mira Road, Maharashtra

28. Population comprise
• contractors
• labours
150 + • sex workers
• businessmen
• grocery vendors et al
@ Mira road
Cash depositing machine Human Tellers
10-15 lakhs 75-80 lakhs
Unprocessed Cash = 1 Crore

29. Unprocessed Cash v v processed Cash
Integrated Cash
Management Centre
(@ Bandra & Dombivali)
v
To Banks
Unprocessed Cash + processed Cash = Remittance

30. Overnight cash holding limit
CRI = Cash Remittance Limit ≈ 75 lakhs for Bank X at Mera road
(can be as high as 10 crore)
ATMs do not have facility of cash recycling
v
(Auto fill of dispense tray from deposit tray)

31. NIM = Net Interest Margin
Loan given out
=>
Advances _ Deposit = SPREAD
BOC = Branch Operating Cost
CHC = Cash Holding Cost = 2%
CHC = Advances – (Deposit + BOC)
CTF = Cost of Funds
CTF = Σ (operating expenses + HR +ATM maintenance etc)
Advances
~ Deposit = +ve
=>
BANK PROFIT

32. ATM Service vehicle*
• Cash filling is done only during daytime to avoid risks
• One service agency/ service vehicle caters to multiple banks and is not exclusive to a bank
• Cash collected to fill into an ATM is collected from an authorised bank branch
• Only engineering servicing is done during night, in case of extreme emergency
• One service vehicle caters to 15-20 ATMs of different banks in the same locality
• Servicing one ATM ideally should take 15 mins but extends to about 30mins.
CREW = + +
Driver Technicians Armed guard
*Source : Obtained from WRITER Securities, Mumbai through personal interaction

33. Vault
Technicians Elevation
Vault Armed guard
Plan Driver
The vehicles which are usually retrofitted to serve as ATM service vans are
Mahindra Maxi truck, TATA LP 407, TATA Winger etc.

34. Conclusions from User study
1 Depositing cash is a necessity for the target class.
2 People with low literacy levels are comfortable using automatic systems.
They are experienced with using mobile phones.
However, a sense of security and immediate assistance is desired.
3 Cash recycling might not be possible in Indian scenario.
4 ATM card is shared between family members

35. Number of ATMs
Comparison of demand and supply of ATMs
Demand
200 K
Δx2 Supply
150 K
Δx1
100 K Δx2 << Δx1
50 K
2010 2015 2020 2025 2030 Year
NB -This graph is only to aid explanation

36. What
can be the
SOLUTION
?

37. What
can be the
SOLUTION
?

38. CONCEPTS

39. VRS ATM CONCEPT : 1
Card swipe
Receipt output
Telephone Transaction slot

40. VRS ATM : Visual Mockup Keeps part of wage
User works all day Earns wage
Authorised vehicle collects the money Deposits rest in ATM with help of VRS.
Gets receipt.

41. Namaskar !
Welcome to
Hello Bank.
Please enter
your secret code
after you hear
BEEP
1> User arrives at 2 User picks handset + swipes 3 VRS begins
VRS ATM kiosk card - VRS is activated ;
Language of user automatically
identified
For deposit
press GREEN
For withdraw
press RED
For transfer
press BLUE
After you hear
BEEP
6 User presses GREEN 5 VRS continues 4 User enters PIN

42. 505 650 777
To enter money in Ramu’s a/c dial
505; for Karim chacha dial 650; for
Ammi dial 777 after you hear a BEEP
6 User presses GREEN; 7 VRS continues; VRS has
Deposit channel activated pre-fed information about
USER’s related accounts
Money will now be
100 deposited in Karim
chacha’s a/c
Enter notes through
the slot one by one
after you hear BEEP
10 Note is drawn in 9 VRS continues 8 User enters 650
Real time display on screen

43. Karim chacha
100 900 now has
Rs. 900.
To continue
deposit, insert
the note
through slot
after BEEP or
Press BLACK
10 Note is drawn in
Real time display on screen
11 USER keeps inserting notes 12 VRS continues button to exit
until his target amount is
reached
Rs 900 has
been deposited
in Karim
chacha’s
account.
Thank you for
using HELLO
BANK VRS !
13 USER presses Black button
14 Receipt printed with transaction record

44. Segregated System CONCEPT : 2
Colour coded hardware

45. Segregated system ATM : Visual Mockup Keeps part of wage
User works all day Earns wage
D D W T
Authorised vehicle collects the money Deposits rest in Deposit box of ATM. Gets receipt

46. Segregated System : Variant CONCEPT : 2
Hard buttons indicating
denominations like 500, 100 etc.
Colour coded
channels
Small low
Resolution
display

47. Printed dummy
Hard button
Counter
ENTER DEP WITH
PIN O
1 USER swipes card. ATM 2 Deposit or withdraw option
asks for PIN appears corresponding to buttons
Low resolution display

48. Deposit channel
√ INSERT NOTE
3 USER presses Deposit button 4 USER gets instruction to insert
Deposit channel activated note through active Deposit
channel

49. Counter
1 1
1
Rs 500 X Rs 600 X
5 USER inserts note of Rs 500 6 USER inserts note of Rs 100
Counter shows number Counter shows number
Display shows total amount
inserted

50. Deposit channel deactivated
1
1
Rs 600 X Thank you
Deposit
Rs 600
5 USER presses X button 6 Deposit channel deactivated.
Transaction receipt generated.

51. ATM on wheels CONCEPT : 3
Human teller
Automatic channels

52. Technician
Technician & Teller
Transfer
module
Deposit module
Withdraw module
ATM mounted on
channel slides out
Plan Private space
generated for USER

53. ATM on wheels : Mockup Keeps part of wage
User works all day Earns wage
ATM Van deposits money to bank Deposits rest in ATM Van. Gets receipt

54. ATM mobile app + depository module CONCEPT : 4
Smart phone with banking app
Transaction
channel
Receipt

55. Mobile Banking Depository Module CONCEPT : 4
BANK
NAME
1> User gets ‘free’ app installed 2> User gets info through app; 3> Bank has small depository
on mobile on opening bank a/c like balance enquiry & withdrawal modules installed
transaction record etc
From bank’s server
FREE OF COST
BANK
NAME
4> User goes near ‘deposit module’
5> Module Activated with app on mobile &
Dials ‘SECRET’ access number

56. SP 7
5> Module Activated 6> User puts in cash 7> Mobile keeps showing
through activated channel amount entered in real time
9 Module deactivates
& Generates receipt
> Transaction record is
noted in user’s
a/c via app 8> Once complete user
presses OK button

57. VRS ATM Segregated ATM ATM on wheels Mobile app
• Same equipment can • Cost of hardware
• Comfortability of • Clear hardware cater to many areas
S
a human teller minimal
demarcation • Retrofitting
• Extended banking • Live account
• Cost reduction due • Presence of humans
hours updating on mobile
to low resolution • Night banking phone application
display
• Diverse language • Increased cost due • Man power necessary • User must have
W
VRS is difficult to new hardware • Special vehicle appropriate mobile
• Added cost of VRS • Cost of real estate required phone
• Cost of real estate • Low cash handling
capacity
• Gradual training • Effective for areas • High penetration • Very high chances of
O
of novice users with low transaction capacity success as mobile usage
towards volumes • Can promote becoming popular day
automated • Split hardware can banking; eliminate fear by day
banking systems be installed about banking
separately
• Diverse • Proper space to • Moderate chances • Chances of dacoity
T language options
may confuse
users
install might be
difficult to find
• Designing new
hardware
of dacoity low, as amount
transacted in very low

58. Thank y ou