Más contenido relacionado




  1. 1 PMJDY 2.0
  2. 2 2 Current status of PMJDY 1. PMJDY in numbers 2. Challenges
  3. 3 3 Pradhan Mantri Jan-Dhan Yojana-Indicators and Challenges Bank A/c’s Rs. 736 billion in deposits with average balance of Rs. 2373 310 million accounts 5 million accounts closed Savings Balances Banking Infrastructure 126,000 BMs for 1.26 lakh SSA Only 89% of 1.26 Lakh BMs are active as on 31.03.17 Challenges *Data collected through parliamentary sources and PMJDY website Status Rs. 1136 average overdraft to 31 Lakh individuals5,000 Overdraft Perceived as “free money” 20% of a/c in-operative (As per RBI guidelines)
  4. 4 4 Channel Outreach What is the optimal number of active agents to reduce distance and travel time? Channel Structure How do we improve profitability to make the agent network sustainable? Channel Management How can we automate channel management to reduce frauds and make it transparent? Customer Protection How to design a responsive recourse mechanism to protect vulnerable segment’s interest? Products How should the products be bundled/tailored to cater to the needs of the PMJDY segment and increase usage? What can be design principles for PMJDY 2.0
  5. 5 5 Channel Outreach
  6. 6 6 Financial access point per 100,000 adult is low vis-à-vis other developing countries in Asia and Africa *Source: IMF Financial Access Survey, 2015; Costs of Cash In India, Institute of Business In the Global Context; Cost and Willingness to Pay, MicroSave; and World Bank Data Bank. In Rajasthan beneficaires have to travel an average of 5 kilometers to withdraw cash from a bank and spend on an average 30 minutes at the bank branch to conduct a financial transaction. 42 69 98 223 265 548 554 569 933 Nigeria Philippines India Indonesia Pakistan Uganda Kenya Bangladesh Tanzania Financial access points per 100,000 adult population* Financial access points only includes commercial Banks, ATMs and Agent ( mobile baking and BCs) Bank branch and ATM penetration is better than most countries but banking agents is one of the lowest 65 246 538 553 India Pakistan Kenya Bangladesh Mobile agents/agent outlets** per 100,000 adult population 31% 36% 22% 11% < 1 km 1-5 km 5-10 km >10 km Bhamashah: How Far is the Bank Branch? (N=386) The trip-to and from the bank, on an average costs INR 22 per head.
  7. 7 7 Optimal number of agents required…  It is important to determine the optimum number of agents for a given geography.  The population data (Census 2011), formal financial users (FII Wave IV Survey) and median services (ANA India Wave II) data were used to determine the optimum number of agents.  The agent numbers are estimated for the 12 states covered under ANA survey since the variations among states were very high.  The estimates for 12 states have been extrapolated to national level on the basis of GDP/capita.  The optimum agent numbers for India is: Overall – 686,150
  8. 8 8 What would the optimal number look like? 1 Madhya Pradesh 72,597,565 14,666,175 51.7% 7,582,412 7 53,076,886 1,769,230 35,385 2 2 Uttar Pradesh 199,281,477 40,258,884 71.3% 28,704,584 7 200,932,091 6,697,736 133,955 10 3 Bihar 103,804,637 20,970,634 65.3% 13,693,824 8 109,550,591 3,651,686 73,034 6 4 West Bengal 91,347,736 18,454,088 62.2% 11,478,443 8 91,827,542 3,060,918 61,218 4 5 Haryana 25,353,081 5,121,835 55.7% 2,852,862 6 17,117,171 570,572 11,411 6 Punjab 27,704,236 5,596,815 41.7% 2,333,872 6 14,003,232 466,774 9,335 7 Assam 31,169,272 6,296,823 56.2% 3,538,814 8 28,310,515 943,684 18,874 1 8 Tripura 3,671,032 741,623 64.2% 476,122 5 2,380,609 79,354 1,587 9 Andhra Pradesh 49,386,799 9,977,131 71.0% 7,083,763 7 49,586,342 1,652,878 33,058 2 10 Tamil Nadu 72,138,958 14,573,527 69.0% 10,055,734 3 30,167,201 1,005,573 20,111 1 11 Gujarat 60,383,628 12,198,713 38.2% 4,659,908 6 27,959,450 931,982 18,640 1 12 Rajasthan 68,621,012 13,862,831 45.5% 6,307,588 9 56,768,292 1,892,276 37,846 2 Total 454,453 34 S No State Name Population Level Number of Household % Financial Users FII Data Formal Financial User HHs Median Services Total txns in a month Total txns in aday Number of Agents Total Se Agen
  9. 9 9 Channel Structure
  10. 10 10 120 77 75 70 57 43 42 31 16 6 240 154 188 175 190 149 105 103 53 18 Senegal '15 Kenya '14 Uganda '15 Tanzania '15 Bangladesh '16 Pakistan '17 Zambia '15 India '17 India '15 Indonesia'17 Profits(USD) Current Prices PPP Adjusted 1. Agency remains a low-profit business – driving unauthorized charges 2. Agency typically remains an add on business. Agents in India are earning far below than their counterparts in other developing countries in Asia and Africa
  11. 11 11 Even though the profits have doubled in last two years , still about 1/3rd of agents make losses Revenue and Expenses of Agents* Sales Agents (Non- dedicated) Service Agents (Dedicated) Median Monthly Revenue Revenue from agency banking 6000 6000 Median Monthly Opearting Expenses Rent Expenses 2000 800 Utilities Expenses 1500 1000 Salaries of Satff 0 0 Travel Expenses 500 500 Personal Expenses 0 0 Other Monthly Expenses 800 500 Profitability of Agents Sales Agents (Non-dedicated) Service Agents (Dedicated) Overall Agents making profit of 6400 and above (4%-65% between states) 26% 16% 20% Agents making profit of 3200 and above (17%-75% between states) 46% 39% 43% Agents making losses (10%-52% between states) 21% 36% 29% 76 77 93 110 160 264 257 310 220 320 Pakistan '17 Bangladesh '16 India '17 Kenya '14 Senegal '15 Median Total Monthly Revenue (USD)* Current prices PPP Adjusted**
  12. 12 12 Agents should be categorised under service, sales and roving agents on the basis of varied financial demands of different customer segments and geography Aspects Sales Agents Service Agents Business Model Non-dedicated Dedicated Services Savings Insurance Loans Payments Payment services (CICO) Account Opening Location Predominantly in urban, per-urban and economically developed rural areas Predominantly in rural areas with lower level of economic activity Transaction Devices Laptop, mobile, printer/scanner and biometric reader Smart phone linked to a biometric reader (or other low-cost front end interface) CAPEX Requirements High Low OPEX Requirements High Low Basic Service Agents: For villages with basic infrastructure facilities and access, minimum office space and enabled for G2P registration services. SHG Service Agents: Using already existing SHG channel to increase uptake of financial services by women. As of March 2017, there are 85 lakh SHGs with deposits of about 16,114 Cr and annual loan offtake of 38,800 Cr*. Roving Service Agents: For remote and hard to reach villages, agent with smart phone and biometric reader and facility to refer to sales agents for more services. * NABARD Report
  13. 13 13 Responsible product bundling is the key for high consumer uptake PM Swarn Saubhagyawati Yojana (Gold based investments for marriage) • The individual can invest small amounts daily, weekly, fortnight or monthly in 3-5 years. • After completion of tenure, depositor can get a certain amount of gold; provide poor with an avenue to save for their children’s wedding or to create an aspirational asset • Bank can hedge depositor against gold price to protect poor against market fluctuations. • Client can take instant loan against deposit up to 75-80 percent of deposit amount. Pradhan Mantri Swaniyojan Yojana (Savings linked to income generating activities) Bundling of insurance with savings to increase uptake • Daily, weekly, fortnightly or monthly savings; Offer structured savings such that at the end of the savings cycle, they have option to buy a physical asset such as a livestock or use it for activities such as renovation of house/shop etc.. • Livestock will be geo-tagged and insured and poor people can use the savings pool to diversify the income activities. • This is also in line with the government’s goal of doubling farmers’ income by 2022 • Client can take instant loan against deposit up to 75-80 percent of deposit amount. • Bundling insurance with savings makes its easy for the customers to understand the benefit of insurance and reduces cost of delivery to service providers • Each structured savings product to bundle insurance • In Ghana, BIMA and Vodafone introduced savings linked insurance product for fisherman Digital credit for agents • Access to instant, automated and remote digital credit (initially for agents) to meet short-term liquidity needs • Scheme can be extended on the basis of savings volumes, frequency, regularity to PMJDY account holders. An algorithm can be developed for this purpose.
  14. 14 14 PMJDY 2.0-Need based products to be developed for different customer segments’ Persona Needs Gaps Products recommended Housewife • Small ticket-size savings • Easy availability of personal loans • Insurance and Pension • No collection process for savings • Limited credit history • Low cost insurance products • Low financial literacy • Savings: Doorstep banking services (BC) • Credit: Capturing the information based on SHG / MFI records • Insurance: Suitable non-life products (type and collection) • FL through local influencers Small shop- keeper • Daily doorstep savings • Hassle-free loans • Asset and Health insurance • Low cost acceptance infra for payments with value addition • No collection process for savings • Lack of credit / digital transaction history • Low cost non life insurance product • Value and cost of digital interface • Savings: Refined savings options. • Credit: Easy and quick loans • Insurance: Suitable non-life products (type and collection) • Payments: Low cost digital interface with value adds Small farmer • Strong BC agent network in rural areas to save travel time • Inability to fill ‘cash deposit form’ due to low literacy • Lack of doorstep financial services • Strengthening the BC agent network in rural areas • Credit: Simplifying the loan availing process Informal Worker • Access to reliable savings • Micro-loans • Low cost insurance • High interest rates charged by informal moneylenders • No products such as micro-loans • Strong agent support • Credit: Easy loans with low KYC requirement • Insurance: Low-cost insurance • Payments & Tranfers: Affordable, easy mobile-based Migrant Worker • Easy loans with low KYC requirement • Affordable and easy mobile- based P2P transfers • Visiting bank to deposit small savings • Rejection of MFI loan • Higher interest rates charged by MFIs • Strong agent support • Credit: Easy loans with low KYC requirement • Payments & Transfers: Affordable and easy mobile-based
  15. 15 15 Channel Management 1. Agent Tracking and Reporting 2. International best practices
  16. 16 16 Source – ANA India research 2017, * MicroSave Consumer Protection report 2015 *Please note - In Kenya, agents reported whether they or one of their employees had ever experienced robbery or fraud. In all the other countries, we asked agents whether they or their employees had experienced such incidents within the last year. Thus, the data is not fully comparable. In 2017, the median amount of money lost due to fraud is USD 115 per agent i.e. $15 million loss to the economy. 4% Agents stated that they were covered under insurance by banks/BCNM for emergent risks 42% Agents did not report fraud to anyone 33% 18% 15% 4% 15% 10% 1% 1% 53% 42% 22% 22% 14% 11% 22% 2% Uganda '15 Tanzania '15 Kenya '14 Bangladesh '15 Senegal '15 Pakistan '16 India '17 Indonesia'17 %Agents Robbery/Theft* and Fraud: ANA Research Countries* Robbery/Theft Fraud About 22% agents in India have experienced atleast one fraud in the past one year (11 times from 2015). The current channel is in the dire need of an integrated agent channel management system
  17. MicroSave What are the Customers Worried About? 17 Risks Uganda Bangladesh Philippines Colombia Service Downtime Agent Liquidity PIN Security Customer Recourse Wrong Transactions Agent Overcharges Unclear Pricing Transparency Unsecure Locations Agent Unavailability Fake Money Fake Messages Losing Phone and Money Agent Misbehaviour Untrustworthy Agents LEGEND: Moderate RiskHigh Risk
  18. 18 18 Basic architecture of a Agent Management System (AMS) Agent Management System Input Output • National agent registry – biometric verification of agents, agent segmentation • Agent transactional data – System login and logout, integrating daily transactions • Monitoring– Mystery shopping, Agent Audit and remote monitoring through GPS; Monthly/quarterly reports on agent’s performance • Feedback and complaint system – central customer care no. routed to service providers with dedicated response time using social media • Capacity building – online need based training for agent skill enhancement, testing and certification of agent knowledge Recourse Mechansim ePaathshala • Agent transaction analysis – transaction of agents (as per location, type of agents), market led product development and customized product offering. • Dormant and blacklisted agent data • Agent follow up – identifying process related issues with agents and implementing solutions • Training requirement – live feedback on agents training requirements • Information portal – RBI regulations for agents, code of conduct guidelines RBI IBA DFS Banks BCNM
  19. 19 19 A day in the life of an agent management system (AMS) registered agent Process Flow One time biometric registration to AMS Agent logins to AMS either through GPS enabled desktop/laptop/tab let/mobile phone Agent is contacted through customer care/visit by bank or BCNM support. Surprise visits can also made (mystery shopping) by third party Day to day transactions are carried out by agents on bank/BCNM system and logs feeded to AMS system Agent needs info/training on consumer protection so he gains access to the AMS training modules and watches videos to learn Agent logs off from their device at the end of the day Agent enters a customer complaint into the automatic complaint system and provides the complain no. to customer Creation of national databases and Big Data through the AMS system Agent registry Database of inactive and blacklisted agents Training and certification database of agents Live complaint center – customer care team using social media platforms for quick turnaround
  20. 20 20 MicroSave Offices Delhi Lucknow Hyderabad Manila Jakarta Kampala Nairobi Port Moresby MicroSave (India) Head Office: Lucknow Tel: +91-522-2335734 Fax: +91-522-4063773 New Delhi Office: Tel: +91-11-41055537/38 Hyderabad Office: Tel: +91-40-23516140 MicroSave (Kenya Office) Shelter Afrique House, Mamlaka Road, P.O. Box 76436, Yaya 00508, Nairobi, Kenya. Tel: +254-20-2724801/2724806 Fax: +254-20-2720133 Mobile: +254-0733-713380 MicroSave (Uganda Office) Ntinda Ministers Village Plot 27, Valley Drive P.O. Box 29111 Kampala, Uganda. Phone +256-312 202342 Mobile: +256-706 842368 MicroSave (UK Office) The Folly, Watledge Close, Tewkesbury, Gloucestershire GL20 5RJ UK Tel. +44 1684-273729 Mobile +44 796-307 7479 MicroSave (Philippines Office) Unit 402, Manila Luxury Condominiums, Pearl Drive corner Gold Loop, Ortigas Center, Pasig City, Metro Manila, Philippines. Tel: +(632) 477-5740 Mobile: +63-917-597-7789 MicroSave (Indonesia Office) ANZ Tower 23rd Floor, JI. Jend. Sudirman Kav. 33A, Jakarta Pusat 10210, Indonesia. Tel: +62 82122 565594 MicroSave (PNG Office) Corner of Musgrave Street and Champion Parade, Port Moresby, Papua New Guinea. TeleFax No.: +675 321 8823/321 8854 Tewkesbury Ho Chi Minh