Advertising borrowers, promoting banking products and financial offerings to

techniques play a major role in figuring out the increase of monetary services
enterprise. Various marketing techniques followed by the predominant financial carrier providers like banks.

marketing and distribution strategies of banks are one-of-a-kind in urban and
rural areas because of diverse demographic and socio-economic nature of these
markets. Private Banks are in most cases concentrated in urban regions due to
better income, higher infrastructure, better investor base and awareness of
five commercial activities in the urban areas of the country. The distribution
channels used by such banks encompass financial institution branches, ATMs, net
banking, telephone banking, direct promoting dealers, name centres, and many
others. The distribution networks advanced by using public banks in urban as
well as rural areas are a end result of policy measures due to which the range
of public area bank branches is better as compared to private or overseas
banks. Non-public zone banks also are penetrating into the agricultural regions
by using the use of the non-department shipping structures just like the
commercial enterprise Facilitator (BF) model or business Correspondent (BC)
model proposed with the aid of RBI in 2006.

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the BF version, banks make use of the network of intermediaries which includes
the NGOs, put up workplaces for banking services together with creating
cognizance and educating on the monetary merchandise, amassing and processing
facts of borrowers, promoting banking products and financial offerings to rural
families, and so forth. The activities in a business Correspondent version
consist of all those of the BF model and in addition consist of disbursing
small cost credit score, and so on. Intermediaries underneath these models have
knowledge about the neighbourhood populace and offer remarks approximately the
requirements of the neighbourhood population .because the nearby populace has
believe in those intermediaries it’s miles possible to move-promote various
products. Cross-promoting helps in consumer retention, reduces client
acquisition fees. It also advantages the consumer thru truthful expenses for
the products, simpler processing and customized merchandise. The use of such
non branching shipping channels has been very less. However, with growing
earning inside the semi city and rural regions, there’s further scope for
personal banks to adopt such non branching shipping models.

 similarly to the department and non-department
transport systems followed respectively via public and personal zone banks,
banks also use easy-to-use coins doling out and collecting machines similar to
ATMs that have working instructions in vernacular languages too. Banks have
additionally initiated credit score plus offerings inclusive of setting up of
rural schooling centres for small organisations, farmers clubs, expertise
centres, credit counselling centres for educating the semi-city and rural
populace with recognize to minimizing yield danger and fee threat in
agriculture. This, further, leads to lower lending quotes and decrease credit

Distribution Channels- Banks




Building Bank Networks in Rural areas

has undertaken several projects to increase bank networks in rural areas that
are summarized below:

2006 onwards, RBI permitted placing new branches condition to 50% of such
branches being opened in unbanked areas.

2006, rural regional Banks (RRB’s) had been allowed to marketplace mutual fund
units based at the approval from their Board of administrators. these RRB’s,
can input into distribution agreements with private or overseas mutual fund
houses for marketing their schemes primarily based on phrases and conditions
targeted through RBI.





Business Correspondent Model

correspondents are retail sellers engaged by banks for supplying banking
offerings at places aside from financial institution branch/ATM. BC’s are
enabled to provide low value services.

of BC’s

·       Identifications
of Borrowers.

·       Collection
of small value deposit.

·       Disbursal
of small value credit.

·       Recovery
of principal.

·       Growing
awareness about savings and other products.

more Business Correspondent can do?

·       Instructing
the under-banked and unbanked population about the importance of banking,
investment options, deposit schemes, interest rates.

·       Supplying
Banking help in manner such as opening bank money owed, fixed/routine deposits.

·       Recovering
the instalments for loans, EMI’s, payments and fees from customers.

·       Disburse
of small quantity of loans.





How Business Correspondent Model

·       Helps
in maintaining better assets in banks.

·       Maximize
the customer base by reaching out to the customers.

·       Popularise
the concept of doorstep banking.

·       An
alternative to physical branches.


Kiosk Banking Model

Kiosk banking version is an initiative taken by way of the RBI for those
dwelling inside the village areas and deprived of primary banking services due
to non-availability of bank department in their locality. In such occasions the
person is not needed to go to bank, rather the financial institution comes to
the village wherein the man or woman can make transactions.

idea behind the functioning of kiosk is that it need to be supported by using
the banks in private, public and cooperative sectors. These acts as links
between deposits, withdrawals, remittances, insurances and overdraft services.



gives internet based, bio-metrically enabled banking carrier to the rural
customers through business correspondent model.

this trade channel, customers can do on-line, actual time banking transaction
at his location without the help bank.

SBI Kiosk Banking








Is Technology a solution?

significant problem regarding implementation of banking models for rural
banking is lack of consistency in service delivery by its outsourcing partners.
Though 278 million accounts have been opened under the Pradhan Mantri Jan Dhan Yojna, 30% of the accounts lie dormant.
Agent inactivity and lack of product knowledge adds to the problem.

How can Technology helps?

of the ways IoT can help would be to track the agents as they venture out on
their daily, weekly, or monthly client visits. IoT sensors can be placed on
their vehicles, bicycles, motorbikes, or vans. Data captured on travelled
times, duration of the visit, and the number of breaks taken are important
parameters that can be used to ascertain the accuracy of the agent’s claims
about visiting clients and dispensing services.

attached to the micro-ATMs carried by the agents, along with the account usage
data, can be verified with the location data to determine whether customers
actually can access and use their accounts as needed. This is useful in
detecting fraud such as misappropriation during loan disbursement, cash
withdrawals, or deposits.

IoT, banks can test new business models by partnering with innovative ecosystem
partners. For instance, data analytics companies, such as Satsure and Stesalit,
use data from IoT sensors, along with the satellite data, to conduct precision
farming, climate forecasting and remote crop monitoring analytics. Banks can
partner with such companies to assess farming conditions in different regions
on a periodical basis.

opportunities for IoT and banking are just begin to emerge. The impact that IoT
will bring to this sector is enormous.