FINO Handheld Device

See a FINO agent in action with his handheld device

FINO: The Technology for Financial Inclusion in India

India may be the most talked about country whenever experts discuss about financial inclusion. Recently, there were many debates among experts on India's financial institutions, including the controversial decision of SKS Microfinance to go public and the infamous suicides of Indian farmers in Andhra Pradesh.

Despite the negative publication, experts still turn to India to learn about groundbreaking methods in accelerating financial inclusion. India remains the most innovative country in terms of leveraging ICT to promote financial inclusion. One of the innovations came from a company called Financial Information Network & Operations (FINO) that claims to be the pioneer of total financial inclusion network in India. FINO delivers integrated technology solutions for financial institutions that serves people at the bottom of the pyramid. Operations at the grassroots level are carried on by over 10,000 agents that are spread throughout India. FINO created a platform that combine three pillars, which are Core System, Distribution System and Information System.

Based on the three pillars mentioned above, FINO developed the following products to bank the unbanked:

1. FINO Mitra (Mobile Information and Transaction)

Similar to UBL's OMNI branchless banking, FINO Mitra enables customers to utilize their mobile phones to conduct banking transactions through short message service (SMS), interactive voice response (IVR) and mobile based applications. Customers can also open a bank account at FINO agents by registering for FINO Mitra using biometric-based technology.

2. FINO Parichay

The Permanent Account Number (PAN) Card is an important identification card in India. However, many people from the lower class don't have a PAN Card because they can't credibly establish their identities. Having no identity means no access to services such as financial loans. FINO Parichay provides a card where people can uniquely establish their identity. Like every other identification, the FINO Parichay card has the individual's photograph and personal details as well as a smart-chip that holds finger print data that can be used for verification purposes. This card is also used by the government to validate social security benefit recipients and deliver national health insurance.

3. FINO Tijori

This technology is a biometric smart card specially designed for financial institutions that operate in the microfinance space. The smart card not only functions as a passbook, but also an ATM card. Once a customer owns the card, financial institutions can offer other financial products such as loans, remittance and insurance. FINO agents use a handheld device to swipe the card and scan fingerprints whenever a transaction is processed.

With a 100% annual growth since FINO was first founded in 2006, FINO's clients now include 23 Banks, five Insurance Companies, 10 Microfinance Institutions, 17 State Governments and 6 Enterprise Businesses that serves more than 30 million customers. FINO is definitely in the forefront of financial inclusion efforts in India.

References:
http://online.wsj.com/article/SB10001424052748703609004575355460120599280.html
http://www.bbc.co.uk/news/world-south-asia-11997571
http://fino.co.in/

http://www.indiamart.com/company/2754503/products.html#fino-mitra
http://www.sksindia.com/