ANALYSIS OF FINO PAYTECH LTD.

Submitted by- ABHISARA
FINO PAYTECH- AN OVERVIEW!

Customer Base Investors
 Objective: To promote financial inclusion among under-
 16%-Corporation
banked and excluded population
Bank, Indian Bank,
 Base Location: Mumbai 4
LIC and Union Bank
 Sector: Information and Communication Technologies Insurance
Agencies of India
 Incubated by: ICICI 27 15
Government  Private investors -
Banks Entities
 Primary Customers: Banks, Insurance companies, Govt. HSBC (25%), ICICI
47
Entities Group (25%), and
Million
 End Beneficiaries: 47 million individual customers Individual IFMR Trust (1%).
Customers
 International
 Coverage:1,852 different blocks in 399 districts of 25
investors are IFC
states in India
(17%) and Intel (16%)
THE FINO PAYTECH DRIVERS

Market Potential

• Enable Financial Institutions to serve 600 Million Rural  41% of adult population is
Indians
unbanked
Financial • Remove barriers due to illiteracy, information
Inclusion asymmetry, inadequate infrastructure  27% farmers have access to formal
credit sources
 75% of the market is controlled by
• Manage the high cost relative to transaction size
• Technology to facilitate reliable and low cost financial informal money lenders
Cost- transactions
Effectives  Non-credit related services are
virtually non-existent in rural
areas
THE INCLUSIVE BUSINESS MODEL

Product Suite Revenue Model

Accounting & MIS Point-of-Transaction  Charges rental to financial institutions
System Terminals Biometric Smart Card
for terminals
To facilitate and Hand-held mobile
To ensure  Annual maintenance fees
track transactions at devices that agents
transactions are  New card issuance fees
the financial and customers use to
secure at both ends
institution conduct transactions  Sale of point-of-transaction terminals
 Nominal charges for the remittance
Salient Features product
 Saving Account balance check, Fund transfer, Deposit and withdrawal  One time enrollment fees
 Access subsidies, payments, Govt. sponsored insurances and benefits  End customers don’t have to pay for
 Administer health insurance under the government’s health insurance program any of the services except the
for people below the poverty line
remittance product.
 Send remittances from cash-to-smart card, card-to-bank, or card-to-card
RESULTS & BENEFITS

Results Benefits to Financial Institutions
 Lower Transaction Costs for Financial Institutions
 1324 % Operating Revenue Growth since 2006
 Increase Efficiency & Productivity
 56% CAGR fro 2006-2012
 Improve Transparency
 Client Base of 27 Banks, 15 Government  Enables institutions to allocate resources better to scale up
operations
Entities, and 4 Insurance Agencies
 Customized products and Services
 47 Million individuals across 25 states have
Benefits to People
access to credit and non-credit related services  Promote financial inclusion particularly in rural region

 29,480 point-of-transactions till date  Access to formals loans as well as other financial services
 Employment generation- 2,753 direct employees, 29,480
field agents, 30% women
THANK YOU!