ENTRY

AS
PAYMENT BANK IN
INDIA

How it started
Facilitate person to person
money transfer, sending
remittance, bill payments
etc.

2006: MPesa
launched. At this
time, more than
70% of Kenya didnot
have bank accounts

Today, More than 75% of

Kenya uses MPesa system
and More than 25% of
Kenyas GDP flows through
MPesa system

Who are your

Understanding Competition
competitors?

Current Players
Public Sector
Banks

Private Sector
Banks

Ten Other
Entities who
received
Payment Bank
License

New Banks
who have
launced or due
to launch

 Migrant labour workforce, low income

households, small businesses, other
unorganised sector

Mobile Banking to reduce cost of customer

acquisition and service delivery.

Last mile gap between Bank Branch

and customer.

Target
Custome
r

Technolo
gy

Purpose

Pillars of Future Prospects

Product Strategy
Remittance
s

Bharat Bill
Payment
System

Payment &
Deposit

Payme
nt
Bank

Mutual
funds,
insurance
and
pension
products

RFID Tag
for Toll
Plaza

Merchant
Transaction

Financial
Products

Product Strategy
Add more
business
corresponde
nts

BC for other
services

Partnered
with
several
governmen
t bodies

Association
with the
RuPay debit
card, Visa
etc.

P-Place

PLACE

Unbanked rural India - less than

120,000 full fledged bank branches
across 500,000 villages
Migrant workers in metros or other
cities

East, NE and Central India- Potential

Unchartered
Territories
Unexplored

NE, Central India and East India

have tremendous potential
Region- under penetration of bank
services
CRISIL Inclusix index- Below 40
across this region vis-a vis 50.1
across India as on March 2013*
Bank Credit to GDP in this region
less than 60% vis-a-vis 77% across
India

Promotion
Advertising may influence consumers in
many ways
Primary goal of advertising is to increase
probability that consumers will behave or
believe as the advertiser wishes

Advertising Strategies
Television/
Music
Online

Bill Board

Press

Radio

Payment Banks

Payment Banks
Strengths

Deposits up to
100,000- Low cost of
funds
Low funds involvehence fraud risk
minimal
Innovative delivery

Weaknesses

Nothing new to offer

Lack of awareness
No existing customer
base to leverage
For new players- start
from scratch

Payment Banks
Opportunities

Large untapped
market
Low cost transactions
Innovative products

Threats
Technological threat
Operational riskscyber threat
Interdependence
upon efficiency of
auxiliary services
Competition

Pillars of Future Prospects

1. Customer friendly and tailor made
interfaces - public perception
2. Tie up with entities with local feel
3. Multi product and multi service BC
model
4. Sharing of Government business of
DBT on fair sharing business model
5. Cyber strength