Small financial players such as micro-finance companies provide means for millions of people to gain access to financial services, yet these institution often have difficulties meeting the requirements set-out by India’s central bank for banking licences. In a bid to lower the barrier to the creation and development of small scale banking institution in India, FIS has launched Banking on Demand. The service provides a cost effective, click rate pricing, service for the back-end of banks as well as front-end options. The service coincides with the launch of a financial inclusion lab in Bengaluru that will help stakeholders develop financial tools to reach those that lack inclusion in India’s financial system.
FIS was founded in 2006 and now employs more than 42,000 people. The company provides a wide range of bank payment solutions as well consulting services for outsourcing such solutions. The company is active in 130 countries and provides offerings to more than 14,000 institutions. The company continues to expand, and recently acquired Clear2Pay which significantly expanded its payments technology capabilities.
The banking market in India is developing as more and more small financial institutions join the ecosystem to provide services to underserved segments of the market. Particularly micro-finance companies are springing up, with 8 out of 10 recently announced small finance banks micro-finance companies. These institutions, like all banks in India, need to meet the regulatory conditions, whose compliance requirements are relatively stringent.
Banking on Demand
In a bid to improve access and time to market for small competitors in India’s banking industry, FIS has launched ‘Banking on Demand’, a tool designed to allow particularly the small players – such as small banks, payment banks and microfinance institutions – to offer hosted banking services without needing to invest in an expensive back-end infrastructure.
The solution leverages shared technology infrastructure to minimise individual initial capital expenditure when small players seek to bring new banking product lines to market. The click rate pricing offering significantly increases time to market, while providing low cost services to many of India’s underserved communities. The solution also provides front-end tools including micro ATMs, ‘e-lobbies’, mobile access and more.
“Technology will be the biggest enabler for new bank entrants to deliver on the mandate they have been given to bring financial access to everyone in India,” explains Ramas Venkatachalam, Managing Director of FIS India and South Asia. “Banking on Demand is another example of FIS’ on-going commitment to promoting financial inclusion, and we’re excited to offer this innovative solution to help institutions better serve their customers and expand banking access.”
Besides launching Banking on Demand, FIS has also launched FIS Centre, which is the first financial inclusion lab in Bengaluru. The lab will provide business leaders, government organisations and NGOs with access to a collaborative environment at which solutions can be developed to provide access to banking for India’s ‘unbanked’ and other poorly service segments. The FIS Centre aims to seek out and remove roadblocks to financial inclusion, and has already successfully created an application to improve financial literacy among students. The lab is the seventh of its kind globally.