Growing competition among banks and financial institutions in cities is driving them to seek new pastures in rural areas. With the technology in place to help them expand their business in villages, they are using unconventional methods to lure potential customers.
Everest Bank has become the first to start branchless banking with “Everest Bank Ghar Dailo Banking Services”. It facilitates cash withdrawals, deposits and remittance through the point of transaction along with agent cards and smart cards for customers. Agents provide this service in rural areas. Everest Bank started it in July 2009. “With the ever growing need for banking services in the present context, this is a bid to serve customers at large,” said marketing executive Nabin Regmi.
The service, which was started in eight village development committees (VDCs) of Bhaktapur, now covers 11 more VDCs including five in Baglung and six in Banke. “As the technology enables banking transactions by fingerprints, even illiterates are benefiting,” added Regmi.
Laxmi Bank launched “Mobile Money” in October 2009 and Kumari Bank started “Kumari Mobile Cash” this August.
Customers of Laxmi Mobile Money and Kumari Mobile Cash can pay their utility, shopping and restaurant bills via this service using their mobile phones. Customers can also transfer funds from one account to another.
With a significant growth of cell phone users in rural areas, both banks hope to include rural people in mainstream banking via mobile phones. The money agents appointed by the banks can facilitate internal remittance in-country. Laxmi Bank gives this facility only to its account holders while Kumari said its services are available to all. One can access the service through 189 agents and 10-plus merchants under Kumari Mobile Cash, said Sanjaya Poudel, head of corporate strategy and development.
Laxmi introduced transfer facility first to its account holders via SMS under this system. It is also planning to go for branchless banking within 2010, according to Nikesh Ghimire, manager at bank 2.0 department of Laxmi Bank that deals with non-conventional banking. Only mobile users of Nepal Telecom get the services of Laxmi and Kumari at present. “Soon, we will include Ncell, CDMA and UTL customers,” said Poudel of Kumari.
Besides, three banks also use vehicles to deliver banking services. Everest, Sunrise and Kist are using vehicles to deliver banking services to the doorsteps.
Everest Bank has termed its “Bank on Wheels” an additional service to its existing customers. Everest Bank’s vehicle-based banking service is available in Damak, Bhadrapur and Kakarvitta through the Birtamod branch. Both Sunrise and Kist started vehicle-based services in May. Sunrise is providing this service in Chalnakhel and Chhaimale VDCs on the periphery of Kathmandu. Kist’s service is available in Dhapakhel, Thankot, Budhanilkantha, Tokha and Gothatar in Kathmandu and Nala in Kavre.
Banking vehicles have an ATM and a customer service desk, a teller desk and space for a few customers. Everest and Sunrise officials said they use V-SAT technology to link the vehicle with the nearest branch while Kist uses evolution data optimised (EVDO) technology. EVDO operates via broadband internet service through CDMA phone line.
“More than 700 customers have opened accounts in our vehicle-based service and deposited around Rs. 20 million,” said B.N. Gharti, chief business officer of Kist.
Sunrise has more than 600 account holders under this scheme with deposits amounting to around Rs. 15 million. Niranjan Aryal of the business management division, said people ask for small loans through this channel.
(news source: ekantipur.com)
Everest Bank has become the first to start branchless banking with “Everest Bank Ghar Dailo Banking Services”. It facilitates cash withdrawals, deposits and remittance through the point of transaction along with agent cards and smart cards for customers. Agents provide this service in rural areas. Everest Bank started it in July 2009. “With the ever growing need for banking services in the present context, this is a bid to serve customers at large,” said marketing executive Nabin Regmi.
The service, which was started in eight village development committees (VDCs) of Bhaktapur, now covers 11 more VDCs including five in Baglung and six in Banke. “As the technology enables banking transactions by fingerprints, even illiterates are benefiting,” added Regmi.
Laxmi Bank launched “Mobile Money” in October 2009 and Kumari Bank started “Kumari Mobile Cash” this August.
Customers of Laxmi Mobile Money and Kumari Mobile Cash can pay their utility, shopping and restaurant bills via this service using their mobile phones. Customers can also transfer funds from one account to another.
With a significant growth of cell phone users in rural areas, both banks hope to include rural people in mainstream banking via mobile phones. The money agents appointed by the banks can facilitate internal remittance in-country. Laxmi Bank gives this facility only to its account holders while Kumari said its services are available to all. One can access the service through 189 agents and 10-plus merchants under Kumari Mobile Cash, said Sanjaya Poudel, head of corporate strategy and development.
Laxmi introduced transfer facility first to its account holders via SMS under this system. It is also planning to go for branchless banking within 2010, according to Nikesh Ghimire, manager at bank 2.0 department of Laxmi Bank that deals with non-conventional banking. Only mobile users of Nepal Telecom get the services of Laxmi and Kumari at present. “Soon, we will include Ncell, CDMA and UTL customers,” said Poudel of Kumari.
Besides, three banks also use vehicles to deliver banking services. Everest, Sunrise and Kist are using vehicles to deliver banking services to the doorsteps.
Everest Bank has termed its “Bank on Wheels” an additional service to its existing customers. Everest Bank’s vehicle-based banking service is available in Damak, Bhadrapur and Kakarvitta through the Birtamod branch. Both Sunrise and Kist started vehicle-based services in May. Sunrise is providing this service in Chalnakhel and Chhaimale VDCs on the periphery of Kathmandu. Kist’s service is available in Dhapakhel, Thankot, Budhanilkantha, Tokha and Gothatar in Kathmandu and Nala in Kavre.
Banking vehicles have an ATM and a customer service desk, a teller desk and space for a few customers. Everest and Sunrise officials said they use V-SAT technology to link the vehicle with the nearest branch while Kist uses evolution data optimised (EVDO) technology. EVDO operates via broadband internet service through CDMA phone line.
“More than 700 customers have opened accounts in our vehicle-based service and deposited around Rs. 20 million,” said B.N. Gharti, chief business officer of Kist.
Sunrise has more than 600 account holders under this scheme with deposits amounting to around Rs. 15 million. Niranjan Aryal of the business management division, said people ask for small loans through this channel.
(news source: ekantipur.com)
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