Business Daily from THE HINDU group of publications
Friday, Jul 14, 2006
Business Daily from THE HINDU group of publications Friday, Jul 14, 2006 |
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Money & Banking
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Private Banks
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Micro view FINO is an independent entity with an authorised capital of Rs 50 cr ICICI Bank takes 20 pc stake in the company It expects to target 200 MFIs by March 2007 FINO to target 300-400 m people with no access to basic financial services
(From left) Mr Manish Khera, CEO, FINO; Dr Nachiket Mor, Deputy MD, ICICI Bank; and Mr David S. Gibbons, Founder & Chairman, Cashpot Financial & Technical Services Ltd, at a press conference in Mumbai on Thursday. — Paul Noronha
Mumbai , July 13 ICICI Bank has taken a stake of under 20 per cent in Financial Information Network and Operations Private Ltd (FINO), which was launched on Thursday. FINO would provide technological solutions as well as services to finance providers to reach the underserved in the country. ICICI Bank is the lead facilitator. According to Mr Nachiket Mor, Deputy Managing Director, ICICI Bank, FINO is an independent entity. "We would reduce our stake in the company when required," he said. ICICI Bank expects to target 200 micro-finance institutions (MFIs) by March 2007, he said, speaking on the sidelines of the press conference to launch FINO. At present, the bank has tie-ups with 100 MFIs. FINO is an initiative in the micro-finance sector. It would target 300-400 million people who do not have access to basic financial services, said Mr Manish Khera, CEO, FINO. The company has an authorised capital of Rs 50 crore. MFIs, NBFCs, RRBs, co-operative banks, etc would directly or indirectly tie up with FINO to use its services, he said. FINO would charge Rs 25-30 per account every year.
Core banking products
FINO has partnered with IBM and i-flex to offer core banking products. It would also provide credit bureau services, which includes individual customer credit rating and analytics based on transaction history. It also launched biometric cards for customers, which would be a proof of identity and give collateral to them. The card would also offer multiple products including savings, loans, insurance, recurring deposits, fixed deposits and remittances. The company would also build-up customer database, thus bringing them into mainstream banking. "There was a need for automated structured data system like FINO," said Mr Mor. "Essential pieces of infrastructure are missing in India. We lack credit-tracking mechanism; therefore there was a need for an intervention like FINO." The company expects to reach 25 million customers in five years and two million customers by the end of this year. FINO aims bringing scale to "micro" business leading to lowering of costs for the local financial institutions (LFIs) and act as an internal technology department for the LFIs, said Mr Khera. The company is working on providing technological solutions in insurance, especially the health insurance sector to the under-privileged," he said. It is interacting with Nabard, SIDBI and other banks to give shape to what FINO does, said Mr Khera.
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