Smart Cards from Janalakshmi for Microfinance

by CXOtoday Staff    Mar 09, 2007

Bangalore based urban microfinance institution - Janalakshmi Bank has deployed an end to end core banking smart card solution.

The card will enable traders have anytime access to the trading floor without carrying real cash and expensive loan arrangements through money-lenders.

The technology backbone will enable Janalakshmi better cater needs of a growing customer base to cover self-help groups and small-medium enterprises and other individuals not having access to mainstream banking or financial services.

The solution developed by Financial Information Network and Operations Ltd.(FINO) and IBM, enables traders avail financial assistance to participate in fruit and vegetable auctions at Safal outlets.

The technology platform for micro finance institutions (MFIs) has a core banking solution coupled with a distribution component and transaction acquisition system. The core banking solution will host customer accounts. Customers using biometric-enabled multi-function personalized smart card will be able to access the system.

The smart cards would serve as a proof of identity and electronic pass-book for customers. In addition to hosting a core banking solution, IBM will provide support services post transactions for managing FINO’s data centre.

FINO will offer this solution to over 200 entities involved in serving the micro sector in India and abroad.

“This is a win-win partnership for all stakeholders. The solution designed by IBM will enable FINO to effectively scale up to meet growing business needs of micro-financing organizations like Janalakshmi reduce costs and enhance operational efficiencies,” says Swarup Choudhury, Director - FSS, IBM Asean/South Asia.

FINO will create a customer database bring beneficiaries in mainstream banking. In addition to loans, the card would allow channel partners to offer a suite of products such as investments, remittances, credit, life and general insurance and derivatives. The transaction platform has been designed by FINO to keep in mind low cost margins available to banks that serve the un-banked population in India.