Enhancing Quality of Life through financial inclusivity

Over the past few years as an outcome of progressive initiatives of the government like 'Digital India' complimenting a surging economy, the velocity of financial transactions has increased considerably. The phenomenon has triggered a massive demand for smart and secure financial services not only in urban areas but, in the rapidly evolving rural economy as well. The digitally enabled solutions have become a pressing need as the data suggests that in the rapidly urbanizing India, nearly 66% ⁽¹⁾ of the citizens still reside in the rural and semi-rural areas. And yet, this critical component of the nation's economy that employs majority of its population is largely inadequately serviced by banks or most importantly lacks presence of convenient Automated Teller Machines that are ubiquitous in urban life.

Realizing the enormous business opportunity and inspired by the government's thrust on financial inclusivity through 'Jan Dhan Yojna and Direct Benefit Transfers, the banks have been vigorously focusing on expanding their rural footprint. Yet, necessary compliance to statuary updated management and technological criteria has caused escalation in the cost of ATM operations. This has acted as a deterrent to proliferation of a much needed robust ATM network in the interior regions of the country where access to cash was critical to financial inclusivity and elicited further contraction in the already shallow reach of 17 ATMs per 100,000 people ⁽²⁾.

The Government's efforts to ensure financial sustainability has resulted in the advent of smaller financial institutions cementing their presence along with multi-varied cash dispensing platforms being set up in the rural sector along with seamlessly shifting from conventional ATMs to CRMs and setting up White Label ATMs (WLAs).

Impacting the remote regions of the country and citizens at the bottom of the economic ladder the most, a solution was imperative to sustain financial growth of the country and the society where massive population access ATMs for cash and other banking services.

Hitachi through its Social Innovation Business has always addressed to these challenges efficiently faced by enterprises and citizens while enhancing their Social and Economic values. A firm believer in financial inclusivity being key to the nation's growth, Hitachi Payment Services Pvt. Ltd., a Hitachi Group Company is leveraging the group's widely recognized advanced OT (Operation Technology) X IT solutions to bring financial equanimity in a robust way.

One of the designated non-bank entities in India, Hitachi Payment Services Pvt. Ltd. has received license by The Reserve Bank of India to establish and facilitate White Label ATMs under the brand 'Hitachi Money Spot' primarily engaging Tier 3 to Tier 6 towns. Thereby, building a strong financial network at the very grass root level.

Drawing upon its decades of proficiency in OT (Operation Technology) X IT, data-analytics and in-house technological innovations to develop advanced solutions like “Work Bench Management System”, Hitachi has been comprehensively achieving efficiency and optimization in site finalization, selection and streamlining workflow management effectively.

Work Bench Management System is a web-based application built on NET SQL technology. It has an android front end called Sitequest through which brokers can upload prospective ATM site details including ATM site pictures. Used for ATM site sourcing life cycle management, it covers the complete process including ATM site sourcing, site selection and site deployment project management. The system enables efficient ATM site sourcing workflow management as it a single platform for external partners such as brokers and different internal departments.

Hitachi money spot ATMs have revolutionised banking in the country's hinterland by significantly helping meet the exponentially rising demand for quality banking services in rural and semi-rural areas. The impact gains more significance considering in FY18-19 while the country witnessed a muted growth in ATM deployments, Hitachi expanded the network by installing in excess of 1600 ATMs which has now currently reached over 3100* White Label ATMs.

With unique features like cash recycling that enables customers to withdraw and deposit cash, transfer funds using ATM cards of myriad scheduled and recognised banks, the citizens are financially empowered to meet their growing needs and become a part of the vibrant Indian economy. Consequently, Hitachi through its Social Innovation Business is POWERING GOOD, enhancing customers' Quality of Life and improving their Social and Economic values for a sustainable future.