July 11, 2007KIOSKS and Financial Services in IndiaFrom Mumbai -- ICICI Bank CFO Vishakha Mulye explained: “We plan to introduce multi-product and multi-channel offerings, not only using bank branches, since operating costs will be very high. We’ll have franchises for the banks, kiosks for withdrawals." Expanding into underserved rural areas with a smart card-based business that will obviate the need to establish new branches or ATMs. MUMBAI - In the wake of its record share offering, ICICI Bank intends to use the proceeds to bolster its rapidly growing consumer credit business and expand into underserved rural areas with a smart card-based business that will obviate the need to establish new branches or ATMs. India’s largest private bank has raised over $4.3 billion from the sale of its shares in India and overseas markets, making it the largest public issue for an Indian company. The bank is planning to expand aggressively into rural India, where about 60% of the population lives, using an innovative system based on smart cards through which customers will be able to do their banking with local shopkeepers and offices of nonprofit organizations. ICICI Bank (nyse: IBN - news - people ) CFO Vishakha Mulye explained: “We plan to introduce multi-product and multi-channel offerings, not only using bank branches, since operating costs will be very high. We’ll have franchises for the banks, kiosks for withdrawals." Under the initiative, ICICI will issue smart cards to customers that can be used at point-of-sales machines installed in the shops and offices of ICICI partners, such as agricultural merchants or NGOs. Customers will be able to deposit or borrow money from the shop where the machine is installed, with transaction details stored online and updated on the card. ICICI's rural operations now accounts for 10% of ICICI’s assets, and a bank official said it is expected to reach 15% at least in three to four years. "We’ve created products like loans against jewelry and commodities to meet the needs of rural customers and ensure our credit remains strong,” she said. It is also looking at a “robust growth pipeline” on the corporate side, Mulye said. Read Rest of Story -- India's ICICI Bank Gets Smart To Tap Rural Market - Forbes.com |