IFC and FINO: A Business Model to Serve Underbanked Rural and Semi Urban Populations

Mumbai-basedFinancial Information Network & Operations Ltd (FINO)

Drivers for FINOs’ inclusive business models

• Marketopportunity for technology that enables financial institutions to serve morethan 600 million under-banked Indians cost-effectively
• Mission toenable greater financial inclusion among the under-banked populations
• Financialinstitutions can reduce costs, increase efficiency and productivity, improve transparency,and reach a larger population including those in more remote settings

Product/ Services offered by FINO

FINO builds andimplements technologies that enable financial institutions to serve under-bankedpopulations. FINO offers a suite of products to banking, microfinance,insurance and government clients serving primarily rural and semi-urban regions as shown below:

Results of FINOs’ inclusive business model

• Operatingrevenue growth of 140% since 2006 (34% CAGR from 2006-2009)
• Client base of20 MFIs, 14 banks, 7 government entities, and 4 insurance agencies
• As of early2010, over 12 million individuals in 21 states had access to credit andnon-credit related services including loans, payments, remittances, savings,insurance and government subsidies

IFC’s role and value-add

• Early-stage financing ($2.8million) to fill funding gap and technical assistance.
• Helped FINO to spin off and encouraged banksand MFIs to adopt its technology
• Technical assistance grant ($1 million in 2007) to support pilot projects andtraining programs. As a result, FINO conducted 872 training workshopswere conducted for 8,002 participants across India.
• Helped FINO conduct several pilotsincluding one for a mobile application in Andhra Pradesh, during which FINOenrolled 1.7 million families below the poverty line in a cashless healthinsurance coverage program.

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