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Showing posts with label payments Banks. Show all posts
Showing posts with label payments Banks. Show all posts

Tuesday, 25 August 2015

08:10

SBI strengthening low-cost model to compete with payment banks

SBI strengthening low-cost model to compete with payment banks

KOLKATA, AUG 21
State Bank of India (SBI) is strengthening its low-cost model to compete with the upcoming payment banks.

According to Arundhati Bhattacharya, Chairman and Managing Director, SBI, the bank is looking to do this through the business correspondent (BC) model, who would operate through point of sales machines.

"The low-cost model we are talking about involves mostly the business correspondents," she said on the sidelines of the FICCI Banking Conclave here in the city.

Bhattacharya's comments come on the back of a question relating to threats posed to "universal" banks from the upcoming payment banks.

RBI has recently granted 11 in-principle licence for payment banks.

SBI already has put in place 56,000 business correspondents in the country, and 500 more are to be introduced in West Bengal soon.

These business correspondents will be armed with portable machines that are equipped with scanners and printers for on spot transactions.
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Sunday, 23 August 2015

11:14

SBI to increase number of customer service points

SBI to increase number of customer service points

Anticipating tougher competition after RBI granted payments banking licences to 11 entities, State Bank of India (SBI) on Friday said it will increase the number of its Customer Service Points (CSP) to assert its position in the rural unbanked segment.

"We are seeing a lot of competition," SBI chairperson Arundhati Bhattacharya said at a FICCI Banking Conclave here.

She said that while full-fledged or universal banks were ahead of payments banks (PBs) in terms of service, size of remittance handled and other factors, the PBs would be ahead of the universal banks when it came to their reach in rural households.

"PBs will have better access in the rural unbanked segment and so we are also coming up with a low-cost model to service the unbanked segment," she said.

According to her, setting up a bank in a rural place involved numerous costs while the cost could be pared down through the CSP route.

Bhattacharya said the PBs would handle small remittances and reach out to rural customers, these financial institutions would be of limited help to regular customers.

"The PBs are also not interested in credit history as they cannot offer loans. It makes more sense to use full-fledged banks to build the credit history," she said.

The SBI chairperson referred to the importance of the credit history in developed countries.

"In the developed world, without a credit card, you don't exist. Without it, you can't do a thing," Bhattacharya said.

In West Bengal, the SBI would add 500 CSPs in rural panchayats which don't have access to banking facilities.

source :WebIndia123.
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