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Management of Technology -2

FINOFinancial Information Networks and Operations

LimitedBy

Anirvaan Dutta Gupta(09927849)Rajesh K(09927845)

Ashish Rijhwani(09927909)Subramaniam K(09927837)

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References and Thanks

Suggestions and Further Work

Analysis

Key Decisions to be made

Technology and Strategy Details of the Company

Journey Map of the company

Company Details

Motivation and Background

AGENDA

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MotivationTarget Companies which are technology driven

and are the most relevant today.

Sectors

CompaniesFINO , Theme , Agile FT, SKS Microfinance ,

Equitas etc

FinancialServices

CleanDevelopment Infrastructure

B ackground 850 Million people with < $2/day

incomeCredit coverage in rural areas: 9.5%Banking systems service only 33%

147/203 million rural households (89farmers).High growth

India: credit $4 mn (1995-96) to>$2.8 bn (2006-07)

High potential growth

India: Market size estimated at$16-22 bnLarge number of players :India:>3000

MFIs

MOTIV A TIO N & BACKGR OU ND

Biggest challenge in MFI sector is rural reach andhigh interest rate , technology can be a keydeterminant to mitigate this.

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FINO Company Background

V ision - To achieve a break through in the scale , relevance and ensurereach of financial services for the un-served and underserved massesthrough out the world.

Core B usiness Designing and enabling end to end technologysolutions to the unbanked masses.

Started in 2006.

Customers - 20 banks, 10 MFIs, 3 insurance companies, 6Government entities

About FINO

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03/2007

MFI

Banking

InsuranceGovernment

EnterpriseBusiness

Partnership w ith J analakshmisocial services

05/2007 05/2009

U niversal remote transaction system

M icro L oan M anagement S ystem

M icrofinance C redit Bu rea u

12/200809/200805/200802/200812/2008

S mart card for Indian B ank

S mart card for U

nionB

ank

T ie u p w ith P u njab N ational B ank

C ore B anking S olu tions for M icrofinance

T ie u p w ith IC IC I L ombard

L a u nch of F ino Su reL a u nches e G ovS olu tions

Partner w ith G ovtof A P

Partner w ith G ovtof M P

Partner w ith G ovtof H aryana

Partner w ith G ovtof T amil N ad u

Partner w ith D airy, C ontract F arming

J ou rney M ap of F IN O

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Products & Services

S ervices

C ore banking sol u tions for M F Is

Bu siness C orrespondent S ervices

Prod u cts

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Technology A nalysis

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Core System

Channels I nterface :data management onand from field devices

Products Engine :Manages the variousfinancial and non-financial productdefinitionsD ata Repository :maintains the variousprincipal-customer-products relationshipsalong with their currentstatus and transactionhistory.

Information System

M IS System: managesall logics for datamessaging to produce

information for day-to-day planning andmanagement of operationsCredit Bureau : employsa mix of complexalgorithms to assess the

credit worthiness of acustomer on the FINOplatform

D istribution System

Ch annels Interface :data management onand from field devices

Products Engine :manages the variousfinancial and non-financial productdefinitionsD ata Repository :maintains the variousprincipal-customer-products relationshipsalong with their currentstatus and transactionhistory.

Technology A nalysis

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the CBS is customized to give loans throughthe Joint Liability Group (JLG)

Group basedlending Systems

Cash Security/Margin Money collectionCash Security transfersCash Security adjustment against defaulters

Cash Securitymodule

multiple MFIs data on a commonplatform/databaseMulti EntitySupport

A mobile computing solution which would takecare of transaction capturing at the fieldPOS

S ystem A nalysis

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Leadership

F ollow ership

Leadership

Sc o peFu ll S elective

AGILE EQUITAS THEME

Technology S trategy Type

Sc o pe

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Current CompetitivenessEarly adoption of emerging technologies.

Focus on wide variety of technologies toprovide end-to-end technology services.

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P r o d u c ts: F inancial Advice, Affo rda b le C redi t , Ins u ranceMarke t Segmen ts: Ru ral HH s, HH s w ith

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Next wave of growthGeographic expansion

Product Portfolio diversificationDecision Criteria

Financial Analysis

Technology Analysis

K ey Decisi o n to b e Made

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10 C r

50 C r

180 C r

Ex isting

N e wNEEDS

Ex isting N e wCU S TO MER S

2 006: S tarts off as Technology sol u tion provider for M F IsR even u e R eaches INR 50 C r by 2 008

F INO G ro w ing the Pond S trategy

2 009: C ontin u ou s innovation in technology and rolling ou t ne w prod u sts &S ervices leads to gro w th and ne wcu stomers

Looking A head : strategise to become a globally reno w ned Technology sol u tions

firm for

M F Is

International

MarketLarge u ntapped

r u ral cu stomer potential.

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Price-to-Earnings Multiples (Median): Asiaon t h e Fast Track

S ou rce : J P M C M F I research

report

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P- B V to R O E distrib u tion of M F Is

S ou rce : J P M C M F I research report

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P/ B V to R O E distrib u tion for different co u ntries

S ou rce : J P M C M F I research report

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SUGGESTIONS & FURTHER SCOPE

Expansion of product portfolio via adoption of Wi-Max and RFID.

Technology Analysis of countries such as Peru , Cambodia and Bolivia for geographicexpansion

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Thanks

Special Thanks to

Mr. Santosh Khanolkar , MicrosoftMr Pankaj Garg , FINOPvt Ltd.