Mobile Phones Delivering Microloans

This paper describes Suvidhas aim to extend the outreach of micorfinace services through its Swift mobile transaction platform (Suvidha is Citibanks zero balance debit card). The paper states that:

• Although mobile telecom in India has already reached where other sectors are yet to reach, its penetration is only 10%;
• Delivery of capital in a scalable and cost-effective manner is one of the challenges that microfinance faces today;
• Suvidha aims to paly a role in this area by engaging unemployed women, as Beam Mobile Entrepreneurs;
• Banks, MFIs, RRBs, SCBs and NBFCs can partner with Suvidha to:
  • Supplement their extension banking services;
  • Manage both inbound and outbound payments through the network of Beam Mobile Entrepreneurs.
• Suvidhas Swift technology platform uses:
• SMS to perform both inbound as well as out bound transactions;
• A network of Beam Mobile Entrepreneur women to provide the front end services;
• Beam, which is a stored value prepaid card that consumers purchase for using services.

The paper concludes with an outline of Suvidhas future plans to provide microfinance products, International Money Transfer services and micro-payments transaction management services.