Smart Banking

Customer: Family Bank.

Customer Background:

Family Bank is a banking organization in Kenya , with more than 150,000 account holders, and more than 22 branches. Over the years, the institution has built a strong capital and asset base, increased and diversified its earnings and maintained a strong liquidity level all of which give the institution a solid base and the customers the security they need for their savings.

Earlier System:

A account holder was issued a paper passbook on opening an account. The account holder could transact only at home branch. The transaction entry was recorded on the passbook as well as the system. The branches were not networked. The data conciliation was carried out on a monthly basis.

The bank was interested in offering Any Branch Banking to all its customers, however, the constraint was that none of the branches were networked together. The investment toward setting up a closed user network using VSAT or Leased lines was huge and yet not completely reliable.

Limitations of the earlier system:

Account Holder could do transactions at branch where he/she had an account. Any Branch Banking required huge investment.

e-Passbook:

e-Passbook facilitates Any Branch Banking using a Smart card as an e-Passbook, which is issued to each of the bank's account holder. Account information including Transactions, Balance, Loans, Fixed Deposits and scanned signatures of signing authorities are stored on e-Passbook card. The account holder can walk into any of the branches for withdrawal / deposit / any other banking transaction, despite the fact that none of the branches are networked.

Status:

Any Branch Banking has been installed at all the branches of Family Bank and is operational.

Benefits Derived:

Bank / NBFC

• Stronger bond between Bank / NBFC and the account Holder
• Encouragement to open account at the Bank / NBFC
• Up-to-date data of account holders - Easy to launch new schemes for Loans/Terms deposits
• Improved customer service
• Enhanced Customer satisfaction rating
• Facility to centrally monitor performance of Branch and schemes
• Electronic transaction - accurate and error free information.
• Strategic decision making simplified.
• MIS reports
• No online connectivity
• Cost effective Any Branch Banking

Account Holder:

• Ease in getting quality service from any Branch of the bank
• Any Type of transaction can be at any branch
• Any Branch banking
• Same card for all transactions

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