In India, the rush is on to expand banking services to unbanked rural villages. And one company is looking to cash in by helping FIs to roll out services to these customers — literally. For 3 years, Orix Auto Infrastructure Services, a subsidiary of Japan's Orix Auto, has provided Indian banks with vehicles customiz
In India, the rush is on to expand banking services to unbanked rural villages. And one company is looking to cash in by helping FIs to roll out services to these customers — literally.
For 3 years, Orix Auto Infrastructure Services, a subsidiary of Japan's Orix Auto, has provided Indian banks with vehicles customized with ATMs and other banking appurtenances. Now the company is in talks with private banks about leasing its "banks on wheels."
According to an article by LiveMint, the company claims that this can be an attractive way for an FI to expand its footprint quickly without the cost of real estate, bricks and mortar, and staff.
An official with the Bank of Baroda, who declined to be named, questioned the cost-efficiency of the mobile model. However, he said it had proven value as a means to introduce banking services in unserved areas and build loyalty to the brand in advance of the establishment of a permanent branch.
"These are rather costly alternatives, but initially it earned us the confidence of the people," he said.