The solution which provides lot of leverage to the Banks to expand their business and area of operation with minimal cost of establishment by getting the service (banking) rendered by third parties. It is getting popularized so quickly....Banking Business Correspondence (BC), Beacon Orbit which is first of its kind from a parent banking software vendor in India is getting more popularized by its acceptance by any Banking Institution with any Core Banking Solution being used.
Reserve Bank of India (RBI) is putting strenuous efforts to bring rural masses under banking umbrella. Financial Inclusion , RBI’s initiative is primarily constituted to provide formal banking services to poor people in urban & rural areas and promote habit of money-savings, insurance, pension-investment among poor-people. Besides, help them get loans at reasonable rates from normal bank so that they don’t become victims in the hands of local moneylender cum thugs.
Our country is spread across more than 600 thousand villages much of them are in poor and dilapidated conditions without electricity, telephone and not even proper roads. Commercial banks cannot even think of opening their branches in these places which are not at all economically feasible besides incur huge cost of establishment when the volume of business is very “low” which means there is No profit instead it’ll lead to heavy losses. Hence Banks resort to an intermediary which provides financial services to the end customer on behalf of Bank which are considered as Business Correspondence (BC) of the bank.
By doing so Bank expands the reach of the Banking Business sourcing more Deposits and Loans with Low operational/establishment cost. Banks neither requires more number of Employees nor more branches, at the same time can ensure end- end and almost face-to-face services to the customers in the villages. Technology advancement in Banking industry can even support BCs with new generation banking services like Collection devices, ATM, Smart Cards, ATM Card bringing these customers also taste the fruits of technology.
Biggest challenge for the banking Institution is to derive a Business Correspondent Model that emphasize & ensure delivery of full bouquet of services ( access to savings, loans, remittances, insurance etc) which are technologically viable for the host (BC unit) and also installed outside the Core Banking (CBS) to parent bank but communicate to the CBS through STP or batch mode.
Here, sesame has accepted the challenge and we gave the answer to all such challenges through our new BC product BEACOn Orbit.
Download e-brochure of Beacon Orbit.
Apr 01 2015