Jatinder Handoo

Jatinder Handoo

Manager of Strategic Alliances, FINO

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Want to learn from India? Ask Jatin about FINO’s business correspondent model which serves more than 51 million end customers at the base of the pyramid. Read his article!

Jatinder Handoo is Manager of Strategic Alliances at FINO Paytech Ltd – India’s largest Business correspondent firm which serves to more than 51 million end customers at the base of the pyramid. He contributes to payment technology and financial inclusion related policy dialogues and also manages strategic and knowledge relationships with external stakeholders . Jatinder has been a retail banker in the past with stints in the State Bank of India and the HDFC Bank Ltd. Being a part of Microfinance Information Exchange’s social performance management team he contributed to microfinance institutions’ SPM capability building across Asia & ECA region. He has earned a graduate degree in Public Policy from India and an advance programme in Public policy improvement offered by the Asian Development Bank and EPoD at Centre for International Development, Harvard University.

  1. 462 days ago

    Lidia Siegel

    The trends in technology indicate much very fast and successful. Can you also check this
    Prostate Pain

  2. 784 days ago

    Jatin Handoo

    @Natalie :
    Business Correspondent (BC) Model is a very powerful yet a sensitive business to deal in – at least during the initial phase, because of the very nature of end clientele who are poor & most of them live on less than dollar a day with erratic cash-flows. Potential of the model is immense; particularly in on-boarding previously un (der) banked customers and delivery of value in electronic form.
    For new players who would recon to replicate the model in other parts of the world, there is a rich body of knowledge & experiences from existing players like FINO Pay Tech in India. The key factors which play a critical role for overall sustainability of the model are:
    (a) Scale, Scale and Scale is the mantra for sustainability.
    (b) A right mix of products which is diversified and not just remittance or bill payments – which are juicy services and earn quick profits. Suppliers need to keep in mind that end customers have varied needs and they can’t afford to go to ten different outlets for availing ten different services simply because this would increase transaction cost for them and act as barrier to use of accounts.
    (c) 3Ps: Patience, Perseverance and Passion of the team. Financial inclusion business with poor is different from selling usual airtime or small sachet of shampoos or noodles in rural areas. It has a long term horizon and pivots for success are trust of end customers and investors’ belief in the business model.
    In future, BC model is poised to be a successful lever of equitable growth and therefore a meaty business in long run. Many emerging economies (even other than BRICS) are reaching directly to end beneficiaries through various channels and BC seems to be the most viable and natural choice for the same. Plus, there is very little doubt about the fate of money – which would ultimately be digital or e money. Today BC is probably the only model which could be used as hardware for digitization (Cash-in, cash-out point) and use of e-money (transaction point) at a scale.

    • Natalie Zuniga

      Thanks so much Jatin for your very comprehensive response!!

      778 days ago

  3. 784 days ago

    Jatin Handoo

    @ Victoria :

    Financial inclusion in India is a policy agenda for Government. Regulator – the Reserve Bank of India (RBI) has gone an extra mile to facilitate financial inclusion by easing many existing norms like inclusion of for profit entities to become BCs .Specific to your question, trends could be seen at three different levels : –
    • trends in technology,
    • trends in products offerings and
    • trends in delivery channel.

    Trends in technology indicate that front end low cost, easy to use and all weather technology like biometric smart cards (in the hand customer) for customer authentication & face to face transactions has emerged very fast and is successful in India. At the back end level – seamless interoperability at various Business correspondent (BC) service points is emerging a dominant action point. Plus use of micro ATMs for cash-out indicate some prominent tech trends in last mile banking in India.
    At product offering level “diversity” has become a mantra for financial intermediaries like BCs. Diversified product offering not only creates customer stickiness but adds profitability to supply side players,
    At delivery channel level Channels like Post offices, brick and mortar bank branches , mobile branches have their own limitations which restrict them from reaching out to last mile BoP customers. Business correspondent model has fast emerged as the most successful delivery channel which is not just low cost but is close to the end customer & offers doorstep banking. Another possible game changer at channel level will be rolling out of white label ATMs across rural areas – RBI has recently put forth the initiative to rollout white label ATMs across India.

  4. 785 days ago

    Victoria Emanuelli

    Hi Jatinder! Thanks for joining this conversation! I have a question.
    From your point of view and experience, what are currently the main trends and highlights of the financial inclusion field in India?

  5. 785 days ago

    Natalie Zuniga

    Hi Jatin,
    Welcome to our Speak Up section! Thanks so much for explaining us about the business correspondent model working in India so well! And how they are expanding the outreach of banks and serving low income populations.

    Based on your experience in the field, what are the lessons learned that you could tell to businesses that are thinking about applying a business correspondent model in other countries and how do you envision the future it?