e-Finance in IndiaA Perspective.ppt

e-Finance in IndiaA Perspective SME Banking in India SME in India characterised by Low capitalisation and limited assets Geographical diversity and high mortality Poor access to capital markets Cash intensity in transactions Lack of credit information Poor financial disclosure on account of tax issues Directed lending based on Central Bank guidelines High risk perception has led to high borrowing costs ICICI Group - lending approach Focussed product approach to SME sector Lending to SME based on strong corporate linkage Product and delivery technology dependent Pooling of assets at central hubs enables optimum monitoring Lending approach Sectoral and liability led Parameterised Relationship buildup …. Key Products Leverage corporate linkages through Vendor financing Dealer financing - with and without recourse Standalone, 3-P and rent securitisation Equipment financing Transaction oriented products Web based Cash Management Services Online FX applications Internet based payment system Electronic products Some innovative e-initiatives Customer queries routed to “Call Centres” Intermediate step to web enablement Staff trained to handle complex transaction query Incentivise clients to use web platforms Introduction of pre-loaded smart cards for small value purchases Smart card solutions for fleet and transport owners Dedicated SME Portal for non financial solutions Advantage SME .... e-banking leads to: Lower cost of delivery Speed and wider reach Credit information through transaction analysis Risk mitigation Through credit scoring model - statistical Portfolio based approach Corporate information e-banking related laws …. e-banking governed by: Information Technology (IT) Act, 2000 Internet Banking guidelines of the Central Bank India is the 2nd country in Asia to initiate technology related act e-banking encouraged through: Focussed legislation Access to IT skills, computers and incentives to ISPs Salient features of IT Act …. Central Bank guidelines …. C