FSS and CSB bank launch smart cash for financial inclusion

FSS (Financial Software and Systems)), a globally leading provider of integrated payment products and a payments processor, and CSB Bank, one of the oldest private sector banks in India, have joined forces to deliver hyperlocal banking services to financially underserved segments.

Under the aegis of this partnership, CSB Bank and FSS plan to open 1,000 Smart Cash franchisees in semi-urban and rural areas across India to expand financial services adoption among underserved segments.

Financial development has long been identified as a crucial accelerator for economic growth, as it increases the level of aggregate savings, investment, and employment. India is one of the fastest growing financial economies in the world.

Several initiatives by the Government of India including the India Stack and the Jan Dhan schemes have facilitated greater financial inclusion in the country. Today the number of Jan Dhan accounts – approximate 440 million in the country. But many of these accounts are dormant. Smart Cash aims to address this challenge.

Modelled on a Branch-in-a-Box service concept, Smart Cash franchisees, equipped with a kiosk or a Micro-ATM device, would offer affordable banking, investment, credit, and insurance products to target segments. The Smart Cash franchisees would function as a one-stop shop for products offered by CSB Bank as well as third party partner products – utility payments and domestic money transfers – improving commercial viability of the service for Smart Cash franchisees.

Powered by FSS eFinclusiv (AePS) at the backend, Smart Cash franchisees will extend interoperable banking services to customers of any bank. Customers, irrespective of the bank they hold an account, can walk into any Smart Cash franchisee to access services - using biometric verification and a social ID card (Aadhaar) linked to a bank account or through a debit card and associate PIN.

At the backend, the technology infrastructure needed to process transactions must be scalable and extensible. The service is powered by FSS eFinclusiv (AePS) platform that processes transactions originating at Smart Cash franchisees.

The platform is hosted on FSSNeT, FSS secure private cloud, with FSS assuming responsibility for service uptime, terminal management and monitoring, service upgrades, security, and compliance with regulatory mandates.

An As-a-Service model provides a cost-efficient pathway to CSB Bank to rapidly scale and bring new innovations to the market by eliminating capital expense associated with in-house technology models.