A clarification from Abhishek Sinha, CEO of Eko Financial Solutions, on a story we had earlier done about sustainability of Mobile Payments. Sinha says that while they are leveraging the mobile, they’re not in the mobile banking space as such. The company is doing branchless banking under the Business Correspondent model and looking at the unbanked segment. Thus, the 20-25 million customer base he had mentioned to Mint was for their business as a whole, and not mobile specific.
From his comment to the earlier post:
“Eko is not clubbed along with Obopay, mChek, PayMate, ngPay. These players and similar others are looking at the banked customer base and adding value by giving efficient, secure and user friendly mobile interface for various banking and commerce needs. Eko is in the financial inclusion space wherein the model is entirely different. Here we see a potential to bank 400 million people in the next 5-7 yrs.
We are doing a pilot on Branchless Banking using Mobile Phones and Agent Model. We see that the need for domestic remittance will drive the adoption of service. Eko believes that it can facilitate this through a bank-led Business Correspondent model and offer many more services to the customers based on aggregation.
As our model is a bank-led model, we first give a bank account to the customer. Kindly have a look at the following video.
In the video, you will see basic user interface for people who may be just about number literate. Unlike the sophisticated interfaces offered by other players.
I hope this justifies the difference in the game, the customer segment and hence the size of the market for Eko.”