Kiosk banking

Kiosk banking

INTRODUCTION

Traditionally, banking in India has been all about branches. Till a decade

back, it was hard to imagine that banking could be done from outside a

bank branch.

In the last decade, the Indian banking system has evolved to provide

several types of remote banking channels. The objective of all types of

remote banking is to provide extra convenience to customers and save

service cost to the bank.

The self-service culture is fast catching on in the banking space. The late

1980s saw the emergence of an ATM culture in India, which saw the

migration of 75-90% of banking transactions away from bank branches.

Over the past decade, customers have overcome their awe of entering a

closed-door, air-conditioned ATM outlet to perform personal banking

transactions such as cash withdrawals, balance enquiry.

With banks introducing newer services on ATMs like bill payments and

mobile top-ups, it is not surprising to see serpentine queues outside

ATMs. This has forced banks to devise methods of shifting non-cash

transactions out of ATMs into self-service kiosks, installed beside the

ATM machines.

The latest buzzword is that banks are contemplating introduction of

kiosks alongside ATMs that are tamper-proof and spill-proof, or are

enabled to perform activities like cheque truncation, internet banking and

printing of account balance statements.

T.Y.BCOM (banking & insurance)1

Kiosk banking

WHAT IS KIOSK?

The kiosk is a revolutionary new face of banking

A kiosk is a booth with an open window on one side. Some vendors

operate from kiosks, selling small, inexpensive consumables such as

newspapers, magazines, lighters, street maps, cigarettes, and confections.

An electronic kiosk (or computer kiosk) houses a computer terminal that

often employs custom kiosk software designed to function flawlessly

while preventing users from accessing system functions. Computerized

kiosks may store data locally, or retrieve it from a computer network .

Some computer kiosks provide a free, informational public service, while

others serve a commercial purpose. Touchscreens, trackballs, computer

keyboards, and pushbuttons are all typical input devices for interactive

computer kiosk.

A kiosk requires a simple user interface that can be used without training

or documentation, and the hardware must be capable of operating

unattended for long periods of time. Sources estimate that kiosks can help

achieve almost 90% transaction automation in retail banking. Kiosks can

perform all non-cash transactions like balance enquiry, internet banking,

printing of bank statements, demand drafts, fund transfers, utility bill

payments, cheque truncation and information display.

The company has developed educational content online for children in

local languages, which is available for a subscription of Rs 50 to Rs 100 a

month. A printer and software for desktop publishing ensures that you


http://en.wikipedia.org/wiki/Interactivity

http://en.wikipedia.org/wiki/Input_device

http://en.wikipedia.org/wiki/Computer_keyboard

http://en.wikipedia.org/wiki/Computer_keyboard

http://en.wikipedia.org/wiki/Trackball

http://en.wikipedia.org/wiki/Touchscreen

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Data

http://en.wikipedia.org/wiki/User_(computing)

http://en.wikipedia.org/wiki/Kiosk_software

http://en.wikipedia.org/wiki/Confection

http://en.wikipedia.org/wiki/Cigarette

http://en.wikipedia.org/wiki/Map

http://en.wikipedia.org/wiki/Lighter

http://en.wikipedia.org/wiki/Magazine

http://en.wikipedia.org/wiki/Newspaper

Kiosk banking

can publish marriage or invitation cards or even a CV for a nominal Rs 10

to Rs 12 a piece.

And as PCs our loaded with Windows Media Player - many local kiosks

owners have converted themselves into mini movie halls - offering movie

shows at a nominal Rs 2-3 a show.

From railway reservation systems to insurance companies, from retail

outlets to e-governance, kiosks are now accepted as a medium of

information and have caught the fancy of users.

Corporate / HR

Banking

Hospitality

Entertainment

Industrial

Education

Telecom

E government

Medicals

Retail

Hotels

Shopping malls

Museums

Town Halls

Cities and communities

Research facilities

Insurances

Public authorities

Commerce

Airports

Fueling stations

Media

Fairs

Estates

Kiosks can be used in the following areas

DIFFERENCE BETWEEN ATM AND KIOSK


Kiosk banking

ATM :-

ATM's are unmanned banking

terminals where customers can

access their bank accounts. The

ATM/ debit cards are used at

ATM's. Customers need to slip in

their card & enter their unique

PIN number; post which they get

access to their account. They can

then withdraw or deposit money,

make bill payments, etc on their

account. After finishing the

transaction, a transaction slip is

generated confirming the

transaction done.

ATM banking has reduced the need

to carry regular cash as well as for emergency. It is an extremely safe

mode of remote banking as long as the PIN is unique & protected.


Kiosk banking

KIOSKS:-

This is the latest development on

the remote baking front, also

known as 'Touch-screen' banking.

A kiosk is a self- service banking

terminal that can be operated with

both credit & debit cards. The

Debit/credit card can be swiped at

against the card reader at the kiosk

and account accessed post entering

the ATM PIN. Currently, very few

banks like Citibank offer this

facility to their customers at select

ATM centers across the country.

Unlike an ATM, which is primarily used for cash transactions like

withdrawals, deposits, etc, a kiosk is primarily used for non-cash

transactions like cheque book request, printing bank account statements,

funds transfer etc.

The number of transactions a particular location is expected to be able to

support is key here along with the types of transactions required. An

ATM and a Kiosk can both easily perform the same non cash and non

deposit transactions however the real differentiators come down to how

much time/ input the transaction takes (Financial Kiosks have full

keyboards and document printers, ATMs generally don`t) and queuing

considerations (at an ATM, most people just want to get their cash and

go).


Kiosk banking

FUNCTIONS & FEATURES OF KIOSK

CHEQUE DEPOSIT

A unique feature of the banker is its cheque deposit capability. On

depositing a cheque at the kiosk, it issues an immediate receipt, with a

scanned image of the cheque, with every detail listed. The cheque is

endorsed at the back, while the transaction details are generated for the

bank’s MIS.

PERSONAL INQUIRIES

The bank allows you to check your account balance, print a mini

statement and make cheque book requests.

INTERNET BANKING

Connect to the internet and carry out transactions through E-banking,

with the help of bank. View details of your account and make

transactions online.

CUSTOMER TOOL SUPPORT

The provision of a web cam in the kiosk allows a personalized experience

where a help desk agent can be reached via video conferencing, to answer

any of your service related queries. Video hosts, financial calculators and

loyalty programs can also lead to improved customer utilization of your

services.


Kiosk banking

MARKETING TOOL

Bank can serve as your outdoor tool to gather first hand consumer info

through contests and surveys. The presence of such a kiosk at high traffic

areas increase visibility of your brand and services, leading to increased

exposure for your offerings.

MIS REPORTING

The data that is generated from the kiosk transaction are further used for

MIS reports and database creation. This leads to minimizing back-end

operations of the bank.

OPTIONAL FEATURES

A number of optional features can be enabled for the banks. These

options include bill payment. Advertisement streaming, customized

branding of the interface and vending of prepaid soft pins.


Kiosk banking

FEATURES OF KIOSK MACHINE

There are many features in kiosk machine like:

Touch and non-touch

display

Integrated full page

thermal printer

Barcode scanner

Magnetic card reader

Integrated speaker

Video camera

Key board with trackball

Cash accepter

Hardware of kiosk machine

Motherboard

CPU

RAM (128 MB to 512

MB)

HDD 40 GB

Sound card

Operating system win XP,

win 2000, win 98

KIOSK AS A CRM TOOL AND BRAND PROMOTION

KIOSK AS CRM TOOL


Kiosk banking

With cutthroat competition in the banking sector, banks are increasingly

turning to technology in order to sustain their existing customer base. The

biggest advantage for banks is the burgeoning network of ATMs that has

already popularized the concept of using such devices. This has led to the

ready acceptance of the kiosk as an ideal information tool. Kiosks cannot

replace cash dispensers like ATMs, deploying a kiosk within or in the

vicinity of the branch can result in significant cost-savings for the bank.

“The cost of deploying a kiosk is almost one-fourth the cost of an ATM.

KIOSKS FOR BRAND PROMOTION

Though kiosks in the financial sector are largely used to cater to

information pertaining to customers, players have also paid special

consideration to the design and multimedia tools deployed in the kiosk.

For instance, the Birla Global Finance kiosk (designed to correspond with

the corporate’s colours and logo) serves as a means of brand

communication. As kiosks can be customised, a corporate can mould the

kiosk in the shape of its brand. One more reason why kiosks can be an

effective marketing tool for corporates.

Besides banking and finance companies, with an increasing emphasis on

providing top-class service to customers, even FMCG players are leaving

no stone unturned. For instance, Hindustan Lever is currently using an

eye-catching transportable kiosk in order to promote its dental care brand

‘Pepsodent.’ The concept involves two monitors. One monitor is used for

the touchscreen interface and the second monitor is used for larger

audience coverage, so at least ten children can witness the kiosk in action.


Kiosk banking

Multimedia kiosks generally cost around Rs 2-4 lakh and require about 3-

4 months for development (content and kiosk fabrication).

KIOSK ARE USED IN SOME OF THE BANKS.

ICICI BANK


Kiosk banking

ICICI Bank is teaming with Californian computer services firm Wyse

Technology and Bangalore IT consultancy Comat Technologies to deliver

electronic banking services to remote and isolated communities in India.

The three firms will manage a project which is being introduced by an

international consortium of banks - including the World Bank -

technology firms, and local government departments.

They plan to establish Internet centers in around 5000 villages in

Karnataka that will provide the local population with electronic access to

financial services along with education, health care and legal services.

Each centre will house five to ten maintenance-free thin client terminals

and will be connected to the Internet by either land lines or satellite links.

The consortium plans to introduce Web centers to other rural areas across

the country following the pilot project in Karnataka.

Sriram Raghavan, president, Comat Technologies, says: "This is the first

time these communities will be able to access and interact with leading

private enterprises, such as ICICI Bank

Nachiket Mor, executive director, ICICI Bank, adds: "Internet based

channels are key to the delivery of financial services in rural India. ICICI

Bank has over 2000 rural Internet kiosks across India and we plan to

increase this number significantly to cater to people at all levels of

economic development."

ICICI Bank plans to cover over up to 200 districts in 2007. The bank has

decided to set up at least one touchpoint within every 3-5 kilometers of

rural and semi-urban areas. The touchpoint could be in the form of


Kiosk banking

branches at the district level, franchisees at the block level and kiosks at

the village level. The bank is planning to start at least 50 branches and

have at least 8-10 franchisees for every branch and an equal number of

kiosks against one franchisee. Apart from the vanilla liability and asset-

based products, ICICI Bank is now focussing on product areas such as

remittances, trade services and having a transaction support team in place

for its rural customers.

Going forward, The bank is also examining the possibility of putting in

place a helpline to address farming related queries, online agro-

commodity based information and live mandi prices through price tickers.

The channel is designed in a hub and spoke structure with full service

bank branches being the hubs and rural internet kiosks acting as the

spokes. Kiosks are owned and operated by rural entrepreneurs, thus

ensuring a high level of customer interaction. They also serve as a one-

stop shop for a wide range of services such as agricultural extension. The

bank has established over 3,000 kiosks across the country, including

Andhra Pradesh, Rajasthan, Tamil Nadu, Karnataka, Kerala,

Maharashtra, Gujarat and UP.

VISION FOR THE FUTURE OF THE ICICI WEB KIOSK INITIATIVE.

Currently, five to seven middle managers, under the aegis of ICICI Bank

Executive Director Nachiket Mor, who also heads ICICI Bank's social


Kiosk banking

initiative group, are administering the ICICI web kiosk initiative.

Ultimately, these individuals hope that the web kiosk initiative will

become a separate business unit.

More broadly, these individuals believe that kiosks are harbingers of

social change. Their proliferation is about empowering the 742.4 million

Indian villagers by providing them with access to information and

markets, as well as the opportunity to reduce their dependence on

informal financial services like local moneylenders. Freeing poor

villagers in India from the shackles of dependence on outdated

information and costly intermediaries costly middlemen is the first step in

empowering them to ascend from below the poverty line to a better life.

GROWTH

To increase the number of customers in rural areas, ICICI increased the

number of kiosks through which villagers can access its financial

services. Thus, in conjunction with n-Logue and Drishtee, ICICI was

operating 500 kiosks by the end of 2005 and then 1500 by the end of

2006. It also plans to begin doubling the number of kiosks every year for

the next three to five years, beginning in three to six months.

STATE BANK OF INDIA


Kiosk banking

THE rural Internet kiosk concept appears to be picking up with bankers

moving forward by extending financial assistance for setting up such

kiosks.

Fifty rural Internet kiosks are to be opened at Paruvachi village in

Bhavani taluk on Tuesday. The entire proposal is being financially

assisted by state bank of India.

Speaking to Business Line, the bank's Deputy General Manager, Mr. W.

Chanti Babu, said that some of the interior villages had the facility of the

kiosk and the villagers were able to establish a link with the outside

world. "Some of our branches in the interior villages send the weekly

update via the Net, as these areas cannot be reached even on mobile

phones. The branch heads forward the details through the rural Internet

kiosk," he added.

The loan for establishing such kiosk is emerging as a focus area at

present.

Our Bureau

Banks like HDFC bank have developed self-service kiosks in their

premises to inform customers of their offerings.

Banks like Citibank and IDBI Bank have already installed kiosks within

their ATM outlets. Citibank kiosks offer customers the facilities of

balance enquiry, fund transfers and statement printing. IDBI Bank has

kiosks called ATM Next, where the ATMs are connected to the bank’s


Kiosk banking

website and customers can avail of information on interest rates and loan

products.

IDBI BANK

IDBI Bank is to increase its information technology expenditure to Rs.

40-45 crore from the Rs 25 crore outlay of the previous fiscal to facilitate

rolling out its new e-initiatives.

"The expenditure for IT will be increased by 60 to 80 per cent as part of

our plans to set up a centralised call centre, implement customer relation

management (CRM) solutions and provide a 'single sign-up password' to

customers.

The bank is also in talks with certain other banks and its technology

partner Euronet Worldwide for an ATM kiosk sharing deal, which is also

expected to be signed this year, the chief technology officer said.

This would help the bank, which has 260 ATMs with an average of 200

transactions per ATM everyday, to extend its presence in the country.


Kiosk banking

GROWTH OF KIOSK

SCENARIO IN INDIA:

Information technology has the potential to address the unmet needs of

Indian villagers, from education to market access, from telecom to

healthcare, from financial intermediation to entertainment. Nasscom, the

trade group for India’s software houses, estimates that there are hundreds

of programs across India that focus on creating low-cost digital solutions

to the problems of the poor. Many of such programs are private

initiatives. Nasscom President Kiran Karnik views IT as a “bridge

between rapidly growing new India and the lagging old India.” Computer

kiosks are the building blocks of this bridge. These kiosks represent a

paradigm shift in the delivery of services to rural India by serving

villagers directly instead of via intermediaries.

7,000 such kiosks, consisting of one or two personal computers linked to

the internet by satellite, phone, or wireless link; already exist. With a

weekly growth rate in excess of 100 new kiosks, by 2007, there could be

as many as 300,000.India’s robust fiber-optic network, sufficiently well-

developed to provide wireless coverage for up to 85% of the country, is

facilitating this rapid growth rate. Moreover, the increasing prevalence of

such kiosks is already helping to bridge the particularly wide digital

divide in India.

Apart from government sectors, the maximum potential for the usage of

kiosks lie in sectors like banking. “The market till now was biased

towards kiosks purely used for information purposes but now

transactional kiosks are slowly catching up. The total Indian market size

for kiosks is estimated at $13-14 million (Rs 62-67 crore) in 2002.”


Kiosk banking

Sources estimate that the kiosks market holds good potential with the

figure being reckoned as Rs 300 crore.

The kiosk market is currently growing at a rate of 18-

20 percent, largely driven by the banking and financial sector Kiosk as a

CRM tool.

In Bangalore to collect monthly pension of Rs 125, people travel 13 km

from village Kadadakatte to taluk headquarters Bhadravathi, spending Rs

30 and using up the whole day.

Soon, they will have a kiosk which will allow them to withdraw the

amount under 10 minutes. Thanks to Nemmadi, a Karnataka government

egovernance initiative, this certainly would give peace of mind to

villagers.

Kiosks will offer 39 different citizen-centric services, ranging from

pension, caste certificate, death/birth certificate, land documents to utility

payments.

The state government has a mandate of setting up 800 e-kiosks in rural

areas by January 31, 2007. Each of these kiosks will cover a population

of a lakh.

The number of kiosks would later be increased to 5,000, so that there is

one for every 10,000 to 20,000 people. By October 1, 25 pilot kiosks will

be up and running.

The project has an outlay of Rs 30 crore and will be executed through a

public-private initiative. 3i Infotech, the IT arm of ICICI, is the key


Kiosk banking

technology and networking partner.

"The government will be the facilitator, while private players will bring

in infrastructure and investments,"said Rajeev Chawla, secretary, e-

governance

From the above chart we can understand that only 7.6% of kiosks are

installed for the banks and financial services. So we can say that kiosk is

more used in other sectors like in Retail, Food services, Hospitality etc.


Kiosk banking

FUTURE OF KIOSKS IN INDIA

Though rapid growth in the kiosk market will primarily be driven by the

banking sector, other sectors like retail and tourism are likely to adopt a

more gradual approach. But in any case, the concept of kiosks is all set to

go the ATM way—explosive growth in numbers and usage.

There are many banks who are going to introduce kiosk in there banks

premises very soon, as kiosk is becoming day to day need and very soon

Punjab national bank, Abgudaya bank and many other banks are going to

start kiosk service.

7,000 such kiosks, consisting of one or two personal computers linked to

the internet by satellite, phone, or wireless link; already exist. With a

weekly growth rate in excess of 100 new kiosks, by 2007, there could be

as many as 300,000.

In ruler area people will not face any problem in interacting with banks,

soon there will be kiosk machines of banks in each and every village and

they don’t have to travel long to get there pension or to with draw money

from banks or to pay there life insurance premium.


Kiosk banking

WORLD WIDE SCENARIO:

With over 1.2 million ATM's installed around the globe, the lowly non-

cash/ATM financial kiosk rests in shadows. Nevertheless, financial

institutions continue to look towards interactive kiosks to provide a

growing list of services, and why not? Many are finding the interactive

kiosk to be a powerful and low cost delivery tool in an increasingly

competitive landscape. Self-service kiosks provide the link between

meeting with your old banker friend, and an integrated retail delivery and

customer relationship management (CRM) strategy so important to the

progressive financier.

The industry association Kiosks.org has estimated that financial related

self-service kiosks comprise at least 10% of the self-service market, and

expected growth figures for the next few years are close to 40%. With a

buzz of uncertainty surrounding the future of financial kiosks, we set out

to look for "what's to come" in the world of financial kiosks.

Spearheading a new generation of financial service kiosks is Charlotte,

NC- based kiosk provider Source Technologies. Over the past several

years the company has risen through the ranks of the kiosk world with the

development of a proprietary line of kiosks offering everything from bill

payments services for the unbanked, to a kiosk system that has over

fifteen non-cash transaction capabilities. Nearly 50% of our business is

now dedicated to the financial kiosk area the market for conducting self-

service financial transactions is growing significantly

The new Financial Kiosk Terminal Source Technologies has developed is

the mother of the all-in-one kiosk. Their ST-3200 Walk-up unit features


Kiosk banking

the ability to do standard ATM transactions, plus: check cashing, money

transfers, cash deposits, check printing, money orders, statement printing,

couponing, and ticketing. The ST-3200, from a hardware standpoint,

features a 15" touch screen (optional 21") and many other options such as

MPEG full motion video, voice and audio capabilities, a digital camera,

and

even a phone center.

HIGH-TECH KIOSKS IN HIGH-TECH LANDS

Touch screen kiosks are a common sight abroad. In fact, the absence of a

kiosk in important public places is an inconvenience of sorts out there.

Retail chains and banks widely use kiosks not only for customer

convenience but also to conduct important market surveys. The world’s

leading financial centres like Wall Street and London Stock Exchange

also use touch screen systems.

Kodak has placed more than 35,000 Picture Maker kiosks worldwide,

with over 22,000 in the United States and Canada and 6,000 in Europe,

Africa and the Middle East region.


Kiosk banking

World wide kiosk is growing very fast with in a few years kiosk has

captured a market as showed in a chart the growth rate is very high.

Every day some or other company is introducing the kiosk machine so it

is increasing day by day.

Healthnotes Inc. (HNI) is the premier provider of credible, easy-to-use

health and lifestyle information for Web site and in-store touchscreen

kiosk initiatives. More than 6,500 supermarkets, pharmacies, and natural

product stores in the United States, Canada, and the United Kingdom use

Healthnotes Retail Solutions to improve customer service, build loyalty,

and increase sales. HNI also generates behind-the-counter applications

that are licensed to e-commerce and health-related Internet sites

worldwide.


Kiosk banking

Healthnotes branded the new kiosk the EasyAnswers Touch screen and

will sell it to retailers bundled with its kiosk software products,

Healthnotes Healthy Living and Healthnotes Pharmacy.

Pennsylvania-based Clemens Family Markets is the first store to make

the EasyAnswers Touch screen available for its shoppers, incorporating

the new kiosk in 20 of its 21 suburban Philadelphia locations.


Kiosk banking

CHEQUE TRANSACTION

With the RBI preparing to run the

pilot project on cheque truncation

in the National Capital Region,

banks are now gearing up to put up

kiosks that can conduct both front

and rear scanning of cheques and

also read the Magnetic Ink

Character Recognition (MICR)

number. Cheque truncation doesn’t

aim at eliminating the physical

cheque. Kiosks would only capture

the image of the dropped cheque

and send it for clearing to the nodal

office.

After verifying the position of funds in the account, the amount would

be credited to the depositor’s account. Such kiosks would cost banks

around Rs 5-6 lakh each. This could speed up the procedure of clearing

cheques. Currently, customers enjoy the facility of dropping the

physical cheques into drop-boxes at ATMs, which are then picked up by

the bank’s personnel and deposited at branch.


Kiosk banking

POSTAL KIOSKS

Banks and service providers are in talks with the department of posts &

telegraph and courier companies like DHL and Fedex to install kiosks

enabled to perform postal transactions. Currently, a PSU bank and a

couple of private banks are invading this space to launch either co-

branded (between the bank and post office) or bank-branded kiosks at

outlets like post offices and courier centres. As against the normal cost of

up to Rs 5 lakh, postal kiosks would cost banks a little above Rs 7 lakh.

The bank is keen to enter into the postal kiosk space primarily because

post offices are located in prime locations across the country, which

would boost the bank’s geographical presence.

“Primarily, such a kiosk would dispense stamp leaflets after weighing the

parcel and calculating the exact value of stamps that require to be

attached for mailing the specified parcel. It would then ask the customer

for his preferred mode of payment and he can then swipe his credit or

debit card on the attached EDC machine to render the charges,” said AGS

Infotech’s president and CEO, Sunil Udupa. Kiosks could also release

stamps on demand and provide franking facilities and will hit the market.


Kiosk banking

SIT-DOWN KIOSKS

Statistics prove that customers perform less than 1% of transactions

through internet banking as a large population of banking customers

doesn’t have access to internet facilities at home. Hence, banks have

rolled out sit-down kiosks that provide customers the facility of internet

banking and printing of account statements covering transactions over

past three months within these outlets.

Normally, customers have to either call the customer care representatives

of banks or visit the branch for a copy of the statements. Also, an

additional fee is charged by banks for issuing these statements, say Rs

100 per page at the branch, and Rs 75, if requested through the call

centre. Printing of statements at kiosks would require customers to pay

nominal amounts, say about Rs.15-20.


Kiosk banking

LASER TOUCH

Banking today is more customers centric and is evolving to exploit all

customer interactive channels. ATM, Kiosk Banking and Internet

Banking are just the beginning of an era in interactive banking.

Customers are today more discerning than ever before. They want a wide

variety of services tailored to their needs, with flexibility in service and

24hours access.

Laser Touch - the kiosk banking software is an answer to customer

interactive banking.

Kiosks let you transact with your customers wherever they are, anytime,

at their convenience.

Laser Touch Kiosk Banking software operates through a touch screen

based kiosk placed in the lobby of the bank, shopping malls and off-site

market locations. Kiosks will be connected to the Kiosk Server located at

the Data Center. Kiosk Server will be interfaced to the Banks Core

System for providing online real time services to its customers such as

Balance Enquiry, Statement Printing, Stop Payments, Standing

Instructions etc. It is fully customizable to integrate with any core

automation software currently used by the bank. It can also facilitate

printing of statements, information and tokens. It can be connected to the

branch through leased telephone lines and provide online information and

services by accessing data from the branch's computer systems.

Laser Touch reduces transaction time and provides privacy to the

customer's operations. Customers desiring to use the kiosk have to


Kiosk banking

register with the bank for a PIN (Personal Identification Number), which

is a password for accessing account information and bank's services

thought he kiosk. Laser Touch has all the security features required to

prevent unauthorized access to the system's resources. The software can

provide valuable customer preferences data to upgrade products and

services in the future.


Kiosk banking

ADVANTAGES OF KIOSK

1. Migrated customers from teller-based transactions to on-line

banking to reduce costs.

2. Enhance customer satisfaction by providing needed Web-based

services in the branch office.

3. Increase revenue and "share of wallet" by offering additional

products and services via cross-sell and up-sell opportunities.

4. Acquire new customers via sign-up/opening an account.

5. Educate new and existing customers about service & product

offering.

6. Initiate and provide rewards in the form of loyalty.

7. Provide service 24 hours a day, 7 days a week, in centralized

locations.

8. Learn more about customer preferences by collecting vital data.

9. Provide additional training and educational services to employees.

10.Bridge language barriers with non-English speaking customers.

KIOSK- THE BUSINESS MODEL

Government schemes for unemployed youth, such as Pradhan Mantri

Rozjara Yojana, the Prime Minister’s Employment Scheme, help kiosk

operators obtain the subsidized, unsecured Rs. 53,000 loan required to

purchase an n-Logue kiosk. Kiosk operators must repay these loans with

Rs. 2,000 monthly installment payments. Meanwhile, internet access

costs Rs. 1200 per month; n-Logue forgoes revenues from internet

connections during the first six months of operations to allow kiosk

operators to keep costs low

TY.BCOM (banking & insurance)29

Kiosk banking

while they grow volumes. Therefore, kiosks are theoretically viable with

Rp. 3200 per month in revenue. However, the cost of electricity, paper,

inks, printing, and potentially furniture, such as tables and chairs, can

drive the monthly costs as high as Rp. 4000 per month.

Kiosks begin to break even, in terms of variable costs, at roughly fifteen

transactions per day. However, it typically takes six to nine months for

transaction volumes of new kiosks in rural areas to reach twenty to thirty

transactions per day, the volumes at which kiosks begin to break even in

terms of total costs.


Kiosk banking

KIOSKS - THE NEXT STEP IN SELF-SERVICE

BANKING

That is the buzz around many of the financial institutions in the

country. Not too many years ago, before the advent of the web and the

numerous other technologies that have spawned from it, touch screen

kiosks were typically confined to metropolitan areas. These wooden

boxes of yesteryear were cutting edge for their time and provided a

service that many museums, rest stops, and corporate receptions areas

found useful. The problem was, without an easy means of updating the

content or monitoring the kiosks to insure constant up-time and

reliability, that many people saw kiosks with blank screens or outdated

content that lacked the intuitive interactivity offered in kiosks today.

That was then, this is now. Kiosks have taken on an incredibly

different purpose and have the technology to back it up. Not too

different from the fledgling days of ATMs, kiosks got off to a slow

start. We all know the amount of control ATMs have over our

everyday life now, but did we know it 20 years ago? Better yet, have

we realized that kiosks are simply the next step in the same premise

that got ATMs started so many years ago.

The case for banking kiosks can be best summed up into one word…

MORE.

By utilizing kiosks in bank branches or even non-traditional locations

such as malls or grocery stores, banks can increase their customer base

as well as increase the level of service they offer existing clients. By


Kiosk banking

utilizing kiosks in branches, tedious tasks that eat away at a bank

teller's time can be farmed out to the touch screen kiosk. Now without

a wait or a fee, customers can print out statements, transfer funds, pay

bills, and more from the interactive banking applications running on

the kiosk.

As many banks have learned, generating non-interest revenue is not an

easy task. Banking software companies such as Goldleaf

Technologies, Inc. have proven the model and now offer kiosks as an

extension of their variety of services.

The pervasive myth was "build it and they will come", but after the

dust settled the larger picture was how to get customers to sign up for

the wiz-bang services that were now available. Kiosks are leveraging

the bank's investment in online services by utilizing the bank services

available online. Now instead of telling a customer it is out there and

they must find it and use it, banks are able to personally introduce

their customers to their online services. Bank tellers can now spend

ten minutes demonstrating the kiosk to a customer, and rest assured

that the bank will never have to print out another statement, again.

The trick is getting the customers signed up in the first place. One

prime example was Franklin National Bank in Tennessee. After the

first four months of their four kiosk pilot test, the number of eBanking

customers grew 72%. This is the type of thing that has created the

buzz in the eBanking world. Banks are now learning to enhance their

overall Internet investment with the single most important advertising

medium.


Kiosk banking

Banking convenience, non-interest generated revenue, increased

carrying capacity, customer retention, and the list goes on and on.

Whatever the reason, banking kiosks are here to stay.


Kiosk banking

WORKING OF KIOSK BANKING

Disclosed herein is a dedicated Internet banking kiosk system, in which a

plurality of group of kiosk devices are connected to an bank host

computer, which are installed in bank branches, respectively, using on-

line authentication key, thus being capable of performing bank tasks, and

a method of providing Internet banking service using the dedicated

Internet banking kiosk system. The dedicated Internet banking kiosk

system is configured in such a way that an authentication key issued by a

bank is stored on a portable recording medium, a customer, having visited

the bank, inserts the recording medium into a kiosk device so as to

conduct the procedure of authentication, and only an authentication

customer conducts all banking tasks. Furthermore, the dedicated Internet

banking kiosk system is used as a device for displaying a variety of

guidance information or advertisement information for bank when the

system is in a standby state in which no Internet banking users are

present, and is used as a dedicated Internet banking kiosk system in an

operating state.


Kiosk banking

Monitor and maintain qualities of services, multi-lingual content, and

both Drishtee and Microsoft software

TY.BCOM (banking & insurance)

BANK HOST COMPUTER

KIOSK KIOSKKIOSK

BANK HOST COMPUTER

BANK HOST COMPUTER

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MAIN BRANCH

KIOSK KIOSK

CUSTOMER’S ARE OPERATING THE INTERNET KIOSK MACHINE

KIOSK

Kiosk banking

Monitor and maintain qualities of services, multi-lingual content, and

both Drishtee and Microsoft software

Drishtee offers a combination of rural and semi-urban kiosks, which it

places in village council buildings, near major bus stops, and in bazaars

(marketplaces). Each kiosk serves about 25 to 50 villages, or 20,000 to

30,000 people. To break-even, kiosks need at least 2,500 customers, or

approximately 10% penetration of the populations of areas that it enters.


Kiosk banking

CASE STUDY :- SWEET GAINS FOR SUGARCANE

FARMERS

Warana Nagar, situated about 35 kms from Kolhapur (Maharashtra), has

prospered by virtue of the co-operative sugarcane factory in the region.

The Warana Co-operative Society carried out a project of

deploying 54 village information kiosks that have successfully

streamlined the production process of sugarcane there. The project has

helped farmers save time and money spent on administrative transactions.

The co-operative society pays farmers for their crops in four installments,

which are credited directly to their bank accounts. The farmers visit the

kiosks to obtain the payment slips and determine the status of their bank

accounts. In addition, farmers can purchase fertilizer at depots located

next to the kiosks, paying cash or on credit. If they buy using credit, they

get a receipt for their purchase at the kiosk. Money spent on transport of

the crop to the sugar factory and the harvesters’ bill is also entered in the

system. This project is said to have brought savings of about $750,000

(Rs 3.6 crore) to the co-operative. The estimated cost of the project was

$600,000 (Rs 2.88 crore)


Kiosk banking

SURVEY REPORT ANALYSIS

The survey was done on 31st august 2007 on awareness of kiosk banking

and it was a customer survey, I had done Analysis on that survey, it is as

follow:

1. Do you know what kiosk banking is?

There are 18% of people who are not at all aware of kiosk banking, they

want to know about kiosk banking and remaining 82% are aware of kiosk

banking, so we can say the kiosk banking is getting popular day by day.

2. Kiosk and ATM are same?


YES8%

NO92%

YES

NO

YES

82%

NO

18%

YES

NO

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Kiosk banking

There are 8% of the people who think that kiosk and ATM are same as

they are not aware that ATM provide cash transaction, mini statement,

cash deposit but kiosk provide non-cash transaction like transfer money

to other account, cheque request, statement etc. but 92% of people think

that there is some difference between ATM & kiosk.

3. Do you know which bank provide kiosk service?

As kiosk banking is not more famous in India people are not more

aware of the banks those who provide kiosk banking there are 12%

who says the IDBI banks provide kiosk service, 26% of people says

that Citibank provides kiosk service, and there are 34% of people who

says that ICICI bank provide kiosk service, and 28% of people are

aware that all this banks provide kiosk service.


CITIBANK26%

IDBI BANK12%ICICI

BANK34%

ALL 28%

CITIBANK

IDBI BANKICICI BANK

ALL

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Kiosk banking

4. Have you ever used kiosk machine?

There are 57% of the people who have not used kiosk machine and

there are 43% of people who has used kiosk machine, those who have

used kiosk machine say that every bank should provide kiosk service

because it is easy to use and people can get more facilities.

5. Which one is better?


ATM

50%

KIOSK

50%

KIOSK

ATM

NO57%

YES43%

YES

NO

40

Kiosk banking

Kiosk and ATM both are very use full to people, both are better as per

the requirement of the customer. ATM is use full for the person who

do not transact more with bank and who need cash money every time.

And kiosk machine are use full to the person who transact more with

bank because it does not provide cash transaction and does the

payment with card are by cheque. But people think that new

technologies should be welcome for the betterment of the banking

sector. Kiosk are easy to use and they are faster then ATM and

provide many services.

People also say that kiosk machine should be installed at every

railway station so that the customer can get full benefit of service.

In future kiosk banking should gain more importance.


Kiosk banking

CONCLUSION

Finally I would like to conclude that kiosk banking is a very new

invention in banking sector which use full every ware and in large

volume like in Corporate / HR, Banking, Hospitality, Entertainment,

Education, Telecom, E government, Medicals, Retail, Hotels, Shopping

malls, Museums, Town Halls, Cities and communities, Research

facilities, Insurances, Public authorities, Commerce, Airports, Fueling

stations, Media. As it is new technology in banking sector we should

welcome it for betterment of banking sector. In India kiosk banking is

developing in rural areas where people are very much satisfied with it. It

is up coming trend in India kiosk banking well gain more importance in

future.

In a global economy with distributed workforces, kiosks can also help

companies to better serve the needs of a different type of customer – their

valued employee. Where there are large numbers of employees at satellite

sites without access to PCs, kiosks can help to extend employee self-

service from the desktop to the factory floor. The result equal access to

HR information for all enhanced employee satisfaction and substantially

lowers HR costs.

Kiosks are proving their value by producing a powerful return on

investment for all variety of organizations.


Kiosk banking

BIBLIOGRAPHY

www.Netkey.com

www.qualitynet.net

www.touchscreen-kiosk.com

www.drishtee.com/nd/content/c2.asp

www.google.co

www.yahoo.com

www.rediff.com

www.timesofindia.com

www.economictimes.com


http://www.economictimes.com/

http://www.timesofindia.com/

http://www.rediff.com/

http://www.yahoo.com/

http://www.google.co/

http://www.touchscreen-kiosk.com/

http://www.qualitynet.net/

Kiosk banking

Economy & Finance

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