Case Study

Branded “ZERO”, ALW’s technology platform has so far been used to open over 3.5 million biometric enabled, no frills bank accounts across 20,000 villages in 18 states. Over 25 Indian banks have adopted the product as part of this settlement system.

The accounts are used for cash disbursals of social security benefits, government wages, scholarships, housing grants, small value credit, money remittances, recurring deposits, insurance premium payments, payments of utility bills and the purchasing of railway tickets. The company is opening over 15,000 new accounts on behalf of its partner banks daily.

Company Achievements since Legatum Ventures Investment

• Enrolments have increased from 4,207 in FY07 to over 3.5 million as of March 31st 2009,
• Current order book of 5 million enrolments equates to INR 100 million of enrolment revenue alone,
• Transaction revenue hit INR 8.5 million in FY09, up from INR 0 in FY07,
• Implemented a very low cost card system and mobile technology, changing the paradigm of the business correspondent cost base,
• Consistent implementation of emergent technologies such as GPS and local language voice prompts, enhancing value for banks and clients,
• Hired key management personnel including a CEO and Finance Director. The founder has transitioned to a Chairman role.

Social Impact

• ALW offers the potential to bring many millions of unbanked individuals into the formal financial sector,
• Encouraging a linked, rural network of small, independent entrepreneurs,
• The company’s transformative cost base enables government departments and financial institutions to achieve their goals more efficiently than ever before,
• A profitability imperative ensures sustainability and maximum impact over a long time frame,
• The ZERO platform can be leveraged in the future to deliver ancillary social initiatives such as health and energy services.