Branch less banking

 BLB(BRANCH LESS BANKINHG)

Branch less banking is a  banking practice using technical gateway which breaks the usual limit of conventional banking system. The  compulsion of visiting branch has been the major reason for more than 20% for not having bank account so this BLB  is  used to remove such barrier of going  banking service visiting bank.

Branchless banking is a relatively new electronic banking product that helps to include the people who are staying in remote areas and do not have access to bank branches.

Branchless banking is defined as the delivery of financial services outside conventional bank branches, often using agents and relying on information and communications technologies to transmit transaction details – typically card-reading point-of-sale/service (POS) terminals or mobile phones.

BLB uses retail agents or other third-party intermediaries as the principal point of contact for customers; these points are equipped with Point of Service (POS) devices for transactions. Examples of such devices are ATM, card-reading POS devices and even e-Banking and mobile banking.

 

Elements of BLB 

• use of technology like payment cards to identify customer and record transactions electronically .

• use of third party outlets , like small retailers , POS machine etc. that act as agent for financial service providers and enable customer to perform function that require their physical presence.

• Customers can open bank accounts, deposit money, transfer money to other accounts, withdraw money from their account and make payments for purchasing goods and services at a Point of Sale (POS) machine maintained by a bank or its branchless banking agent.

for all these bank appoints agent which is responsible for carrying transaction on behalf of bank. customer can get financial and non financial service with this like from withdrawing money to knowing their balance in account.
Advantage of BLB are :

• reduce transaction cost

• make hassle free payment  and provide other banking service even in remote area.

• make people technically sound and help to run even small business.

•  Delivery of quality services amongst the customers of larger circumference 

•   helpful in enhancing customer base in the area where it will be costly for us to provide services