KIOSK BANKING

KIOSK BANKING

UNIVERSITY OF MUMBAI

LALA LAJPATRAI COLLEGE OF COMMERCE AND

ECONOMICS, MAHALAXMI MUMBAI – 34

SUBMITTED BY

GEETA GANESH DORNAL

ROLL NO. 1617341
T.Y.B.B.I – SEMESTER VI

PROJECT GUIDE
PROF. DR. VAIDEHI KAMATH
YEAR OF SUBMITTION
2018-2019

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CERTIFICATE

I, Prof .Dr. Vaidehi Kamath, hereby certify that Ms. Geeta Ganesh Dornal from
TYBBI of Lala Lajpatrai College Of Commerce And Economics has successfully
completed this Research

Project on Banking title Kiosk Banking in Semester VI of the academic year

2018-2019

The information submitted here is true and original to best of my knowledge.

Signature of External Examiner Signature of Internal examiner

Signature of Project Guide Signature of Principal

Date of Submission:

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DECLARATION

I, Ms. Geeta Ganesh Dornal from TYBBI of Lala Lajapatrai College Of

Commerce And Economics, hereby declare that I have completed this Research
Project on Banking titled

Kiosk Banking in Semester VI of the Academic year 2018-2019

The information provided by me is true and original to best of my knowledge.

Date:

Student’s Signature

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EXECUTIVE SUMMARY

 Introduction and meaning of Kiosk banking.

 Advantages and disadvantages of kiosk banking and the business
model of kiosk.
 Difference between kiosk and ATM’s.
 Functions and features of kiosk banking.
 Kiosk as a CRM tool and brand promotion.
 Vision for the future of the ICICI web kiosk initiative.
 Growth of kiosk: scenario in India, world wide scenario, high-tech
kiosk in high-tech lands.
 Cheque transaction, postal kiosks, sit-down kiosks, leaser touch,
 Kiosk-the next step in self-service banking, working of kiosk
banking, case study of kiosk services.

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INDEX
Chapter Title Page no.
no.
1 INTRODUCTION TO KIOSK BANKING 7
a) Methods and Data Collection 7

b) What is kiosk? 9

c) Uses of kiosk in areas 10

d) Difference between kiosk and ATM 11

2 FUNCTIONS AND FEATURES OF KIOSK 13

BANKING
3 CRM TOOLS AND BRANDS PROMOTION 16
a) ICICI 18

b) Vision for the future ICICI web kiosk 20

4 STATE BANK OF INDIA 21

IDBI 22
Scenario in India 23

Future kiosk 26

World Wide Scenario 27

High-tech kiosk and lands 28

5 TYPES OF KIOSK BANKING 31

Cheque transaction 31
Postal kiosk 32

Sit down kiosk 33

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Laser touch 34

Advantages of kiosk banking 36

Kiosk- The Business Models 36

6 KIOSK – THE NEXT STEP IN SELF SERVICE 38

Working of kiosk banking 40

7 CASE STUDY 44
8 CONCIUSION 49
BIBLIOGRAPHY 50

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CHAPTER 1

INTRODUCTION TO KIOSK BANKING

The Reserve Bank of India (RBI) defines financial inclusion as the process of
ensuring access to financial services and timely and adequate credit where
needed by vulnerable groups such as weaker sections and low income groups at
an affordable cost. In the essence of financial inclusion. KIOSK banking is an
important concept and basically developed for rural areas of country where less
number of banks are and people can't reach to the bank to use their services.
It is conceived that the kiosks will functions with the support of leading banks
in the private, public and cooperative sectors and using the shops as a touch-
point for basic banking services such as cash deposits, withdrawals and
branches, the kiosks will offer all the basic services of banking.

1.1 Methods of data collection

The project is based on primary data and secondary data , wherein the data is
collected through various websites, journals, reference books, etc

1.2 Advantages and Disadvantages of kiosk banking

 Advantages:
1. Large screen for navigation.
2. More Ad space (Revenue)
3. Kiosk's location specific Ads
. 4. Replaces the human-assistants.

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 Disadvantages:
1. Regular maintenance at intervals.
2. Initial hardware cost
3. High installation & authorization cost.
4. Development of custom software.

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1.3 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. Touch screens, 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.

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A printer and software for desktop publishing ensures that you 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 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.

1.4 Kiosks can be used in the following areas

Corporate / HR Museums
Banking Town Halls
Hospital Cities and communities
Entertainment Research facilities
Industrial Insurances
Education Public authorities
Telecom Commerce
E government Airports
Medicals Fueling stations
Retails Media
Hotels Fairs
Shopping malls Estates

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1.5 DIFFERENCE BETWEEN ATM AND KIOSK

 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.

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 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).

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CHAPTER 2
FUNCTIONS & FEATURES OF KIOSK

1. 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.

2.PERSONAL INQUIRIES

The bank allows you to check your account balance, print a mini statement
and make cheque book requests.

3.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.

4. 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

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any of your service related queries. Video hosts, financial calculators and
loyalty programs can also lead to improved customer utilization of your
services.

5. 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.

6. 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.

7. 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.

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FEATURES OF KIOSK MACHINE

 There are many features in kiosk machine like:

 Hardware of kiosk machine:

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CHAPTER 3
KIOSK AS A CRM TOOL AND BRAND PROMOTION

3.1 KIOSK AS CRM TOOL

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.

3.2 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 customized, 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
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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.
Multimedia kiosks generally cost around Rs 2-4 lakh and require about 3- 4
months for development (content and kiosk fabrication).

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3.3 KIOSK ARE USED IN SOME OF THE BANKS.

1. ICICI BANK

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

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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 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 focusing 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.

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3.4 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
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.

3.4.1. 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.

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CHAPTER 4
STATE BANK OF INDIA

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,

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where the ATMs are connected to the banks website and customers can avail
of information on interest rates and loan products.

4.1 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.

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GROWTH OF KIOSK

4.2 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

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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.”
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
e-governance 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.
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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
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.

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4.3 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.

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4.4 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.

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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 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.

4.4.1. 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.

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.

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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.

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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.

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CHAPTER 5
TYPES OF KIOSKS

5.1 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.

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5.2 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.

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5.3 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.

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5.4 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.

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Laser Touch reduces transaction time and provides privacy to the customer's
operations. Customers desiring to use the kiosk have to 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.

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5.5 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.

5.6 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.

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

Monthly (Rs) Yearly (Rs)

Revenue
Fee for service 4500 54000

Costs
Kiosks loan repayment 2000 24000
Interest connection fee 1200 14400
Other expenses 300 to 800 3600 to 9800

Profit 500 to 1000 6000 to 12000

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CHAPTER 6

6.1 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 interactivities
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.

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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 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
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world. Banks are now learning to enhance their overall Internet investment
with the single most important advertising medium.
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.

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6.2 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.

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MAIN
BRANCH

BANK HOST BANK HOST BANK HOST

COMPUTER COMPUTER COMPUTER

KIOSKS KIOSKS KIOSKS KIOSKS KIOSKS KIOSKS

CUSTOMER’S ARE OPERATING THE INTERNET KIOSK MACHINE

Flow of Information and Services in n-Logue Web Kiosks System

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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.

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CHAPTER 7

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 instalments, 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)

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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?

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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.

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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?

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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. Kiosks are easy to use and they are faster
than 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.

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CHAPTER 8
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 upcoming 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.

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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.intel.com
www.vikaspidia.in
www.bing.com

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