Originally published: October 4, 2007
Source: The Hindu Business Line, India
NXP, a semiconductor company founded by Philips and A Little World, have collaborated to bring a next generation solution that will let over 45,000 people in rural India access full featured banking services in their village. NXP designed a mobile that encloses a radio-frequency identification (RFID) card, which will work with A Little World’s micro banking platform ZERO. RFID is a short-range wireless connectivity technology that enables consumers to securely exchange and store all kinds of information, simply by bringing two devices close together – such as a mobile and an ATM.
The mobile acts as a branch of the bank by storing the entire database of customers in the village and neighboring areas within the phone’s memory, protected by a high security chip built into the phone. The mobile encloses a smartcard, which biometrically stores the identity of the customer such as name, address, photograph, fingerprint templates and relevant details of the savings or loan accounts held by the issuing bank.
Ashok Chandak, Director of NXP Semiconductor, said, “The ZERO platform uses contact-less technology from NXP Semiconductors in an innovative way with the potential to bring about rapid deployment of IT-enabled financial inclusion in villages and provide mainstream financial services to rural citizens through a mini core banking system right inside their villages. From the point of view of the bank, the platform is simple, secure, cost effective and has the potential to provide multiple services to the customer via a single channel.”
Seven banks have taken part in a pilot led by NXP Semiconductors and A Little World in over 450 villages across four states in India.
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