Monday, March 15, 2010

Mobile Banking In India With Eko India.

Eko Bringd Mobile Banking to Indian Mases
With mobile phones over coming the logistical and technological challenges of landlines in India, the mobile users are sky rocketing. So much so that India is set to become the second largest mobile user base after China. So are the entrepreneurs based on mobile market.
One such is the mobile banking outfit, Eko. Eko comes to banking market with simple solutions to complex problems. Like the credential check needed for banking. Just like one would write a check, Eko was able to emulate the process by letting customers type the bank’s short code, then an asterisk, then the mobile number of the person you are paying, then an asterisk, then the amount, then another asterisk. Then comes the signature. Eko manages this with another clever step.

Eko created equivalent of an RSA token, a paper version of it. When Eko approached VeriSign for an alternative solution, VeriSign endorsed Eko's paper based solution.
Eko customers get little booklets with 11-digit codes in them. Seven of these digits are random numbers and the other four which are just black marks ans are place holders for the users PIN. Even if someone get hold of a booklet, without the PIN, account is safe. There’s a VeriSign logo on the back of each booklet.
All the bank accounts are held by the State Bank of India, which insures up to 100,000 rupees per account. Customer base extends from  620 miles or corridor between New Delhi and Bihar. Within these boundaries, the company currently has about 30000 customers and it continues to grow.
So does the growing pains. Eko's founder Abhishek Sinha, initially fotted the complete bill with his own money and later received a grant from the World Bank and The Gates Foundation to the tune of $1.78 Million. Sinha plans to bring in $10 million from investors this year.
Eko India via techcrunch


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