Promoting Financial Inclusion - United Nations Development ...

• CSPs pass this cash to SCSP, who then
replenish CSP’s credit with the sum of
cash collected.
If a CSP has too much electronic
balance as a result of servicing withdrawals,
they have the option of doing a similar
withdrawal in lieu of cash with their SCSP
to bring down their electronic balances to
optimal levels.
EKO follows the principle of a prepaid
distribution pyramid, e.g. for fast
moving consumer goods (FMCG) and
mobile telecom. The retail points (CSPs)
are effectively recovering investment
already made by ‘distributors’ at higher
levels of the supply chain. As retail shops,
CSPs are familiar with this approach and
can understand their role in this way. The
model is illustrated in Box C.1.
BOX C.1:
EKO’s Cash Management System
Note: CSP can accept only to the extent of float he has with EKO, CSP replenishes electronic and physical cash with super CSP
© EKO is property of Eko India Financial Service Pvt Ltd.
Outsourced structure
EKO has 45 staff, 15 of whom are in Bihar,
30 in Delhi. Till August 2010, 75,000
accounts had been opened. The structure
is lean because the bulk of functions are
outsourced, leaving EKO staff to play only
a small number of critical roles, which
include: selection, training and ongoing
mentoring of CSPs; identification of
and liaison with SCSPs; liaising with the
bank to agree sequencing and rollout
of their products; awareness & package
material development; development
of the technology to support products;
management of outsourced activities, and
model and business development. The daily
functioning of the ‘distribution channel’
is wholly outsourced to a combination of
the SCSP and his supervisors, and the CSP
retailers.
Each CSP handles as many accounts as
his capacity and some are now up to 200,
46 PROMOTING FINANCIAL INCLUSION