Eko believes the mobile banking business model has (1) convenience, (2) trust and (3) security—all three attributes that are sine qua non in a banking business. However, what it lacks is the “invitation to everyone”. Models like cash, and to some extent hawala,
are open to all—anyone can access these systems. Therefore the process of inviting everyone to this business model has to be made easier.
The business model is to marry retail outlets (India has 10 mn of them) and mobile phones in the hands of 900 mn people. Over three years Eko has established over 700 outlets in Delhi while SBI in its 55 years has only 350 and ICICI in its 18 years has 97. Eko can roll out an access point (branch) at around US$100 while a bank branch will take ~US$90,000. Eko can reach a million outlets with around US$100 mn – and based on the business model of remittances alone, the outlets can break even in a matter of a few months.
It has a simple numeric interface that can work on as simple a phone as a Nokia 1100. By using the simple syntax “*543*<