to deliver mobile banking and value-added services to rural customers in China. ... to invest in their own technology nor partner with mobile network operators. ... compatible with low-end feature phones as only 5% of the rural population in ...
Shortlisted for the 2014 FT/IFC Transformational Business Awards Achievement in Inclusive Business:
Shanghai F-Road Commercial Services Co. Ltd. (F-Road) Company Profile
F-Road is a technology solutions company that offers the key infrastructure—a banking platform—for financial institutions to deliver mobile banking and value-added services to rural customers in China. The neutral platform can be used by any financial institution and is compatible with a variety of mobile phones.
Base of the Pyramid Reach
4.3 million rural customers served through partnerships with over 1,100 financial institutions
Challenge
Strategy
Results
IFC’s Role
▪▪ People living in rural areas of China have limited access to financial services ▪▪ Scaling up physical bank branches in rural areas is not cost effective ▪▪ Financial institutions serving rural markets have insufficient resources to develop their own technology to deliver mobile financial services ▪▪ Limited understanding and use of financial services among rural populations
▪▪ Target financial institutions that have a large rural customer base and are seeking further expansion through mobile technology ▪▪ Build an agnostic technology platform to enable financial institutions to deliver mobile financial services and value-added services independent of mobile network operators ▪▪ Ensure compatibility of key technology, a sim-overlay card, with different types of lowcost mobile phones ▪▪ Use SMS (text messaging) to increase understanding and widen use of financial services among rural populations
▪▪ 4.3 million customers served via 1,100 financial institution partners ▪▪ Services reaching customers in 27 of China’s 31 provinces ▪▪ Partnerships with 50% of the Rural Credit Cooperatives in China ▪▪ More than 32 million mobile banking transactions processed each month
▪▪ Invest $2.75 million in equity in 2012 ▪▪ Share knowledge and expertise on global payments industry based on experience with other clients and stakeholders ▪▪ Enhance corporate governance based on IFC’s global standards
F-Road’s Inclusive Business Model F-Road follows a B2B2C model—its customers are financial institutions that, in turn, serve individuals. The company’s technology platform enables financial institutions—mainly Rural Credit Cooperatives and Rural Commercial Banks—to deliver secure, easy-to-use, and convenient m-banking and value-added services to customers in rural areas. As a result, banks neither need to invest in their own technology nor partner with mobile network operators. F-Road provides the platform and system free of charge, but earns revenues from monthly fees charged to financial institutions for each active user. Mobile financial services facilitated through F-Road’s platform are customized to the financial institution and include interand intra-bank account payments, bill payments, airtime recharge, and balance checking. Both individual and small business customers can avail of loan disbursements and repayments. Small businesses may also pay suppliers, employee salaries, and purchase wholesale goods from retailers. F-Road has made its technology solution compatible with low-end feature phones as only 5% of the rural population in China uses smart phones. Also, customers transact via SMS (text messaging)—a familiar medium—and do not need data plans. F-Road’s pre-programmed SIM-overlay cards, which are distributed to customers via financial institutions, are inserted in phones to ensure encrypted SMS. F-Road’s technology can be used on over 95% of the phones in the local market including smart phones. For more information, please visit www.f-road.com/cn.
