Tata Consultancy eyes US$ 100 million from financial inclusion applications in four years

As financial inclusion gains importance and larger spending from banks, software major Tata Consultancy Services (TCS) is targeting US$100 million in revenues in the next four years from selling its last-mile connectivity solutions to banks, a top company official said.

"We will be getting around US$100 million in revenues in the next three to four years from financial inclusion applications and serving 20 million people," the company's chief executive and managing director, N Chandrasekaran, told reporters after it signed a Rs85 crore (US$ 19 million) supply contract with public sector Indian Bank today.     

Under its contract with Indian Bank, TCS will be implementing its smart card-based financial inclusion solutions to help Indian Bank expand its footprint. It is a three year contract, and together, Indian Bank and TCS intend to reach 35 lakh customers in 5,500 villages.

"We see financial inclusion both as a worthy cause which will bring people into the banking fold as well as a good business opportunity," Chandrasekaran said, adding TCS is already having tie-ups with Bank of Maharashtra, Punjab National Bank and Central Bank of India for financial inclusion applications.

The application being implemented is an ICT (internet communication technology)-based application that will enable account-holders to conduct a variety of transactions like remittance, micro-insurance, lending and drawing cash, among others.

The built-in chip on the card will facilitate a multitude of transactions and the cloud computing-based platform is also compatible with UIDAI's Aadhar project.

Chandrasekaran said TCS will earn per transaction as well and the figure of Rs85 crore has been arrived at taking into consideration the total amount of transactions.

Indian Bank has already covered 5,000 villages under the financial inclusion agenda and opened 23 lakh accounts, its chairman and managing director, TM Bhasin, said, adding it plans to add another 5,500 villages where TCS' services will be used.

Finance minister Pranab Mukherjee had set a target of taking banking services to 60,000 unbanked villages having a population of over 2,000 people by fiscal year 2012 end.

Subsequently, 19 banks divided regions amongst themselves to roll-out services with the help of business correspondents.