ICICI Bank uses satellite data(imagery from Earth observation satellites) to assess credit worthiness of farmers. ICICI Bank has become the 1st bank in India to use such a technique to measure an array of parameters related to the land, irrigation and crop patterns and use it in combination with demographic and financial parameters to make quick lending decisions for farmers.
Advantages of using Satellite Data
i.The satellite data with demographic and financial details, provides strong information on the land asset of the farmers.
ii.Usage of this technology will help farmers with existing credit to expand their eligibility and help new-to-credit farmers to get better access to formal credit.
iii.It is also expected to cut the time of providing credit, as land verification with the help of satellite data is done in a non-contact manner, and credit assessments are made within a few days as against industrial practice of upto 15 days.
i.ICICI bank has already conducted a pilot study in over 500 villages in Maharashtra, Madhya Pradesh and Gujarat using satellite data.
ii.It plans to expand the initiative to over 63,000 villages across the country soon.
Usage of Satellite Data
ICICI Bank uses satellite data to assess the following:
i.Rainfall and temperature data of past years, soil moisture levels in past years, surface water availability, trends in crop sowing including crop name.
ii.Tentative sowing and harvesting weeks, crop health and yields, agriculture land location details including latitude, longitude and boundary of the land and nearby locations of warehouses and mandis.
ICICI Bank has partnered with agri–fintech companies( that specialize in the use of space technology and weather information for commercial use) and has worked with them to build reports with over 40 parameters.
Recent Related News:
i.IndusInd Bank Limited, an Indian new generation bank, has introduced a first-of-its-kind facility for customers to open current accounts (CA) through its ‘Indus Corporate’ mobile app.
ii.Airtel Payments Bank launched ‘Suraksha Salary Account’ for the micro, small and medium enterprises (MSMEs). The account will enable the MSMEs & other organisations to make cashless payments & provide financial security to their employees.
About ICICI Bank:
Headquarters– Mumbai, Maharashtra
MD & CEO– Sandeep Bakhshi
Tagline– Hum Hai Na, Khayal Apka