Seeing this Press Release, the quotation, ‘the early bird catches the worm,’ immediately came to my mind.
The need for a tie-up, can be traced to the recent Policy decision of LIC, to route all its payments to Policy Holders i.e Survival Benefit, Maturity, Loan, Surrenders, payments of Pension & Group Schemes etc., directly to the Bank Account of the Policyholder / Beneficiary w.e.f 01/10/2011.
NEFT was the Payment Channel to route the payments directly to the Banks accounts.
To activate this process, LIC had to work with a Bank. The Bank could have been it’s normal bankers or the Bank which first pitched a viable Payments Module.
AND the race was won by ING Vysya Bank with a MOU signed between ING Vysya Bank and LIC for ePayments.
The Press Release can be accessed @
As for the quote ‘ the early bird catches the worm’, origin can be traced to the 17th century.
This is first recorded in John Ray's A collection of English proverbs 1670, 1678:
"The early bird catcheth the worm."
Clearly, the title of the work indicates that this was considered proverbial even in the 17th century.
Incidentally, the ING history can also be traced to the 17th century, i.e The oldest legal predecessor of ING Group world-wide, is the Kooger Doodenbos from Koog, Noord Holland, founded in 1743
Business Prospects :
As per LIC website, in the financial year 2010-2011, payouts to 53 lacs policy holders were made. The payouts were for Maturity Payouts as well as Survival Benefits.
53 lacs + payouts means on an average 3 lac payouts per month. This will propel ING Vysya Bank to the top 5 in the NEFT volumes.
The icing on the cake, will be when the Commission payouts to Agents also move from paper-based to ePayment mode.