Unlike other foreign banks in India, which started their journey in the market top-down by tapping high net-worth clients, Barclays, somewhat of a late entrant, is seeking its fortunes from the ground up, at the bottom of the pyramid.

According to Barclay''s head of retail banking, Suresh Gurumani, there is a huge latent demand in the segment. The un-banked and under-banked segmenet has a number of people, like taxi drivers and clerical staff, which Barclay''s is looking at launching to service through a banking product specially designed for this segment.

That bank, which commenced its India retail banking operations in May 2007, has launched unsecured SME loans, personal loans with tenures up to of seven years, and credit cards.

Highlighting the importance of low-cost transactions for the mass segment, Gurumani says the bank would try to launch products that could be termed as ''satchet'' banking.

Barclays has four operational branches in India, and a fifth in the offing at Junagadh in Gujarat. Over the coming two quarters, the bank plans to explore various low-cost retail models, such as business correspondents, Internet and mobile banking, and other technology-driven initiatives that will help it to drive down costs.

One of its innovations includes doorstep banking to high potential segments such as BPO employees.

Gurumani says that through Barclays has a downside of low brand visibility, as a late entrant it does not have legacy system problems. Of its total advances, 30 per cent have been towards small and medium enterprises (SMEs) as unsecured loans, another 30 per cent as long tenure (up to 7 years) personal loans that help in reducing the monthly equated monthly instalment (EMI) burden on customers, and the remaining 40 per cent accounting for commercial lending.

Barclays has so far committed £70 million for the Indian market, as part of its strategy to generate 50 per cent of its global revenues from outside its regional stronghold in the UK.

Barclays has a sales force of over 600 people, and is looking at alliances for banking intermediaries and microfinance institutions as partners to gain market penetration. The bank is also expanding its feet-on-street, and putting in place the technology infrastructure which will be the backbone of low-cost transactions. Barclays sees a trend in customers moving away from branch banking, and is keen to adopt new channels like doorstep banking, Internet and mobile banking, according to Gurumani.