Financial inclusion for reviving growth
Success stories, challenges & the road ahead
The Indian government, regulatory bodies, banks and non-banks are joining hands and striving towards one common goal - financial inclusion for the masses. Significant steps and initiatives are currently underway to enable availability of banking, insurance and other payment related services for the people. In this report, we look at some of such key initiatives more closely to assess their potential impact, key roadblocks and possible resolutions.
he new bank licenses will lead to emergence of new business models driving innovation on channels to reach the last mile. The corresponding increase in competition will help increase efficiencies and bring banking access to millions of underserved.
Role of technology solutions being a game-changer cannot be overemphasized. Mobile banking, Aadhaar enabled payment systems, white label ATMs are a few of the several new age technology based solutions that are expected to drive financial inclusion enabling direct access to customers. Each of these solutions will require deeper collaboration between various stakeholders to achieve the scale and magnitude to drive financial inclusion.
In a similar vein, insurance and pension products will need to be customized and delivered through channels suitable for a rural audience to drive adoption and acceptance. Developing the winning strategies around the 4 Rs – Right Product, Right Channel, Right Place, and Right Time will help players penetrate the rural markets and achieve financial inclusion.
With all these at play, infrastructure improvement will serve to further boost financial inclusion by aiding delivery of financial and non-financial products/services to wider population and creating better employment opportunities and providing further earning opportunities.
These topics are discussed in greater detail, and some new ideas are presented in this report.