How technology can help in financial inclusion

Over the last few years, Technology has transformed our lives. Innovations in the Fintech space are compelling Traditional Businesses to rethink their business models. Better Telecom connectivity, extremely economical mobile devices, and innovative business models are the key factors that are responsible for increased focus toward Rural Economy. Government (Central and State), Private Sectors, NGOs, and MFIs other stakeholders have joined hands for delivering some unique Financial solutions to the people who were left at the mercy of exploitative moneylenders.

A key differentiator for financial inclusion is a business model that works on a principle of Low value and high volumes business strategy to make it a lucrative business opportunity. The Business Correspondent model along with innovative cost-efficient tech solutions are enabling various companies to thrive profitably while fulfilling the financial needs of the unbanked.

The upcoming technologies that are at the forefront for bringing the financially disadvantaged strata of our society into the formal economy by providing Banking, Credit, and other Insurance associated services are the following:

• Distribution Tech-
  • Mobile-Based Financial Platforms-Vernacular

• Micro, Mobile, and Biometric ATMs
• Smart Cards and POS Terminals
• Biometric Devices
• Credit Tech
  • Neobanks
  • Card-Based Credit Facilities- Kisan Credit Cards
  • P2P(Peer to Peer) Lending Model
  • Microcredit Platforms-B2B(MSMES) & B2C(Farmers, Rural Workforce)
• Banking Tech
  • No Frills Bank A/c-Digital Banks
• Payment Solutions

The article has been written by Ankit Agarwal, Managing Director, Alankit Limited