Rural, semi-urban areas to boost banking growthNovember 24th, 2011 | Posted by in From the CEO's desk
While I was browsing the internet for information on the changing banking scenario in India, I came across this interesting research report by McKinsey on the banking industry titled ‘Gateway to the defining decade’.
No doubt that rural & semi urban markets offer a huge potential to the banking service sector in India, but there are a certain aspects which I feel will bring in a drastic change in the way banking is done in India.
On one side of the coin there is going to be a paradigm shift in way people bank in rural areas. Use of Mobile as a wallet was launched by Union Bank in March in association with Nokia, and they have plans to expand its service to pan India level by next year. Consumers, using the service, need not have a bank account to make use of this service. A prepaid mobile account can be opened with the help of a photo identification card and address proof. The service allows an individual to transfer money, make utility bill payments and recharge mobile phone accounts. Money can also be transferred from one bank to another using this service. The focus market for this banking service is semi urban and rural markets and also below average income urban markets. Many banks are venturing into this kind of Mobile banking. Thus Technology is going to play a vital role in banking industry. Vritti i-Media can communicate and educate masses on such technological modes and thereby helping the banking penetration to every Aam Aadmi of India.
Other side of the coin working on the fundamentals ie Financial Inclusion. Which is the delivery of banking services at an affordable cost to the vast section of disadvantaged and low income group. Financial inclusion also means extending the banking habit among the less privileged in urban and rural India and weaning them away from unorganized money markets and moneylenders. Every Bank has a mandate for this Financial inclusion. Thus disseminating information and educating the masses about having savings account ,various schemes offered by the government for the under privileged ,repayment of loans on time etc becomes very important for the banks.
Our audio network is already helping largest bank of India SBI ,Largest Private bank ICICI bank , and many co-operative Buldhana co-operative bank in this mission of Financial inclusion. The Banks are also coming out with innovative and customised products like “Crop loan”, ” marriage loan”,” business loan” against gold which is a commodity available in every household of rural India. Banks are using our services at ST bus stands inform and educate the masses about such unique schemes which is helping the banking penetration to every Aam Aadmi of Maharashtra.
You can read through the findings of the research report here: