Financial Inclusion in Action

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Digital Financial Inclusion In India – A Long Road To Take-Off?

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The history of India’s efforts to achieve digital financial inclusion has been diverse, but largely top-down. These efforts have produced a mixture of RBI regulations and advices for banks, and government policies and directives. Most recently, the RBI provided guidelines for differentiated banks (Payments and Small Finance Banks) specifically designed to deepen outreach and enhance… Continue reading

The Race Begins: Payment Bank Licenses

The financial inclusion in India was primarily driven by the full service banks or universal banks. Realising that this needs more / differentiated player, one of the largest worldwide experiments has been initiated in India by the central bank-Reserve Bank of India (RBI). This was set in motion in Dec 2014. Key highlights of payments… Continue reading

Thoughts on DFS in “Europe Minus Infrastructure” – DRC!

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“Europe minus infrastructure”? This was the term that James Mwangi, CEO of Equity Group, used in an Equity Group briefing when describing and explaining Equity Banks’ move into DRC by purchasing ProCredit Bank Congo.  I have been thinking about which country might be the following some of the leading digital financial services (DFS) countries like… Continue reading

Can Self-Service Channels Be The Next Frontier Of Financial Inclusion?

Information and communications technology (ICT) infrastructure in India has made rapid strides in the last decade.  It has been estimated that a 10% increase in broadband connectivity leads to a 1.38% increase in the Gross Domestic Product (GDP)1. While urban India has witnessed an exponential growth in mobile and internet access, rural India is lagging behind.… Continue reading

What’s Undermining India’s Financial Inclusion Progress?

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The Government of India is undertaking the most ambitious financial inclusion drive in history. The effort has two key elements: the financial inclusion plan called Pradhan Mantri Jan Dhan Yojana (PMJDY) and direct benefit transfer (DBT) payments from the government into beneficiaries’ bank accounts. The success of these efforts hinges on one factor above all: the quality of the… Continue reading

Can “Behavioural Science” Bell Scheme Design Cat? Insights from Exploratory Research on the Public Distribution System in India

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Having tasted success with the Modified Direct Benefit Transfer for Liquefied Petroleum Gas (MDBTL) through Pahal (though sceptics have their doubts), the Government of India is dropping hints that it plans to expand the ambit of DBT further to other subsidy programmes. At about INR 460 billion ($7.4 billion), MDBTL seems to be huge, but… Continue reading

Two More Revolutions Underway in Kenya

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It is first quarter results and investors briefing season in Kenya, providing a chance to see how the market is evolving. And for the country’s leading financial services players, that evolution has been a profitable one. But behind the celebration of M-PESA’s remarkable payments revolution, and the continued growth of M-Shwari’s mobile banking services, there are two other important… Continue reading

Over The Counter Transactions – Liberation Or A Trap? Part III

The first blog in this series Over The Counter Transactions – Liberation Or A Trap? (Part I) highlighted that over the counter (OTC) transactions alone cannot deliver the digitally enabled financial inclusion many of us are working towards. The second Over The Counter Transactions – Liberation Or A Trap? (Part II)  noted that despite this OTC transactions… Continue reading

Over The Counter Transactions – Liberation Or A Trap? Part II

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In the previous blog Over The Counter Transactions – Liberation Or A Trap? (Part I) I looked at why over the counter (OTC) transactions alone cannot deliver the digitally enabled financial inclusion many of us are working towards.  A later blog in the series will examine the implications of OTC for providers and customers – many… Continue reading

Over The Counter Transactions – Liberation Or A Trap? – Part I

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The Cause For Concern I am back obsessing about over the counter (OTC) transactions again. Before we dive in let’s quickly define OTC transactions as they come in many forms in different markets – from the direct deposit by the agent into the end-user’s wallet in Kenya to the transfer of money from one agent… Continue reading