Notes from the conference in Mumbai by FINO and Intellecap
Technology and Financial Inclusion : What works?
Speakers: Vijay Mahajan, BASIX
Rajesh Dongre, Vodafone India
Ashok Jhunjunwala, IIT Chennai
Manish Khera, FINO
I have summarized the talk regarding one of the very important technological aspect that could help revolutionize the Financial Inclusion space : Mobile phones.
Mobile phones have a wide reach in India with around 300mn customers and also growing at a rate of 8mn new customers a month. This is phenomenal growth and it is tough to expect any other product/service to expand so rapidly. Why is such a rapidly growing technology not used as much in the financial inclusion space?
There are various reasons to this. A technology used for financial inclusion should address the following three issues largely: Transaction costs, risk assessment and assessment of use of finance for productive aspects. Currently, the mobile phones seem to be capable of addressing the aspect of lower transactional costs only. Since 70% of the clients have a pre-paid service only, the risk assessment of an individual who uses a mobile phone is not possible. Also, mobile phones do not seem to be finding ways to assess the use of credit.
Probably, mobiles may not be used for the later mentioned two processes. For mobile phones to be useful in reducing transaction costs also, there is a revolution that will help it drastically : the use of voice for transaction.
The use of voice would drastically bring down the transaction costs and also help in the comfort factor in the rural areas. There is a lot of work going in this area. The issues that we have to deal with in this front then are : How to get away from somebody mimicking the voice or somebody using a recorder voice and other stuff and surely there are ways that are currently present to overcome them. We just need to make these things cheaper so that M-banking is an integral part of financial inclusion
Technology and Financial Inclusion : What works?
Speakers: Vijay Mahajan, BASIX
Rajesh Dongre, Vodafone India
Ashok Jhunjunwala, IIT Chennai
Manish Khera, FINO
I have summarized the talk regarding one of the very important technological aspect that could help revolutionize the Financial Inclusion space : Mobile phones.
Mobile phones have a wide reach in India with around 300mn customers and also growing at a rate of 8mn new customers a month. This is phenomenal growth and it is tough to expect any other product/service to expand so rapidly. Why is such a rapidly growing technology not used as much in the financial inclusion space?
There are various reasons to this. A technology used for financial inclusion should address the following three issues largely: Transaction costs, risk assessment and assessment of use of finance for productive aspects. Currently, the mobile phones seem to be capable of addressing the aspect of lower transactional costs only. Since 70% of the clients have a pre-paid service only, the risk assessment of an individual who uses a mobile phone is not possible. Also, mobile phones do not seem to be finding ways to assess the use of credit.
Probably, mobiles may not be used for the later mentioned two processes. For mobile phones to be useful in reducing transaction costs also, there is a revolution that will help it drastically : the use of voice for transaction.
The use of voice would drastically bring down the transaction costs and also help in the comfort factor in the rural areas. There is a lot of work going in this area. The issues that we have to deal with in this front then are : How to get away from somebody mimicking the voice or somebody using a recorder voice and other stuff and surely there are ways that are currently present to overcome them. We just need to make these things cheaper so that M-banking is an integral part of financial inclusion
2 comments:
Hi,
Once again after crash Nifty has started going up. Now we suggest all rises should be used as an opportunity to exit old long positions.
This bull run will continue for few more days. Overall market is in bearish mood as in medium term its just a small rally due to short covering
and result season.
Happy Trading,
ShareGyan
Hey,
Current stock market conditions are not favorable for safe investors. Market is trading highly volatile. Never ignore using stoploss while doing stock market trading.
Day traders should keep very close eye on Nifty and its important levels so that traders can earn money rather than losing it.
Keep posting
Buzzingstreet
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