Technology and Financial Inclusion: An Agenda for Holistic Growth

Abstract

An efficient financial system is essential requirement for any country’s socio-economic growth. Financial system is needed to mobilize the savings and allocate these to the productive investments. Financial inclusion is a matter of concern for the policy makers as it is an enabler for inclusive growth. Till now a large number of efforts have been made by the Government of India and Reserve bank of India to include the financial excluded segments of the society in the financial mainstream. Digital financial inclusion has emerged as a game changer for the under-served as well as un-served low income households and micro and small enterprises. Hence with the prospects of getting near to billions of customers, both banks and non-banks started offering the digital financial services. The basic requirements for Digital financial services are: a digital transactional platform, agent network and customer’s access to device. The most impactful technological invention to expend financial inclusion has been the mobile phone. These can be used for P2P payments, payments of bills and enabling the people to use m-banking and m-wallets. Technology can be used for bringing the financial excluded people under the purview of the financial system in a very cost effective manner rather than a traditional brick and mortar banking system.