India has made significant strides in achieving financial inclusion through the combined efforts of the government, financial institutions, and fintech companies. These steps have helped bring millions of underbanked individuals into the formal financial ecosystem. For example, under government initiatives like PMJDY, more than 50 crore bank accounts were opened of which 56% were owned by women. This initiative has played a pivotal role in laying the foundation of the financial transformation.

In this effort to achieve financial inclusion and reach the diverse segment of the population, other factors that contribute are technological advancements, high-speed internet, the rise of fintech firms like Manipal Business Solutions (MBS), shifts in banking models, and inclusive policies. All these factors have collectively helped create a more accessible and inclusive financial ecosystem.

How Far We Have Come And Where Are We Now in Financial Inclusion?

Financial inclusion has made significant progress in the past few years. With the collaborative initiatives undertaken by fintech companies, like MBS, in association with banks and various state governments, it has been easy to empower Self-Help Group women as Bank Sakhi, resulting in the expansion of financial services in remote areas, especially women. These Bank Sakhis have been provided with the latest tools like Micro-ATM devices/POS devices and smartphones to carry out secure digital transactions for their customers. Since the launch, over 100,000 women have undergone training and are now actively serving rural citizens in more than 20 states.

MBS has taken bold measures to improve access to banking services in rural areas and enhance banking accessibility for rural citizens. These measures include the identification, recruitment, and training of Business Correspondent (BC) agents to deliver an array of banking services, including account opening, Aadhaar Enabled Payments System (AePS) transactions, money transfers, loan disbursement, insurance, and other value-added services. Moreover, they also train local shopkeepers and small merchants to offer these banking services alongside their current businesses. This initiative has played a significant role in improving financial accessibility in underserved areas resulting in a significant increase of 45% in AEPS transactions in rural India during FY22, as per the report by the National Payments Corporation of India (NPCI).

Unveiling the Trends Steering the Future of Financial Inclusion

Financial inclusion in banking is constantly evolving. The future of financial inclusion includes digital innovation, alternative credit scoring, and increased financial education. In this article, we will cover the key trends that will shape the future of financial inclusion, providing more accessible and personalized services for the citizens of India.

Financial Services For Rural Regions

Personalized financial services play a vital part in rural regions. In a place where agriculture and livestock are the primary economic activities, customized services like Kisan Credit Cards, tractor loans for agricultural needs, cattle loans, and insurance for livestock investments are crucial for meeting the financial needs of people. These customized services help banks and other financial institutes recognize the unique challenges and opportunities present in rural communities and improve the availability of financial services. This approach will enable them to play a significant role in enhancing the economic welfare of these regions, including the previously unexplored areas. This approach helps the financial institutes enhance the economic welfare of the unexplored parts of the country.

One-Stop Banking Solution

Whether opening a savings account, applying for loans, or insurance, the one-stop banking solution model simplifies the customer experience and provides a comprehensive solution to customers’ financial needs. This technology platform leverages behavior analytics and AI capabilities to deliver customized financial products to customers based on their preferences. It also smooths complicated processes like loan applications with minimal paperwork requirements and quick approvals. These solutions attract potential borrowers and make credit readily available, facilitating financial inclusion and consecutively supporting the broader goal of financial inclusion and delivering a superior banking experience.

Enhanced Security To Elevate Transaction Safety

In the current digital era, investing in advanced technologies to secure financial data and establish customer trust is crucial. Anti-fraud solutions such as Geofencing, voice confirmation, and multi-finger authentication are highly effective in ensuring secure transactions, providing additional layers of security to transactions, particularly to visually impaired and literacy-challenged users. Moreover, the integration of Anti-Money Laundering (AML) and Fraud Risk Management (FRM) platforms has become a norm in the banking industry to combat financial crimes and fraud. By integrating these platforms, financial institutions can proactively manage risks and combat financial crimes and fraud, thus strengthening their ability to maintain customer trust and minimize reputational damage.

Thus, with these platforms, which specialize in fraud prevention through high-risk merchant screening, location validation, blacklist checks, and other functions, financial institutions demonstrate their commitment to reinforcing security measures and proactively managing risks hence staying ahead in the ongoing battle against crimes and frauds.

The Future Of Financial Inclusion

With the adoption of recent trends and innovations, the future of financial inclusion is exciting and promising. The innovations will transform the landscape of inclusion and will enhance security, accessibility, and trust among end consumers. Moreover, with the adoption of innovative solutions, strategic policies, and collaboration that can also lead to transformative innovations to benefit consumers and businesses, the goal of a financially inclusive India is becoming more and more feasible.

Explore our offerings today and embark on a journey towards expanding your reach and offering a seamless banking experience to your customers.