First world trends: Financial inclusion, the unbanked, and the prepaid business model
The Economist explains just how expensive banking can be for the lower income population, even in the United States. Financial inclusion for the unbanked and underbanked must include cost/benefit analysis based on the limitations of income streams of those whom they hope to serve. The cost of ownership is often overlooked in current day literature, […]
Lessons for Formal Finance from Informal financial services
On one of my many field explorations on rural financial services, I found out, that for one mama biashara, as soon as payment checks in, she withdraws all her funds from her local coffee SACCO account, and spreads it out via micro-deposits across her more than 5 local informal savings groups (from right to […]
Creative ways to financial inclusion, inspired by observing practice
Needless to say, mobile money has been a wild success in scaling an expansive agent network for converting cash to e-money and enabling person to person money transfer. Speaking at a recent conference, John Staley, Chief Officer – Finance, Innovation and Technology at Equity Bank had this to say: “We should move the conversation from […]
Banking on Trust
Following up on the Reserve Bank of India announcement to allow small shops and phone kiosks, etc to handle basic services on behalf of banks – I directed questions around potential receptivity amongst Dharavi residents.
Indian Banking Widens Reach
Yesterday’s Times of India pointed to a development by the Reserve Bank of India (RBI) to extend its services. It has yet to be seen how this initiative will be taken up by BoP users both rurally and in urban neighbourhoods not currently not served by banks.
