Mobile technology has transformed the way financial services are accessed, delivered, and utilized, particularly in underserved and remote areas of India.
The use of mobiles and tablets in financial inclusion drives has the potential to reach underserved populations, enhance financial access, promote economic empowerment, and improve overall financial well-being.
Banks use mobile phones/ tablets to open Small Accounts/ Basic Savings Bank Deposit Accounts in unbanked villages and offer banking services through Points of Sale (POS) instruments handled by agents of Banking Correspondents (BCs).
The role of mobile phones and tablets in the financial inclusion drive:
The use of mobile and tablets eases accessibility and empowers individuals from diverse backgrounds, including those facing socio-economic challenges. Vulnerable communities, often excluded from traditional banking, using mobile/tablet banking technology, banking reached these unbanked or under-banked populations who were disabled from financial assistance. This inclusivity ensures that financial services are no longer confined by physical boundaries.
There are many rural areas in India without a bank branch or an ATM in nearby places. Mobile banking overcomes these barriers by providing a cost-effective and scalable solution. Mobile phones and tablets leverage existing mobile networks to deliver financial services, eliminating the need for extensive physical infrastructure.
Mobile devices have simplified the delivery of agricultural and rural services to farmers and rural communities. Farmers can access weather information, market prices, crop management techniques, and agricultural extension services through mobile applications. This empowers farmers with knowledge, improves agricultural productivity, and enhances their access to financial services. Thus, mobile devices serve as a platform for delivering financial literacy and education programs.
Mobile banking enables microfinance and other priority lending initiatives and micro-transactions, allowing individuals with limited resources to engage in economic activities, nurturing entrepreneurship and community development.
KYC compliance for opening a bank account becomes easier with mobile technology. Users can provide necessary identification documents and biometric data using their mobile devices, enabling faster and more efficient onboarding processes. This reduces the barriers to account opening and enables individuals to access financial services more easily.
The implementation of mobile banking raises digital inclusion, confirming that individuals, irrespective of socio-economic status, become part of the global digital economy. This technological enablement paves the way for a more equitable financial landscape.
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