Financial Inclusion needed across value chain: Experts

At the 5th Financial Inclusion and Digital Payment Conference, organised by The Internet and Mobile Association of India (IAMAI), industry leaders came together to deliberate over the concerns impacting financial inclusion. A common thread during the event was the need to address various areas affecting financial inclusion at different points in the value chain.

Describing the importance of looking at the entire value chain, Jamuna Rao Verghese, Advisor, Inclusive Markets, Financial Services – Advisory, PwC, said, “Financial inclusion can be achieved in our country, if there is a business model for the value chain, that is, banks, BCs, telecom, retailers, aggregators, hardware and software technology providers; if the environment fosters innovation through allowing new and nimble players, within a clear regulated framework, infrastructure is ready and potential customers see a visible benefit to change their behaviour from traditional options, which they trust.”

According to Naveen Surya, Chairman Digital Payment Committee, IAMAI, and Managing Director, ItzCash Card, there is a need to improve convergence within the system while aiming to move towards a ‘less cash’ economy. Speaking at the event, he said, “The need is to align our efforts to the RBI's Payment System Vision Document 2012 to move from cash to less cash usage that will eventually drive Inclusive growth. Financial Inclusion and Digital payments are two sides of the same coin. No one player can address the issues facing electronification single handily. Convergence amongst the ecosystem players is the way forward and such conferences bring focus and drive those efforts already under way.”

At the conference speakers discussed about key issues like Uncovering Domestic Money Transfer opportunities, improving efficiencies in retail payments, developing Less Cash eco-systems for the industry, Innovations in Gift & Incentive Cards, etc.

Highlighting the need for a common industry platform Tony Craddock, Chief Executive Officer, Global Prepaid Exchange, said, “Sometimes an industry comes together at absolutely the right time. India needs prepaid to enable financial inclusion and a less cash society. At the IAMAI conference, the regulator, technology companies, retailers, and leaders came together to make that happen faster and to the benefit of all of India.”