July 12, 2017
Few phrases so succinctly summarize the modern landscape of financial inclusion in emerging markets like India. A huge number of people living outside the traditional banking infrastructure struggle to access basic financial necessities. Around 40% of Indians do not have a formal bank account and rely purely on cash-based transactions, representing 80% of the total transactions.
The role FinTech players have in shaping the financial services landscape for the unbanked is critical during the transition towards a digital, cashless economy.
It's not only about the business and the profit margins. Modern FinTech players have a growing impact on all facets of life as they are transforming the lives of unbanked consumers through access to basic financial services. With their advanced technological infrastructure and innovative business models, these FinTech companies have a huge potential for creating jobs and supporting local, small-scale businesses, enabling them to grow and creating livelihoods in the process. There are a number of FinTech players working towards this goal and setting precedence for future innovators.
Since its entry into the Indian market five years ago, MoneyOnMobile has been pushing the envelope for financial inclusion with its comprehensive payments platform and reach into the remote rural consumer market. As one of India’s largest mobile payments platforms, it has a vast network of 330,000 retailers who provide a range of payment services on the basis of commissions.
In addition to enabling basic financial services for the rural and unbanked customers, MoneyOnMobile empowers millions of retailers and shop owners to grow their business and earn a livelihood. As with any good idea, it's best to show and not tell.
Anjum, a mother of three daughters, has been with MoneyOnMobile as a retailer for the past two years. Prior to this, she faced the challenge of raising her daughters on her own as well as a dire need of supplementing her family’s income with her husband working in South Africa.
While exploring the opportunity of opening a MoneyOnMobile retail store, Anjum faced skepticism from her husband who warned her that the venture would be done at her own risk. Anjum, however, saw potential in growing her business. She found the profit margins to be good and believed that being a MoneyOnMobile retailer would allow her to increase her standard of living and make a better future for her young daughters.
Within two years, Anjum bought three more stores and is now running a thriving business with four retail stores of her own. The business has become a family business with her daughters managing the business alongside her. In fact, Anjum believes that interacting with customers and using the platform to make payments & money transfers is helping her daughters mature and learn the nuances of running a successful business.
Financial inclusion is the latest buzzword in financial services but it’s more than just hype. Anjum’s story highlights the power of FinTech and its ability to transform the lives, not just financial services. The increasing focus of investors and regulators, along with the emergence of advanced technologies, make financial inclusion one of the most sought-after and viable business opportunities. MoneyOnMobile has a broad approach toward financial inclusion as it leverages its payments platform to empower both customers as well as retailers to live a better life.
Disclaimer: This article is being delivered to you in partnership with MoneyOnMobile.