In December 2015, Economists in India observed a dramatic surge in mobile banking transactions which was almost more than four-fold of the amount transacted a year ago. According to RBI, the transactions surged to 82% over the September-December period. Bankers said that while mobile recharge, bill payments, etc. dominated mobile retail transactions, large value transactions were made by corporate clients through mobile platforms. But, surprisingly recent reports of Reserve Bank of India suggest that despite the huge peak in late 2015, India’s financial inclusion efforts still have not succeeded in bringing expected results yet. Let’s see what went wrong and how Domestic Money Transfer (DMT) could be reshaping conventional bank transactions?
The digital payments market in India is currently pegged at $200 billion and expected to touch the $1 trillion market by 2023! But if the numbers are to be believed then why there is a financial gap that still exists in some places? Truth is most of these facts reflect results of surveys done mostly on a ‘financially literate’ population missing out on masses that are miles away from the technology. Even though 4 out of 5 people in India have a bank account today, about 78% of the transaction still continues to be cash-based. The main problem lies in falling sort to reach the population which lacks both digital and financial literacy and has little or no access to financial inclusion products including basic banking facilities.
The key to the solution is bridging the financial gap between the masses and banking institutions through a common channel that people can trust. A medium they are familiar with and have easy access to; like, a ‘Kirana’ Store. Reports say about 15 Million Kirana stores exist in India which have access to a Smartphone or Laptop. We believe that these stores could be a solid medium of introducing financial services to remote masses and as a start iServeU has linked its wallet system with multiple banks’ IMPS to operate Domestic Money Transfer (DMT) smoothly.
Domestic Money Transfer is the most robust way of transferring money to any bank account in just 15 seconds through the sender’s mobile number only. No need to visit banks or CDMs and wait for hours in a queue to deposit money. Just go to your nearest Kirana store where the retailer will create a wallet on behalf of you in seconds just by OTP based verification on your mobile. That’s it; you’re good to go with your first transaction! Currently, our DMT service suffices 450+ banks on the platform with a promise of security and risk-free transactions 24×7. We believe that with such ease of service the dream of financial inclusion is not very far and banking for all will be no more a myth. To know more, follow our blog.