Financial Inclusion Reality

An initiative aimed at India’s farmers, introduced by ING Vysya Bank.

The effort – described by some as too simplistic – involves linking ATM access to the provider’s Kisan Credit Card accounts.

The merit of the idea might be open to debate, but when it comes to financial inclusion in India there are bigger questions to answer.

How much is being done to serve the under banked and unbanked? Are providers really interested in solving the many problems associated with reaching the country’s rural population?

On March 9 the Reserve Bank of India held a conference in Pune to explore these questions.

Examining every level of the situation, from branch managers to independent groups and real customers, the meeting attempted to define the complexities, if not the actual answers.

Let’s consider the scale of things. Because, even if branch managers are serious about serving rural customers, it’s all much easier said than done.

Processing paperwork is difficult and time consuming, right from the initial ‘know your customer’ start. With missing or non-existent identification, essential documents can be hard to come by.

Even something as simple as a picture ID can take time, because not every village has the facilities required to produce passport sized photographs.

We’ve seen some great ideas when it comes to technology, such as specially designed ATMs, but what happens when a biometric scanner can’t record a customer’s fingerprints, simply because they’re so calloused by the rigours of farm work? The RBI conference might not have changed the game, but it did at least continue the dialogue on what is a huge but interesting challenge for India’s financial providers.

One thing is clear – banks able to implement real, workable solutions stand to benefit greatly over the coming years.