One of the biggest priorities faced by India is to achieve financial inclusion of the people. For this, we need to leverage technology to disrupt the way financial services are distributed in the country, so as to ensure that inroads into the real India to impact the lives of millions of Indians. Fintech, writes Upasana Taku, Co-Founder and Director, MobiKwik, will be a key driver for financial inclusion in India
India has been an underbanked country for many decades, in spite of an existing ecosystem of banks and financial institutions. A number of critical financial services like loans, insurance and wealth management, continue to be the privilege of a few. The numbers validate the sad state of affairs- less than 10% of Indians have access to credit. Also, the insurance penetration in India is only about 3% of the GDP. The reasons are aplenty including high costs of traditional banking model, lack of relevant products, and limited financial literacy.
The potential is immense but there is a need to leverage technology to disrupt the way financial services are distributed in the country, so as to ensure that it makes inroads to the real India and impacts lives of millions of Indians.
Fintech has emerged as the problem solver as it has disrupted the financial services market. Fintech companies are working to transform the way the real India transacts financially.
Armed with top-of-the-line technology-driven models, fintech companies are delivering all financial services digitally. They are reaching out to the millions of unexplored Indians and offering customized solutions- delivered instantly and seamlessly on a phone.
The first and foremost is credit. MobiKwik has made it possible for users to get loans disbursed in their wallets in a matter of 90 seconds. As we are India’s leading consumer payments platform, we have millions of users transacting on our platform. We also have tons of data on these users and we are using the best machine learning models to create our credit score for users. This is what helps us in disbursing the loan in 90 seconds and also at zero operating/processing cost.
Our end-to-end digital process and no user-acquisition cost enables us to disburse loans across ticket sizes. We disburse instant loans of as low as Rs. 5000 to higher amounts like Rs. 100000 on our platform.
For the first-time user:
There is a huge portfolio of fintech solutions that the new-age fintech companies are offering to tap the unserved, first-time user base. These are individuals who would have had the intent to use financial services, but were either never approached, or did not have high amounts to start their journey. This is a common case when we consider insurance and wealth management. Today, with advanced data analytics and robo-advisory, fintech companies are offering wealth management advise to millions of users, on an app.
In 2018, MobiKwik set out on its journey to make financial services accessible to millions of Indians. We have made it possible for users to start buying ‘Gold’ at Re. 1, buy insurance at a premium of Rs. 20/ year and kickstart their investment journey for as low as Rs. 100. All these are industry firsts in their domains.
Advantage Fintech companies
The advantages for fintech companies are aplenty, including better product lines, lower costs, wider and effective reach, strong risk management capabilities to check and control bad debts, deep data analytics for a thorough understanding of consumer segments, convenience, and ease of access.
They do not operate on a ‘brick and mortar’ model but utilize cutting edge technology and data analytics, and that is their biggest advantage. They can offer their services 24×7 across India, irrespective of location, on the mobiles.
The next level of growth for India
I believe financial access and financial inclusion beyond the cities is what will drive the next level of growth for India. As high-speed mobile internet with affordable data plans propel the next level of growth for digitization, it is time for un-banked and under-banked population to explore the range of financial services – available on smartphones.
The year 2019 will belong to the new and unexplored users, who will begin their exploring of financial services on their phones. While artificial intelligence, machine learning and deep-data analytics will be critical, innovation and speed to market will be the real game changers.
The future is bright and the day is not far when a majority of Indians will prefer to do their financial transactions digitally.