| |December 202019THE PUSH FOR FINANCIAL LITERACY FROM THE GOVERNMENT HAS BEEN LOUD, AND IT HAS RESONATED WELL WITH RURAL INDIArural India has seen technological leapfrogging directly to mobile phones and now to smartphones. Stiff competition among telcos has led to affordable data for first time online users. Barring a few remote areas, this inexpensive data has catapulted rural fintech adoption. Government programs like the Bharat Broadband for Gram Panchayats - too have helped.In parallel, initiatives by global conglomerates, like Google's Internet Saathi program, in collaboration with Tata Trusts that aims to connect over 300,000 Indian villages with focus on women are enabling faster transformation. Interestingly, such engagements both enhance the lifestyle of the rural population, and also serve as strategic investments for companies themselves.All these initiatives provide FinTech the required tailwinds. Behavioural aspects, on the other hand, pose more of a challenge. The push for financial literacy from the government has been loud, and it has resonated well with rural India. However, it might just take some more time for them to trust an app more than a branch manager and be more vigilant on frauds. Nevertheless, initiatives like the India Post Office Development Program, to encourage savings and deliver services, have been a step in the right direction. The Future of FinTechFinancial inclusion has been unidirectional in the past, with focus on replicating the branch setup through concepts like `tablet/doorstep banking' wherein banking officials/correspondents take the `branch' with them to the customers' doorstep. However, this needs to progress to self-service/self-reliant banking. Several factors are working in favour:JAM model: The government model of leveraging the Jandhan, Aadhar, Mobile trinity shows great promise, prompting the rise of self-service mobile banking. Indeed, direct transfer of funds from the government to millions of Indians amidst the pandemic is an initiative of a scale never seen before. Increasing web presence: With internet coverage increasing rapidly - in 2019, the number of rural internet users surpassed urban users by 10 percent the rural user is now increasingly ready for mobile-enabled fintech services. User experience: FinTech companies are focused on improving their app usability through user-friendly UIs, intuitive design and regional language content, to woo rural users - inspired by high rural adoption of Indian e-commerce including the likes of Ola, Flipkart, Paytm etc. Changing mindset: While the older generation - rural or even urban - may still view technology with suspicion, the younger generation - `Digital natives' - who now make the bulk of rural India, are rapidly embracing fintech.Support for poor connectivity: Given that a substantial portion of rural India still has no 4G access, fintech players are developing apps that can work on feature phones (using USSD), offline or under high latency scenarios, with save-and-resume capabilities. While tech players are rolling out `lite' version apps for less connected customers, OEMs are also playing their part, notable examples being Android Go for cheaper smartphones with low memory, and cost-effective Android One phones. India's villages will continue to enjoy the benefits of government attention and private sector competition. The COVID-19 pandemic drove home the realization that remote working would be more than just a passing trend. Rural youth can soon find more opportunities within their localities, enabled by consistent, fast and affordable internet. Government programs, like Make in India, have spurred the creation of fintech applications that can connect the producer and consumer segments digitally, leading to consistent, unlimited and universal market access.
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