How does wallet banking help in Last-Mile Banking?:
wallet Banking Maybe used as an ATM card to easily replace your checkbook, but did you know that this was just the beginning of an era? Over time, more and more alternatives to the traditional banking system emerged, changing the landscape forever. Not to mention the lack of traditional banking infrastructure, which has also fueled the growth of digital banking methods.
According to official data, up to 27% of villages in India have a bank within a 5 km radius. Much of the Indian population lives near the formal economy.
Living in remote parts of the country, illiteracy, lack of financial education, lack of awareness of the availability and/or value of financial services, and lack of connectivity is some of the many reasons why consumers in these areas do not have bank accounts. she didn’t. There are also few benches in the countryside, making it difficult for many people to access during working hours.
To address these barriers and expand financial inclusion, the Government of India has developed solutions to extend the reach of the last mile of the banking sector, aiming to provide all households with access to and balancing banking services. banks.
After the release of Indian Prime Minister Jan Dhan Yojna, a world record number of bank accounts were opened in one day and that looks promising. But a survey conducted three months after the program launched, found that more than 75% of accounts were inactive. Banks and ATMs are not accessible to everyone.
It was much easier to open an account than to keep it regular and encourage them to save some. People who live in remote areas and the people at the bottom of the economic pyramid, people with and without banks, really need to be financially absorbed. But despite the real care and intent to fix it, did JDY achieve its goal? The answer is NO, but not quite.
The Government of India emphasizes the digitization of India, the main example being the use of e-wallets to digitize the rural economy. Now that the government is aware of the potential of digital wallets to expand last-mile banking services and take significant official steps in that direction, India is a promising hub.
Together with the government, FinCech-backed businesses and companies are implementing solutions to extend the bank’s reach to the last mile, thanks to the viability and accessibility of digital wallets across the country.
Currently, about 300 million Indians have a smartphone and 66% of the Indian population still does not have access to the internet.
Sincerely: (in a lighter tone)
India has about the same number of smartphone users as the United States,
and make millions more.
But that will certainly change after the Indian government’s initiative Digital India, which makes India a good place to expand the smartphone market in the coming year.
Oracle Statistics_Customer Payment Behavior
The above statistics clearly reflect the changing landscape in ‘customer behavior’ as people prefer not to spend money. In the UK, cash withdrawals in 2016 were the lowest number of transactions since 2010 (after the economic depression). In the same year, plastic transactions outperformed cash transactions. This supports this ongoing trend towards illiquidity.
• Less than half of the population (about 43%) thinks the money will still be used in 2022
• About 54% think they will use much less money in the coming years
• 47% plan to use more mobile payments and digital wallets.
Recent emerging and developing economies have enabled banks to successfully use digital wallets for their own benefits and profitability, enabling even the poorest and most underprivileged people to take advantage of banking benefits. The first plastic coin that slowly started banning money from transactions, now digital wallets.