Shri Hemant Contractor, Chairman, Pension Fund Regulatory and Development Authority (PFRDA) acknowledged the initiatives taken by the Government to make financial services available and affordable to the financially excluded.
While speaking at the CII Financial Inclusion Summit - Digitisation the way forward, he highlighted the role of regulators in Financial Inclusion space. Shri Hemant Contractor said “the regulations have been proportionate to the risk taken by the regulators and because of this Financial Inclusion has taken place”. A case in point in this direction has been the ease with which bank accounts can be opened now as compared to a decade ago removing impediments such as location, excessive documentation and cost. Government initiatives such as e-KYC and Jan Dhan Yojana which entail minimum formalities catering to the lower sections of the society have spurred tremendous growth in the financial services sector. Citing statistics, Shri Contractor stated that in the last 3 years 33 crore bank accounts with Rs 86,000 crores have been opened under the Jan Dhan Yojana.
Talking about the prospects of FinTech, Mr Suresh Sethi, MD & CEO, India Post Payments bank said that the idea of Door-Step Banking is gaining a lot of traction which would provide services ranging from onboarding on one end of the continuum to an offering a complete bouquet of financial services on the other. Further accessibility and affordability are critical in ensuring the success of this unique endeavor.
Speaking at the same session Mr Vicky Bindra, CEO, Pine Labs commented that the art of financial inclusion is to take the benefit to the customer in the smallest town. “We at Pine Labs endeavor to increase revenue by bridging the gap between MSMEs and consumers in the form of providing transaction benefits at the point of purchase” said Mr Bindra.
Mr Kiran Vasireddy, COO & SVP, Paytm Payments Bank said that product built for consumers need to be user-friendly. User Interface and user experience is key to spreading financial inclusion by making the whole transaction experience seamless.
Mr Ajay Kaushal, Co-chairman of CII National Committee on Financial Inclusion & Digitization said, “transparency of data is key to enable lenders to take informed decisions. A lot of data generated, however, the challenge is the usability because systems were developed much before the technology stack came into picture”.
3 November 2018