Fintech will be a key driver for financial inclusion

REACHING THE UNBANKED

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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 per cent of Indians have access to credit and insurance penetration is only about 3 per cent of GDP. The reasons are aplenty including high costs of the 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 to ensure that it makes inroads into the real India and impacts lives of millions of Indians.