How technology and rural India made rural fintech a success
The fintech business has seen a tremendous increase in its consumer base over the past few years, not only in major cities but also in rural areas. The first difficulty in providing a digital home service to individuals is to build trust. At first, rural India, a traditional cash-driven economy, found it difficult to trust the digital business of fintech companies. Rural residents have found it difficult to trust a fintech that does not have a physical presence with their hard-earned cash. A few fintech companies, however, were up for the challenge of overcoming these hurdles.
Increase internet users
In India, the number of rural internet users is growing more than three times faster than that of urban users, according to a study by the Internet and Mobile Association of India (IAMAI). The situation has improved dramatically with the advent of creative technological solutions, the adoption of high-speed internet, and the readiness of rural consumers for digital financial services. Internet and smartphone use in rural areas has visibly increased. Urban areas have seen an increase in internet usage, but rural India has also gained ground thanks to affordable mobile broadband connections provided by Indian telecom companies. Thus, the current base of smartphone users in rural areas has helped FinTech companies to provide cutting-edge and accessible online platforms to facilitate banking operations.
Rural fintech players have revolutionized the lives and livelihoods of Indians. They have made several changes to their digital product offerings to drive awareness and adoption among rural customers, with the goal of addressing key issues facing rural customers. They developed a new business strategy that involved hiring potential customers. It is made to boost adoption among rural customers.
Regardless of gender or other social categorizations, they promote the spirit of solo entrepreneurship among the population while providing financial and technological education. Nanopreneurs, in turn, help provide vital financial services.
As a result, the focus shifted from urban to rural regions, with rural areas now serving as major engines of growth in India. Such initiatives have succeeded in forming strong and trustworthy personal bonds while creating employment opportunities for the community. Fintech representatives are now well-known figures in the neighborhood and the consumer community.
Technology is no longer just a tool for small business problems. Today, technology is bridging the gap between rural and urban areas.
These fintech companies have paved the way for rural India to have greater access to financial services as they are equipped with advanced technology and a drive to promote equitable development. The fintech industry has developed a new operating model known as the “agent model”, which allows neighborhood store owners to serve as bankers in their communities.
Local shop owners offer their customers easy cash withdrawal services which can be used with Aadhaar enabled payment system (AePS) and money transfer services (DMT) which can be used only with phone mobile phone and the customer’s account number without going to their bank. Local stores are transformed into digital financial service centers for people living in remote areas. Lives of people who live in rural areas become easier with instant prepaid recharges from many billers from one place, instant travel and accommodation bookings, insurance services, investment goods and several other digital payment services.
The opinions expressed above are those of the author.
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