Process Mapping and Evaluation of Digital Financial Services in India

Research Team: Parul Agarwal, Iris Braun, Prachi Agarwal (External Consultant), Shreya Chatterjee
LEAD Centre: Centre for Microfinance (CMF)
Focus Area: Financial Inclusion
Project Geography: India
Partner: J.P. Morgan
Status: Ongoing

Background:

India hosts an emerging yet complex financial services market, where technology-based platforms such as mobile banking, e-wallets, exist side by side with traditional branch banking models. While digital finance is a rapidly evolving area of financially services, there are knowledge gaps in guiding the operations of the industry, and limited evidence on the factors that influence takeup and expansion of services. As new products and services continue to emerge in the near future, the digital landscape in India is likely to get increasingly complex. During the nascent stages of the growth of Digital Financial Services (DFS) in India, exploratory research and stakeholder assessment can provide valuable insights to the industry and guide its expansion in a sustainable manner.

IFMR LEAD in collaboration with J.P. Morgan has initiated such a study to bridge the knowledge gaps in the understanding of the workings of digital finance in India, through a holistic supply and demand-side assessment of the sector.

The broad objectives of this assessment are as follows:
•     To map the landscape of digital financial services in India
•     To understand the regulatory framework governing the initiation and proliferation of digital financial services
•     To provide a snapshot of relevant technology solutions available for each type of financial service provider for each type of product and service offering.
•     To evaluate products and services on their processes, usability and affordability to different beneficiary segments
•     To generate evidence for financial institutions, digital service providers and policymakers on demand-factors that influence take-up of DFS by end users and provide recommendations to strengthen the uptake of DFS.

Largely, the study is geared towards gleaning insights that will allow financial service providers to optimally integrate technology into their models of financial inclusion and provide tangible benefits to their final users.

Related Resources
Report on mobile : IFMR JPM DFS Handbook_PDF
Report on web : IFMR JPM DFS Handbook_Web