Digital technology is disrupting traditional financial services in India by expanding access and putting customer centricity and convenience at the fore. Innovative digital solutions are successfully starting to address the challenges with which traditional financial service delivery processes have been afflicted. A total of 15,129 million transactions were carried out electronically in 2015-2016, a 29% jump from the previous year (Source: RBI 2016).
Savings and Investment
offered e.g. by Paytm and Mobikwik or those linked with mobile service providers, like Airtel or Vodafone are gaining traction, business solution start-ups are now following suit. Budipay, a Unified Payments Interface based app (yet to launch in India) aims to work to digitally facilitate bulk transfer payments and is focusing its efforts on enabling wage payments and pension. Novopay, another wallet is currently expanding its network of retailers who accept payments through their wallet product. Eko has innovated a semi-closed wallet for rural-urban migrants who earn a monthly income of 10,000 to 15,000 in cash and are economically active. The wallet enables the users to remit money back home, using their mobile phones. The wallet also enables basic bill payments and is piloting payments at stores that have an established POS payment mechanism, like chemists and organized retail of groceries.
Digital solutions tapping business networks are aimed at facilitating the flow of funds digitally. In the process, they facilitate quick payments and improve availability of credit to the cash-based units in the network.