Why does Financial Inclusion Matter for Economic Development?
Financial inclusion promotes the expansion and sustainability of an economy by providing affordable financial products and services to all. It focuses on enabling individuals and businesses to safely carry forward financial transactions, make payments, save money, and avail of credit and insurance services responsibly.
Many people around the world need access to formal financial institutions. This is more prominent in India as the majority of its population lives in SURU regions and remote areas. To empower individuals and retailers in such areas, there is a need for platforms that make digital banking and other financial services are safe and accessible to all.
Here’s where Fintech organizations like Payworld play their part. Small businesses and individuals associated with Payworld help take financial and banking services to more remote areas. People in these remote areas can withdraw money from a local close by shop who is also a Payworld retailer using the Aadhar-enabled Payment System (AePS) or Mini ATM (m-ATM), which functions similarly to an ATM. Retailers in rural areas can conduct transactions using the financial platform provided by Payworld.
Financial services, such as those listed below, are made available to people living in SURU regions through our retailers.
- Aadhaar Enabled Payment System (AePS): It makes it simple for customers to carry out essential banking operations.
- Domestic Money Remittance: It enables customers to transmit money safely and quickly to any IMPS and NEFT-compatible bank in India.
- Mini ATM: Customers can withdraw cash from any of the Payworld retailer’s outlet.
- Bill Payments: It helps customers to pay utility bills, such as those for electricity, water, gas, fixed-line telephone service, and other municipal taxes from one single place.
Payworld has built a significant footprint in India with more than 10,00,000 plus active retail touch points spread across 630 districts and 28 states. This enables service providers to enter new market segments of banking in rural India.
Financial Inclusion and Its Importance for the Indian Economy
Financial inclusion is vital for the economic development of India because it ensures that all individuals and businesses have access to financial services, such as bank accounts, loans, and insurance. This can stimulate economic growth by providing people with the financial tools and resources they need to invest, start businesses, and participate in the economy.
Financial inclusion can also help to reduce poverty by providing people with the means to save and build wealth and by making it easier for them to access credit and other financial services.
Fintech platforms like Payworld play a crucial role in promoting financial inclusion in rural areas of India by providing people with access to various financial services. Such platforms have normalised digital payments and increased access to digital payments and online banking.
Financial Inclusion Fuels Economic Growth
An economy grows when the people of that economy have better financial access that facilitates their day-to-day living and helps families and businesses plan for everything from long-term goals to unexpected emergencies. Financial inclusion is particularly useful in addressing income inequality and poverty by increasing opportunities for disadvantaged populations in emerging economies. At the macro level, expanding financial inclusion has the potential to enable inclusive and sustainable socioeconomic growth for everyone.
In India, the fintech industry has transitioned from traditional to convenience. It is currently well-positioned to embrace the quickly spreading influx of digitalization and expand its services across urban and rural geographies.
Payworld is a steadfast cornerstone of India’s progress, economic expansion, and development. It’s a fintech platform that has contributed to the advancement of financial inclusion in India.