Paper
Remittances: ICICI Builds Technology-based Financial Literacy Services and Remittance Products for Rural Markets (Innovation Brief)
Can financial literacy and accessibility address remittance delivery services?
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This paper elaborates ICICI's initiative in developing rural kiosks as a means to help rural population access remittance facility easily. The two main objectives of this initiative are:
- To make untapped rural markets aware of financial services available;
- To create systems for easy access to remittance delivery services.
The case study further elaborates the remittance innovation in three phases, as adopted by ICICI Bank, India's second largest bank. They are as follows:
- Designing and simplifying access through:
- Rural ATMs;
- Cash Agent Model.
- Designing the product;
- Financial literacy, marketing and launching the pilot product.
The paper then highlights the following challenges and opportunities that ICICI faced while implementing the pilot product:
- Competition from other banks and Western Union Money Transfer;
- Combination of access and financial literacy;
- Challenge to provide money at the door-step.
The paper concludes by stating that:
- Microfinance institutions would replicate the proposed model;
- Technology has the potential to address rural market issues and further strategy for growth.
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