Innovative Models to Address Rural Needs: Technology Innovations

This presentation discusses the potential for technological innovations in rural areas and the impact they have had on development. It argues that:

• There is a huge potential for technical innovations in rural areas;
• Some of the technical innovations with tremendous potential are teller machines, telephones, mails, PC banking, and internet mobile;
• E-banking could be a significant component of the product delivery mechanisms of the strategic marketing plans of MFIs in the future;
• Main challenge to e-banking is to develop a value proposition that would be as convenient to use as cash;
• Any e-banking solution should try to add value to the consumer by increasing access to funds, making deposits and funds transfer easier, and increasing portability of money.

The presentation discusses innovations in delivery channels and presents an in-depth case study of Equity Building Society, stressing on its market-led approach:

• Realizing the need for access to banking services by the poor people living and working in remote rural areas, Equity introduced mobile banking units;
• This resulted in all-round improvement in results in terms of increase in deposits, savings, client base, and the number of centers.

The presentation concludes by briefly touching upon other technical innovations such as biometric technology, mobile/ATM payments, and cell phone banking.