Analysts at the Boston Consulting Group state that provision of mobile financial services (MFS) could raise India's financial inclusion rate in 2020 to 65% up from the projected 53%.
In a Telenor-funded study, "The Socio-Economic Impact of Mobile Financial Services - Analysis of Pakistan, Bangladesh, India, Serbia and Malaysia", they state that mobile service providers had inherent strengths that enabled them to play a strong role in the financial sector:
1. Focus on 'long-tail' unbanked customers
2. Availability of support infrastructure such as mobile handsets
3. Existing customer relationships
4. Strong brand recognition
5. Large distribution networks
They state that provision of mobile financial services could provide hitherto un-banked individuals with a wide range of financial services, e-government services and efficient welfare distribution enhancing GDP and tax revenues by 5% and creating 4 million new jobs in the Indian economy.
They conclude that a comprehensive regulatory framework including a first tier addressing the use of MFS agents, money laundering and terrorist financing, a second tier addressing consumer protection and payment systems and a third tier addressing the underlying framework such as data privacy, e-commerce, e-security, general banking, taxation and general telecommunications was vital for this to succeed.
In a Telenor-funded study, "The Socio-Economic Impact of Mobile Financial Services - Analysis of Pakistan, Bangladesh, India, Serbia and Malaysia", they state that mobile service providers had inherent strengths that enabled them to play a strong role in the financial sector:
1. Focus on 'long-tail' unbanked customers
2. Availability of support infrastructure such as mobile handsets
3. Existing customer relationships
4. Strong brand recognition
5. Large distribution networks
They state that provision of mobile financial services could provide hitherto un-banked individuals with a wide range of financial services, e-government services and efficient welfare distribution enhancing GDP and tax revenues by 5% and creating 4 million new jobs in the Indian economy.
They conclude that a comprehensive regulatory framework including a first tier addressing the use of MFS agents, money laundering and terrorist financing, a second tier addressing consumer protection and payment systems and a third tier addressing the underlying framework such as data privacy, e-commerce, e-security, general banking, taxation and general telecommunications was vital for this to succeed.
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