Financial Inclusion- News and Views - October 2013


October 2013


The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space, to provide a knowledge base that will help build understanding around how to accelerate the poor’s access to high-quality financial services.

While digital payments have been accepted as the first stage towards achieving financial inclusion, there are many challenges for service providers to make the linkages and bring the unbanked into the formal financial net. This month’s lead stories include a) ‘Fighting poverty profitably’, a study by the Gates Foundation of payment systems in more than 30 countries that brings out key lessons for sustainable business models while expanding digital payments, b) a blog post by Rodger Voorhies that highlights the need for cooperation from all stakeholders; policymakers, bankers and non-banks should work together to enable innovations through sustainable business models and c) a speech by H. R. Khan, Deputy Governor, RBI on the trends and challenges in payment systems in India.


Lead Stories


Fighting Poverty Profitably

A team from the Gates Foundation studied the economic models of payment systems in more than 30 countries using a new four-part framework, “ACTA” (Account, Cash-in-cash-out, Transactions, and Adjacencies). The survey of country systems reveals that successful systems most commonly follow one of three economic models: Account balance-driven profitability, Transaction and account balance-driven profitability and Usage-driven profitability. The four main findings from this extensive study are a) usage-driven models create the strongest case for providers to serve the poor, b) system design, minimum scale and operational efficiency are the three methods that consistently offer opportunities for reducing operating costs across each element of the ACTA framework, c) adjacency revenue beyond just interest on account balances will be vital for financial inclusion over the long run and d) market structures have a major impact on how providers reach the poor. While the study delineates the most successful practices, for each country the specifics of local market dynamics, regulations, and related providers need to be paired with user needs to develop an effective system.

Extending Financial Services to the World's Poor is Within Reach

This post by Rodger Voorhies points out the potential of innovations through digital payments system to lift the financial excluded out of the poverty trap. However, he cautions that though the tools for revolutionising the lives of the poor are there, this big task can be done only when policymakers, investors, bankers and the private sector work together.

Payment Systems in India: Reflecting on some recent trends and future challenges

This speech by H.R. Khan, Deputy Governor, RBI, talks of the present system in India, the challenges before all stakeholders, especially on points of securing electronic payments, interoperability, standardisation and creating awareness amongst customers on using these new modes of payments.

Section I: Policy – the latest from India’s policymakers

Implications of New Bank Licences

Shri. B. Mahapatra, Executive Director, RBI, September 28, 2013

Consultation Paper on ‘USSD-based Mobile Banking Services for Financial Inclusion’

TRAI, September 20, 2013

Enabling Urban Microfinance

Dr.Deepali Pant Joshi, Executive Director, RBI, September 16, 2013

Financial Inclusion in India: Journey So Far and Way Forward

Dr. K.C.Chakrabarty, Deputy Governor, RBI, September 6, 2013

Inclusive Development

Dr.Raghuram Rajan, Governor, RBI, September 4, 2013

Section II: News and Views Digest – the latest from India and abroad


A practical agenda in financial inclusion: What RBI Governor Dr Rajan needs to do?

RBI defends letting corporates apply for banking licences

Raghuram Rajan brings Wall Street flavour to Mint Street

Only 40,000 villages in India have bank branches: KC Chakrabarty

RBI sets up panel to frame vision for financial inclusion

RBI Governor Raghuram Rajan’s report to be lynchpin of financial sector reforms

RBI sets target of opening 800 new bank branches in HP by FY15

Banks to face challenges of financial inclusion, HR

Opportunity to reinvent approach to financial inclusion: Rajiv Lall, IDFC

Kenya's financial inclusion story, and ours

RBI validates e-KYC through Aadhaar

Challenges before economy; will deal with them one at a time: Raghuram Rajan


Winners and Losers on the Road to Financial Inclusion

Better Than Cash, or Just Better Cash?

More on Why OTC Makes Sense for Kenya

Financial Inclusion has made a difference

Vivid Profiles of Mobile Account Users in Rural Mexico

G20 Leaders Endorse Enhanced Financial Inclusion Indicators

Financial Inclusion,Stability, Integrity, and Consumer Protection

Innovation in Person to Government Payments in the Philippines

Graduation Approach: Improving the Lives of the Poorest in Peru

G2P payments & Mobile Money: Opportunity or Red Herring?

Section III: Research – surveys and studies on expanding access to financial services

Client Suitability: Role of Market Research in Microinsurance

Premasis Mukherjee, MicroSave Briefing Note 145, September 19, 2013

Kenya’s Mobile Phone Financial Services: A Revolution in the Financial Landscape

Prof. Njuguna Ndung’u, CBS, Governor, Central Bank of Kenya, September 18, 2013

Transaction Economics for Technology Enabled Branchless Banking

Mukesh Sadana , MicroSave, September 09, 2013

OECD/INFE Toolkit to Measure Financial Literacy and Financial Inclusion: Guidance, Core Guidance and Supplementary Questions

OECD, September 2013

Protecting New and Vulnerable Clients as Financial Inclusion Proceeds

Centre for Financial Inclusion, September 2013



Leveraging Aadhar Authentication Protocols to Address Systemic Risks in Financial Inclusion

Policy Brief August, 2013

Expanding Financial Inclusion through Social transfers: A sustainable model

Policy Brief July, 2013

In the media

Strong signals for mobile banking

Financial Express, 10 October 2013

What hinders partnerships in payments and transfers

Financial Express, 06 August 2013

Speeding financial inclusion in India

Mint, 17 July 2013


Can we fight poverty profitably?

Standard Setting Bodies to Promote Financial Inclusion

New focus at the RBI

Ways to Transform into Cash-lite for Financial Inclusion


Editor: Sumita Kale can be contacted at

The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. The Centre is supported by the Bill & Melinda Gates Foundation.

© Indicus Centre for Financial Inclusion. All rights reserved. 30th September 2013.


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