Recently, the India Post Payments Bank (IPPB) introduced the Fincluvation platform. This maiden initiative aims to promote and cultivate innovative solutions in sync with fintech startups. The ultimate goal is accelerating financial inclusion among the underserved and unserved population.
About Fincluvation
The term ‘Fincluvation’ combines financial inclusion and innovation. This platform will be a permanent fixture of IPPB, co-creating inclusive financial solutions with participating start-ups. Through combined efforts with the Department of Post (DoP), IPPB serves nearly 430 million customers from post offices or their doorsteps. They achieve this through an extensive network of over 4,00,000 Post Office employees and Gramin Dak Sevaks. This massive and trusted postal network stands as one of the world’s largest.
Startups are encouraged to develop solutions that align with tracks like Creditization, Digitization, and Market-Led Solutions. Experienced Fincluvation mentors further aid startups, fine-tuning products according to customer needs and aligning go-to-market strategies with IPPB and DoP operating models.
Necessity of Fincluvation in India
The intersection of technology and financial services, along with traditional distribution networks, generates a slew of business opportunities. The conventional model of technology procurement often lacks value in the user experience, creating a significant gap between customer expectations and service delivery. Traditional technology firms also fail to meet customers’ service expectations due to ownership deficits in product creation. Therefore, to cater to Indians’ complex needs, empathetic product design and rapid prototyping among users are crucial.
The Concept of India Post Payments Bank
Launched by the Prime Minister in 2018, IPPB is wholly owned by the Government of India. As a payment bank under the Indian postal department, it functions through a network of post offices and nearly 4 lakh postmen. The Reserve Bank of India (RBI) governs IPPB, which envisions being the most accessible, affordable, and trusted bank for common Indians. IPPB aims at eliminating barriers for the unbanked and under-banked populace, reaching the last mile. It is dedicated to promoting a less cash economy and contributing to Digital India.
About Financial Inclusion
Financial inclusion is about ensuring that individuals and businesses, especially vulnerable groups such as weaker sections and low-income groups, have access to suitable financial products and services. This includes access to institutional players at an affordable cost in a fair and transparent way.
Other Financial Inclusion Initiatives
Various other initiatives for financial inclusion include Pradhan Mantri Mudra Yojana, Stand-Up India Scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, Atal Pension Yojana, Pradhan Mantri Jan Dhan Yojana, among others.
UPSC Civil Services Examination, Previous Year Questions
With reference to financial inclusion in India, the Nationalization of Banks, Formation of Regional Rural Banks, and Adoption of village by Bank Branches are considered crucial steps. Through these steps, banking services have expanded and reached more people with increased credit to agriculture and small-scale industries and allied sectors.
