What It Takes To Make An Inclusive And User-centric Financial Future?

One of India's revolutionary innovations, UPI, introduced in 2016, has transformed the payments landscape in the country. There are over 300 million consumers and nearly 500 million merchants on the platform. About 40 per cent of all payments in India are now digital and the platform processes over 11 billion transactions monthly.

However, rural India and underserved communities still lag behind in this inclusion. Mann Deshi Foundation and Mann Deshi Mahila Bank's Founder Chetna Gala Sinha, while speaking at the Fintech Festival India, New Delhi, shared the inspiring story of Kalpana, an entrepreneur who overcame challenges in accessing formal financial services. Sinha highlighted the potential of ONDC in empowering similar individuals by showcasing their business success through digital transactions. She also emphasised that "We should never give the poor solutions meant for the poor." The statement underlines the need for inclusive and effective solutions tailored to the specific needs of underserved and marginalised communities in the country.

For Women’s World Banking Vice President (FSP Advocacy Network & Developmemt), Swati Choudhary, serving women in the financial sector effectively requires a three-pronged approach. Firstly, move beyond the "niche" mentality. Recognise that designing solutions for women can be win-win situations, as they often address broader needs and benefit everyone. Secondly, bridge the digital divide by ensuring inclusive design that avoids unintended exclusion due to varying levels of access and technical knowledge. Finally, focus on tailored and frictionless solutions for women entrepreneurs, both in urban and rural contexts. This involves building awareness, ensuring merchant acceptance of digital payments, offering relevant products like insurance and credit and utilising trusted ecosystems and cluster approaches to facilitate easy discovery and access to financial services. By implementing these strategies, financial service providers can empower women and contribute to greater financial inclusion.

Commenting along similar lines, an Aditya Birla Capital representative emphasised the significance of open and collaborative ecosystems like ONDC, which empower users and foster competition within the financial sector. Platforms like ONDC, which empower user choice and promote competition within the financial sector, are essential.

To include users beyond metro cities, seamless KYC integration is vital. Key stakeholders and innovators need to improve centralised KYC infrastructure to allow smooth and secure identity transfer across different entities, ensuring a frictionless transition between unregulated and regulated transactions. India has over 100 languages; hence, effective communication is one of the barriers. Local language integration is critical. Experts suggested that by leveraging AI translation tools and biometric authentication, financial services need to become accessible in local languages, overcoming the language barrier and reaching the broader Indian population. Addressing these aspects will pave the way for a more inclusive and user-centric embedded finance landscape in India.

The balancing act between customer experience and business viability is crucial. Findi Chairman Nicolas Smedley acknowledged the challenge faced by many organisations in India, where impressive digital adoption rates are not always accompanied by sustainable business models. He pointed out a fully digital KYC solution as an example of how innovation can address both customer needs and long-term financial health.