Many government campaigns claim that inclusive growth is possible through mobile phones for financial services . Success of mobile banking in rural areas is yet to be established .Challenges are wide and complex for rural people to access internet with available technologies . Studies have proved that for banking penetration into rural areas of a country , mobile banking stands as the best alternative.
Yes, as an innovative front of inclusive finance, I do think that mobile banking service in rural area contribute to inclusive growth. Usually people in rural area are scattered around and it is not economic for the operation of a community bank. Now mobile phone is very popular and most people can have one in hand.The service provides easy access to remitting or receive remittance and make online payment to distant payee .
Indeed, For countries like India, China, Indonesia, Brazil etc. mobile banking is proving to be a engine of inclusive growth. The only bottleneck is network speed. Once this problem will be taken care of with the advancement in communication technology, mobile banking will grow leaps and bounds and will rapidly boost inclusive growth.
Yes, yes, yes! Dear @Aloysius, mobile banking service in rural area contribute to inclusive growth! I hive attached fine article about and a link to another one!
http://thescipub.com/PDF/ajebasp.2013.89.94.pdf
Yes Aloysius! as Ljubomir depicts, mobile banking is really helpful in rural areas contributing to inclusive growth. Bangladesh has a booming industry of mobile user which is contributing to millions of dollars exchange among rural people even hard-to-reach areas which is called as e-cash, b-cash etc. see the literature on this issue.
Yes it helps provided people can afford to buy phone with these features. Many people does not know English language as in case of India or many other countries wherein business language is English and native is different. Mobile with screen in local language is more meaningful to achieve inclusive growth
As rightly said by Dear Ljubomir, mobile banking services can work as a potent tool for financial inclusion and can help in inclusive growth. It can help in extending banking services to unbanked population. However, in rural areas most of the people are illiterate and not aware about the mobile banking services. Therefore, people should be made aware about its key features, necessarily security features.
Dear Sarath, proper model and implementation sincerity is required. It has been reported to be very successful in Kenya.
Agree. It may work well in the developing country context but I have not seen much evidence in the regional communities where I lived and worked. I have also written on the topic of "Banking in the Bush"
I think that these are two specific issues, (1) digital inclusion and (2) social inclusion. Link between the inclusive growth and banking is identifiable through social banking and microcredits.
No matter the level the answer is YES! Mobile banking services are necessary conditions for financial inclusion in urban and rural communities. mobile banking services will make cost of financial transactions less expensive. Access to savings and credit will be facilitated. Exchange will be facilitated with less cost. In rural areas of Ghana for instance, small scale traders and poor families receive small sums of money through MTN money transfer, Zain mobile money and Tigo Cash. We make varied forms of payments (electricity bills, school fees, hospital bills, DSTV subscriptions etc). In fact payments system are smooth with mobile banking services.
Apparently, the answer is yes, but after having a survey in rural area (Kolhapur District, Maharashtra State, India), the findings were stunning. People are reluctant to use mobile banking, instead, still people are taking leaves or they are off from their fields just to withdraw or deposit cash. They come early to get in earlier in line and wait for few hours for banking transactions like deposit, withdrawal and for printing passbook. Fund transfers, bill payments are far away. But, in the days to come, if awareness is created and training is provided, they it may lead to inclusive growth.
https://www.researchgate.net/publication/280570323_Consumer_acceptance_and_mobile_banking_services_in_Bangladesh?ev=prf_pub
Chapter Consumer Acceptance and Use of Mobile Banking Services in Bangladesh
The obvious answer is yes. It is part of inclusive growth. It is part of digital inclusion. It is part of social growth.
- Both digital and social inclusion are necessary. The financial inclusion will follow. Mobile banking is also a device to get everyone on the board provided the platform is affordable and accessible by the masses.
Yes! Mobile banking is one of the ways to enhance financial inclusion in the rural areas. Though the existing evidence is limited, with increasing mobile connectivity in the rural areas, we can expect more concrete evidence in the near future.
Dear @Aloysius, this is fine article and a blog itself.
Will Mobile Banking in Rural Areas Make Life Easier? by Preston Packer
"...Mobile financial services may offer convenience or access in different ways to different sub-populations. One group that could especially benefit from mobile services is rural residents. Because rural residents may have to travel longer distances to visit financial institutions compared to urban consumers, mobile banking services may be particularly convenient.
However, there are also countervailing factors that could make usage less likely. To learn more, the 2014 survey included an oversample of residents in rural areas. Thirty-three percent of residents in non-metropolitan (non-metro) areas reported using mobile banking services in the prior 12 months, compared with 39 percent of respondents in metropolitan (metro) areas. Similarly, a smaller percentage (17 percent) of non-metro respondents reported using mobile payments in the prior 12 months relative to respondents in metro areas (23 percent).
Rural residents appear to use mobile financial services at least somewhat less than those in non-rural areas, why would this be? Results from this survey point to some combination of differing technology, access to broadband services, services offered by financial institutions, and consumer awareness of those services..."
http://blog.flexcutech.com/blog/will-mobile-banking-in-rural-areas-make-life-easier
Yes, to some extent, mobile banking helps in inclusive growth via financial inclusion. Today, in this digital era, mobile and internet facilities are available to rural people. So people can access banking facilities without visiting a branch. but as rightly pointed out by Kedar Vijay Marulkar, the real picture is not same as what it should be! Forget about rural belts, even in urban areas people are hesitant of using i-net and mobile banking facilities! May be due to security issues and uncertainties associated with on-line transactions.
- Badges
- Science topic
- Similar topics
- Biological Science
- Biochemistry
- Biochemical Techniques
- Analytical Chemistry
- pH