For an open and efficient society, it is essential that every member should have access to public services and goods. Banking being in the nature of a public good, it is essential that the services should be available for the entire population without any discrimination. The poor sections of the society expect that the financial system would take care of their money by keeping it safe and secure. Low transaction costs, minimum paper work, easy access to various products and convenient operating time are some of the factors that can make life easier for the poor. According to experts, commerce with the poor is more viable and profitable if there is a possibility and ability to do business with them. In fact, provision of small, affordable products can work wonders to rope in low-income families into the financial sector. Most of these low-income group families are from the agricultural sector, migratory labourers and seasonal and unskilled workers with a fluctuating income. Banks can play a pivotal role in financial inclusion which will not only be a socially progressive step but a lucrative business proposition as well. Most economists and companies are looking at developing rural markets. However, analysts say that even as Indians are great savers with overall domestic savings rate of 31 per cent, there is very little awareness about financial literacy or credit counselling. At this point in time, policymakers need to understand that even as they have financial plans and programs for masses, there is an urgent need to educate citizens about financial planning. We require financial trainers who can educate people on money management. Experts are of the opinion that it would be a good idea to include financial planning skills in school education. A survey reveals that the global average age of imparting financial literacy to children is 11.3 years. However, India still has a long way to go to introduce financial education in the school curriculum, in the entire nation, not just in select few elite schools. It is a well-known fact that technology will play a decisive role in promoting financial inclusion and financial literacy. Real time information on markets and products can help in investment decision making which can be enabled through secure technology platforms. A financially aware consumer will always be a help in developing products that are relevant and lead to financial innovation. The seed of financial awareness can be sown by right planning, timing and taking into confidence various stakeholders. It is time the policymakers knew that improving banking facilities’ penetration is only one of the pillars of this strategy, the other key component being making the nation financially literate.
The Pioneer
