Journey of Financial Inclusion Driven by Indian Banking Industry

Financial institutions, especially banks, have proved to be a boon for the economic development of a country like India. An attempt has been made in the present chapter to analyze the state of financial inclusion and the role of banking in achieving full financial inclusion in India. The journey of financial inclusion through banking in India has been critically appraised. Some of the important outcomes that can be highlighted are increased banking access of rural population in past few years together with the huge expansion in banking infrastructure in rural areas. Banking in India has been transformed with the introduction of PMJDY, BC Model, etc. Increasing trend has been observed in IMPS and M-Wallet penetration. North-eastern part of the country is still a challenge in the way of financial inclusion. The journey of financial inclusion on the wheels of Indian banking industry is still in search of the ultimate destination, and it will take miles to achieve full financial inclusion.

How Customer Analytics and Digital Technologies Drive Banks to Understand Consumer Awareness Towards Financial Inclusion

In today's switching economy, customers' needs are changing and they are demanding more transparency, higher involvement, and clear communication in day-to-day banking processes. The rationale behind carrying out the present research is to identify the role of customer analytics in the new digital customer journey in terms of enhancing their engagement, loyalty, and satisfaction. The present research emphasizes opportunities that would accrue to financial institutions after demonetization and collecting large amount of demographics, customer transaction, and account-related data. Primary data was collected from 300 customers through a structured questionnaire to know their perceptions about the role of customer analytics and digital technologies to build their confidence and capability to use financial services. This study brings out the customer analytics trends and identifies the reasons due to which banks are struggling to keep pace with the increasing demand of both digital savvy and traditional consumers.

Effectiveness of Financial Inclusion Initiatives

An inclusive financial system has been the major agenda of the Indian government over the past few years and several steps have been taken in this direction. The main purpose of the study is to assess the effectiveness of financial inclusion initiatives taken by Rajasthan government. A questionnaire was drafted and was sent to people from weaker section of the society who have been the beneficiaries of the financial inclusion initiative of the government. Research methodology adopted for the study includes descriptive statistics and one-way ANOVA was used to test the association/non-association between the variables. The study concluded towards lack of awareness and usage of financial inclusion initiatives, especially internet, mobile banking, and credit card. In terms of experience with financial services, respondents were positive towards interest on loans and help received by banking staff with respect to documentation and identification norms as well as branch timings. However, distance from the bank and the availability of ATM was an issue for them.

Customer Shareholding as a Radical Approach to a Sustainable and Profitable Relationship

Customer ownership is a new practice that seeks integration and customer loyalty. In this chapter, the authors try to analyze this hybrid status to deepen ties between the customer and the company. To this end, they developed, initially, a comparative study between the customer and shareholder mutualism to identify the similarities and differences between the two models. Secondly, they tried to analyze the role of the client in creating value by using the stakeholder theory. Finally, they dealt with the possibilities and limitations of the client as shareholder loyalty means.

Payment Banks and Small Finance Banks

Banking in India has taken various forms and has undergone severeral reforms as and when the markets needed. Because of the growing need, the banks today not only strive for greater profits but also have various social targets like the priority sector lending, setting up various branches in the rural areas, extending loans, encouraging innovation, and setting up new businesses and the like. One of the latest objectives of present day banks was financial inclusion as efforts taken before had not proved very fruitful. The RBI therefore has introduced the concept of differentiated banks where it intends to issue licenses for specialized banks like small and payment banks, infrastructure banks, and so on so that the banks could develop specialized skills and affect greater financial penetration so that the overall objective of financial inclusion could be met. The guidelines have been issued for the first kind of differentiated banks—small and payment banks—and applications have been invited for the same. Though the RBI has taken a very conservative approach for different kinds of banks to co-exist, it may prove to be a step in the right direction and help in greater financial inclusion.

Consumer Awareness Towards Financial Inclusion in India

This chapter focuses on researching the consumer awareness of people towards financial inclusion by conducting a study on Mahanagar Co Op Bank in Kharghar, Mumbai. The study adopted survey method to approach the respondents through a well-structured questionnaire. Stratum sampling method was used in order to select the sample respondents and collect data from those who are consumers of Mahanagar Co Op Bank Ltd, Kharghar Branch. A sample size of 150 consumers was taken. Following the data search, analysis was done by applying descriptive analytical tools like standard deviation and mean. The researcher used factor analysis, descriptive statistics, and one-way ANOVA in order to find the difference among the variables. SPSS software has been used for conducting the analytical tests. The results indicated an association between demographic variables and awareness and availing of financial inclusion services by the consumers of the bank. However, there was no association between demographic variables and some of the financial inclusion services.

Financing Millennials in Developing Economies

Young millennials (i.e., 18 to 24 years old) are not a primary market for the traditional banking system, especially in emerging economies. Despite the fact that almost 30% of college students have partial jobs, economic resources are limited and access to finance seems utopic. Banking services throughout the world but especially in growing economies do not fully serve students because of their lack of resources. Whether to pay for college studies or clothing, dinner or a weekend vacation, young millennials do not expect to receive banking credit from the big bank brands. In fact, this market segment is served by the retail industry with their own credit programs and financial services. In this chapter, the authors explore how young millennials have access to savings and credit, their spending behavior, their attitudes towards traditional sources of finance, and their financial inclusion and literacy. They also conducted an empirical exploratory study among college students in Mexico to hear firsthand how they managed their finances.

Boundless Banking

This chapter covers the evolution and growth of the personal banking industry (i.e., banking for customers) and its role in leading to financial inclusion. Since the personal banking industry deals with making banking an ease for customers. The chapter will emphasize the various milestones in the personal banking industry that were significant to improve and increase financial inclusion in India. Personal banking has come a long way from paper formats to now fully computerized formats and this all has been a boon for all customers in the banking industry in India. The chapter looks at the evolution of regulation, technological innovation, and customer acceptance as modern delivery systems outpaced the old. The research article's emphasis is on how the customer has found it easier to perform personal banking transactions over time.

Financial Inclusion Through Microenterprises of Rural SHGs

The elementary aim of microenterprises and Self Help Groups (SHGs) is to empower the impoverished populace, particularly of the rural areas, and furthermore provide financial sustainability so as to improve livelihoods. The pervasive twin threats of unemployment and exclusion from the financial framework in the rural areas are the major challenges to the economic and social development of India. A self-help group is a potent means to remove poverty in the same vein microenterprises contribute significantly to economic development and social stability by affording employment opportunities, thereby emerging as a vehicle through which low-income people can escape poverty. SHGs and microenterprises are a significant means for socio-economic transformation through financial inclusion. The objective of the chapter is to study and analyze the impact of microenterprises and SHGs on the financial inclusion of people in rural areas of Tribal South Rajasthan.

The Study of the Relationship Between the Slum Customers and the Factors Affecting Bank Account Opening Under Pradhan Mantri Jan Dhan Yojna in Lucknow

The study is conducted over 113 respondents from the slum area of Lucknow city with the objective of exploring the relationship between the slum customers and the factors affecting bank account opening under Pradhan Mantri Jan Dhan Yojna in Lucknow city. The data is collected using structured questionnaire consisting of both open-ended and close-ended questions. The area of sampling is selected on judgement basis and the data is collected using convenience sampling. It is found that there is a positive relationship between slum customers and the factors affecting bank account opening under Pradhan Mantri Jan Dhan Yojna.