Rural banking services may cross $1 trillion by 2030

A $200-bn revenue boost is expected by 2030 for the fintech sector with a major focus on the rural landscape. A potential opportunity is there to be unlocked with this number game - Ajeet Kumar Singh, MD, CEO and Co-Founder, SAVE Solutions, tells Bizz Buzz

Financial Literacy

• Only 121 rural banks and 2,38,000 ATMs serve rural population
• 75 digital banking units launched in 2022
• Measures taken to strengthen financial literacy after pandemic

Mumbai: Challenges are galore, however, rural banking services segment is set to cross $1-trillion mark by 2030 in India. Talking to Bizz Buzz, Ajeet Kumar Singh, MD, CEO and Co-Founder, SAVE Solutions, says: “A $200 billion revenue boost is expected by 2030 for the Fintech sector with a major focus on the rural landscape, which would formulate into a $1 trillion industry. A potential opportunity is there to be unlocked with this number game.”

The transformative unique challenges do not restrict the rural banking sector to mere transactions in the current era. In this giant Indian subcontinent there are six lakh villages for whom distance is not just measured by kilometers, but acts as a major financial roadblock. Still, innovations in the sector of rural banking bring back hope amid this geographical diversity.

Bringing mobile convenience to the doorstep is a roadmap for bridging the existing gap. Rural communities and financial services backed by the services of retail and post office is the arrangement of well-established communities within the arena of work. To break down the complex financial landscape, the introduction of literacy programs to empower individuals is important along with navigating the knowledge of the land, he said.

However, low financial literacy and limited infrastructure are worth acknowledging hurdles. Furthermore, these challenges have the capacity to be turned into opportunities. Hence, efforts are made to write new narratives by accommodating tailored services for rural customers via the launch of digital wallets and data analytics.Correspondence banking companies are the uncelebrated heroes of the domain. They weave the threads of financial inclusion, providing the infrastructure, managing networks, and offering technology solutions. Additionally spreading the extent of banking services to the nooks and corners, he added.

Astonishingly, only 121 rural banks and 2,38,000 ATMS serve a population of 64.61 per cent of India’s rural population as per the available statistical reports. The year 2022 witnessed the launch of about 75 digital banking units as an urgent response to the pandemic along with strengthening financial literacy.

In the symphony of challenges and innovations, the crescendo of financial inclusion resonates. It’s not just about banking; it’s about enabling dreams, one rural community at a time.