Abstract

http://ssrn.com/abstract=2084159
 


 



Are Banks and Microfinance Institutions Natural Partners in Financial Inclusion?


Ignacio Mas


University of Oxford; Tufts University

Akhand J. Tiwari


affiliation not provided to SSRN

Alphina Jos


affiliation not provided to SSRN

Denny George


affiliation not provided to SSRN

Krishna Uma Mahesh Thacker


MicroSave

Nitin Garg


affiliation not provided to SSRN

Raunak Kapoor


affiliation not provided to SSRN

Shivshankar V.


affiliation not provided to SSRN

Swati Mehta


affiliation not provided to SSRN

Vartika Shukla


affiliation not provided to SSRN

May 14, 2012

MicroSave Focus Note, Forthcoming

Abstract:     
In India, the business case of the BC model is yet unclear. The main limiting factor is very low customer activity rates. Low usage is compounded by the prevalence of unduly low pricing models on the basic savings proposition, which is based on a perception that customers have low willingness to pay for savings services. These two factors are of course linked: usage and willingness to pay are both a function of the strength of the value proposition that customers perceive. Ventures that have incorporated a remittance service have found both higher usage and the ability to charge higher transaction prices. However, the limited geographic coverage of these services limits the value of the remittance service. Where the value proposition is based on remittances, scale and network effects are all-important.

Number of Pages in PDF File: 19

Keywords: business correspondents, agent banking, microfinance, access to finance, financial inclusion

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Date posted: June 15, 2012  

Suggested Citation

Mas, Ignacio and Tiwari, Akhand J. and Jos, Alphina and George, Denny and Thacker, Krishna Uma Mahesh and Garg, Nitin and Kapoor, Raunak and V., Shivshankar and Mehta, Swati and Shukla, Vartika, Are Banks and Microfinance Institutions Natural Partners in Financial Inclusion? (May 14, 2012). MicroSave Focus Note, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2084159 or http://dx.doi.org/10.2139/ssrn.2084159

Contact Information

Ignacio Mas (Contact Author)
University of Oxford ( email )
Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom
Tufts University ( email )
Medford, MA 02155
United States
Akhand J. Tiwari
affiliation not provided to SSRN
Alphina Jos
affiliation not provided to SSRN
Denny George
affiliation not provided to SSRN
Krishna Uma Mahesh Thacker
MicroSave ( email )
B-52, Mahanagar Extension
Kapoorthala
Lucknow
India
Nitin Garg
affiliation not provided to SSRN
Raunak Kapoor
affiliation not provided to SSRN
Shivshankar V.
affiliation not provided to SSRN
Swati Mehta
affiliation not provided to SSRN
Vartika Shukla
affiliation not provided to SSRN
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