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Journal ArticleDOI

Fostering Rural Financial Services through Technology: The Case of FINO PayTech

06 Jul 2017-Asian Case Research Journal (World Scientific Publishing Company)-Vol. 21, Iss: 01, pp 81-117

AbstractThe case depicts a situation faced by a company in the business of financial inclusion services. FINO PayTech Limited (popularly known as FINO) was the first mover in the blue ocean of financial inclusion business in India. It is quoted as the world’s largest banking agent manager. Formed in Mumbai in 2006 with the mission to solve problem of financial exclusion, FINO entered the market riding on the biometric smartcard and hand held devices technology and had since grown exponentially. It served more than 64 million end customers all across India adding average of one million new customers to the formal financial system every month. FINO’s uniqueness came from factors such as diversified product offering (which ranges from savings, credit, payment services, remittances, insurance, financial literacy, and so on), a robust technology, a dedicated channel of bandhus (banking correspondents/agents) and mature processes. The top leadership envisaged that FINO could not remain limited to savings and withdrawals activity if it had to reach many more million customers. The credit and micro insurance services had to be provided at the doorstep of the people and only then could FINO possibly project itself as a multi-product delivery company and that’s the challenge management was encountering when scaling up in a constrained regulatory framework.

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Citations
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Journal ArticleDOI
Abstract: This paper aims to revisit the role of perceived risk in online banking, using an alternative view on trust as a moderator on the relationship between perceived risk and behavioral intention (BI). With this aim, the conceptual model was proposed to examine the impact of perceived risk on BI directly and indirectly via unified theory of acceptance and use of technology 2 along with its interactionist relationship with trust.,Structural equation modeling technique is used to analyze data collected from 677 bank customers via personal contact using a self-administered questionnaire.,The results indicate that perceived risk as a multi-dimensional construct has a direct and indirect impact on BI via performance expectancy, social influence, hedonic motivation and price value. Moreover, it was found that trust moderates the relationship between perceived risk and BI.,This study suggests that banks should create a trust-building mechanism in the online banking environment and develop certain risk management strategies such as providing detailed and thorough information, money-back guarantee and reassurance services to enhance confidence among the customers to use such services. The banks should also devote valuable efforts in designing website interface with improved security features to facilitate usability and reliability of online banking services.,The present study makes an important contribution to the existing literature on e-commerce, especially in the field of online banking, by proposing an interactionist model between perceived risk and trust. The proposed model has never been examined in the relevant literature and could be used to provide a solid theoretical foundation in the context of online banking adoption.

16 citations

Journal ArticleDOI
04 Sep 2021
Abstract: FinTech and its interaction with banking is widely discussed today as a new phenomenon notwithstanding the relationship between technology and financial services is not a new topic. Most of the research focuses on innovations and determinants of their adoptions including among other innovations in the payment system. The studies dedicated directly to PayTechs as a special kind of a FinTech entity and its market activity are a relatively new field of research. This paper aims to fill this gap. The multidimensional character of this exploratory research causes the necessity to apply various research methods, including both inductive and deductive methods, together with comparative analysis. The theoretical analysis conducted in the paper for defining PayTechs from the perspective of business model and market behavior was based on an in-depth literature review. In this section, the inductive method and comparative analysis were mostly applied. The empirical part of the paper includes the analysis of quantitative data published by the National Bank of Poland (NBP), Central Statistical Office (GUS), and Bank for International Settlements (BIS). The subject of the case is the Polish Payment Standard referred to as BLIK implemented in Poland in 2015 for mobile payments. The BLIK diffusion is measured by the number of entrants and acceptants as well as the scope of transactions while the adoption by the number of customers using BLIK in everyday transactions. The results present the market behavior of BLIK as an open business model and the key success factors of BLIK adoption and diffusion and the determinants for further open payment innovations’ development. The newly developed definition of PayTechs, the identification of the major components of the PayTech open business model, as well as the indication of the key success factors of adoption and diffusion of m-payments, constitute the original contribution of the paper.

2 citations

29 May 2019
Abstract: The strategy of rural revitalization releases strong rural financial demand and presents a diversified development pattern. However, at present, the imbalance between the supply and demand of rural financial funds is prominent. Therefore, it is necessary to fully broaden the supply channels of rural finance and solve the supply of financial services for rural revitalization. Rural credit cooperative organizations with cooperative financial nature in Guangdong Province have developed rapidly, playing an active role in filling the gaps in formal financial services, alleviating the difficulty of farmers' loans, and promoting agricultural production and credit cooperation development. From the aspects of rural economic situation, rural financial development power, institutional environment, and inclusive financial development, the paper systematically evaluates the rural financial environment in Guangdong and compares spatial and temporal verticals of rural finance in Guangdong. In the future, it is necessary to construct a rural financial differentiation supervision system from the aspects of regulatory objectives, regulatory subjects and targets, regulatory basis, rules, etc., and to provide protection for rural financial differentiation regulatory policies in terms of policies, talents, and funds.

1 citations


Cites background from "Fostering Rural Financial Services ..."

  • ...more flexible financial living water to inject momentum into rural development [2]....

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Journal ArticleDOI
TL;DR: The results show that the efficiency of rural financial information service is increased by 20% after using the improved method in this paper, which has certain use value.
Abstract: The development and improvement of agricultural financial information service system is of great significance to the development of rural modernization, the improvement of rural comprehensive competitiveness and the construction of new socialist countryside. The construction of rural financial information service platform is directly related to the quality of rural financial information service, and directly affects the construction of new socialist countryside. In order to solve the problems of information collection, processing and integration of rural financial information service platform in China, the diversification, personalization, timeliness and accuracy of information demand are difficult to be met, and the organization and operation mode of the platform are not perfect. In this paper, based on the intelligent sensor, the whole digital transformation is realized through the reference of big data. Based on this, this paper establishes the research model of rural financial information service platform under the smart financial environment. From the current situation of the construction and application of rural financial information service platform in China, it studies the basic situation of the construction of rural financial information service platform in China from three aspects of functional scope, service mode and operation mode, and draws the improvement conclusion. The results show that the efficiency of rural financial information service is increased by 20% after using the improved method in this paper, which has certain use value.

1 citations


Cites background from "Fostering Rural Financial Services ..."

  • ...In the same way, the candidate k itemsets are generated by connecting frequent k-1 dimensional itemsets, and the candidate k+1 dimensional itemsets are pruned through the infrequent itemsets in the candidate k itemsets until all frequent itemsets are generated [13]....

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Journal ArticleDOI
Abstract: The purpose of the study is to compare the growth rate of commercial banks with microfinance banks, under the shadow of financial exclusion, and to provide a way forward for commercial banks. As we are living in the age of transformation, businesses cannot survive without evolution and necessary transformation. The Telecom sector of Pakistan suffered at the hands of Over-The-Top services, so is happening with the commercial banking. Telecom companies have chosen microfinance banking as their alternative revenue stream which is affecting commercial banks. Microfinance banks, typically mobile phone banking, are showing more growth in deposits and loans than commercial banks. Along with the analysis of industry reports, commercial banks’ managers are also interviewed to perform an accurate analysis of the situation. It has been concluded that commercial banks are suffering due to financial exclusion and their deposits and lending rates are also decreasing due to microfinance banks. It is important for commercial banks to formulate their strategies and introduce new services according to the needs and preferences of their customers and they also need to increase banking awareness of their potential customers.

1 citations