Latest news with #financialinclusion
Finextra
8 hours ago
- Business
- Finextra
Bridging the Urban-Rural Divide: How Integrated Financial Platforms Are Driving Financial Inclusion: By Kunal Jhunjhunwala
India's digital economy has been nothing short of remarkable; UPI transactions crossed 16.99 billion in January 2025 alone, fintech startups are flourishing, and banking is now more mobile than ever. However, beyond the metros and Tier-1 cities, the picture is not quite as ideal. In India's rural and semi-urban pockets, millions still struggle with limited access to formal financial services, creating a digital divide that mirrors socio-economic inequalities. The real problem in these areas is that financial needs are rarely limited to just one service; they often span payments, savings, credit, and risk protection. Hence, a solution that has the combined ability to address all these needs through a single access point is required, removing the friction of fragmented services. This is where integrated financial platforms play a crucial role, working in the background and quietly reshaping the experience. They are bridging the gap between first-time access and long-term financial inclusion by making payments, banking, credit, and insurance available through a single, user-friendly interface. Power of Localized Solutions The need for integrated financial platforms in rural areas is critical, largely due to low digital literacy. While 40.2% of urban residents use online banking, only 21% in rural India do - revealing a gap that reflects not just digital access, but digital confidence. This digital divide is further deepened by the lack of nearby bank branches and unreliable internet connectivity, forcing people to travel long distances—often at a high cost of time and money, to access basic financial services. On top of that, language barriers make it even harder for many marginalized sectors to navigate and adopt digital tools, limiting their participation in the formal economy. Integrated platforms address these challenges using mobile-first technology and offline-to-online (O2O) models. Through smartphones and offline-compatible devices, users in remote regions can access essential financial services without the need to travel long distances to physical branches. Complementing this, these platforms have adopted multilingual interfaces and intuitive designs, offering easy-to-use apps in various regional languages. This enables users from diverse linguistic backgrounds to direct services easily and confidently. Furthermore, assisted commerce models have emerged as a key solution. Local agents, often community members themselves, guide users through digital transactions, helping them onboard despite limited technological experience. For example, integrated platforms often collaborate with Kirana stores and service agents who double as trusted financial facilitators. A customer visiting their neighborhood Kirana store for groceries can now also pay utility bills, withdraw cash, or explore credit options — all with real-time assistance from a trusted local agent. This hyperlocal model builds trust and integrates financial access into familiar, everyday routines, encouraging gradual and sustained digital adoption. In parallel, these platforms prioritize user security by providing transparent and easy-to-understand information about data protection practices. This clarity plays a vital role in fostering trust and encouraging participation among communities traditionally wary of digital systems. Plan In Action Integrated financial solutions are the silent architects of change in underserved communities, touching sectors like agriculture, entrepreneurship, and women's empowerment—each finding its own path to growth and inclusion. For example, local shop owners, tailors, or mechanics can now access formal credit without the traditional barriers of collateral or complicated paperwork. By creating digital profiles and submitting simplified applications, they can apply for small business loans through mobile-based services. This access to timely credit enables them to invest in inventory, expand their services, or hire additional help, sparking local economic growth. Similarly, smallholder farmers facing weather-related uncertainties and crop failure now have easier access to micro-insurance schemes. These can be enrolled directly via mobile phones or through nearby agents, ensuring they can recover quickly from natural setbacks. With this, rural women, especially those running home-based businesses or self-help groups, are also reaping the benefits of integrated financial services. With access to digital wallets, savings accounts, and secure payment systems available in regional languages, these women can easily receive payments, pay bills, and build credit histories. This newfound financial autonomy enables them to scale operations and invest in future growth. Look Out for Geographical Divide The gap in digital payment adoption is stark, only 16% of rural populations engage in digital payments, contrast to 46% in urban areas. This divide highlights the urgent need for strategic partnerships, policy reforms, and infrastructure investments to close the gap. Moreover, financial inclusion goes beyond account ownership; it provides pathways for individuals to actively engage in the formal economy. By aligning integrated platforms with government schemes, millions can gain access to essential financial services and find new growth opportunities. With technology as an enabler and the right partnerships in place, financial inclusion can evolve from a long-standing aspiration to a nationwide reality.
Khaleej Times
18 hours ago
- Business
- Khaleej Times
Fintech revolution: Borderless finance driving inclusion with GTN
The future of fintech is undeniably here, defined by accessibility, personalisation, and seamless integration of financial services into everyday life. As the financial landscape evolves, investing and money management are becoming embedded in our daily transactions, with GTN leading this revolution by helping institutions adapt while driving financial inclusion across the Middle East and North Africa (Mena) region. Financial technology has democratised money management. Investment opportunities once reserved for the wealthy are now available to everyday consumers through intuitive, automated solutions like round-ups, auto-sweeps, dollar-a-day investing, and micro-portfolios. These innovations foster financial habits previously inaccessible to most people, transforming how we build wealth. The brilliance of modern fintech isn't just about access, it's about integration. API-driven architectures allow users to interact with finances naturally and effortlessly. Whether it's automatic micro-portfolio contributions or smart savings tools within banking apps, these services blend seamlessly into existing digital experiences, requiring minimal conscious effort from users. Remarkable shift in Mena In Mena, this transformation is accelerating rapidly. The Mena region has seen a remarkable shift in recent years, moving swiftly to embrace fintech innovation and positioning itself as a serious contender on the global stage, thanks to forward-thinking regulation and a surge in digital engagement. The UAE, Saudi Arabia, and Bahrain have implemented progressive initiatives including regulatory sandboxes and national strategies like Saudi Vision 2030, creating fertile ground for fintech growth and digital banking. As a result, investment opportunities once limited to high-net-worth individuals are becoming widely accessible. This revolution is reshaping the competitive landscape, with financial institutions facing mounting pressure to meet elevated customer expectations. Today's consumers demand experiences characterised by speed, convenience, transparency, and personalisation. Standards set by other digital industries. Banks and brokers throughout Mena are racing to modernise their offerings with platforms that deliver fast, secure, and intuitive financial tools. GTN excels GTN excels in this environment as a fintech leader providing cutting-edge solutions that help both established institutions and emerging startups scale efficiently. Their API-driven platforms and customisable solutions enable seamless integration of advanced trading and investing capabilities without the limitations of legacy systems. This empowers institutions to remain competitive amid rapid market changes. Organisations like ADIB Securities have embraced GTN's technology to create user-friendly trading platforms appealing to millennial and Gen Z investors. These platforms offer personalised experiences and unified access to diverse financial products, from stocks to bonds to commodities all within a cohesive environment. In today's digital transformation era, success comes through collaboration rather than competition between fintechs and traditional institutions. Together, they're building an inclusive, efficient financial ecosystem accessible to all. GTN stands at the forefront of this movement, helping Mena financial institutions unlock new opportunities while ensuring broader financial inclusion. The journey towards borderless finance is underway, with fintech leaders like GTN driving innovation. As technology evolves, the vision remains clear: to make financial services accessible, personalised, and integrated into everyday life, ensuring everyone can build the financial future they deserve.
Zawya
19 hours ago
- Business
- Zawya
The role of credit data in enhancing ICV in Oman
The Sultanate of Oman is undergoing a significant economic transformation, driven by its Vision 2040 strategy that emphasizes diversification, innovation, and sustainability. Central to this transformation is the concept of In-Country Value (ICV), a framework designed to maximize the retention of economic benefits within the national economy. ICV aims to stimulate local business development, enhance employment opportunities for Omanis, and build resilient supply chains across sectors. In parallel with these strategic goals, Oman has recognized the importance of robust digital and financial infrastructure. One key initiative in this domain is the establishment of Mala'a Credit Bureau. As the national credit registry, Mala'a plays a crucial role in strengthening the financial ecosystem by enhancing transparency, reducing lending risks, and promoting financial inclusion. This article explores the vital synergy between Mala'a Credit Bureau and the ICV strategy. It highlights how credit data intelligence, when effectively leveraged, can catalyze economic development, support local enterprises, and empower Omani citizens to participate actively in the nation's economic future. Mala'a Credit Bureau was established under the supervision of the Central Bank of Oman to provide a centralized platform for credit information sharing. Its core mandate is to collect, manage, and disseminate credit data from banks, financing companies, telecom providers, utilities, and other entities that offer credit services. Key functions of Mala'a include: Generating credit reports for individuals and companies, Offering credit scoring services, Providing credit monitoring and alerts, andEnabling data-driven decision-making for lenders Mala'a improves market efficiency by minimizing information asymmetry between borrowers and lenders. It promotes responsible borrowing and lending, which is critical for a stable and inclusive financial system. Importantly, it facilitates access to finance for previously underserved segments, including SMEs and startups. SYNERGIES BETWEEN MALA'A AND ICV GOALS The alignment between Mala'a Credit Bureau and ICV strategy is multifaceted. Both aim to empower local enterprises, increase economic resilience, and ensure long-term sustainability. Major areas of synergy include: • Data-driven supplier development: Mala'a provides credit histories and risk assessments that help identify financially sound local suppliers. This supports procurement teams in selecting reliable Omani vendors. • SME credit facilitation: SMEs often face challenges in securing financing due to lack of credit history. Mala'a enables the creation of digital financial footprints, allowing SMEs to access funding and participate in ICV-linked tenders. • Enhanced transparency: Credit data increases market discipline and builds trust among stakeholders, from investors to consumers. This is essential for the credibility and sustainability of ICV programs. Small and medium enterprises are the backbone of Oman's economic diversification efforts. However, limited access to finance remains a critical barrier. Mala'a addresses this by: Providing reliable credit data that lenders can use to assess SME risk profiles, Enabling SMEs to monitor and improve their credit standing, and Facilitating the creation of sector-specific financial products. Moreover, Mala'a's data infrastructure supports fintech innovation, enabling platforms that offer microloans, invoice financing, and peer-to-peer lending. These tools are particularly beneficial for entrepreneurs participating in ICV programs, allowing them to scale operations and meet procurement requirements. FACILITATING HUMAN CAPITAL DEVELOPMENT Human capital is a core component of ICV. Mala'a contributes indirectly to its development by: • Enabling educational and professional development loans based on individual credit profiles • Providing insights into population-level financial behaviors, helping policymakers identify gaps in financial literacy and inclusion • Supporting job creation in credit-related services such as fintech, risk analysis, and customer support By integrating credit data into national education and employment strategies, Oman can ensure a more financially capable and skilled workforce. IMPROVING FINANCIAL HEALTH Financial sustainability is essential for long-term ICV success. Mala'a helps local businesses achieve this by: Offering tools to monitor credit obligations and manage debt, Encouraging timely repayments and responsible financial behavior, and Supporting businesses in planning for expansion through credit analytics. This not only benefits individual companies but also strengthens entire value chains, reducing the risk of defaults and disruptions. INTEGRATING MALA'A WITH OTHER NATIONAL ICV PLATFORMS The effectiveness of Mala'a can be amplified through integration with other government platforms: • Procurement portals: Linking credit data with e-tendering platforms helps assess vendor reliability. • Tax and business registries: Streamlining data sharing supports due diligence and compliance monitoring. • Labour and training systems: Insights from Mala'a can inform targeted skills development initiatives. Advanced analytics, including artificial intelligence, can enhance predictive modeling for supplier performance, fraud detection, and credit risk. CHALLENGES AND OPPORTUNITIES Despite its benefits, the implementation of Mala'a and its integration with ICV is not without challenges: Data privacy (Ensuring data protection and compliance with privacy regulations is critical); Adoption rates (Encouraging SMEs and institutions to actively use Mala'a services requires ongoing awareness and incentives); and Data quality: The accuracy and completeness of data submissions must be maintained to ensure reliable outcomes. On the other hand, opportunities abound: • Regional expansion: Mala'a can serve as a model for credit bureaus across the Gulf Cooperation Council (GCC). • Investment attraction: A strong credit infrastructure increases investor confidence and enhances Oman's competitiveness. • Public-private collaboration: Partnerships with fintechs, banks, and training institutes can unlock new value streams. Mala'a Credit Bureau is a strategic enabler of Oman's ICV objectives. By improving access to credit, supporting SMEs, enhancing transparency, and facilitating data-driven policy making, Mala'a contributes to a more inclusive and sustainable economy. Key recommendations include: Promoting SME engagement through awareness and capacity building; Strengthening inter-agency data sharing protocols; Integrating Mala'a insights into national ICV reporting and evaluation frameworks; and Investing in cybersecurity and data governance As Oman continues its journey toward economic diversification and digital transformation, the alignment between credit infrastructure and local value creation will play a defining role in shaping the nation's prosperity. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Arab News
2 days ago
- Business
- Arab News
Saudi Arabia opens June round of Sah savings sukuk with 4.76% return
RIYADH: Saudi Arabia has opened the June subscription window for its savings sukuk product 'Sah,' offering a return rate of 4.76 percent, as part of its 2025 issuance calendar. Organized by the National Debt Management Center under the Ministry of Finance, Sah is the Kingdom's first savings-focused sukuk designed for individual investors. The Shariah-compliant, riyal-denominated product is part of the local bonds program aimed at fostering financial inclusion and increasing personal savings. The June issuance opened for subscription from 10 a.m. on Sunday, June 1, until 3 p.m. on Tuesday, June 3. The bonds are structured for a one-year term with fixed returns, and profits will be paid at maturity. The minimum subscription is set at one bond with a value of SR1,000 ($266.56), while the maximum subscription per investor is capped at SR200,000. The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which targets raising the national savings rate from 6 percent to 10 percent by 2030. The June issuance of Sah offers a slightly higher return compared to May, rising to 4.76 percent from the previous month's 4.66 percent, reflecting marginal shifts in market conditions. While both issuances maintain the same structure — Shariah-compliant, riyal-denominated sukuk with a one-year maturity and fixed returns — the June window opened slightly earlier in the month, running from June 1 to June 3, compared to May's window from May 4 to May 6. Subscription terms remain unchanged, with a minimum investment of SR1,000 and a cap of SR200,000 per individual. Both offerings are accessible through the same network of approved financial institutions. Sah is promoted as a secure, fee-free savings instrument offering stable, government-backed returns. Eligible investors must be Saudi nationals aged 18 and above and must subscribe through approved platforms provided by SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al-Rajhi Capital. The sukuk is issued monthly, and the return rate for each tranche is determined based on prevailing market conditions. NDMC CEO Hani Al-Medaini said in March that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.
Finextra
5 days ago
- Business
- Finextra
Terrapay enables ccross-border remittances for Wave Mobile Money users in Mali
In a strategic move to enhance cross-border remittance services in West Africa, TerraPay, a global money movement company, has partnered with Wave Mobile Money, one of the country's leading mobile money providers. 0 This partnership enables Malians to receive money from family and friends abroad directly into their Wave mobile wallets, creating a faster, more accessible, and cost-effective way to access international remittances. Through this collaboration, TerraPay's global payment network now facilitates remittance flows from multiple Money Transfer Operators (MTOs) across the US, Canada, and Europe to Mali, all through a single streamlined integration. This unique model ensures that all Wave users in Mali can instantly receive funds, further strengthen financial inclusion and offer a secure alternative to informal remittance channels. Over 80% of Mali's population uses mobile phones, with many using them for mobile money and digital wallets. In the region, digital wallets are an essential tool for financial inclusion, providing access to financial services for millions of people, especially those who are unbanked. With mobile money platforms leading the way, the landscape is evolving rapidly. Speaking on this partnership, Karamokho Badiane, Regional Head of Business Development at Wave Mobile Money said: 'We are excited to join forces with Orabank Mali and TerraPay to revolutionize payment solutions and enhance financial accessibility for our customers. This strategic collaboration allows us to harness TerraPay's global payments infrastructure alongside Orabank Mali's deep expertise in remittance services, empowering us to expand our reach and provide even greater value to our users. Our shared commitment to financial inclusion will help break down barriers and offer more accessible solutions for individuals across the country. With TerraPay's cutting-edge technology ensuring safe and reliable money transfers, we are confident that this initiative will play a crucial role in fostering economic growth and financial empowerment.' Willie Kanyeki, Vice President - Sub Sahara Africa at TerraPay, echoed this sentiment, saying, 'Our partnership with Wave Mobile Money marks a significant milestone in our mission to power the borderless money movement. By enabling instant, cost-effective, and fully compliant remittances from key markets like the US, Canada, and Europe, we are simplifying financial access and driving financial inclusion in Mali.' With this partnership, TerraPay and Wave Mobile Money are making it easier than ever for Malians abroad to support their families back home, reinforcing the role of digital financial services in shaping the future of remittances in West Africa.
