An Initiative To Collab With Fintech Start-Up
India Post Payments Bank's ‘Fincluvation’: On the occasion of the 75th anniversary of Indian Independence & ongoing Azadi ka Amrit Mahotasav, India Post Payments Bank (IPPB), a 100% government owned entity under Department of Posts (DoP) announced the launch of Fincluvation– a joint initiative to collaborate with Fintech Startup community to co-create and innovate solutions for financial inclusion.
Fincluvation invites startups to Participate, Ideate, Develop and Market intuitive and tailored products and services that can be taken to the customers. Startups are encouraged to develop solutions aligned with any of the following tracks-
Creditization - Develop Innovative & Inclusive credit products aligned with the use cases of target customers and take them to their doorsteps through Postal network.
Digitization - Bring convenience through convergence of traditional services with Digital Payment Technologies such as making the traditional Money Order service as Interoperable Banking service.
Any Market-led solutions that can help solve any other problem relevant to IPPB and/or DoP in serving the target customers.
Intersection of technology with financial services coupled with traditional distribution networks is opening up new set of business opportunities. Conventional model of technology procurement led product creation by banks often lacks value in user experience leaving huge gap between customer expectations and service delivery. Traditional technology firms fail to meet these expectations with a deficit of ownership in product creation. India has made rapid strides in FINTECH space in Global Tech world leading innovations like UPI, Aadhar etc.
Fincluvation will engage startups to participate, ideate, develop and market intuitive and tailored products and services for the customers. It can help in meeting the varied and complex needs of the consumers through thoughtful, emphatic product design, and rapid prototyping among users. IPPB and DoP collectively serve close to 430 million customers. It helps develop technology -led financial solutions for India and allow the start-ups to work with IPPB and DoP experts to develop solutions and conduct pilots using the postal network and IPPB’s technology stack.
India Post Payment Bank (IPPB) launched by the Prime Minister Shri Narendra Modi on September 1, 2018 under the Department of Posts, Ministry of Communication with 100% equity owned by Govt. of India. It is governed by the Reserve Bank of India. It aims to remove barriers for the unbanked and under-banked and reach the last mile leveraging a network comprising 160,000 post offices (145,000 in rural areas) and 400,000 postal employees. Some other initiative favouring Financial Inclusion are Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojna (APY), Pradhan Mantri Vaya Vandana Yojana (PMVVY), Stand Up India Scheme.
Data from a recent report showed that the global fintech market size was $110.57 billion in 2020 and is estimated will grow to $698.48 billion by 2030, growing at a CAGR of 20.3% from 2021 to 2030. Fintech increases the speed, transparency, and security of transactions, which is why governments and organisations around the world are investing in the sector. For example, investment in UK fintech was seven times higher in 2021 than in the previous year, boosted by a record number of deals. Singapore also recently signed an agreement to broaden contactless and digital payments in all junior colleges and secondary and primary schools in the country. Digital payment infrastructure, including tap-and-pay terminals, will be installed in school canteens and bookstores.
India is among the top three Start-Up ecosystems in the world. Collaboration with startups across multiple sectors has led to amazing results as well. In each sector, where the government has partnered with the startups, the results have been phenomenal and amazing. Fincluvation is aimed at creating a powerful platform to mobilise the startup community towards building meaningful financial products aimed at financial inclusion. A combination of IPPB's banking stack, DoP's trustworthy doorstep service network and the techno-functional acumen of startups can deliver unmatched value to the citizens of the country.