MicroSave is undertaking a series of research studies to support the financial inclusion agenda in India and explores:
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The financial instruments and channels currently used by the poor to save and remit money;
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Needs/perceptions of the low income segment for savings and remittance services;
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Reasons for the current dormancy amongst no-frills accounts;
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The cost to poor customers of using existing channels and their willingness to pay for improved/more convenient channels;
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Optimal outlets/organisations to act as banking correspondent agents; and
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The cost to banks, technology platforms and different banking correspondents of delivering no frills accounts and other services.
Funded by Omidyar Network, a variety of research programmes are underway. The first report of the series on Dormancy in No Frill Accounts (NFA) has been published, and the second in line is Cost and Willingness to Pay (CWP). CWP is a study conducted by MicroSave in the states of Rajasthan, Tamil Nadu and Uttar Pradesh. This multi-region study focuses specifically on the services business correspondents provide in rural areas - and whether or not this particular customer segment thinks the greater convenience and other potential benefits are worth paying for.
Some of the key findings are: Close to 70% of study participants indicate willingness to pay for BC services. Bank transactions are difficult for most respondents. Travel to and from the branch, direct and indirect costs incurred, wait time while there, literacy barriers, poor IT and other back-office support, and unhelpful bank staff are the reasons they cite for preferring the local and more personalised convenience of business correspondents.
To read through the state reports, please click on the links below:
CWP Reports- Rajasthan, Tamil Nadu and Uttar Pradesh