The India Post Payments Bank (IPPB), an agency under the Department of Posts (DoP), has launched an initiative to create and innovate solutions for financial inclusion by collaborating with the country’s fintech start-up community. The initiative is called Fincluvation.
According to a press release by the Ministry of Communications, the country has made rapid strides in the financial technology space with hi-tech innovations like the Unified Interface Payment (UPI) and the biometric identification card, Aadhaar. An official said that Fincluvation is an “industry-first” initiative that will serve as a powerful platform to mobilise the start-up community to build meaningful products that will broaden the reach of digital finance. With a combination of IPPB’s technology stack, DoP’s doorstep service network, and the techno-functional acumen of start-ups, the products of the initiative can deliver unmatched value to the citizens of the country. Successful pilots from the initiative can then mature into long-term partnerships.
Fincluvation will be a permanent IPPB platform, facilitating solutions with participating start-ups. IPPB and DoP collectively serve close to 430 million customers through neighbourhood post offices and at their doorsteps via more than 400,000 employees, making it one of the largest and most trusted postal networks in the world, the press release wrote. The event is an open call for start-ups to participate, ideate, and develop market-intuitive and specific products and services. The release noted that start-ups are encouraged to develop solutions for creditisation or digitisation. Participants can work to bring convenience by integrating traditional services with digital payment technologies like making the traditional money order service an interoperable banking service.
The government is also inviting any market-led solutions that can help solve any other problem relevant to IPPB and/or DoP that will serve target customers. The intersection of technology with financial services, coupled with traditional distribution networks, is opening up a new set of business opportunities. Conventional models of technology procurement-led product creation by banks often lack value in user experience leaving a huge gap between customer expectations and service delivery, the release said.
Traditional technology firms fail to meet these expectations with a deficit of ownership in product creation. Indian citizens have varied and complex needs that need careful thought, empathetic product design, and rapid prototyping among users, it added. With Fincluvation, the government wants to crowd in the best minds to develop technology-led financial solutions for the country, the Department of Posts Secretary stated.
Data from a recent report showed that the global fintech market size was $110.57 billion in 2020 and is estimated to 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 looking to support, foster, and fund fintech solutions. For example, earlier this week, the Vietnamese government launched the student fintech start-up contest Finnovation 2022.
As OpenGov Asia reported, participants can introduce their ideas and business models to leading experts in the fintech field to receive companionship and legal support, as well as approach investors, seek capital for start-ups, and commercialise products and services. It aims to raise society’s awareness of innovation and intellectual property in the field of financial technology and digital transformation.
