Topic of Discussion: Bridging the Credibility Gap---Increasing the Rural Reach
Source:
Compiled by KNIPL on the basis of Presentations made in Financial Planning Congress, June 2007
Abstract:
Panel Members:
• Mr. Shailesh Haribhakti, CFPCM, Managing Partner & Chief Executive Officer, Haribhakti Group.
• Mr. Rajiv Kumar Gupta, CFPCM, Country head- Retail Agency & Institutional Alliances, SBI Life Insurance Company Ltd.
• Mr. Avinash Singh, Assistant Editor, The Indian Express.
• Dr. Rakesh Khurana, Chairman KNI Pvt. Ltd.
• Mr. Ajay Bagga, CFPCM, CEO, Lotus India AMC Pvt. Ltd.
Major Issue
• Huge Delivery gaps exist in rural areas (rural areas).
• The Financial Service Provider should come up with simple & low cost products.
• And there is a serious need of spreading financial literacy among the customers of villages and towns.
How to increase the rural reach?
According to the panel members the answer to this question is through technology, infrastructural development, low cost products and education of the consumer. The panel members stressed on a hi-tech approach to reach the rural population rather than a high – cost approach.
According to the panel members, the existing channel of distribution should be leveraged not only in financial services but in the other areas as well. Banks should give proper training to their staff in order to reach the rural market effectively and efficiently. This will bring economies of scale and reduce transaction cost for companies.
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