U.S. Secretary of the Treasury Timothy Geithner on Wednesday said that the U.S. Government would continue to support financial inclusion, a key to achieve more balanced and inclusive economic growth.
Mr. Geithner met with a group of India's leading financial entrepreneurs along with local representatives from American financial service companies to discuss innovative technologies and business models being used to deliver banking services to new populations.
The participants discussed their experiences with creating new markets, expanding access to financial services, attracting investment and scaling up successful approaches.
“India has been remarkably effective at extending the reach of the financial sector to people living without access to traditional forms of banking,” said Mr. Geithner. “Our task is to ensure our government's continued support and encourage advances in expanding financial inclusion, a key part of achieving more balanced and inclusive economic growth.” Attendees also discussed how both countries can work together to advance financial inclusion using new technology.
Several participants were involved in the launch of more than two-dozen mobile or card-based ‘branchless banking' pilots in India over the last five years. The pilots have already attracted more than 10 million previously unbanked customers.
Earlier in his trip, Mr. Geithner visited a storefront in a village outside of Delhi that offered mobile banking services to its customers.
Financial transactions are conducted via text message and cell phones act as debit cards and point-of-sale devices.
Launched in February 2009, the project now has more than 350 outlets across Delhi, serving 42,000 customers transacting upwards of Rs. 10 lakh daily.
