Vast majority of people in the village do not have access to withdraw or deposit money easily. It is these people that have to be touched and given an access to financial services. Mobile phones today outnumber bank ATM machines and bank branches. It is one such eco-system that encompasses almost everyone today.
The eco-system established by mobile phone is all inclusive, distribution network created can become a point of service that can provide financial services and act like a bank branches. All the agents in the MNO network can become an easy access points that will offer financial services at a much lower cost. Looking at existing banking practices a mobile phone transaction is more than 70% lessexpensive than a banking transaction.
This enables systems to provide services to the BPL (Below Poverty Line) consumers without letting go of business profitability.