“The previous Focus Note 99 “”Can MNOs Lead the Way for Banking the Excluded? (1 of 2)”” discussed the differentiating capabilities of MNOs that could help them attain leadership in electronic or mobile-banking (e/m-banking). There are, however, several challenges and barriers that Indian MNOs would need to surmount. These challenges are discussed in detail and include: India’s large and fragmented market; the nature of customer relationships and channel readiness; the hurdles to achieving a compelling proposition for the agent network as a channel; and the emerging digital alternatives to mobile money in India.
The next few years are likely to witness consolidation in the financial inclusion space, with exit or acquisition of smaller entities, as MNOs and other large corporates expand their presence and scale. One can also expect greater convergence of the mobile and banking sectors, and enhanced collaboration. It is too early to assess who will eventually emerge as the winner!”

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