The primary hypothesis of this paper is that, despite the promise of increased reach and efficiency gains, these new approaches are fraught with challenges. High-touch engagement at the point of sale is often still necessary, especially for low-income clients.
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Qualitative research tools for market research: Experiences from MetaMon research
In the recently conducted research on money management metaphor, we have modified some existing market research (including design research and ethnographic) tools to decipher the intuitive and spontaneous responses from the field.
Aadhaar Enabled Public Distribution System in East Godavari
The hugely ambitious, policy initiative of transferring the vast majority of central and state government benefits, entitlements and subsidies, as e-money, directly into the UIDAI Aadhaar linked accounts of the eligible beneficiaries was announced by the Prime Minister of India on the 26th of November 2012 at the first meeting of the National Committee on Direct Transfers.
Given the scope and scale of work involved and the rudimentary state of the agent network, and indeed the technology infrastructure needed, to make G2P happen in India, the work being contemplated is truly massive. MicroSave case studies on barriers and best practices in some of the UIDAI demonstration districts show that front-end processes are usually manual (even where technology could be effectively employed). They involve multiple hand-offs (often between unconnected departments, such as block officials to bank managers in the district, who have virtually have no reporting responsibilities to the district administration); lack clarity on ownership, roles and responsibilities; and have limited opportunities to learn from more optimal solutions that might have emerged elsewhere. The problem is further compounded by significant variations across districts in: (a) the level of maturity and automation (IT or technology enablement) within the state or the district, and within the specific beneficiary programmes; and (b) the motivation and ownership of the officials driving the programmes.
But there are important and laudable successes emerging, which we document in Aurangabad and in East Godavari; although East Godavari is also the site of experiences that highlight some of the many challenges that lie ahead.
Aadhaar Enabled Direct Benefit Transfer in East Godavari
The hugely ambitious, policy initiative of transferring the vast majority of central and state government benefits, entitlements and subsidies, as e-money, directly into the UIDAI Aadhaar linked accounts of the eligible beneficiaries was announced by the Prime Minister of India on the 26th of November 2012 at the first meeting of the National Committee on Direct Transfers.
Given the scope and scale of work involved and the rudimentary state of the agent network, and indeed the technology infrastructure needed, to make G2P happen in India, the work being contemplated is truly massive. MicroSave case studies on barriers and best practices in some of the UIDAI demonstration districts show that front-end processes are usually manual (even where technology could be effectively employed). They involve multiple hand-offs (often between unconnected departments, such as block officials to bank managers in the district, who have virtually have no reporting responsibilities to the district administration); lack clarity on ownership, roles and responsibilities; and have limited opportunities to learn from more optimal solutions that might have emerged elsewhere. The problem is further compounded by significant variations across districts in: (a) the level of maturity and automation (IT or technology enablement) within the state or the district, and within the specific beneficiary programmes; and (b) the motivation and ownership of the officials driving the programmes.
But there are important and laudable successes emerging, which we document in Aurangabad and in East Godavari; although East Godavari is also the site of experiences that highlight some of the many challenges that lie ahead.
Mobile Money in Afghanistan
Abdullah is working on mobile money as part of a project called “Financial Access for Investing in the Development of Afghanistan” funded by USAID. The key focus of the project is on using mobile money to transfer government benefits/ salaries. In addition, he also talks about the challenges that are unique to Afghanistan such as security, cultural restrictions, terrorism, etc. He also talks about the features of M-Paisa, the learning, and challenges from its implementation.
Can UIDAI be a Saviour of Financial Inclusion?
Financial inclusion efforts in the last six years have yielded disappointingly little. The BC model, despite its promise as a vital tool for financial inclusion and for G2P payments, has several drawbacks and its proposition for the unbanked poor is far from compelling. These deficiencies are now well understood and amongst other progressive steps undertaken, the Aadhaar platform from the UIDAI is increasingly recognised as a way of overcoming many of the barriers. This Note examines how UIDAI and Aadhaar platforms offer a solution to the many challenges that have undermined the BC model. It also brings out the lessons learned from select pilot programmes in a few districts that have received considerable attention (from media and others) for their innovative and outcome oriented approaches leveraging Aadhaar. Also outlined are challenges that would need to be surmounted, despite the potential and promise behind UIDAI platforms.