Both the schemes are based on an innovative approach of using Aadhaar based platform as a unique financial address for transferring financial benefits to the accounts of beneficiaries and helping them to withdraw/use such benefits as per their convenience.
The principal reasons for this are probably the lack of confidence resulting from the lack of a physical presence and the high cost of marketing the brand name. Newcomers from the non-banking sectors can be existing non-financial institutions that offer a limited range of financial services through electronic channels. Volkswagen in Germany is one example. They offer consumer credit.