Before we discuss application of technology to achieve financial inclusion, let us convince ourselves of the imperative of financial inclusion. The financial sector, amongst others, performs two important functions. It enables inter-temporal transfer of income – you can transfer surplus income of one period to a lean period and you can borrow in a lean period against future income.
For whom is this more important than the poor, who have to face the vagaries of employment and income? Access to financial sector also enables the vast multitude of self-employed urban as well as rural poor to engage in productive activities and live with dignity.