Inclusive Finance India Webinars
The session reflected on expectations from Small Finance Banks to respond to the MSEs clarion call for credit demand as they strive to stay afloat amidst the economic crisis. The session deliberated on knowing the critical “essentials” for the SFBs to help businesses bounce back and devise innovative ways to rebuild the micro-enterprise sector by unlocking the access to credit. The webinar discussed pointed prescriptions and options for enabling adequate credit flow to the micro-enterprise sector.
The pandemic vividly pronounced the glaring need for building and strengthening the financial and economic resilience of the low income individuals, households, enterprises and communities in the informal sector. The session reflected on the tenets of larger policy framework on provision of social security at core. Various other dimension of building financial and economic resilience around infrastructure for digital access of entitlements etc needs were discussed in alignment with the challenges faced by such communities in ground. The session entailed discussion on highlighting and clearly articulating principles and critical pivot points on national policy of migrant labor in times of digital technology.
The panel will broadly entail discussion on groundwork required for transitioning small businesses to digital mode esp on how various stakeholders interact and engage with each other to provide a seamless experience to small businesses. It will have specific discussion around the role of technology companies in facilitating the expansion of financial, information and communications technology infrastructure—for a safe, reliable and low-cost provision of digital financial services to all relevant geographical areas, especially underserved rural areas while targeting the Next Billion. It will also cover the rules of engagement between the two critical players in the Digital Financial Services ecosystem from the supply side – Financial Service Providers (FSPs- Payment banks, Credit providing agencies, Payment systems etc) and Data Aggregators.
Nationwide lockdown has resulted in complete disruption of economic activities and fall of aggregate demand. It has resulted in large scale reverse migration negatively affecting the scale and flow of domestic remittances. While there has been multiple discourse on structuring a more meaningful and flexible financial system suitable for catering to the needs of migrants, not many have taken into consideration on identifying data backed current trends and insights. It will be extremely critical to understand how the segment has responded and coped with the crisis and offer appropriate avenues for them to remain resilient. A clear articulation on strategies to improve and build migrant’s resilience basis data led evidence is much needed. In this context, the objective of the webinar is to propose pointed prescriptions and options for building resilience of migrants. The discussion will contribute to improve our understanding of the current financial situation of migrants and their families, discuss strategies to better capture this data, identify & understand emerging trends in remittances, and explore opportunities to improve the design of financial products that target the migrant population. The “new normal” is probably a transitory phase to a future that cannot be predicted looking at pre-COVID information and hence understanding current trends and trajectories is a vital policy input to designing financial systems for economic well-being of informal sector.