Integration and Interoperability of Financial Services

This paper presents findings from a study conducted by MicroSave on the need for integration and interoperability of financial services for the poor. The study aims to understand consumer aspirations and needs, based on their current experience of formal, and informal financial service providers. It also analyzes the business opportunity for banks and banking correspondent network managers, arising from consumers' aspirations. In addition, the study focuses on supply side challenges, including regulatory and policy enablers. MicroSave conducted this study through primary market research across select urban and rural geographies and supplemented it with secondary analysis. Findings indicate that rural consumers:

• Have complex and mature needs for banking and financial services;
• Want banking facilities and features at par with mainstream savings account holders;
• Are unable to have access to many of the services they need due to lack of adequate integration and interoperability of banking correspondent (BC) channels.

The study presents recommendations in the areas of creating a business-friendly climate, integration of BC channel with mainstream banking channels, greater use of BCs by government departments, adoption of standards, and driving client protection.