Vortex Engineering, a company focused on developing sustainable products for rural India, decides to develop an ATM to meet this segment’s banking demands. The ATM is powered by solar energy consumes just 4 per cent of the total energy that is required by a conventional ATM to function. It has the capability to serve Indian villages — indicating an opportunity for over half a million ATMs across the country. Read how Vortex Engineering’s unique ATM can help deal with the problem of low banking penetration in the third of the five-part series from India Brand Equity Foundation’s Innovations from India: Harbingers of Change.
The delivery of financial services to all sections of society at an affordable cost has been an area of concern for governments around the world. Financial services include services such as credit, savings, and insurance. To date, banks have been considered the most preferred channel for providing financial services. However, the banking channel has its own limitations, especially in nations that have a large rural population and diverse geographical conditions. This results in a low concentration of banking systems in rural areas. Rural locations account for around 70 per cent of the total population of India, but have access to only 30 per cent of the total bank branches of the country. Read the rest of this entry