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Authority of India . This demonstrates not only that developing markets are still far from being saturated in terms of mobile connections , but also that mobile operators need to devise new operating models to maximize earnings from the lesser-tapped rural market . They will need to offer value-added services and partner with companies in other sectors , such as financial services or retail , to lessen the entry risks and cross-sell products .
Within ecosystems such as rural India are myriad cultural considerations that present challenges to efficiency but that also offer opportunities to visionary companies . In India itself , one of the shortcomings behind the lack of Internet penetration to date is that providers haven ’ t made content available in all of the several hundred languages spoken there . A significant majority — 88 percent — of Indians are non-English speakers , yet slightly less than half of this segment of the population are Internet users . According to estimates made by the Internet and Mobile Association of India , enabling content in local languages could increase the current Internet user base by 39 percent , three-fourths of that growth coming from rural areas .
Financial Services
Financial services play an important role in promoting economic growth and in reducing poverty and social inequality at the grassroots level . However , although the financialservices sector in many of these markets has grown at double-digit levels since 2010 , much work needs to be done to expand access , especially for people who remain excluded from the formal banking system owing to their inability to provide formal documentation , their remote location , or just their lack of awareness . There are enormous opportunities for banking and non-banking companies alike to tap into the informal consumer and small business sectors , particularly through the use of technology that makes it easier and less expensive to use banking services . The most competitive companies are those that come up with the business models and technology to fit local needs .
Grupo Famsa , a large Mexican retailer of household goods , has initiated a novel approach to expand credit to consumers who wouldn ’ t be likely to apply on their own initiative . Famsa staff target districts within a specific distance from each store . They knock on doors , explaining that they can provide credit and assess creditworthiness using key questions captured via a mobile device . An evaluation is made within 72 hours , so the customer quickly knows how much credit is available at a local Famsa store . Door-to-door credit assessments now drive about 10 percent of the company ’ s revenue .
In India , solar-powered ATMs and non-banking entities that operate as so-called white-label ATMs are critical when it comes to reaching those who have been excluded . The power grid is insufficient for all of the country ’ s needs , and the vast network of far-flung Indian villages is ill-suited for traditional bank branch networks . Vortex Engineering is a leader in the field of solar-powered ATMs , offering machines that can operate in temperatures up to 122 degrees Fahrenheit without air conditioning , consuming one-sixth the power of traditional ATMs at around half the operating cost . In Brazil , banks are focusing on alliances with grocery stores , drugstores , and gas stations , employing point-of-service machines , barcode scanners , PC-enabled systems , and ATMs to lower entry costs and risks . In 2016 , Banco do Brasil , the country ’ s largest bank , faced with the need to shut down 400 branches in the midst of the country ’ s recession , launched a mobile application that uses voice recognition , enabled by advanced artificial intelligence , to work as a bank assistant . This was a first step in the bank ’ s plan to focus on digital innovation to increase profitability . Already , some 40 percent of Banco do Brasil ’ s client transactions are made through mobile phones .
However , although mobile payments led by the private sector have gained strong acceptance in markets including Kenya , Uganda , Bangladesh , and Pakistan , participating companies face the challenge of converting largely over-the-counter transactions into stored value wallets so that they can provide a wider spectrum of banking services , such as credit or insurance , on these mobile-linked accounts . For this to happen , the growth markets need to improve both their digital infrastructure and their online literacy — a need that opens opportunities for companies with the foresight to go into such markets and provide these advances .
HQ on the Ground
When we look at the plans for 21stcentury mega-development such as the Delhi-Mumbai Industrial Corridor , then at outlying villages where people are still farming in much the same ways their grandparents did , we see a world in which the needs are complex , varying from region to region and even village to village , and rapidly changing in ways that aren ’ t always easily predictable . Companies have to be on the ground to identify where there ’ s a gap , how they can fill it , and at what price they can do so .
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