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Ensuring Financial Inclusion in Remote Areas through Fintech

BuyNSwipe, a DPIIT-certified financial technology company, was established in January 2017 under the Startup India program. Functioning on a B2B model, this tech-enabled hyper-local payments network provides digital financial and non-financial services to locals. The company collaborates with retail stores to offer assisted digital financial services such as cash withdrawal, balance inquiry, utility payment, AADHAAR-enabled services, railway ticketing services, and money transfers.

In an insightful conversation with The Interview World, Ratnesh Choubey, the Founder and CEO of BuyNSwipe, sheds light on how his startup is pioneering financial inclusion in rural areas, where the banking network remains sparse. Below are key excerpts from the interview, where Ratnesh elaborates on the transformative impact of BuyNSwipe in bridging financial gaps in underserved communities.

Q: Describe how BuyNSwipe contributes to the expansion of financial inclusion in remote areas.

A: We are a fintech startup with a primary focus on the financial inclusion business model, specifically targeting remote areas where banking operators encounter challenges in generating revenue due to the prevalence of small bank account holders. Within this context, both depositors and operators face difficulties in cash transactions, including depositing and withdrawing funds.

Consider the following scenario: even for a small withdrawal of Rs. 10, a depositor may incur travel costs of nearly Rs. 200 to reach a nearby town or city where they can access their funds.

To address these challenges seamlessly, we have forged partnerships with private banks and adopted an API model. Our approach involves providing our platform and application to local shopkeepers, who serve as crucial banking correspondents in these areas. These correspondents essentially act as intermediaries between end users and our partner banks and financial organizations.

Furthermore, we empower these banking correspondents by integrating our API, which serves as a connection point linking end users with the broader banking network. This collaborative effort facilitates efficient and cost-effective financial transactions in remote regions, promoting financial inclusion and accessibility.

Q: The Government of India has several such schemes that empower unbanked citizens to leverage financial inclusion. How can you compete with such schemes?

A: We advocate for collaboration over competition. Currently, we are partnering with a government subsidiary bank to extend essential services to individuals residing in remote areas. As the government plays its role, we must contribute to this financial revolution, ensuring complete inclusion. The goal is to leave no citizen behind in this transformative process.

Q: How many banks are using your API?

A: We’ve established collaborations with three banks to enhance our service delivery. One of our key partnerships is with Fino Payments Bank, a digital banking partner serving millions of Indians. Additionally, we’ve joined forces with NSDL Payments Bank. Furthermore, we’ve formed a partnership with a third-party API provider, a fintech service provider. This comprehensive network enables us to efficiently deliver services to small account holders in remote areas of the country.

Q: What is the current number of active users in your system?

A: During our initial launch, we successfully onboarded over 10,000 merchants. However, being a startup in this sector poses numerous challenges. Recently, we encountered cyber issues that impacted our operations. Specifically, as we were scaling up, our server experienced a crash. Consequently, we are now in the process of re-scaling and re-developing our virtual network to enhance its stability. Looking ahead, our ambitious goal is to bring aboard more than 8 million merchants within the next 3 to 5 years. This undertaking involves addressing technological obstacles, fortifying our cybersecurity measures, and ensuring the seamless scalability of our platform.

BuyNSwipe – Revolutionizing Financial Inclusion in Rural Areas
BuyNSwipe – Revolutionizing Financial Inclusion in Rural Areas
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