It Pays to Use Prepaid Cards to Deliver Services to MFI Clients: Study
There is good scope for the use of prepaid cards for delivery of value-added financial services to the clients of micro-finance institutions (MFIs), says a new study.
Funded by the Institute for Money, Technology and Financial Inclusion (IMTFI), University of California, Irvine, the study was conducted by Debashis Acharya, a professor in the School of Economics, University of Hyderabad, and Tapas Kumar Parida, an economist with State Bank of India.
It focussed on assessing the feasibility of prepaid card technology by examining the use of prepaid cards by Bajaj Allianz Life Insurance Company to pay micro-insurance claim settlements for the clients of Utkarsh Micro Finance in select regions of Uttar Pradesh.
“On the supply side, this innovation by Bajaj Allianz Insurance India, M2P Solutions and Utkarsh Micro Finance has been successful in including those excluded earlier due to lack of access to formal banking,” Acharya, Principal Investigator, told BusinessLine here on Monday.