Creating an enabling digital ecosystem: issues and challenges in financial inclusion

Abstract

Technology adoption is dramatically altering the way we live and work on a daily basis. The nature, pace and impact of this technology adoption at the everyday level is often overlooked. Recent experiences indicate that building on various public and independent initiatives provides a unique opportunity to move away from cash to inclusive cash-lite initiatives, especially in rural areas. Banking and Payments success stories in Kenya and Tanzania hold promise for many developing countries. This paper suggests that despite formidable challenges, the nature of present day rural society offers immense potential for the creation of a digital ecosystem, which may not be as difficult as perceived. We offer suggestions on building this digital ecosystem based on the present economic organisation of rural life, the recent expansion of banking system and other successful technology initiatives by various stakeholders in the government and private sector.