India needs to bridge the digital divide in villages for development

Access to banking, investment, credit and commerce has to be simplified in villages. A network of technology and local trust will help financial inclusion

As technology evolves and provides services that offer greater convenience and improved lifestyles for select demographics, it becomes vital to bridge the digital divide and ensure that benefits are shared with all to promote inclusivity and equality across all socio-economic strata.

As much as 70 per cent of India’s gross domestic product comes from urban areas, which make up just 3 per cent of the country. To assert herself on the global development platform, India must fuel consumption and capital investment in the vast, underserved regions. In 600,000 villages, where more than 900 million citizens live, access to banking, investment, credit and commerce has to be simplified.

Bridging this divide requires a multifaceted approach that addresses gaps in infrastructure, access, awareness and economic opportunities. Last-mile connectivity has always been a challenge. Distance and high cost of servicing obstruct traditional institutions from reaching this population effectively. While digital adoption is expected to bridge the gap, the fact remains that a sizable demography is technologically naïve and remains outside the digitisation influence.

An innovative distribution model that simplifies high-end technology and uses local trust to create a neural network of trusted touch points must be scaled up to make assisted accessibility a reality everywhere. Local retailers acting as business correspondents (BCs) have played a pivotal role in ensuring last-mile accessibility of basic banking.

This network now needs to act as the nerve centre of financial accessibility through capacity building and distribution of evolved services like credit, insurance and investments, while adhering to the four parameters of availability, applicability, acceptability and affordability for last-mile citizens.

Services need to be tailored for this channel and not have force-fitted options. While the basic needs may look similar, unique customisation for frequency, consumption size, storage and affordability must be factored in. And this has been well demonstrated by telecom companies and FMCGs with their satchetised packaging for rural hinterlands. While the industry is seeing innovative partnership modules along these lines, banks and non-banking financial companies are collaborating with corporate BCs to launch unique products, like microcredit, micro-insurance and goal-based flexible saving. This trend needs to gain momentum and turn into a mass movement. Only then will we see Jan Nivesh, Jan Suraksha and Jan Credit becoming a reality in the country.

By building on local trust and enhancing capacity, this grassroots-assisted model can not only raise awareness and improve accessibility but also leverage social intelligence to create solutions tailored to community-specific needs. When human intelligence is combined with artificial intelligence/ machine learning, the possibilities expand significantly, driving more effective outreach, sustainable development, and ultimately fostering greater inclusion across underserved populations.

As we keep building a digital node of connected touch points with the inclusion of the local retailer, local self-help groups and farmer producer organiations, there are various technology modules being built in India. With the Open Network for Digital Commerce facilitating commerce and insurance and mutual funds (MFs) on the way, it is not far away when getting credit from a retailer will be a few minutes’ work for someone in a remote village. We have already seen this movement picking pace in MFs, with Tier-II cities and beyond contributing more than 40,00,000 new portfolios every month.

Impact can be benefit-led, development-led, or economy-led. While the first two are starting points, sustainability comes when economic growth is prioritised, and last-mile touch points become commercially viable. With Chalo Bharat as the guiding principle for every service, we can fuel the aspirations and economic growth of each citizen.

The writer is Founder, Nearby Technologies