eSewa & Sakchyam Sign Partnership to Give Rural People Better Access to Financial Services Through Digital ChannelsAugust 16, 2019
Kathmandu: UKaid Sakchyam Access to Finance programme and eSewa Fonepay Pvt Ltd officially announced their partnership to provide rural consumers with access to financial services through digital channels. The partnership project’s agreement certificates were signed by Nirmal Dahal, Team Leader, Sakchyam and Subhas Sapokota, CEO, eSewa Fonepay at an event held on August 14 in Kathmandu.
Shedding more light at the event, Sapkota said, “We will establish eSewa Cash Point platform which could provide efficient financial solutions to unserved and underserved customer segments in rural areas and provide a convenient digital financial service that can overcome high transaction costs and increase financial penetration rates.”
The Cash Points, which will be designed, developed and launched with support from Sakchyam, will promote greater use of innovative digital financial services among the rural population who have none or inadequate access to full-fledged financial services. These cash points will also be equipped to open bank accounts.
The recently published record from the central banks shows that in Nepal there are around 7 million subscribers to the different types of Digital Financial Services (DFS) — around 6 million on mobile banking, around 800 thousand on internet banking and 150- 200 thousand on BLBs. Speaking at the event, Team Leader of Sakchyam, Dahal, pointed out that the number of active users is not as high at the number of subscribers. “The reason why there are very few actives users even though there is such a large number of people subscribed to DFS is that most of the touchpoints are not in rural areas at locations closer to the users. The other reason is that the customers want all kinds of financial services available in these touchpoints. They want to be sure that whenever they go to a cash point they will have all the services – cash in, cash out and deposits. Also, most of the time customers/users want to convert the e-money in the DFS into cash as soon as possible. And if we can make these conversion points as ubiquitous as Esewa is trying to do then I am pretty sure that the use of DFS in Nepal will leapfrog and the percentage of people who remain active in this space will definitely grow.”
President of F1Soft Group, Biswas Dhaka was also present at the event along with Private Sector Development Advisers from DFID Nepal, Rabi Rayamajhi and Philip Vernon.
Read about the partnership: Design, Develop and Launch Cash Points to Provide Rural Consumers with Linkage to Digital Financial Services