Institute for Money, Technology & Financial Inclusion

Funded by IMTFI (University of California, Irvine), the Centre for Microfinance (IFMR Lead, Chennai) conducted a study in Dharavi, Mumbai - Asia's largest urban slum. The research was aimed at understanding the social, cultural and economic factors influencing modes of payments (cash versus electronic) used for conducting transactions in small-scale industries. Our findings indicate a strong preference for cash, the predominant mode of payment culturally accepted for business transactions. Despite having bank accounts and mobile phones, respondents were apprehensive about banking systems and had a limited understanding about the financial products and services such as remittance services available through mobile banking agents and mobile phones. 

Our study particularly recognized employees (or wage-laborers) of small-scale enterprises as potential users of mobile banking service - if provided with relevant knowledge about these services. The employees primarily comprised migrants from poor socio-economic backgrounds. Some migrant employees did not have bank accounts in Dharavi due to lack of proof of identification and proof of residence in Dharavi. 

We have designed context-specific financial literacy modules that not only aim to address the knowledge gap about financial products and services, but also the underlying behavioral biases impacting financial decisions. The modules are being developed as a series of "comic books" using a storytelling approach. We are using two relatable characters Ramu and Shyamlal.