Getting the next billion!!!

Getting the next Billion!
Just the other day, I was reading a series of reports by Boston Consulting Report (BCG). Normally, such reports use statistics like a drunk using a lamp-post - for support than illumination. But these reports are an exception! The report on India particularly fascinated me. According to BCG, the next big opportunity for banks is the 'billion ' unbanked customers in countries like China, India, Brazil and of course Africa. India alone has more than 135 million housholds that are outside the purview of the banking sector. Thus far, there has been no real effort to reach out to this segment as a profitable segment. They have always been patronised and the banks have been condescending than anything else. But now with the changed scenario and 'sub prime' wallop, banks have to review their outlook towards the massive unbanked.The report provides some ideas on how to reach out to these 135 million households. From my take, there are two solid routes - 1) use the social hierarchy 2) Mobile phone infrastructure.What do I mean by socal hierarchy - it is the village headman, local leaders to whom this unbanked normally goes for favors and help. Imagine if each village's panchayat or mukhia turns into a sales agent for a bank. The agent can also have an element of responsibility for the repayment. Now, the mobile phone network is growing at a breakneck pace across India. When you have more than 50 million new connections across the country, surely it is big enough for us to take notice. We can all learn from the Phillipines example; use the mobile phone to send money, operate your bank account, your credit is always with you on the phone and secure on a SIM card chip. The biggest historical issue for a low income Indian is the treatment meted out to him by a banker who looks and talks down to him. Contrast that when he doesn't have to go to a bank and has more trust when he has his money in electronic form always with him! Each village can have a mobile training centre where people help those who need to operate.Think about it; win win scenario for all - banks, mobile operators, governments and also the huge mass of unbanked!