個案資料

In early January 2018, a leading non-governmental organization in the Indian state of Rajasthan was considering an alliance with Airtel Payments Bank Limited (Airtel Payments), the first “payments bank” in India. Although India showed economic growth in key areas, financially inclusive growth was poor. Airtel Payments and its competitors were expected to strengthen financial inclusion with technological expertise, wide distribution networks, and substantial revenue to sustain losses during initial start-up phases of the payments banking Industry in India. Airtel Payments paid a 7.25 per cent interest rate for customer deposits, the highest among the payments banks. However, the non-governmental organization needed to address several questions before initiating an alliance with Airtel Payments for financial inclusion: Could Airtel Payments play a significant role in financial inclusion and help solve India’s persistent age-old issue of last-mile connectivity? Was it viable to offer higher interest rates than competitors? Did the environmental factors favour Airtel Payments? Was the payments bank industry competitive? What would be the impact of Airtel Payments's previous unethical practice of opening bank accounts without informed consent?

The case analyzes the performance of a payments bank as it progresses toward financial inclusion. It also assesses its ability to stand out ethically and economically in the competitive and challenging space of India’s payments bank industry. The case can be used at the undergraduate or graduate level in courses on financial strategy. It is also relevant in developing economies outside India, where a workable model is needed to improve financial inclusion through payments banking or similar services. After completion of this case, students will be able to<ul><li>understand the current scenario of financial inclusion and the steps taken by the Indian government toward inclusive growth;</li><li>identify the macroeconomic variables affecting a payments bank’s business operations;</li><li>conduct a SWOT analysis and a PESTEL analysis for policy making;</li><li>evaluate a payments bank in light of its recent ethical failure; and</li><li>understand the payments banking industry more thoroughly.</li></ul>

• Airtel, payments bank,financial inclusion, developing economies, electronic payments, competitive analysis, ethical practice, financial strategy