Penetration of financial products and services has remained concentrated in the metros and Tier 1 and Tier 2 cities, without percolating down to the smaller towns and cities and the rural belt. While there is a huge need for services in these segments, it is just that these customers are not aware of the right products and the right channel to leverage on the same. The CII-PwC report titled Exploring new horizons: Financial percolation to the 'Rurban' seeks to address some of the challenges that are encountered in reaching out to these people in the rural and semi-urban areas. The report also tries to explore some of the business models that might be viable for strengthening distribution in these areas. All stakeholders, the banks, insurance companies, NBFCs, mutual fund companies, regulator, government, last mile agents need to work in tandem to build a sustainable distribution chain.
The report was released at the 2nd Financial Distribution Summit 2013 organized by CII on 12 December, 2013 at Mumbai.