Indian Post Payments Bank: Building an inclusive world

• by MSC
• Jun 13, 2023
• 1 min

MSC provides strategic support to IPPB to bridge India’s digital financial inclusion gap through increased access, usage, and diversified product portfolio to LMI customers. This strategic support includes helping IPPB address persistent challenges in its business operations and evolving a strategy to reach out to society’s underserved segments.

The support is divided into four workstreams: (i) an active, efficient, and capable CICO network; (ii) a suitable product for underserved segments; (iii) streamlined G2P and bulk payment processes; and (iv) a comprehensive ecosystem of merchants to drive digital transactions.

MSC’s support has helped IPPB grow and increase its revenue by 140% in the past three years, from FY 2020 to FY 2023. Such impressive growth and significant contribution to financial inclusion (47% of all accounts are women’s accounts) have attracted attention from across the globe.

The IPPB model offers many lessons postal banks can replicate in other developing countries. Delegates, including the Bill & Melinda Gates Foundation Co Chairs and visitors from 25 countries, such as Africa and South Asia, have recently visited IPPB financial camps. They showed a keen interest in IPPB’s low-cost distribution strategy supported by robust technological solutions. 

IPPB was launched in 2018 to provide accessible and affordable banking services to every household in the country. Since then, IPPB has used India Post’s extensive and trusted network of 155,000+ post offices and 129,000+ postal agents (GDS) to deliver banking and payment services. Thanks to its extensive network, the IPPB now reaches underserved and unbanked customer segments at their doorstep.