Inclusive retail banking – providing banking services including credit to financially excluded. It is both an opportunity as well as a challenge for the banking system.
Three Phases of Financial Inclusion - Social banking, SHG and KCC and Focus on savings and No-frills accounts
Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost
Financial inclusion is a pre-requisite for inclusive growth Financial counselling provides information, support and advocacy to assist people in financial difficulty.
Credit counseling offers a viable task-specific, advisory ad hoc mechanism between the borrower and the bank
Ex ante credit counseling - ex ante counseling is known to lower the probability of default and relatively easy recovery * basically in the nature of financial counseling or education - product, purpose and process *
Growth
high low Synergies high Joint Venture between Bank and Insurer
Merger between
Bank and
Insurance Co
Distribution
Alliance
Build or Buy own Insurance or Banking
Company
quantum of loans individuals can borrow based on the cash flows * cost of borrowing, cost of misuse and recovery procedures are informed to the borrower
Ex post counseling occurs - advisory in nature for managing the crisis and exploring various avenues for relief in the interim * after a crisis event or default * curative in nature * purpose is recovery - may be through restructuring

Mortgage bank system is a combination of retail and wholesale approach - funds raised from institutions
Secondary Mortgage Market involves conversion of mortgages into tradable financial or debt instruments. The market is made up of transactions in securities which are