India’s financial inclusion narrative is marred by multiple challenges. Vast geographies, technological and financial illiteracy, limited access to credit and lack of remote communication technologies are just few of the hitches that have resulted in a huge unbanked and unserved population on the country.

These problems have not gone unnoticed by the government. To aid economic development and financial inclusion, the Government of India has launched various lending tools. These attempt at making citizens financially independent and thriving members of society. But how can we provide basic banking services to them?

The missing part of this puzzle is a robust, reliable and responsible communication technology that can reach every nook and corner. India has people residing in remote villages in harsh deserts, sky-piercing mountains, forested areas, among other rural settlements. Reaching financial instruments to them is a bottleneck we need to overcome.

Satellite communication is a technology tailor-made for this challenge.

ATMs are the new banks

An ATM today is what a bank was a couple of decades ago. One can deposit money, withdraw cash, drop cheques, open a fixed deposit, pay income tax, pay insurance premiums, apply for personal loan, transfer cash, pay utility bills, and more from at an ATM. As building banks everywhere is not feasible, an ATM can suffice most banking requirements of citizens.

People in metro cities may think this is a non-issue considering our cities are plastered with ATMs everywhere. But this is just the metros. The picture is quite different even in tier II and tier III cities where ATMs are few and far flung. And villages are still untouched.

Fun (surprising) fact: India currently has considerably lower ATM density in the world with less than 20 ATM machines per 1 lakh adults! This Reserve Bank of India statistic demonstrates just how critical is ATM penetration in rural and urban India.

Why banks need VSAT

While banks look at increasing reach and ATM penetration, they require a dependable technology. They need reliable data communication for an ATM installation to be successful. A satellite communication or VSAT connectivity is perfect. Here’s why…

VSAT connectivity is powered by a satellite and hence has 100% feasibility. It means it can provide internet connectivity in any remote location as long as there is a line of sight between the satellite and the antenna. This is not something a broadband service can manage.

It is also highly dependable with 99.9% uptime. This ensures there is no downtime or disrupted service ensuring people can bank 24X7. High uptime on a low bandwidth network also makes the solution cost effective.

The solution is extremely quick to deploy. A new ATM can be up and running in a matter of a few hours. Additionally, as the only hardware is the dish antenna, it is flexible. Banks and uproot and relocate the ATM location as per changing customer usage patterns. VSAT connectivity is also highly scalable, so banks can go from 10 ATMs to 1000 without a hitch.

Robust, secure connectivity with Nelco

India’s leading VSAT player Nelco has a deep understanding of the ATM space. It can ensure robust and secure connectivity – the most important criteria for a banking establishment. Nelco has put in advanced security measures to ensure customer data and assets are well protected at all times.

Nelco’s services are also highly reliable. Its industry-specific experience makes it capable of providing highly customised, future-ready solutions with a fast turnaround time.

VSAT is undoubtedly the technology banks need to adopt to play a pivotal role in writing India’s financial inclusion story.