Stimulation of Financial Innovation
EMIs, enabled by their licenses, introduce innovative payment solutions and financial products. This drives traditional financial institutions to enhance their offerings, creating a ripple effect of innovation across the entire sector.
2. Increased Financial Inclusion
By providing digital financial services, EMIs reach underserved and unbanked populations, particularly in remote or impoverished regions, thereby promoting greater financial inclusion.
3. Job Creation
The growth of EMIs contributes to job creation, both directly within the institutions and indirectly in related sectors such as technology, cybersecurity, and customer service.
4. Boost to E-commerce and Online Marketplaces
EMIs facilitate seamless and secure online transactions, vital for the growth of e-commerce platforms and online marketplaces, which in turn boosts the digital economy.
5. Enhanced Consumer Experience
The competition brought about by EMIs results in better service, lower fees, and more options for consumers, leading to an enhanced customer experience in financial services.
6. Cross-Border Transactions and Global Trade
EMIs simplify cross-border transactions, reducing costs and transaction times, which encourages international trade and contributes to global economic activity.
7. Support for Small and Medium Enterprises (SMEs)
EMIs often provide tailored financial services for SMEs, supporting this critical sector of the economy and fostering entrepreneurship.
8. Increased Economic Resilience
The diversification of the financial sector brought about by EMIs contributes to the overall resilience of the economy, reducing dependence on traditional banking institutions.
9. Promotion of a Cashless Society
By facilitating digital payments, EMIs contribute to the move towards a cashless society, which can lead to reduced costs of handling cash and increased transaction efficiency.