Here's why micro finance cos are ramping up digital platforms

A year ago, RBI issued in-principle licenses to 10 small banks and today, three of these banks are already launching branches pan-India to cater to a rural population that's turning smart-phone savvy. A number of these micro-finance institutions have begun enhancing their digital platforms, reports CNBC-TV18'S Jude Sannith on these new trend.Last week, Chennai-based microfinance firm Equitas became India's new kid on the banking block. With a mission to take banking to India's villages, approximately 25 percent of Equitas' 412 branches are in rural pockets that have no discernible banking presence. But it's the era of technology and that means new-age solutions to make banking more accessible, and that's where fin-tech companies come in.The Digital platform now comes even before these MFIs become full-fledged banks. Ujjivan, Equitas and Mudra for instance, have logged on to banking suite Appzillion to make things click.CNBC-TV18 learns that banks stand to save 50 percent on marketing and operational spends by digitizing rural operations. This includes basic services like fund-transfers. They also  have plans to digitize insurance and mutual fund schemes down the road.But some banks want to equip their own business correspondents with this tech before reaching out to rural customers.RBI's decision to license small banks has kicked Indian financial technology players into hyper-drive. However, it will take a while for the customers to latch on to this new revolution, and how quickly that happens will depend largely on just how well connectivity in India's villages can match up to smart-phone penetration.