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Rural Finance and the Internet

As a low-cost forum to promote companies, research institutions and even
governmental entities the Internet is widely acknowledged. In OECD countries
you will hardly find a private enterprise which does not advertise or present
itself within the so-called World-Wide-Web (WWW). Once you have the necessary
hardware (computer, modem and telephone-line), pages from the remotest places
of the world are accessible. The information gap between developed and developing
countries is getting smaller and in the next decade it might be unnecessary
to order printed publications. Also FAO like other multilateral agencies
has been using Internet now for several years and many of its databases
and publications can be accessed now within seconds. The overall experience
is very positive and more and more information will be placed there in the
future.
Rural financial institutions on the net

Even though the list of financial institutions accessible through Internet
is already long, only few rural financial institutions in developing countries
currently using this new mass medium. The number of banks world-wide providing
information through Internet is difficult to estimate and every day new
financial institutions are launching their first pages. According to so-called
Web-directories approximately 2,500 companies are already accessible with
homepages in English for an international audience. The number of homepages
of commercial banks, credit cooperatives, savings banks etc. with regional
significance might be around 5,000 (1,800 financial institutions in the
United States are listed).
Internet and Development Banking

Above all development banks and their regional associations should try
to reach an international audience. Most bi- and multilateral donor agencies
are already using the World-Wide-Web as source to get information quickly
and without obligation. Research work - commonly the first stage of each
project - can be eased. Moreover, due to declining public funds, development
banks are forced to search for new financial resources. A broad information
base, easily accessible for possible creditors, is indispensable for this
huge task of resource mobilisation.
However, advertisement or dissemination of information is just one possible
field of use of the new technologies. Internet is not only able to provide
electronic pamphlets but also might facilitate global networking and banking.
Therefore it can be used to strengthen regional and world-wide cooperation
of institutions with a similar mission and vision. The regional Rural and
Agricultural Credit Associations (RACAs) were founded in order to stimulate
and promote cooperation, to strengthen institutional capabilities and to
assist members in obtaining necessary capital. Internet provides now the
technological instruments to meet requirements of global cooperation. It
allows data exchange, electronic mail, fund transfer systems between banks
(similar to the SWIFT system) and access to banking accounts and other services
world-wide. Homepages, when updated regularly can be used as electronic
newsletters, giving information on meetings, new research work, providing
profiles of members, financial statements for the general public, contact
details etc. Internet is doubtless just a tool, a new kind of media. But
since it is a low-cost and fast technology, it should be used actively to
go ahead on the way that is described by the RACAs vision.
Source: Giehler, T. Rural Finance and Internet in Asia Pacific Rural Finance,
July - Sept. 98. Mumbai
Outside Links to Homepages of Banks
covered by AgriBank-Stat
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