How the agent-based banking model might facilitate financial inclusion and sustainability in Emerging Markets and Developing Economies (EMDEs) via economic circularity?

Abstract

Transformation of business models with the interaction of technological breakthrough, innovation, socio-economic, geostrategic and environmental transition are historical. Context based adjustment of business value chain also not rare. In fact, such adjustment might prove essential to survive in the market at certain point, especially in case of corporate transformation due to economic recession/depression, industry downturn and ecological correction like COVID-19. However, some business models are smart enough to cope with both kinds of transformations. Agent-based banking model is one of such kind, which not only sustains during adverse situation but also facilitates the momentum of adversity. This ultimately defined as a sustainable innovation in banking industry that drives via circular economy.  The mode of economic circularity in product and service level or goods and service industry are not identical and while articulating circular business model in service industry, like Banking, than it denotes generating values for broader range of stakeholders and transmitting this value in such a way that minimize the ecological and social costs. How an agent-based banking model might help the conventional banks of Emerging Markets & Developing Economies (EMDEs) toward the business model sustainability, is the centre of this study. This type of inclusion in EMDEs will not only assist to bring the World’s 1.7 billion unbanked adult community into regulated financial system but also facilitate the physically challenged, illiterate & marginal people on financial inclusion and pave the way of global development in a sustainable manner.