www.JaiveerSingh.com Email: [email protected]
Financial Inclusion - An opportunity for growth
Access to financial services can serve as a bridge out of poverty for millions of people.
World Bank and IFC – has committed to enabling 1 billion people to gain access by 2020
People at Bottom of Pyramid “4 billion low-income people, a majority of the world’s population, constitute the base of the economic pyramid.
People at BoP include small farmers, low-income salaried employees, day laborers, pensioners, poor households and micro enterprerenuers.
Doing Good Profitably • Microfinance services started few decades ago has been an alternate source of
finance to people who otherwise were dependent on money lenders & loan sharks.
Source: Microfinance Information Exchange- MIX
Most Profitable MFIs in South Asia Few Leading MFIs in Asia
• Bandhan in India serving 6.5 million customers with ROE 28% and ROA 5%
• SKS India serving 3.6 million customers with ROE 22% and ROA 5.5%
• ASA Bangladesh serving 4.85 million clients
• ASA Philippines serving 1.1 million clients with ROE 44.7% and ROA 6.8%
Growing Investment in Microfinance
• On average the top 100 most profitable microfinance institutions worldwide have an average of 10.44% return on assets.
• Microfinance institutions are generally experiencing very high repayment rates of between 95-99%.
• Globally, the private sector alone invests an estimated USD 10 billion in microfinance
• Around 50% of pubic listed SKS Microfinance & 70% of Ujjivan Financial in India is held by overseas investors, Another MFI, Janalakshmi raised equity of INR 3.25 billion in 2014.
Source: Microfinance Information Exchange- MIX
Asia Pacific is set to remain the world’s fastest-growing microfinance market with projected growth of 30% in 2016.*
30%
*Source: http://www.responsability.com
Support Income generation activities Serving Social Business Financial needs is another business avenue at BOP helping them earn incomes thus creating new consumers with purchasing powers
Design for the other 90% Improved Connectivity & low cost scalable technologies can enable solution of mass scale
Leveraging Technology
A mobile phone–based transaction system offers far more convenience and accessibility
Wider and better low cost internet connectivity and smart phones availability is also facilitating mobile financial services.
Digital Financial Services will provide better access to products
Cloud based SaaS, PaaS – improving operational efficiency
APIs enabling real time collaboration among partners
Technology in financial services can address four important concerns: convenience, accessibility, safety, and transferability.
APAC – 4b People
1.4 b, 30% Coverage
3.7b, 92% Coverage
Business Models – Leveraging Long Tail Technology has enabled new business models by lowering costs of distribution & service.
Partnering with Telecom & Fintech Firms By 2030, two billion people will use their cellphones to save, lend and make payments, according to Bill Gates. Telecom & Fintech firms are developing new low costs solutions to connect financial services to unbanked people.
SOFI
Milaap
FI Matters for Inclusive Growth
Startups building solutions for FI may get in touch for mentoring/ advisor support at
Email: [email protected]
Jaiveer Singh • Senior IT Leader with global
experience • Fintech Mentor & Connector • Financial Inclusion Advocate • Blockchain Technology Fanatic
• Previously served GE Capital, Axis
Capital, Orix Finance, ICICI Bank, Shinsei Bank, Deutsche Bank