Financial Literacy – Role of Partnerships

Alok Prasad Country Director, Citi Microfinance

RBI-OECD Workshop on Financial Literacy

March 22, 2010

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• Established 108 years ago in Kolkata

• Largest FDI in financial services in India

• Serves the entire breadth of the economy

• Full Universal Bank presence that is seamlessly integrated with global

franchise and product groups

– Institutional Clients Group

• Global Banking

• Global Markets

• Global Transaction Services

• Citi Alternative Investments

• Citi Investment Research & Analysis

– Consumer Group

– Private Bank

– Citi Wealth Advisors

• Financial Strength: For the year ended March 31, 2009, Citibank N.A. India branch, reported PAT equivalent to USD 428 Million .

Citi provides a fully comprehensive range of financial products and services to a wide cross-section of clients across the entire

spectrum of the Indian economic landscape

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Capital $3.8bn

Cities 30

Branches 42

Employees >8,000

A Century of Commitment to India

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The Citi Mandate on Financial Education

• Leverage our Financial Expertise

• Leverage our Knowledge of Consumer Needs

• Develop more Informed and Responsible Consumers

• Build and Leverage Partnerships

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Microfinance & Microenterprise Education Financial Capability & Asset

Building

Education 25%

Financial Education

28%

Microfinance & Microenterprise

47%

Citi Foundation in India Focus Areas

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Citi’s Approach to Financial Capability & Asset Building Office of Financial Education

• First global bank to establish an Office of Financial Education

– Launched in 2004 to meet financial education needs of communities it serves

• In 2004, Citi announced a 10-year, $200 million global commitment to support financial education

• Six years into the commitment, Citi has already invested over $167 million in 73 countries

Encompasses four elements

- Providing access to knowledge to increase Financial Literacy

- Developing short-term and long-term financial plans

- Increasing the ability to select appropriate financial products or services to implement those plans

- Develop financial strategies for periods of economic prosperity & instability

Towards achieving sustainable results

• Increases in the number of low-income adults who adopt positive financial behaviors and accumulate and preserve financial assets

• Increases in the number of low-income youth who demonstrate their ability to earn, keep and spend their money wisely

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Indian School of Microfinance for Women

Partner Since 2004

Partnership Goals -Capacity-building training for microfinance stakeholders

-Research

-Financial literacy campaigns, workshops & training

Key Beneficiaries: Underprivileged women in urban and rural areas

Geographical Coverage - MP, Manipur, Orissa, Mah., Guj., TN, Puducherry, Andaman & Nicobar Islands, AP, Assam, Uttrakhand, Karnataka, Kerala & WB

Current Reach - 9765 NGO staff & members - 370445 through Citi Center for Financial Literacy (CCFL) and the National Alliance for Financial Literacy (NAFiL)

Targeted Reach: 500,000 in 2011

Partnership Highlights Establishment of the Citi Center for Financial Literacy (CCFL) and the National Alliance for Financial Literacy (NAFiL)

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Friends of Women’s World Banking India

Partner Since 1997 2010 Focus: Launch of two-year Livelihood and Enterprise Development (LEAD) project after pilot Key Beneficiaries: Underprivileged women, minorities and tribal communities in both urban and rural areas Geographical Coverage: TN, Kerala, Karnataka, AP, Maharashtra, Orissa, West Bengal, Jharkhand, Chhattisgarh, Bihar, UP, MP, Delhi, Assam, Manipur, Rajasthan, Gujarat, AP 2007 LEAD Reach: 10,250 HH across 6 states 2007 LEAD Reach: 10,000 HH in 2011

Partnership Highlights

The LEAD programme partners grassroots organizations and their beneficiaries with finance and business development services like skill & entrepreneurship training, backward & forward linkages, and financial planning

Strong combination of microfinance, enterprise development & livelihood development.

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Sasha Association for Crafts Producers

Partner Since 1998

Partnership Goals

-Expansion of microfinance loan fund for 1500 marginalized artisans

in WB & Orissa

-Increased access to credit & financial management training to help

meet business development needs

- Establish financial asset building fund & financial literacy program

Key beneficiaries

- Underprivileged women, ethnic minorities & tribal communities with

micro/small craft enterprises in rural areas

Geographical Coverage

-9 States/UTs

-Orissa, Bihar, Tripura, UP, MP, Rajasthan, Gujarat & Karnataka

Current Reach

-5000 artisans & their families

-30,000 directly through NAFiL

Partnership Highlights

One of the first 10 founding partners of ISMW’s NAFiL and instrumental in

its institutionalization and in the furtherance of the program

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Indian School of Business, Centre for Analytical Finance

Partner Since 2007

Partnership Goals Research and policy fora to positively impact financial market participants like small and growing businesses, SMEs and micro entrepreneurs

Key End-Beneficiaries Economically disadvantaged groups

Targeted Reach: ~3000 opinion leaders & ~One million economically disadvantaged people

Prof Raghuram Rajan, Chair, Committee on Financial Sector

Reform, Planning Commission delivers the special address at the

Indian Banking Conference at ISB

Partnership Highlights -Research Projects focused on financial inclusion - Workshops & lectures introduce financial practitioners to modern finance concepts, tools and techniques as well as finance targeted specifically to microenterprises and SMEs

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Meljol

Partner Since 2008

Partnership Goals

-Financial education pilot programme ‘Aflatoun’ for underprivileged children

-Saving program for children of ages 6-14

Key beneficiaries

Underprivileged children in rural areas

Geographical Coverage: 4 States (Maharashtra, Kerala, Orissa &

Rajasthan) & 2 in the preparatory phase (Assam & Jharkhand)

Current Reach: 2,98,323 children

Targeted Reach: 3,55,000 by March 2011

Partnership Highlights

Citi’s partnership enabled Meljol to initiate a financial literacy programme

outside Maharashtra for the first time

Citi-Financial Times Financial Education Summit provided a strong platform

for Meljol to network with stakeholders & potential partners

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New Partnerships

Swadhaar FinAccess

Partner Since 2009

Partnership Goal

An 8-module bi-lingual financial education program for 1,200 women in two slum communities in Mumbai covering:

• understanding the difference between income and cash flow

• the importance of budgeting and how to maintain budget diaries

• how to save and where to save - linked to an existing savings program

• managing credit

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Thank You!