Presented By: Group 5 Smita Sinha(249)

Smita Wardhan (147) Sweta Kumari (150)

Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services.

An effective tool that can help reduce poverty and spread economic opportunity by giving poor people access to financial services, such as credit and insurance.

Founded June 1998

Mission purpose is to eradicate poverty. We do that by providing financial services to the poor and by using our channel to provide goods and services that the poor need.

Microfinance Institution Financial Information Partners Products of SKS: 1) Proprietary Product 2) Distributor Product

PILOT PRODUCT

CURRENT PRODUCT

COMPANY

COMPETITORS

CONSUMERS

PoliticalGovernment has taken initiative to help poor ,launch various scheme like NEREGA and other scheme for the upliftment of poor, and recently made some laws to regulate MFI

Economic Large customer base as almost about 70%

people live in rural areas and daily income is below $1.2

Social People need money as they are below

poverty line and need money either to do agriculture, or to start new business.

Up-lipftment of rural womenTechnologyNeed technology to maintain database

an provide loan and its regular update

SKS MICROFINANCE

SKS MICROFINANCE

STRENGTH

•Largest MFI in India•small loans for income generating activities•Lend only to women •Record of good governance

WEEKNESS

•Cases of cash embezzlements •Loans given to non-existent borrowers

OPPORTUNITY

•Attracted debt by securitizing assets and selling their loans to banks.•Can serve to urban poor .

THREAT

•Competition from other banks and financial institutions•Changes in laws and regulations that apply to them by Indian Govt.•Expanding new areas of business, such as life insurance and financing mobile phones.

How to structure a Fund that embraces social and commercial objectives and balance between for-profit targets and social intent.

Higher than rate than self help or normal banking rate of providing loan.

farmer’s suicide and SKS microfinance top manager are becoming billionaire in few years by taking the money of helpless poor, so the company brand image is going down

Demographic segmented product based on the particular demography and decide to focus on a particular niche and concentrate on a circumscribed customer require building a strong relationship.

Launch a new product to engender Entrepreneurial, market-driven culture, which is necessary for a for-profit, regulated financial Intermediary to succeed. In addition, it can offer certain products to convey an image, even if the products are not profitable.

Can use alternative method of as a cost cutting measure like Do activity based costing. Raise fund from diversified mutual fund or FDI instead of raising from FII or IPO as these

are more volatile . Use post office for collection and delivery of loan. Make the organizational structure flat . Hire local people as an employee for maintenance of document. Make contingency fund for seasonality effect and for the personal constraints of people . Integrate with NGO and local panchayat to avoid loan on fake collateral. Integrate with NGO, Indian postal service or Agricultural kiosk to get a wide reach at

cheaper cost. Use latest technology like e-banking , m-banking for operational efficiency.

Make the organizational structure customer friendly . Customized the product according to the customer

need. Go for word of mouth promotion. Understand the economic , seasonal and personal

constraint of the people while collecting loan payment. Educating and helping them to do the business .