www.JaiveerSingh.com Email: JaiveerSingh@outlook.com

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.

Markets at Bottom of Pyramid

More than 2 billion are unbanked people at BoP

Financial Inclusion matters

Youtube link: www.youtube.com/watch?v=bdN5EgJ-Y4k

Doing Good Is Good for Business

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.

Business Models – Shared Economy 1

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: LetsTalk@JaiveerSingh.com

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