Microsavings Delivery through Business Correspondent Model

Overview

Savings is a crucial element in providing financial services to the low income segments that meet their needs – accessibility, affordability and convenience. Through this project, Grameen Foundationdeveloped the potential of the Business Correspondent (BC) approach to expand mobile savings services to the low income segments in India with Cashpor Micro Credit (Cashpor), a microfinance institution operating in two of India’s low income segmentsest states – Bihar and Uttar Pradesh.  Grameen Foundation provided project management, change management, staff and client training content and processes for data and financial flows between the partners.

Impact highlights

Cashpor acquired 160K microsavings clients within 3 years – 95{2382e02857292b6eafd237571e3abe7645aa48c6a9d39376bdebe696ef57ad7b} live below $2.50/day and 75{2382e02857292b6eafd237571e3abe7645aa48c6a9d39376bdebe696ef57ad7b} below $1.25/day demonstrating the ability of the low income segments and very low income segments to regularly save small amounts, thus enabling them to build up assets that protect them from shocks and allow them to invest in their families and businesses. In addition, accounts demonstrated a dormancy rate of only 20{2382e02857292b6eafd237571e3abe7645aa48c6a9d39376bdebe696ef57ad7b} as against national average of 80{2382e02857292b6eafd237571e3abe7645aa48c6a9d39376bdebe696ef57ad7b} and the account opening time reduced from 3 months to 20 days.

Role of GFI

Market Research and Product Development

• Implemented market research on role of agent
• Used ICICI Bank’s existing no frills savings account
• Added features to provide back-end sweep to a fixed deposit and recurring deposit products.
• Tested a new channel through community health workers

Marketing and Financial Literacy

• Created co-branded marketing materials
• Launched marketing awareness campaigns of new services
• Implemented financial literacy education for existing Cashpor customers around savings, budget, and goal setting

Enabling Field Transactions

• Assisted ICICI Bank and Eko Technologies on implementation of mobile-based savings product
• Implemented Reporting & Dashboard application
• Implemented a Savings Enrollment Tracking Management System

Institutional Capacity Building

• Implemented social performance management incorporating Grameen Foundation’s poverty measurement tool, the Progress Out of Poverty Index (PPI) to measure uptake of products by the low income segments
• Implemented incentive schemes to drive adoption
• Implemented change management practices and training programs for MFI loan officers

Related Information

Videos

Watch this video to learn more about how we empowered Cashpor’s women clients by offering them access to savings accounts.