Empowering Rural India: SAVE Solutions' Journey to Financial Inclusion

In today's rapidly changing financial landscape, promoting financial inclusion for marginalised groups has become a top priority. Currently, new-age organisations are at the vanguard of this transformation. They are using new methods to close the gap between banks and rural populations. One name that has become synonymous with financial inclusion is Save Solution.

In an exclusive conversation with The Hans India, Mr. Ajeet Kumar Singh, Managing Director and Co-Founder of SAVE Solutions Pvt. Ltd., discusses how SAVE Solutions has grown into a key player in financial inclusion, servicing millions across rural India.

Q 1. Can you elaborate on SAVE Solutions' strategy for increasing financial inclusion among women, particularly through the Joint Loan Group (JLG) lending model?

In collaboration with SAVE Solutions and SAVE Microfinance, the organisation strategically identifies women within its Customer Service Points base who are keenly interested in expanding their businesses and require financial assistance. These women are brought together and integrated into the Joint Loan Group Model through targeted outreach efforts, providing a communal platform where rural female entrepreneurs can apply for loans with a sense of solidarity and support.

By cultivating such a supportive ecosystem, SAVE aims to empower these women to confidently navigate the realm of finance and excel in their entrepreneurial endeavours. Commencing their business ventures not only enables them to attain self-reliance but also enables them to contribute significantly to the financial stability of their families.

Moreover, this approach optimises the loan repayment process, yielding mutual benefits for both the customers and the organisation. Through the facilitation of this model, SAVE reinforces its commitment to keep working towards economic empowerment and sustainable development within the communities it serves. The JLG model also helps facilitate livelihood enhancement, and poverty alleviation whilst providing insurance to help rural women in times of adversity like health crises in the family.

SAVE Microfinance is one of the few organisations in the finance industry which operates the JLG model on a completely cashless basis, providing women with convenient options to pay their EMIs at the nearest CSP in their village. This approach not only reduces risk for customers but also for the Customer Relationship Officers (CROs) involved.

Q 2. What are some of the key initiatives undertaken by SAVE Solutions to provide financial literacy and skill development training to CSPs and kiosk workers, and how has this contributed to customer onboarding and satisfaction?

The organisation ensures that its Customer Service Points (CSPs) and Kiosk Operators are equipped with comprehensive training upon joining, aimed at proficiently handling banking operations. This encompasses in-depth knowledge acquisition concerning banking products, procedural protocols, and regular attendance at quarterly sessions focused on banking regulations, data security measures, and the advantages associated with bank account openings, including insights into Social Security Schemes.

The organisation prioritises training facilitated by senior managers, complemented by the provision of bite-sized animation videos for CSPs. This approach ensures CSPs gain a thorough understanding of procedures, with easy access to resources for prompt utilisation and clarity whenever needed.

Emphasis is placed on the significance of Know Your Customer (KYC) principles, with customers diligently educated on the matter, stressing the confidentiality of sensitive information such as ATM pins or Aadhar Card numbers. Leveraging partnerships with esteemed Public Sector Undertaking (PSU) banks such as SBI, BOI, BOB, PNB, Jharkhand Rajya Gramin Bank, and Baroda UP Bank, the organisation's customer base has developed a profound trust in its services and the reliability of its CSPs.

Q 3. Can you shed light on SAVE Solutions' approach to addressing the specific financial needs and aspirations of rural and marginalised populations?

Initially, Bihar, Jharkhand, and Chhattisgarh had a significant portion of the population that lacked access to bank accounts. Through the implementation of SAVE Solutions' banking correspondent model, substantial progress has been achieved, extending banking services to even the remotest villages. Presently, 70% of the populace in these states is integrated into the banking system, marking a noteworthy advancement.

Maintaining its commitment to being the preferred choice for banking services across the nation, particularly in underserved regions, SAVE continues to expand its reach.

Moreover, SAVE has forged strategic alliances with SIDBI for various Swalamban Projects, aimed at extending financial aid. These projects entail the identification of 17,650 skilled individuals engaged in micro-enterprises, aspiring to embark on entrepreneurial ventures. SAVE is committed to provide comprehensive support encompassing financial literacy, assistance, and end-to-end services, including handholding support and access to target markets.

Q 4. Could you elaborate on the range of financial products offered by SAVE Solutions Pvt Ltd, including microloans, housing loans, and business loans? How do these products cater to the needs of rural and underserved communities?

SAVE Solutions Pvt. Ltd., offers a diverse portfolio of more than 40 banking products through the CSP Channel. This extensive range of banking services has facilitated the establishment of a robust customer base across rural villages. Through direct interactions with CSPs, the organisation gains valuable insights into the specific needs of its customers, particularly the demand for micro-loans to initiate or expand businesses.

The subsidiary companies of SAVE Solutions boast a diverse array of financial products, including microloans, agritech loans, MSME secured and unsecured loans, housing loans, and more. Each of these offerings is meticulously crafted to address the specific needs of the customers, ensuring seamless solutions are provided with ease.

Demonstrating an unwavering promise to serve rural and underserved communities, the organisation has successfully expanded its financial product offerings to challenging regions such as Ladakh, Kargil, and Arunachal Pradesh, surmounting connectivity and geographical barriers. Streamlining processes to facilitate easy bank account openings and loan applications with minimal documentation requirements lies at the heart of the organisation's services.

By prioritising customer-centricity, SAVE not only facilitates rural communities access to the banking system but also empowers them with invaluable knowledge about financial management.

Q 5. Can you provide an overview of SAVE Solutions Pvt Ltd's banking correspondent network and its reach across India?

SAVE Solutions Pvt Ltd. holds a prominent position as a leading banking correspondent network in India, boasting an extensive network of over 14,000 Customer Service Points (CSPs). Catering to approximately 21 million rural Indians across 8,600 villages, spanning 559 districts in 28 states and six union territories, SAVE Solutions serves as a crucial last-mile banking service provider, accommodating around 400,000 customers daily.

With a commitment to addressing the needs of underserved segments of society, SAVE offers a comprehensive suite of financial services, positioning itself as a one-stop solution for all banking requirements. SAVE’s mission is to bridge the gap in financial inclusion, ensuring access to essential banking services for those in remote areas.

Furthermore, SAVE takes pride in its trusted partnerships with major banking institutions, including SBI, BOI, BOB, PNB, Jharkhand Rajya Gramin Bank and Baroda UP Bank, as their appointed business correspondents.