Solving the problem of Financial Exclusion Ramraj Pai President CRISIL Foundation

What we do MISSION VISION OUTREACH 8/27/2018 What we do MISSION Empower socially and economically disadvantaged communities to make informed financial choices VISION Build awareness and capacities of the financially excluded in India OUTREACH (2015 till date) Over 100,000 women in Assam; Over 36,000 women in Rajasthan Add map that Sheetal sends MISSION 2019: REACH OUT TO MORE THAN 1,000,000 COMMUNITY MEMBERS BY 2019 as a thought leader, knowledge partner and implementation agency

Summary : Insights into building financial capabilities A practical approach to financial education (1/3) Summary : Insights into building financial capabilities Customise goal-based financial planning education 01 Simplify messages to enable informed financial choices Engage extensively (rather than one-time) Handhold to reinforce behavior change Facilitate financial linkages Human-centred programme design Identify the needs of each target group: Urban and rural poor Persons with disabilities Small & marginalized farmers Project affected people Youth 02 03 Anyone who is willing to be trained and has the capability to carry out tasks that meet outreach goals, can be a foot soldier. Build capacities to create a network of skilled community resources 04 Establish an eco-system that can encourage and sustain good financial practices. Engage all stakeholders

Project-affected people Persons with disabilities A practical approach to financial education (2/3) Customised programme design Project-affected people Persons with disabilities Rural and urban poor Farmers Youth for health, education, skill-building, marriage, old age, & money management for micro-enterprise to manage cashflows during crop cycles to manage lump sum received in lieu of land acquisition for awareness of formal channels of investments to pursue ambitions, contribute to family wealth to create awareness of, and access to, financial products and services Desired outcomes Set financial goals Monitor cashflows Increase awareness & facilitate linkages Enable informed financial choices

👆 A practical approach to financial education (3/3) A multi-stakeholder approach Train community-based workers CRISIL Mitras, typically, young adults with minimum qualification of passing Class XII, are trained as front-line community-based workers 👆 Train Volunteers Sakhis are enterprising women with little or no education who are trained to continue supporting and reinforcing good financial habits Strengthen and engage block-level institutions Existing community groups, such as SHGs, collectives for peer learning; Panchayat Raj Institutions for recognition & support. Solution providers Collaborate/engage with NGOs, corporates, post offices, bankers, insurers, micro-finance and credit institutions to create an enabling environment Collaborate with all stakeholders to establish an eco-system that can encourage and sustain good financial practices.

Visible outcomes of capacity building on community-based workers and beneficiaries Increase in self-confidence with continual capacity building. Impact on community cadre trained to train beneficiaries Increase in confidence to jointly make family decisions with male heads of family (husband or father). Impact on rural women, households and SHGs 👪👪 Ability to manage various situations, growing remarkably in how they interpret and respond to participants’ queries. Husbands, fathers, brothers and sons treat the women in their families as credible managers of wealth. SHGs have begun to thrive with the right guidance in money management. Dysfunctional collectives have regrouped with a renewed sense of purpose. Played an integral role in curbing prevalent practices of illegitimate moneylending and local fraud Source: Midline assessment of Mein Pragati, Assam by KPMG

8/27/2018 The way forward A framework of voluntary and/or fee-based services by Sakhis (volunteers/rural financial advisors) to sustain inclusion Thought leadership, and proof of concept for a skilled cadre of community workers to sustain financial inclusion. CRISIL Community members trained as Sakhis, to address immediate financial needs. Community-based workers SERVICES: Guidance to enable informed financial decisions Information about relevant financial schemes Handhold to complete documentation Connect beneficiaries with financial service providers Help SHGs optimise membership in village organisations Strengthen SHGs’ compliance with registration requirements (bookkeeping, etc) Fee-based services to handhold individuals and collectives Leverage technology to scale certification of community members as rural financial advisors. Entry Level Services Reinforce key messages to enable informed financial decisions Inform beneficiaries about locally relevant financial facilities and products for investment Handhold participants with documentation to avail of formal financial products and services Connect beneficiaries with financial service providers in case of specific product queries Advanced Help SHGs optimise membership in village organisations & community-based organisations Provide services to strengthen SHGs’ compliance with registration requirements (bookkeeping, etc) Tech-enabled training for scale

Thank you