SKS Microfinance

Empowering the Poorest of the Poor to Become Self-Reliant December 2002 Vikram Akula, Founder and CEO

Mission and Profile

Founded June 1998 Mission To Empower the Poorest of the Poor to Become SelfReliant by Sustainably Providing Financial Services Focus Poorest of the Poor in Drought-Prone Deccan Region of India

Group-Based Grameen Methodology

Achievements and Goals

Achievements Since 1998 4 branches
Dramatic Growth in Outreach...
12000 10000 8000 6000 4000 2000 0

9628

314 village centers

10,123 customers $1.4 million disbursement $680,000 loan outstanding 99.9% repayment

Customers

7558

M ar -9 9 Ju n99 Se p99 De c99 M ar -0 0 Ju n00 Se p00 De c00 M ar -0 1 Ju n01 Se p01 De c01 M ar -0 2 Ju n02 Se p02

Total Customers

Loan Customers

Maintaining Excellent Portfolio Quality

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Loan Portfolio (Rs. millions)

1.6% 25 20 15 10 5 0.20 0 Mar-99 0.66 Mar-00 Mar-01 Mar-02 PAR > 30 Days Oct-02 3.01 13.62 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0%

Our Goals Scale to 100,000 in Deccan by 07 Franchise to 100 of the poorest districts in India

Loan Outstanding

Portfolio-At-Risk > 30 Days

79% F.S.S.

31.31

2.0% 1.8%

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Context of Technology Innovation

1. Identification of Barriers to Growth - High Volume, Low Value High Transactions Costs High Risk

2. Identification of Key Element of Solution SKS MAPS - Fully-Integrated, Fully-Automated MIS

3. Funders CGAP (Pro-Poor Innovation Award Winner) Grameen Foundation USA Digital Partners (SEL Award Winner)

4. Other Awards UC Berkeley Haas School Social Venture Competition Finalist Stockholm Challenge Finalist World Bank Development Marketplace Semi-Finalist
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SKS MAPS Framework Designed for Scale

SKS Portfolio Tracker - User Friendly

Highly Sophisticated User-Interface Yet Intuitive and Easy-to-Use

SKS Portfolio Tracker - Extensive Reports

Over 50 Customized Reports Following Best Practices

SKS Accounts

Seamlessly Integrated with Accounts

Smart Card/Palm Pilot Front-End

Reduces Time and Increases Productivity Bottleneck to Productivity at Field Level Smart Card as Electronic Passbook Reduces Time
Before

After

Before Smart Cards

Still Large Scope for Error and Fraud Still Delay in Portfolio Information Collection

Automated

Sheet Print-Out

Manual Manual

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After Smart Cards

Single Data Entry Point Reduces Scope for Fraud & Error Single Data Entry Point Speeds Information Flow

Automated

Automated

Automated

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The Future: Smart Cards as Cash Substitute

For the Customer - Flexible Services Credit linkages at local hospitals Linking into proposed rural ATM networks Lines of credit with local vendors For the MFI - Cashless Microfinance using Phone Booths

For Other Uses - SKS WAVE, Digital Platform for e-Health.

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Questions?

vikram@sksindia.com

www.sksindia.com
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