enhancing clients` financial capability - e-MFP

#emw2014
EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
ENHANCING CLIENTS’ FINANCIAL CAPABILITY
The KGFS Way
Chelladurai A
13/11/2014
[email protected]
www.e-mfp.eu
#emw2014
EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Mission
To maximise the financial wellbeing of every individual and every enterprise by
providing complete access to financial services in remote rural India.
Characteristics of KGFS Model
Tight Geographical Focus
Wealth Management Approach
Wealth
Management
Focus
Physical
infrastructure
Geography
Focus
Technology
Backbone
Economies of
Scope
Transactional
Transparency
Access to broad range of Products
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EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Process of Customer Engagement
Enrolment
• Details on household income, expenses, assets and liabilities are
captured in the Customer Management System
• Identity and address proof documents are scanned for all enrolled
members, fingerprints and photographs are captured
Wealth Management Process
• A ‘Financial Wellbeing Report’ (FWR) is generated from the system
which contains customized financial plan for the household
• The Wealth Manager engages the household in a detailed wealth
management conversation on Plan- Grow – Protect – Diversify (PGPD)
Offering the Product
• The customer visits the branch to avail a product
• Suitability factor - The Wealth Manager recommends the appropriate
product based on the FWR
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EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
PGPD Framework
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Plan:
A diagnostic process
which helps the
household to recollect
and plan for all its
current and planned
expenditures against
current and planned
income
Grow:
A process designed to
help households
realize their total
income potential and
take appropriate
action to increase
their income/surplus
Protect:
Protects human
capital, incomeearning assets and
provides a safety net
to avoid compromises
on goals and
aspirations
Diversify:
Helps allocate funds
across diversified
assets and assists the
household in
spreading the risk and
optimizing returns
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EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Value Proposition
For Customers
Better understanding of Households
financial position and their ability to
meet their goals
Helps customers to make balanced
investment decisions
Ability to choose right financial
products
Protects the family from unexpected
shocks/calamities
Overall Improves the financial
wellbeing of the Household
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For Financial Institution
In depth understanding of
Households economic and risk profile
Develop/Offer products according to
the household need , avoids
Missell/oversell.
Helps to build quality portfolio
More number of products per
Household
Better capacity Utilization
Loyal customers
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EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Measuring the performance
Internal Evaluation
External Evaluation
•
•
•
•
•
More than 60% Increase in average asset
values
13% decrease in average liabilities
120% increase in average income
72% increase in average expenses
Average DSC has increased from INR
48000 to 144000
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Midline Results of the randomized
evaluation by Harvard University and
Duke University, in partnership with
Centre for Micro Finance and IRCS,
presents that the presence of a
KGFS branch increases the number
of formal loans by ~20% per
Household, while there is no such
increase in control locations.
GIZ Master Trainer Program –
Evaluating the impact of improved
financial awareness on product
uptake.
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#emw2014
EUROPEAN
MICROFINANCE WEEK 2014
DEVELOPING BETTER MARKETS
Thank You
IFMR Rural Channels and Services Private Limited
IITM Research Park | A1 | 10th Floor | Kanagam Village | Taramani | Chennai – 600 113 | Tamil Nadu |www.e-mfp.eu
India
[email protected]
http://ruralchannels.ifmr.co.in/