Swadhaar Team Aruna Bhamidipati Colleen Briggs Jen Leybovich

Swadhaar* Team: Aruna Bhamidipati Colleen Briggs Jen Leybovich Angela Sun Cheri Tan * Translates to ‘self support’

Swadhaar’s Mission Microfinance: Swadhaar Fin. Serve “To make available, responsible and efficient financial services to economically vulnerable and underserved urban households, enabling them to attain financial security and meet their aspirations” Financial Education: Swadhaar Fin. Acess “To assist the urban poor, especially women, to enhance their economic capacity by providing financial education and training, and by facilitating access to savings, insurance and loans, which will enable them to cross the poverty line and meet their aspirations for a better future”

Swadhaar Fin. Serve Established 2008: Structured as for-profit nonbanking finance company Financed through operations, bank loans, and shareholder capital Headquartered in Mumbai: 26 branches 410 employees Active clients: 80, 201 clients with a gross loan portfolio of Rs. 786 million

Swadhaar Fin. Access Established 2005: Structured as non-profit organization registered as a Section-25 company Financed through grants Headquartered in Mumbai: 12 branches 40 employees Active clients: 27, 664

Swadhaar Fin. Serve

Fin. Serve Products o Swadhaar has three loan products: n n n 1) Individual Loan with a Joint Liability (JL); 2) Top up Loan to existing JL clients and 3) Individual Business Loan (IBL) *All products come with credit-linked life insurance

Fin. Serve Markets & Clients Snapshot o Swadhaar focuses on urban poor segments between the traditionally bankable and the ultra-poor populations March 2012 March 2011 March 2010 March 2009 Total Active Clients 80, 201 56, 727 27, 391 8, 234 Outstanding Portfolio (Rs in millions) 786. 04 504. 05 195. 64 56. 62 PAR >30 days (%) 2. 15% 1. 09% 0. 91% 1. 08% Source: Swadhaar 2012 Annual Report and Bharat Microfinance Report 2009

Fin. Serve Outstanding Portfolio

Fin. Serve Financial Highlights o Annual Income (March 2012) n Rs. 191, 819, 199 n Operation income/Total income = 93% n Other income/Total income=7% o Annual expenses n Rs. 188, 464, 812

Fin. Serve Revenue Graph

Fin. Serve Impact 2011 Reach - $15. 5 million gross loan portfolio 80, 201 active borrowers in 2011 with average loan of $192. 7 - $16. 7 million in assets in 2011, with $565, 907 of deposits 2 nd Smart Campaign Assessment Adequate to More Than Adequate score MIX Report Goals Increase assess to financial services and poverty reduction, growth of existing businesses, and gender equality and women’s empowerment

Swadhaar Fin. Access

Fin. Access Products & Services Financial Education Program (i. e. training modules) No frills savings account Micro life insurance in pilot stage

Fin. Access Markets & Clients Snapshot Serves the working poor, especially women, living in urban slums (Mumbai and Baroda), mostly clients of Fin. Serve Financial Education Program Grown 5 x from 2009 to 2011 Short term training Provided to 2, 800 women in FY 2011 Savings accounts Helped facilitate opening of 1, 900 accounts Micro-insurance launch Distributed 144 policies in November 2010

SFA works with local banks for the facilitation of savings accounts

Fin. Access Financial Highlights o o Annual Income (March 2011) n Rs 6, 661, 416 (91% Grant Income, 9% Earned) Annual expenses n Rs 7, 577, 130 (75% Program, 25% Mgmt/General)

Fin. Access Impact Barometer Research Report Knowledge levels have increased -- 483 women interviewed Moneylife cited external report 2009 retention rate was 86% “I knew nothing about banks, bank accounts and bank transactions until I received training from Swadhaar Fin. Access. In fact, I had taken expensive credit from a moneylender for the marriage of my two daughters. But training programme made me realize the importance of avoiding credit and borrowing prudently. And I opened a bank account with the help of Swadhaar Fin. Access. ”-Shobha Jogel

Swadhaar’s Current Situation Strengths - One of the 1 st players in urban microfinance - Partnered with Unitus and ACCION Challenges - Fin. Access supports Fin. Serve clients, but do not collaborate to maximize impact - Fin. Access not financially sustainable despite contributions to profitable Fin. Serve - Fin. Serve faces shareholder and donor constraints to sustain core business Risks - Evolving landscape with increased competition and new innovations in technology - New regulatory guidelines and constrained bank lending

Swadhaar’s Strategy Strengthen collaboration between the nonprofit education and for-profit financial arms to sustain growth and efficiently scale Enhance unique value proposition and complementary organizations to provide competitive advantage Alter products and processes to meet new regulatory guidelines, while creating efficiencies and improved services Expand Financial Literacy Centers for potential revenue stream for Fin. Access Improve technologies, alternative channels and systems to enhance process for clients and reduce operational costs

Global Social Entrepreneurship Project o o SFPL provides financial services to the economically active urban poor SFA focuses on credit-plus products and services, including financial education, insurance and savings facilitation Objective: To further build a strong collaborative relationship between the two organizations

GSE Project Approach o o o Research and Assess: Organizational chart analysis, background information, and survey analysis of internal parties Identify areas of convergence Identify mission, short and long term goals, and areas of expertise Identify synergies in processes, delivery mechanisms, and outcomes Research best practices on nonprofit/for-profit collaborations at competitive or similar organizations

GSE Project Preliminary Assessment and Requests Questions • Main objective of (reasoning behind) the project? • Clarity on tasks under the selected objective • Form of deliverable, audience and timeline • Background of issue and organizations – past work/analysis • Interview recommendations (high level/mid-level) • Competitive analysis – marketplace analysis and best in class examples Data/Info Requests • Workchart (formal and informal) and interactions with each organization • Impact zones coverage breakdown • Process maps • Social metrics of Swadhaar Fin. Access (current metrics collected) • List of prior or current collaborations • Fin. Access grant breakdown

GSE Project Key Deliverables and Activities o o Likely key deliverables: n Analysis of current state core competencies of each organization n Recommendations on collaborative initiatives n Implementation plans for initiatives and presentation of future state Summary of key activities before the SE visits SOM Sept 16 – 21. n Meet with Dipika Ailani and Rajiv Chegu, classmates and former Swadhaar employees n Call with SEs for background info and list of contacts to interview n Finalize scope and draft project timeline n Begin preliminary research on non-profit & for-profit subsidiary collaborations (Mann Deshi, Pro Mujer, BASIX)

GSE Project Key Dates n n n September - December – Gather research through interviews with SE and local SMEs, plan & analyze preliminary info Sept 21 – Letter of Agreement Oct 24 – Draft presentation Dec 10 – Review presentation Jan 1 – 10 – India trip Jan 25 – Final presentations due

GSE Project Useful Metrics to Gauge Project and Swadhaar Success n n Time & resources allocated to collaborative projects (past & future ) Client satisfaction survey Funding for collaborative projects Additional metrics to be determined with client

Questions?