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A Blueprint for the Delivery of Comprehensive Financial Services to the Poor in India

Towards a new vision of financial services delivery for the poor
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This note attempts to articulate a new vision for the scaled delivery of comprehensive financial services to the rural and urban poor of India.

The note states that:

  • Access to finance is the ability of economic participants to obtain a range of financial services with ease and at reasonable prices;
  • Improving access can have a strong welfare impact on the very poor;
  • These financial services allow participants to smooth consumption, face adverse shocks, use their skill sets and generate surpluses for investments;
  • However, the supply of formal financial services in India falls far below the demand for these services.

The note:

  • Draws on lessons from previous experiences in this sector, both in India and other international markets;
  • Documents the contributions of a few Indian banks and financial service providers in this area;
  • Discusses in detail ICICI Bank's contribution towards helping the poor access financial services.

The note concludes that:

  • Access to financial services for the poor is a critical part of the growth and development process of any country.
  • ICICI Bank's approach attempts to build natural partnerships in the pursuit of universal access to financial services.
  • The following steps are necessary to increase access:
    • Design of new products and individual lending methodologies;
    • Investments in training and technology;
    • Advisory support for microfinance entrepreneurs;
    • Credit bureau design and microfinance program evaluations.

About this Publication

By Ananth, B., Barooah, B, Ruchismita, R., Bhatnagar, A.
Published