The document highlights the importance of financial inclusion as a means to alleviate poverty, noting the World Bank's goal of providing access to financial services for 1 billion people by 2020. It emphasizes the growth of microfinance institutions, particularly in Asia, showcasing their profitability and high repayment rates, and discusses the role of technology in enhancing financial service accessibility for the unbanked population. The author, Jaiveer Singh, advocates for innovative solutions in financial inclusion and offers mentorship to startups in the fintech space.

1. www.JaiveerSingh.com Email: JaiveerSingh@outlook.com

2. Financial Inclusion - An opportunity for growth
Access to financial services can serve as a bridge out of poverty for millions of people.
World Bank and IFC – has committed to enabling 1 billion people to gain access by 2020

3. People at Bottom of Pyramid
“4 billion low-income people, a majority of the world’s population, constitute the base
of the economic pyramid.
People at BoP include small farmers, low-income salaried employees, day
laborers, pensioners, poor households and micro enterprerenuers.

4. Markets at Bottom of Pyramid
More than 2 billion are unbanked people at BoP

5. Financial Inclusion matters
Youtube link: www.youtube.com/watch?v=bdN5EgJ-Y4k

6. Doing Good Is Good for Business

7. Doing Good Profitably
• Microfinance services started few decades ago has been an alternate source of
finance to people who otherwise were dependent on money lenders & loan
sharks.
Source: Microfinance Information Exchange- MIX
Most Profitable MFIs in South Asia Few Leading MFIs in Asia
• Bandhan in India serving 6.5 million
customers with ROE 28% and ROA 5%
• SKS India serving 3.6 million
customers with ROE 22% and ROA
5.5%
• ASA Bangladesh serving 4.85 million
clients
• ASA Philippines serving 1.1 million
clients with ROE 44.7% and ROA 6.8%

8. Growing Investment in Microfinance
• On average the top 100 most profitable microfinance institutions worldwide have an
average of 10.44% return on assets.
• Microfinance institutions are generally experiencing very high repayment rates of
between 95-99%.
• Globally, the private sector alone invests an estimated USD 10 billion in microfinance
• Around 50% of pubic listed SKS Microfinance & 70% of Ujjivan Financial in India is
held by overseas investors, Another MFI, Janalakshmi raised equity of INR 3.25 billion
in 2014.
Source: Microfinance Information Exchange- MIX
Asia Pacific is set to remain the world’s fastest-growing microfinance market
with projected growth of 30% in 2016.*
30
%
*Source: http://www.responsability.com

10. Support Income generation activities
Serving Social Business Financial needs is another business avenue at BOP helping them
earn incomes thus creating new consumers with purchasing powers

11. Design for the other 90%
Improved Connectivity & low cost scalable technologies can enable solution of mass scale

12. Leveraging Technology
 A mobile phone–based transaction system offers far more
convenience and accessibility
 Wider and better low cost internet connectivity and smart
phones availability is also facilitating mobile financial services.
 Digital Financial Services will provide better access to products
 Cloud based SaaS, PaaS – improving operational efficiency
 APIs enabling real time collaboration among partners
Technology in financial services can address four important concerns:
convenience, accessibility, safety, and transferability.
APAC – 4b People
1.4 b, 30%
Coverage
3.7b, 92%
Coverage

13. Business Models – Leveraging Long Tail
Technology has enabled new business models by lowering costs of distribution & service.

14. Business Models – Shared Economy
1

15. Partnering with Telecom & Fintech Firms
By 2030, two billion people will use their cellphones to save, lend and make
payments, according to Bill Gates. Telecom & Fintech firms are developing new low costs
solutions to connect financial services to unbanked people.
SOFI
Milaap

16. FI Matters for Inclusive Growth
Startups building solutions for FI may get in
touch for mentoring/ advisor support at
Email: LetsTalk@JaiveerSingh.com
Jaiveer Singh
• Senior IT Leader with global
experience
• Fintech Mentor & Connector
• Financial Inclusion Advocate
• Blockchain Technology Fanatic
• Previously served GE Capital, Axis
Capital, Orix Finance, ICICI Bank,
Shinsei Bank, Deutsche Bank