2. Citibank:
200 years of commitment
all over the world
“Wherever people come together
to imagine something, create
something, build something,
we're there to help make it real” 1
.
That’s the promise that Citibank, one of
the largest and most influential banks,
makes to the world. In the last 200 years,
this institution has grown to be part of the
top 20 global banks list2
; something that
has enabled it to help its clients to imagine,
create and build everywhere.
The bank has presence all around the globe
with branches in almost every country. One
of the countries with the largest presence is,
without doubt, India. Citi started operations
in the country more than a century ago and
«today is a significant foreign investor in
the Indian financial market». Furthermore,
as promoter-shareholder, “Citi has played
a leading role in establishing important
market intermediaries such as depositories,
credit bureau, clearing and payment
institutions”. However, Citibank India,
following the pattern of the global brand, is
also committed to other aspects beyond the
economical one: also committed to other
aspects beyond the economical one:
Citi India is committed to enabling socio
economic progress in the communities where we
live and work. The Corporate Citizenship function
is the umbrella entity for all corporate social
responsibility activities undertaken by Citi India,
and is an important and integral element of the
daily functioning across the organization. We
continually strive to be active participants and
contributors to the well-being of the community
in which we live and work. Each year, we identify
and endeavor to support the nation’s priorities, be
they education, empowerment, or environmental
sustainability3
.
According to a World Bank study, one in three of the
world’s poorest people are living in India, one of the fastest
growing economies globally speaking4
. Furthermore, its
population is expected to reach 1.5 billion, so this country
will become the world's largest nation before 2030.
However, “its economy is not growing fast enough to create
the 20 million new jobs per year they will need to prevent
poverty increasing further”5
.
3. India has recently been
a “natural candidate
for experimenting with
microfinance as a tool for
poverty alleviation”.
Not in vain, the microcredit concept
is directly linked to empower those
with a less privileged social status.
According to Professor V. K. Sapovadia
(School of Business Management at
Gujarat University), “the principles
of microfinance are founded on the
philosophy of cooperation and its central
values of equality, equity and mutual
self-help. At the heart of these principles
are the concept of human development
and the brotherhood of man expressed
through people working together to
achieve a better life for themselves and
their children”6
. From a more financial
perspective, we can conclude that:
The meaning of microfinance is
supplying micro credit to people
living in abject poverty and has
no reach to the conventional
and formal financial products. It
is an aid for them to engage in
productive activities or grow their
small businesses. Microfinance is
focused on availing the credit in a
standard manner. The downtrodden
people just need a diverse range of
financial products to build their own
business, be able to build assets and
maintain consumption and protect
themselves against risks7
.
80% of poverty
in India is in
rural areas
Micro Finance and human development:
understanding the correlation
4. If we take into account that almost 80%
of the poverty found in India is located
in the rural areas, we can understand the
increasing interest that microcredits and
microfinance are generating in these
parts of the country. The lack of access
to financial services and productive
resources is one of the main reasons
which explain the poverty levels.
In fact, the credit exclusion is really
severe in several regions of the country:
only 10 per cent or less out of 100
persons have access to credit. Thus,
in order to help people improve their
income and living standards, there has
been a notable growth in the number
of institutions which support the
development of microfinance.
However, most of these institutions are
public cooperative societies whose reach
and power is limited, mainly, because
of their size and the lack of resources.
Also, the formal banking sector has
had a limited impact on microfinance
or lending to the poor due to different
reasons, such as political pressure or
prudent practice policies. Therefore, we
can conclude that the current situation
is in an experimental phase and there
is still a lack of resources in terms of
microfinance.
“India has built
up a network of
rural banks that
is rare if not
unparalleled in
the world”.
5. They engage in a wide range of socially
responsible activities, from corporate
philanthropy, employee volunteer
programmes, and strategic training and
workshops for financial education. One
of the major avenues through which they
perform CSR activities is via the Citi
Foundation, the global umbrella foundation
of Citi Group, which “works to promote
economic progress and improve the lives of
people in low-income communities around
the world.”8
The objectives of the Citi Foundation are:
to increase financial inclusion, to create
and catalyze youth economic opportunities,
and to transform urban environments
by building economically vibrant cities.
In their 2014 Global Citizenship Report,
Citi stated that they are committed to
the communities they serve beyond their
business activities, “providing the tools,
platforms and technologies that expand
financial inclusion and empower the
workforce of tomorrow"9
.In order to achieve
this, the Citi Foundation has several core
Signature Programs, of which the most
notable are the following:
Better than Cash Alliance was founded
because of the need to integrate the world’s
poorest people (those who move within a
cash-only environment) into mainstream
economy and to provide them access to
affordable financial services. The Citi
Foundation has committed $1.5 million over
three years to launch the alliance, which
would focus on tech support and peer
1. Investing in Youth
Pathways to Progress is a global flagship
initiative that support Citi’s longtime vision
of supporting economic opportunities for the
youth and boosting their career readiness. It
is a three-year $50 million dollar endowment
to help low-income youth develop the skills
they need in order to compete and thrive in
today’s workplace10
.
2. Driving Financial Growth
and Inclusion in Low-Income
Communities
Citibank CSR
learning for electronic payment expertise.
Already, the alliance has helped bottom
of the pyramid markets around the world,
India included.
Specifically for Citi India, the Citi
Foundation aims to address the
country’s socio-economic challenges.
Their primary programme is the India
Innovation Grant – a unique initiative
that aims to encourage and accelerate
innovative financial inclusion for low-
income populations. Through this effort,
Citi Foundation invests up to INR 125
Million to support NGOs to develop new
and innovative financial education and
inclusion programs that are scalable and
replicable11
.
Citi India also puts value on diversity,
as shown via the Citi India Woman
Leader Award (CWLA), an initiative
aimed at recognizing, rewarding and
developing talent of women across
India’s best business school. Winners are
awarded a full tuition scholarship and the
opportunity to intern at Citi, learn from
Citi senior management, and participate
in capability building workshops.
Citibank has been very proactive
when it comes to CSR
6. Citi India Grant and
Outreach Portfolio:
Citi Microentrepreneurship
Awards (CMEA)
For the transformation of CSR to CSV,
we would like to put our focus on Citi
Foundation’s Micro Entrepreneurship
Awards: a Signature Program aimed at
raising awareness about the importance of
microentrepreneurship and microfinance
in supporting the financial inclusion
and economic empowerment of low-
income individuals12
. Since 2004, the
Citi Foundation has awarded innovative
entrepreneurs and microentrepreneurs for
their extraordinary efforts in gaining self-
sufficiency through the innovative use of
microfinance. The Foundation provides
awards of up to $9 million in cash prizes to
6,000 outstanding microentrepreneurs in
more than 30 countries13
. To date, they have
invested more than $17 million to support
the efforts of microfinance networks.
CMEA in India
For the Microentrepreneurship Awards in
India, Citi India specifically recognizes
individuals and small enterprises that
exhibit a superior ability to emerge from
below the poverty line and build self-
sustaining businesses, create employment,
and contribute meaningfully to their
communities. The Foundation implements
the awarding process together with a not-
for-profit organization called Partners in
Change. The awards are divided into several
categories: National Micro Entrepreneur
Award, Youth Entrepreneur, Community
Owned Enterprise, Green Entrepreneur,
and Innovative Entrepreneur. The winning
nominations are selected from across the
country’s four regions: East & North East,
West & Central, North, and South. In total,
the winners are presented with cash prizes
of up to INR 1.8million, their respective
trophies and citations.
Criticism of Citi’s CSR
It is true that Citibank and the Citi
Foundation are doing a great deal to
promote micro enterprises and put the
spotlight on local microentrepreneurs who
are helping to lift the economic fortunes
of their communities and bringing more
capital into their developing economies.
However, our criticism of their CSR
Signature Programs, specifically the
Microentrepreneurship Awards, is that this
activity consists only of sponsoring money
for the awards and grants. Furthermore,
sponsoring awards and corporate giving can
easily be dismissed as a mere PR exercise
in order to lift the image of the company.
They are not necessarily long-term and
sustainable programs, and do not add value
to the company’s economic value chain.
“Given the vast number of
individuals whose livelihood is
self-employment through micro-
enterprise, we know that the India
growth story needs an inclusive
financial ecosystem. By bringing the
marginalized into the mainstream,
microfinance has served this
endeavor well. The Citi Micro
Entrepreneur Awards not only
celebrate the achievements of those
who have accessed micro finance
to break the circle of poverty, they
serve as a symbol of hope for those
who continue to be in its grip."14
Mark T. Robinson, CEO, Citi South Asia
7. NEW CSV STRATEGY
Not all profits are equal. The new capitalism
as introduced by Porter15
focuses on profits
involving social purpose, creating a positive cycle
of prosperity for both company and community,
and enduring profits. CitiBank will create shared
value by reconceiving their current CSR strategy.
They will recreate their value proposition for
the community and create a new market for the
company.
We propose CitiSashakti as CitiBank India’s
flagship micro-lending program to encourage
rural entrepreneurship at the grassroots level.
Sashakti literally translates to “Empower” in
Hindi and is the central theme of this CSV
initiative. CitiBank will redirect the Citi Micro
Enterprise Award (CMEA) fund of INR 3.8
million to creating a micro financing platform in
conjugation with Citi Foundation.
8. The Fineprint
What is CITISashakti?
CitiSashakti offers micro loans:
1. Of up to INR 100,000 (~$1500)
2. For entrepreneurial ventures
3. In rural and semi-rural areas
4. to applicants from lower
socio- economic backgrounds
The loan process follows the minimax
theory- smaller loan amounts to a large
group of people.
How does it work?
The inspiration behind the initiative is
primarily social good. The micro loans will
typically be unsecured, with a nominal rate
of interest, long term-period payment plans
(up to 5 years depending on principal) with
flexible EMI options.
Moreover there will be SOPs like better rate
of interest for women entrepreneurs and
for group loans. This stems from the idea
of solidarity lending. It is a lending practice
where small groups borrow collectively and
group members encourage one another
to repay. It creates a system of trust and
lowers cost to company. Borrowers would
be offered flexible repayment terms to ensure
they are not unnecessarily burdened yet work
hard to ensure the payments are made.
CitiBank would appoint a collection agent
who will recover installments of the loan on
a weekly basis, this will not burden them
financially as the amount will be much more
manageable.
Borrowers will have the opportunity to
activate a complimentary savings bank
account with a free ATM card, allowing easy
direct withdrawals from the loan account.
These savings accounts will be accompanied
by better interests rates than the regular
savings accounts.
One of the contractual obligation that
the borrowers will have to abide by is the
promise to send their children to school.
India has a free primary and secondary
public education program. Hence this is not
a financial burden. This would ultimately
help India in not only prospering as a society
but also better reaching the Millennium
Development Goals (MDGs) [set by the
UN], which are to convert to the Sustainable
Development Goals after 2015.
Value for society
Poverty limits demand for products and
causes social degradation16
. CitiBank’s
CitiSashakti microlending program creates
an overarching value for society because it
brings financial security to a community that
is marginalized and financially isolated. One
of the ancillary services that the program
offers is free savings accounts with CitiBank
India. For an ‘unbanked’ community this is
a great opportunity to secure their finances
and develop a habit of saving. Citi would
provide free financial literacy services as a
supplementary service to their borrowers.
Financial inclusion is an essential form of
societal development for rural India, where
the concept of traditional banking is largely
unknown and underutilized.
Besides receiving a free of cost ATM card
and better rate of interest on their loan upon
opening their savings account, the borrower
will also receive guidance on pertinent and
relevant issues such as:
• How to use an ATM
• Mobile and SMS banking
• Budget and funds management
• Fringe benefits like security of money and
interest on deposited amount
We believe that over time, this will help
create a society that knows and values the
benefits of banking over generations, of
course if a parent gets into the habit of using
secure and traditional banking methods,
they will pass those traits on to their children
and close family members as well.
Overall, this micro lending program is
meant to empower the local communities,
especially women by encouraging self
reliance and developing the entrepreneurial
spirit of the society at large. An initiative
like CitiSashakti can help build a sense of
accomplishment in the borrower and reduce
the dependence of charity by including them
in the mainstream financial system.
Value for Citi
As a strategy that creates shared value,
there is economic and social value for
Citibank in the whole venture. Apart from
earning goodwill as proponents of social
change, Citi will enjoy increased reach by
tapping into a whole new market in rural
and semi rural India.
Citi will be able to create a differentiation
strategy by tapping a big market that
has largely been ignored by other private
banks. Differentiation will also be in
terms of brand image that Citi is a caring
bank. This differentiation will give Citi
an unparalleled competitive advantage
because it has the means already, now it
will also have the reach.
Citibank is reconceiving its products
and market and enabling local cluster
development in the long term, thereby
creating shared value.
Target audience for
Citi Sashakti
Indian citizens :
• residing in a town or village with a
population of maximum 15,000
• daily income of less than INR 700
(~USD 10)
• engaged in any kind of entrepreneurial
venture or agriculture
• of legal age (18 years and above)
9. communication plan
Transformation of the CSR to CSV
will also need to be accompanied
by a communication plan to ensure
stakeholder awareness and brand
promotion. As CitiSashakti is a
microlending program aimed
at reaching the rural audience,
the communication needs to be
organized accordingly.
The target audience
Given the strategy for CitiSashakti, the communication plan will target two groups.
First target group is the end users of the microloans, while the second target group includes
all other stakeholders of Citi. We propose different tactics to reach these audiences and
communicate and promote the concept of CitiSashakti.
1. Rural entrepreneurs
The communication directed to this
target group is highly important, not only
because they are the end users of the
CitiSashakti, but also to show the rural
communities that microloan programs
will help to secure a better future for
themselves and their children. It will give a
sense of hope and realization of dreams to
the entrepreneurs.
2. Other Stakeholders
In this target group, the communication
plan intends to increase the awareness of
CitiSashakti as a new model of CSV and
promote the idea that shared value is a
significant and measurable way of doing
business while at the same time solving
social problems.
10. communication
strategy
CitiSashakti’s strategic messaging
is Cultivating India - it is not only
a tagline, but also the name of the
communication campaign. India
has tremendous potential in its
democracy, resources and most
importantly its people. The slogan
of the campaign would be:
“Empowering rural India to cultivate
growth and safeguard the future.”
11. tactics
1. Bulk SMS
Bulk SMS is an effective means to reach
the rural population of India and inform
them about the CitiSashakti program.
Messaging will be in local languages
and mostly informative in order to get as
many reads as possible. Given that most
of the rural population does not have
access to internet, mobile phones are an
achievable method to spread the word
about CitiSashakti and its activitie.
2. Traditional Media
Traditional media is a good medium to
reach wide audiences, particularly TVCs,
radio, and print media ads explaining the
vision of CitiSashakti and "Cultivating
India". Through these media, CitiSashakti
will be portrayed as a social initiative
created to promote entrepreneurial spirit
in the country.
3. Cultivating India Tour Bus
Since our end-users are people living in
rural areas with limited exposure to digital
media and the internet , Citibank will create
a "Cultivating India Tour Bus". This bus
will go to several rural areas promoting
CitiSashakti’s microloan program, with
additional benefits that come with it.
4. Presentations at Panchayats
In addition to the Tour Bus tactic, special
presentations will be done at Panchayats.
Panchayats are “village councils” that are
present all over India, where official meetings
between town/village officials and residents
are held. Presentations by the CitiSashakti
team will be held at Panchayats throughout
the country to inform, explain and promote
CitiSashakti as a social initiative. This will also
be an effective way to answer the concerns
and questions of the end-users, as it is also a
personal approach. In time, mobile desks will
be installed during Panchayats, which will
serve as CitiSashakti representative offices to
continue personal connections with potential
and current end users of the microloan
program, to offer advice, and to enable people
to sign up for the service.
Cultivating India
campaign will run all
across India, reaching
the two target audiences
mentioned above. For
each segment, we propose
various tactics to ensure
that the message and the
promotion of the campaign
are clearly delivered.
12. tactics
1. Digital Campaign
Digital channels such as corporate website
and online publications will be used to
create online presence for CitiSashakti.
These mediums will contain all necessary
information about CitiSashakti’s mission,
strategy, and procedures. As the program
progresses, success stories will be shared to
showcase to the public and the stakeholders
that the initiative is indeed a shared value
concept which develops local economies
and banking systems.
2. Social Media Campaign
with #CultivatingIndia
Growing from the digital campaign, Social
Media presence is also important for the
promotion of CitiSashakti. Social Media
Channels, such as Facebook, Twitter, Blogs
and Instagram will be created and managed
to ensure everyday communication with
the stakeholders. Even though the accounts
will be corporate, the tone of voice used
throughout the social media channels will
be less formal, and social listening will be
Apart from the end-users, CitiSashakti will be targeted to
other stakeholders as well. Given that this audience is also
quite large, yet more digitally advanced, several promotional
tactics will be used to communicate the message “Cultivating
India”. It is important to note that the traditional media that
will be used for the end-users is also highly effective when
promoting to this target group.
other
stakeholders
implemented to ensure that information/
questions/concerns regarding CitiSashakti
are communicated clearly in real time.
Pictures and stories with the hashtag
#CultivatingIndia will create a more personal
connection with the audience and these
types of content will promote what is good
about this CSV campaign.
13. 1
Citibank website. Section: About us. Progress [online]. Available on:
http://www.citigroup.com/citi/progress/index.htm
2
Accuicity website. Bank ranking, top banks in the world. 24 June 2015 [online]. Available on:
http://www.accuity.com/useful-links/bank-rankings/
3
Citi India website. Citi in India. Citizenship activities [online]. Available on:
https://www.online.citibank.co.in/press-room/citi-in-india.htm?eOfferCode=INHOGNTHEABOUS
4
THE WORLD BANK. The State of the Poor: Where are the Poor and where are they Poorest? The World Bank,
April 2014 [online]. Available on: http://www.worldbank.org/content/dam/Worldbank/document/State_of_the_
poor_paper_April17.pdf
5
NELSON, Dean. India has one third of world's poorest, says World Bank. The Telegraph, 18 April 2014 [online].
Available on: http://www.telegraph.co.uk/news/worldnews/asia/india/10003228/India-has-one-third-of-worlds-
poorest-says-World-Bank.html
6
SAPOVADIA, V. K. MICRO FINANCE: The Pillars of a Tool to Socio-Economic Development. School of Business
Management, Gujarat University, no date available [online]. Available on: http://www.sarpn.org/documents/
d0002220/Micro_Finance_Sapovadia.pdf
7
CHAKRABARTi, Rajesh. The Indian Microfinance Experience – Accomplishments and Challenges. College of
Management, Georgia, no date available [online]. Available on: http://scripts.mit.edu/~varun_ag/readinggroup/
images/b/b6/The_Indian_Microfinance_Experience_%E2%80%93_Accomplishments_and_Challenges.pdf
8
Citibank website. Section: Citi Foundation. Philanthropic Focus. [online]. Available on http://www.citigroup.com/
citi/foundation/philanthropic-focus.htm
9
Citibank website. Section: Corporate Citizenship. [online]. Available on http://www.citigroup.com/citi/about/
data/corp_citizenship/2014-citi-global-citizenship-report-en.pdf
10
Citibank website. Section: Citi Foundation. Pathways to Progress.. [online]. Available on http://www.citigroup.
com//citi/foundation/pdf/p2p_brief.pdf
11
Citibank India website. Section: Citi Foundation. Citi in the Community. [online]. Available on https://www.
online.citibank.co.in/Corporate-Affairs/Standalone/IIGP/jun15/htm/India-Innovation-Grant-Program.htm
12
Citibank website. Section: Citi Foundation. Signature Programs. [online]. Available on http://www.citigroup.com/
citi/foundation/programs/microentrepreneurship-awards.htm
13
Citibank website. Section: News. [online]. Available on http://www.citigroup.com/citi/news/2010/100319c.htm
14
Citi Announces Winners of 2009 Citi Micro-Entrepreneur Awards. The Telegraph. Retrieved from
http://www.telegraphindia.com/external/display.jsp?mode=details&id=21980
15
PORTER, Michael and Michael Kramer. “Creating Shared Value: How to reinvent capitalism and unleash a wave
of innovation and growth”. Harvard Business Review. Jan-Feb (2011) 15. Reprint.
16
PORTER, Michael and Michael Kramer. “Creating Shared Value: How to reinvent capitalism and unleash a wave
of innovation and growth”. Harvard Business Review. Jan-Feb (2011) 12. Reprint.
endnotes
