[Exclusive Interview] SAVE Solutions Offers a Bouquet of Financial Services Across 488 Indian Districts Via 12000+ Kiosks!

Recently we interacted with Ajeet Kumar Singh, Founder Director, MD, and CEO, Save Solutions Pvt. Ltd., and asked him about the rural banking initiatives from Save Solutions, and their mico-loan model for rural customers.

Highlights from the interivew:

Tell about the company and What does Save Solutions offer?

Save Solutions is one of India’s largest Business Correspondent Networks that is focused on providing access to financial services to rural and semi-urban unbanked communities. We operate through a customer service point model (CSP). SAVE Solutions’ wholly owned Microfinance company SAVE Microfinance Pvt. Ltd. (SMPL), employs Joint Liability Group (JLG) lending methodology to provide micro-credit services and lower ticket size loans to the underserved segment of society. To bolster entrepreneurship amongst women, we also provide customized loan products to our women clients. Over the years, we’ve established an extensive network of 12,000+ CSPs (Customer Service Points) across India, which further equips us to offer cash-in, cash-out, and other banking services with real-time connectivity. 

How is Save Solutions providing the Doorsteps Banking, Spreading awareness for Digital Banking, Small Insurances, etc?

We’ve been providing multi-fold financial services to entities in 488 districts across India via  12,000+ kiosk banking and customer service points (CSPs). With over 155 branches across the country, SAVE Microfinance Private Ltd. under the parent holding SAVE Solutions, has provided microfinance services to approximately 132,264 enterprises/micro borrowers as of November 2021. Recently, we have signed an MoU with the State Bank of India to expand the capacity and disbursement for our co-lending vertical. Along with this, as a part of our pilot intervention, we have launched the SAFAL Program (Swavalamban Assistance for Financial Literacy and Credit & Market Linkage) in association with SIDBI (Small Industries Development Bank of India), where we have adopted 90 villages in Bihar and 30 villages in Jharkhand for developing & upskilling micro-enterprises. We have offered financial training to around 2400 low and medium rural entrepreneurs and have guided them on the functionality and importance of digital banking, CIBIL records, insurance, etc. Additionally, we also provide around three to six months of hand-holding to help them grow their business. 

In line with our vision to extend financial training, we also organize ‘Gram Sabhas’ at the block or Panchayat levels. Through this initiative, we make individuals and enterprises aware of the benefits of banking services, the importance of social security schemes, digital banking, etc. As of now, we have 85% touchpoints in the rural segment and have provided employment to approximately 25,000 individuals based in the rural pockets of the country. 

Through its Kiosk banking services SAVE Solutions offers Government backed small insurance products including Pradhan Mantri Suraksha Bima Yojana [PMSBY] and Pradhan Mantri Jeevan Jyoti Bima Yojana [PMJJBY]. Additionally, we also offer Atal Pension Yojana [APY] which is available to individuals within the age group of 18 to 40, having a bank account.

For taking care of its clients, SMPL ensures that every woman who takes loans from the microfinance company, is also offered life insurance. 

3. How many women clients have the company given a loan till now, to start their entrepreneurial journey?

To date, we have facilitated customized loans worth Rs. 704 crores to approximately 1,77,364 women customers. 

What is the founder’s thought on financial inclusion and digital adoption? How the company is imbibing it in Save Solutions?

It would be right to say that financial inclusion is the building block for enhancing economic growth and reducing poverty. It facilitates day-to-day living while helping families as well as entrepreneurs plan for their long-term financial goals. As account holders, people are more likely to use other financial services, such as savings, credit, and insurance, for starting and expanding businesses, investing in education or health, and managing risk, all of which can improve the overall quality of their lives.

According to a report by the World Bank, India is the second-largest nation with a significant population that does not participate in the formal financial sector or has bank accounts. However, over the last decade, India has made impressive strides towards financial inclusion by enabling banking, especially digital banking across rural segments of the country. As of now, there are around eleven lakh Business Correspondent Networks (BCs) extending banking services at the rural and metropolitan levels. 

Technology has a major role in facilitating financial inclusion across India. ICT helps banks to reduce their front-end and back-end costs significantly. Furthermore, ATMs (Rupay cards) play a key role in reducing the front-end cost and have revolutionized the banking delivery chain. 

With the increasing use of smartphones and internet penetration, the excluded section of society is now gradually being equipped with financial literacy and basic education.

At Save Solutions, we’ve been provisioning various financial solutions through our kiosk banking and CSP network for the underserved communities in India.  As mentioned earlier, we have also introduced financial literacy-centric programs to expand the banked community in the rural segment of the country. Our Gram Sabha initiative is curated to assist the rural community by helping them open savings accounts, providing small credits and insurance. Moreover, the various loan products provided by our subsidiaries ensure that our customers have the required capital to support their dreams, thus bringing us closer to fulfilling our goal of enabling financial inclusion across India.