Interviews

Adapting to Industry Trends: How SAVE is Transforming the NBFC Landscape Through Innovation and Inclusion

CXOToday has engaged in an exclusive interview with SAVE Mr. Ajeet Kumar Singh, MD, CEO, and Co-Founder, of SAVE Solutions Pvt. Ltd.

  1. Considering the current landscape, what are the trends observed by SAVE in the NBFC sector, and how is the organization adapting to these changes?  

In response to the evolving landscape of the NBFC sector, SAVE has keenly observed several trends and adapted its strategies to effectively navigate these changes. One prominent trend is the increasing demand for personalized financial services and solutions. Recognizing this shift, SAVE has strategically implemented customer-centric products to enhance accessibility and convenience for its customers.

Moreover, the company has observed a growing emphasis on financial inclusion and empowerment, which has pushed the concept of Co-lending, for which SAVE has partnered with SBI and SIDBI and other institutions to fund the MSME sector and make a notable change in the lives of people belonging to this sector.

Another trend observed by SAVE is the importance of the development of trust and transparency in the NBFC sector. In response, the organization has prioritized ethical practices and accountability, ensuring that its operations are conducted with integrity and adherence to regulatory standards. By building trust with its customers and stakeholders, the company solidifies its reputation as a reliable and responsible financial partner.

SAVE has noted a rising demand for income-generation opportunities among the youth in rural areas. The company has proactively engaged with young individuals, inviting them to join its Customer Service Point (CSP) network. Through comprehensive training programs, the company equips these youth with in-depth knowledge of banking products and procedures, thereby enhancing the financial landscape of these regions.

Furthermore, SAVE remains vigilant to macroeconomic shifts and regulatory changes impacting the NBFC sector. Through proactive monitoring and adaptation, the organization maintains agility and resilience in the face of external challenges, safeguarding its position as a leader in the industry.

Overall, SAVE demonstrates a commitment to staying abreast of industry trends and proactively adapting its strategies to meet the evolving needs of its customers and the dynamic NBFC landscape. By embracing innovation, prioritizing inclusivity, cultivating trust, and remaining adaptable, the resilient NBFC continues to drive positive impact and empower communities across its operational territories.

  1. Do you feel providing collateral-free income-generating loans through women-led Joint Liability groups (JLGs) has helped women in rural India. Is there any trend that you are witnessing as an industry player in the market?

Collateral-free income-generating loans provided by SAVE Microfinance have emerged as a powerful catalyst for women-led Joint Liability Groups (JLGs), resulting in a remarkable surge in female entrepreneurship across the company’s operational regions. These loans have empowered countless women to leverage their knowledge and skills, transforming them into thriving businesses. As a result, many customers proudly express feelings of enhanced respect and empowerment within their families and communities.

Through SAVE’s consistent support, numerous women have gained a stronger voice in household decision-making, leading to positive transformations in their lives and those around them. Remarkably, these loans have not only uplifted individual entrepreneurs but have also marked the emergence of influential entrepreneurs who create opportunities and employment for other women in their communities.

The concept of Joint Liability Groups has not only instilled self-confidence but also cultivated a culture of trust and cooperation among its members. By providing collateral-free income-generating loans, the company has enabled women to become decisive figures within their households, utilizing the loans for various entrepreneurial purposes whilst promoting a culture of savings for future security.

Moreover, SAVE’s commitment to collateral-free loans has bolstered sectors traditionally dominated by women, such as handicrafts, textiles, food processing, and animal husbandry. By sustaining cultural legacies and promoting indigenous skills, these loans contribute to the preservation and advancement of local economies and communities.

In essence, these loans not only empower women economically but also socially, creating a more inclusive and prosperous society.

  1. How does SAVE Microfinance tailor its services to meet the unique needs of rural communities, particularly women?

SAVE Microfinance, through its customer-centric and technology-enabled approach, is revolutionizing access to financial products and services in remote rural areas. Leveraging a network of branches strategically located, the company ensures minimal turnaround time, prioritizing the convenience of its customers.

The company’s hassle-free disbursement process involves field officers visiting customers to provide comprehensive training on group loan regulations and norms. To further streamline operations, SAVE Microfinance establishes payment points near customer households, facilitating easy repayment through nominated representatives during center meetings.

A cornerstone initiative of SAVE Microfinance is the Water and Sanitation Solutions (WSS) India program, specifically designed to empower women entrepreneurs in rural areas. This program offers tailored financial solutions for water and sanitation purposes, including water connections, piped water systems, water storage facilities, toilet improvements, and construction or renovation of drinking water facilities and toilets. Importantly, these loans are collateral-free, with women entrepreneurs benefiting from competitive interest rates.

By focusing on empowering women and leveraging technology for efficient service delivery, SAVE Microfinance is not only addressing financial inclusion but also contributing to the improvement of living standards and sanitation infrastructure in rural communities. Through its innovative approach, the specialized company is making a tangible difference in the lives of underserved populations, embodying its commitment to sustainable development and social impact.

  1. In the context of serving underserved and unserved segments, what challenges has SAVE faced, and what innovative solutions have been implemented to overcome them?

The underserved segment of society faces significant challenges related to financial accessibility and literacy. These include improving financial literacy, maintaining loan repayment discipline, ensuring loans are used for income-generating activities, and managing the safety and accessibility of field teams. Internally, SAVE prioritizes the well-being and security of its staff, providing comprehensive support including food and accommodation, alongside monetary benefits. To mitigate the risks associated with cash handling, the company has implemented a 100% cashless system for both disbursements and collections.

Moreover, the company has established multiple payment points near client locations to facilitate convenient repayment and acknowledgment. Embracing a customer-centric approach, the company utilizes technology to deliver products and services through its physical branches, ensuring accessibility for its customers. Recognizing the importance of financial literacy, SAVE conducts regular sessions to empower its customers with the knowledge needed to make informed financial decisions. Through these initiatives, the company also demonstrates its commitment to addressing challenges and enhancing the financial well-being of underserved communities.