United in equality, social justice, and identical opportunities for everyone, our society not only stands tall but can progress in a positively futuristic manner and becomes the superpower it is dreaming of. All those with an ardent desire to better their lives yet are limited by their economic situation–need a network of entrepreneurial human spirits connected through SATYA MicroCapital Ltd’s financial empowerment.
As proof, Vivek Tiwari, the MD, CIO, and CEO shares…
A Truly Inspiring Story
…of Ms Shanti Devi, a 34-year-old tribal woman, who lives in village Badhdih,Jharkhand with her family consisting of her husband and three children – two daughters and a son.
Before marriage, she used to work with her mother and helped her in making bamboo products like Tokri, Fans, Supa, Utensils etc. She always wanted to start her own bamboo business and become an entrepreneur but with limited financial support, she failed in her aspirations. After marriage, Shanti and her husband decided to start a bamboo business with her seven-eight years of experience and with the basic support of a money lenders fund which they have taken on a high rate of interest to support their livelihood. As her husband used to visit the local market for procuring bamboos for the production, Shanti started making products so that they too can sell them into the local market. Due to the low quality of goods, they were only getting ₹30/article. Thus, they were only able to survive with the basic needs of life and can’t able to save money for the future because they have to pay high interest to the money lender.
Soon after, she met her neighbor who was successfully running her own business. Her neighbor informed Shanti about her association with SATYA. She told Shanti that how SATYA is offering various credit services to those who have entrepreneurial aspirations The neighbor advised Shanti to attend a centre meeting and gain basic understanding regarding the loan process of SATYA. She attended the meeting and one of the EDOs gave her comprehensive information about the company and its accessible services. She took her first loan of ₹21,000 from SATYA and utilized the loan amount to improve the quality of their products by using A-Grade raw products. As their product quality improved, they started selling the products at a higher rate which was ₹70-80 per product. Shanti being a woman with dreams, she envisions to further expand her business to the big market so that they can sell their products even at a better price. She availed her second loan of ₹30,000 and subsequently third loan of ₹45,000. Now, she has enhanced production of 90-100 high quality wooden articles along with beneficial selling prices. Shanti now saves a handsome amount of money and feels proud that she can contribute towards a better future for her children. Additionally, she also wants to extend job opportunity to others by providing work in her business so that other people can also learn the craft and enable a good future for themselves.
In the end, Shanti wants to thank SATYA for providing the financial backup and reaching out to many women like her who aspire to be an entrepreneur. She says, “Because of SATYA, now I can further expand my traditional bamboo business to a bigger level along with doing decent savings which will in turn secure my children’s future.”
Headquartered in New Delhi, SATYA MicroCapital Limited – an RBI-registered “NBFC – MFI” commenced its microfinance operations in January 2017.
According to Vivek, with the foremost and…
Fundamental Goal of Empowering Women Micro-Entrepreneurs
…both digitally and financially, SATYA has come a long way since its incorporation. SATYA caters to the unbanked and marginalized people at the bottom of the pyramid who seek credit assistance for the purpose of income generation and growth. At present, based on strong credit assessment and a centralized approval system, SATYA is rendering affordable, collateral-free microcredit services to more than 12 Lac+ active clients through cashless transactions in rural and semi-urban areas of India. Furthermore, with commitment towards its social roles – focus on Nasha Mukt Samaaj, Gender Equality, Swachh Bharat and Digital India, SATYA, is one of the fastest-growing microfinance companies.
Within a short span of six years, SATYA has established its active operations across 22 states, through an extensive network of 42,000+ villages in 400+ Branches. With a notable loan disbursement portfolio worth ₹7,800 Cr.+ and Assets Under Management worth ₹3500 Cr.+, SATYA envisions to socio-economically uplifting five million households by the year 2025. “SATYA is an institution built with a vision of inducing change, and transformation and is a differentiator in the Indian financial inclusion space,” says Vivek, who holds a Post Graduate Degree in Rural Development & Management from the Institute of Engineering & Rural Technology, Allahabad.
Apart from acquiring prolific experience of more than two decades in the Microfinance and Development Sector; Vivek is also a certified professional in the Concentration in Management Program from Boulder Microfinance Training, Italy. His Proficiency outlines an extreme focus on the innovative deployment of the technological framework for incubating responsible lending, financial inclusion, social entrepreneurship, and impact investing within national boundaries. He is the Vice Chairperson of MFIN (Microfinance Institutions Network) – an association for the microfinance sector in India. Recognizing his immense contribution to the micro-lending space, he was recognized as the ‘Promising Entrepreneurs of India by The Economic Times.
Vivek’s farsightedness and visionary thinking have constituted SATYA – one of the fastest-growing MFIs in the country. Confronting the multifarious challenging times like Demonetization, IL & FS Crisis and COVID-19 pandemic, Vivek has managed to build a strong network of more than 4000 employees with the responsibility of spearheading the company’s strategic efforts, driving expansion with morality and a vision to develop
Entrepreneurship for the People at the Bottom of the Pyramid
Sharing the USPs which make SATYA stand out as a leading NBFC Company, Vivek says that SATYA MicroCapital is one of the flourishing NBFC-MFIs in India supporting millions of customers in financial terms by providing accessible micro-credit solutions and is considered a one-stop shop for financial needs by its clients in one place. What makes SATYA stand out in the league is not one but a myriad of factors owing to which it is seldom preferred over its peers. The USPs of SATYA look at the key aspects of its business which furnish unconventional benefits in today’s competitive market. The pivotal USPs of the brand entail 100% digitization, integration of the human touch in digital transactions, transparency in dealings, diversified product portfolio and doorstep delivery of financial services.
Stating the initial challenges after venturing into the NBFC field viz-a-viz challenges now, Vivek says, “Being hit in the very first week of its inception by the volcano of demonetization, we immediately worked on a solution to move away from cash to cashless transactions by taking the repayment directly from savings account of clients to company’s account.” Subsequently, the same cashless approach helped SATYA to tide through the second most disruptive challenge of COVID-19. “Contemplating the present scenario, we at SATYA have never seen challenges as roadblocks but only…
Stepping Stones to Success”
“We have always strived to leverage and transform every challenge into a new growth opportunity, and we will continue this henceforth as well.”
Being an experienced leader, Vivek opines enthusiastically on how technology is transforming the NBFC sector, and what advancements can be expected in the future. To scale businesses, drive innovation, and bring real value to their stakeholders, NBFCs are recalibrating their strategies in the post-pandemic world, with a heavy focus ontechnology. As part of the growth stage, the NBFC sector in India is undergoing rapid changes. The advent of technology has maximized the speed of information flow and capital, automated transactions, controlled and data analytics, improved customer experience, reduced transactional costs, and increased efficiency and customer outreach. Mobile and smartphone penetration has enabled NBFCs to connect with low-income consumers who can utilize their mobile devices throughout the lending cycle, including application, engagement, e-KYC, and e-signature for disbursements.
He believes, “In future, we can anticipate further progression in terms of AI, technology value chains in the sector.” NBFCs are also experimenting, and beta testing distributed ledger technology for a variety of applications like e-KYC, data interchange, loan disbursement and collection, and cyber security. Adopting technology advancements throughout value chains can help in resource and process optimization, decrease turnaround time, promote intuitive and automated decision-making, and assure consumer access to credit/loans at rates customized to their socioeconomic profile. This would provide NBFCs with significant power over traditional banking institutions, allowing them to achieve maximum expansion.
In his advice to the aspirants willing to venture into the field of NBFC niche, Vivek says that…
The Centripetal Force of Microfinance
…is to make the marginalized section of the population access financial services as well as to create employment opportunities; build financial capacity; and induce the evolving capacity to financial self-sufficiency. Microfinance is an industry of holistic approach with its essence concentrated upon service to mankind, and one should only venture into this domain if they are ready to serve society by extending consistent support towards poverty alleviation.
On envisioning scaling SATYA MicroCapital Ltd’s scope and offerings in future, Vivek shares, “Precisely, the spectrum of growth in relevance to our futuristic perspective is multifaceted.”
Going forward, SATYA will successfully expand its terrestrial presence all over the country covering 28 states. This will ultimately catapult SATYA to provide affordable micro-credit services more aggressively to a wider section of people.
SATYA will also focus on diversification of its product portfolio to comply with more current and potential clients’ financial service needs. SATYA envisions working towards the empowerment and sustainable development of a harmonious society by equipping opportunities in comprehensive realms of micro-credit, health, education, and housing.
“Last but not least is to completely transform the operational mode of functioning from conventional methods to 100% paperless and digital,” he concludes.
