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z Sustainability
z “How can the business be sustained in the long term?”
z Scalability
z “How can successful pilots transform the industry?”
z Business approaches
z “How should a business model be created that can deliver
low cost financial services to a large population?”
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Example One : Partnerships in
Farm Credit
z The Issue
z Leading sugar company from south wants to
strengthen relationships with farmers
z Sugar cane farmers want to increase productivity
and hence their livelihood
z ICICI Bank to participate actively in the farm credit
opportunity
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Example One : Partnerships in
Farm Credit
z The Partnership Solution
Provides financing for tractors, farm Makes payment thru’ ICICI Bank
implements and irrigation equipment
ICICI Bank
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Example One : Partnerships in
Farm Credit
z The Benefits
z Farmer
z Gets good agri inputs from corporate / third party that will
improve productivity
z Gets access to easy credit from bank to facilitate productivity
improvement
z Corporate
z Strengthens relationship with farmer community
z Improved productivity implies improved capacity utilization and
hence reduced costs
z Bank
z Reduced administrative costs for delivery of credit and reduced
credit losses
Hence SUSTAINABLE
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Example Two : Partnerships in
Insurance
z The Issue
z Farmers livelihood at risk owing to
vagaries of weather and poor health
z Hospitals want to reduce per patient costs
and reduce administrative costs
z Banks want to participate in insurance
opportunities
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Example Two : Partnerships in
Insurance
Covered 3 lac lives through various initiatives
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Example Two : Partnerships in
Insurance
• 60% of net sown area rain fed – uncertainty of
Need rainfall the biggest risk faced by farmers
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Example Two : Partnerships in
Insurance
z The Benefits
z Farmer
z Protects himself from the vagaries of weather
z In case of ill health affecting livelihood, financial comfort about
costs
z Hospital
z Reduced administrative costs and improved productivity levels
leading to reduced cost per patient
z Bank
z Reduced administrative costs for delivery of insurance
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Example Three : Business
Approach
z The Issue
z Farmer
z Credit is only one part of the requirement; what about savings?
Investments? Insurance?…..
z Bank
z Delivering credit is only a starting point; how should you offer a
range of financial services that are valued by the rural
community? And in a cost effective manner?
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Example Three : Business
Approach
z The Solution
z Look at the full farmer life cycle and design
products and services that are relevant
z Example – Micro-savings
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Example Three : Business Approach
Connectivity
STD/PCO:
Enabling voice
communication Multimedia
Internet Kiosk PC with Power
backup
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Example Three : Business Approach
Rural ATM
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Summary
z Partnerships can help
z Deliver livelihood-enhancing support to farmers
z Reduce administrative costs and credit losses for a
bank
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