Support to HDFC Bank in rural and agri-banking outreach

MSC partnered with HDFC Bank to broaden and deepen its large and growing portfolio of rural and agri-business loans. In addition, the bank sought greater outreach to the bottom-of-the-pyramid markets.

MSC supported the bank through a range of interventions. These started with the design, development, and implementation of a below-the-line (BTL) communication and marketing strategies for rural and agri-banking. The MSC team then designed BTL marketing collaterals that covered visual aids, signage, and point-of-sale material for HDFC agency points to communicate key messages tailored to the target segments. We also developed a mobile-van campaign for rural coverage. MSC and HDFC Bank teams and agents jointly executed marketing campaigns in select districts of Uttar Pradesh in India.

By 2018, 53% of the branch and agent network of HDFC Bank was semi-urban or rural. HDFC Bank had introduced several products for the rural segments, such as agri-loans, cattle loans, tractor loans, Kisan (farmer) credit cards, small working capital loans, and small savings and micro-insurance products. These were exhibiting rapid year-on-year growth, while 83% of the retail customer transactions occurred through Internet or mobile banking and only 8% through branches.

Develop a marketing and literacy tool for an NBFC

Michael & Susan Dell Foundation commissioned MSC to support Maitreya, a nascent non-banking financial company that focuses exclusively on microenterprise lending in India. MSC worked to help Maitreya refine and grow its microenterprise-lending product, and developed a product marketing and financial literacy tool. This tool would not only attract customers but also ensure brand engagement and develop Maitreya’s financial capability.

MSC created a story around a character with whom micro-entrepreneurs can relate to—Amol. Like other micro-entrepreneurs, Amol did not fully understand the sources of credit, the importance of credit score, and managing business records. We ensured that the story of Amol was available on the media of choice for Maitreya customers to allow them to engage at their own convenience. These media included platforms, such as YouTube, WhatsApp, Maitreya customer mobile app, the Maitreya website, and the smartphones of Maitreya field staff.

MSC also built systems so that the tools lead to real behavior change. We developed aids to check progress on financial capability development, distributed Maitreya-branded collaterals, such as cashbooks to encourage customers to develop a habit of maintaining business records, and integrated product market and financial capability with a regular loan monitoring process to ensure positive reinforcement of the message. We conducted training sessions with the management as well as field staff on the use of the tool. The tool helped Maitreya develop brand recognition among the target communities—which was critical in a market dominated by large, established brands. The tool is now widely used and available to all the Maitreya customers.

ePaathshala: easy to access, quick to use digital training

MSC has developed ePaathshala —a digital school for skill development, capacity-building, training, and certification. ePaathshala makes use of innovative and transformative e-learning pedagogy and methods, using human-centric design and adult learning principles.

MSC has built the platform on innovative digital tools, content, and technology. The program uses a human-centric design approach alongside cognitive learning principles. ePaathshala has the advantage of mass outreach, lower costs, and greater flexibility and efficiency. It delivers the latest content universally and offers the convenience of self-paced learning.

Several banks and institutions, such as SBI, HDFC Bank, and IDBI Bank have been using ePaathshala assets for financial literacy and training of their staff and Bank Mitrs (bank agents). Government departments and agencies in India, including the Department of Financial Services (DFS) of the Ministry of Finance, National Centre for Financial Education, Indian Bankers Association (IBA), NABARD, Small Industries Development Bank of India (SIDBI), MUDRA, among others, have shown a keen interest in using ePaathshala assets.

The Business Correspondents Federation of India (BCFI), a federation with a membership of over 200,000 bank agents, uses the platform to skill and re-skill agents. BCFI uses the platform to certify agents at a basic or an advanced level.

The financial literacy program helped Tara Akshar, an entity of Development Alternatives, to strengthen its literacy modules and ensured increased attendance of women in its ongoing education program.

The National Livelihood Mission in Jharkhand Province of India has benefitted from MSC’s ePaathshaala approach. It has appreciated our efforts in its newsletter.

Digital transformation training in Vietnam and Myanmar

MSC delivered digital transformation training to banks and microfinance institutions in Myanmar and Vietnam, which saw attendance from representatives of more than 30 institutions. MSCs digital transformation training course helps MFIs and banks understand the digital transformation process, the strategic and operations-related impact on the institution, and the nuances of digital transformation including the strategic planning, digital transformation of products, processes, channels, and technology, risk management, and project and change management.

MSC designed the course specifically for directors and chief executives, such as CEOs, CFOs, CTOs of financial institutions who are involved in high-level business strategy and have actively considered digital transformation and implementation of digital financial services. The facilitators introduce approaches for digital transformation that MSC developed during practical work over a decade in South and South East Asia, and East Africa. At the time of writing, IFC had plans to roll out the course across Africa in 2018-19.

Segmentation studies of customers and enterprises for financial services

MSC’s multi-country expertise of working with low-income people for more than two decades helps us conduct a range of customer segmentation and market-sizing projects. We design and implement rigorous research studies to provide comprehensive end-to-end consumer insights for faster, smarter, and better decisions. We have studied the women mobile financial services (MFS) customers in Bangladesh and segmented them into seven customer segments based on two key parameters—location and age group. Our work highlighted a market of 12.5 million additional users by 2020.

Our research on low and middle-income (LMI) customers in India segmented LMI into three categories based on their savings behavior–diligent savers, ambitious savers, and cautious savers. The research highlighted an annual deposit potential of USD 155 billion among 600 million people from the LMI segment.

MSC’s customer segmentation research has been a part of developing the national financial inclusion and financial literacy strategy for the Government of Qatar. The research segmented 2.69 million people in Qatar into distinct categories and helped MSC develop a suitable financial inclusion strategy.

MSC conducted a market segmentation research in Cambodia to understand and assess the financial behavior of various market segments and measure the demand for innovative financial products in the Cambodian marketplace. Our study helped our client to improve its product offering for close to 700,000 clients.

Insights on the performance of financial inclusion and government-to-people programs in India

MSC has conducted research to gain insights into the implementation and impact of government-to-people (G2P) programs in South Asia. With lessons from these countries, we have worked closely with governments in other developing countries, such as Indonesia, Nigeria, Tanzania, and Bangladesh. Our research work in this area has primarily included program assessments, program monitoring, and district readiness assessments for G2P.

MSC’s research designs cover all aspects of G2P, starting with the theory of change and results framework, to a special focus on key areas as identified by the governments. Our focus areas include:

  • Identification of problems with cash withdrawals;
  • Benchmarking indicators of success;
  • Gender-responsive program design assessment;
  • Customer grievance resolution;
  • Examination of risks and mitigation measures.

MSC supported the Government of India to explore pathways to better nutritional outcomes through the National Food Security Act. We have quantitatively assessed the nutritional food basket of households under NFSA, analyzed gaps in the nutritional requirements of food scarce households, and developed recommendations to achieve nutritional goals at the household-level.

Documents: Bhamashah report, PMJDY round 3, DBT -F public reports.
Also check for a couple BN, which are not listed by GSI team.