Financial Literacy Role of Partnerships Alok Prasad Country Director, Citi Microfinance RBI-OECD Workshop on Financial Literacy March 22, 2010
A Century of Commitment to India Citi provides a fully comprehensive range of financial products and services to a wide cross-section of clients across the entire spectrum of the Indian economic landscape Established 108 years ago in Kolkata Largest FDI in financial services in India Serves the entire breadth of the economy Full Universal Bank presence that is seamlessly integrated with global franchise and product groups Institutional Clients Group Global Banking Global Markets Global Transaction Services Citi Alternative Investments Citi Investment Research & Analysis Consumer Group Private Bank Citi Wealth Advisors Financial Strength: For the year ended March 31, 2009, Citibank N.A. India branch, reported PAT equivalent to USD 428 Million. Capital $3.8bn Cities 30 Branches 42 Employees >8,000 42
The Citi Mandate on Financial Education Leverage our Financial Expertise Leverage our Knowledge of Consumer Needs Develop more Informed and Responsible Consumers Build and Leverage Partnerships 3 3
Citi Foundation in India Focus Areas Microfinance & Microenterprise Education Financial Capability & Asset Building Microfinance & Microenterprise 47% Financial Education 28% Education 25% 4
Citi s Approach to Financial Capability & Asset Building Office of Financial Education First global bank to establish an Office of Financial Education Launched in 2004 to meet financial education needs of communities it serves In 2004, Citi announced a 10-year, $200 million global commitment to support financial education Six years into the commitment, Citi has already invested over $167 million in 73 countries Encompasses four elements - Providing access to knowledge to increase Financial Literacy - Developing short-term and long-term financial plans - Increasing the ability to select appropriate financial products or services to implement those plans - Develop financial strategies for periods of economic prosperity & instability Towards achieving sustainable results Increases in the number of low-income adults who adopt positive financial behaviors and accumulate and preserve financial assets Increases in the number of low-income youth who demonstrate their ability to earn, keep and spend their money wisely 5
Indian School of Microfinance for Women Partner Since 2004 Partnership Goals -Capacity-building training for microfinance stakeholders -Research -Financial literacy campaigns, workshops & training Key Beneficiaries: Underprivileged women in urban and rural areas Geographical Coverage - MP, Manipur, Orissa, Mah., Guj., TN, Puducherry, Andaman & Nicobar Islands, AP, Assam, Uttrakhand, Karnataka, Kerala & WB Current Reach - 9765 NGO staff & members - 370445 through Citi Center for Financial Literacy (CCFL) and the National Alliance for Financial Literacy (NAFiL) Targeted Reach: 500,000 in 2011 Partnership Highlights Establishment of the Citi Center for Financial Literacy (CCFL) and the National Alliance for Financial Literacy (NAFiL) 6
Friends of Women s World Banking India Partner Since 1997 2010 Focus: Launch of two-year Livelihood and Enterprise Development (LEAD) project after pilot Key Beneficiaries: Underprivileged women, minorities and tribal communities in both urban and rural areas Geographical Coverage: TN, Kerala, Karnataka, AP, Maharashtra, Orissa, West Bengal, Jharkhand, Chhattisgarh, Bihar, UP, MP, Delhi, Assam, Manipur, Rajasthan, Gujarat, AP 2007 LEAD Reach: 10,250 HH across 6 states 2007 LEAD Reach: 10,000 HH in 2011 Partnership Highlights The LEAD programme partners grassroots organizations and their beneficiaries with finance and business development services like skill & entrepreneurship training, backward & forward linkages, and financial planning Strong combination of microfinance, enterprise development & livelihood development. 7
Sasha Association for Crafts Producers Partner Since 1998 Partnership Goals -Expansion of microfinance loan fund for 1500 marginalized artisans in WB & Orissa -Increased access to credit & financial management training to help meet business development needs - Establish financial asset building fund & financial literacy program Key beneficiaries - Underprivileged women, ethnic minorities & tribal communities with micro/small craft enterprises in rural areas Geographical Coverage -9 States/UTs -Orissa, Bihar, Tripura, UP, MP, Rajasthan, Gujarat & Karnataka Current Reach -5000 artisans & their families -30,000 directly through NAFiL 8 Partnership Highlights One of the first 10 founding partners of ISMW s NAFiL and instrumental in its institutionalization and in the furtherance of the program
Indian School of Business, Centre for Analytical Finance Partner Since 2007 Partnership Goals Research and policy fora to positively impact financial market participants like small and growing businesses, SMEs and micro entrepreneurs Key End-Beneficiaries Economically disadvantaged groups Targeted Reach: ~3000 opinion leaders & ~One million economically disadvantaged people Prof Raghuram Rajan, Chair, Committee on Financial Sector Reform, Planning Commission delivers the special address at the Indian Banking Conference at ISB Partnership Highlights -Research Projects focused on financial inclusion - Workshops & lectures introduce financial practitioners to modern finance concepts, tools and techniques as well as finance targeted specifically to microenterprises and SMEs 9
Meljol Partner Since 2008 Partnership Goals -Financial education pilot programme Aflatoun for underprivileged children -Saving program for children of ages 6-14 Key beneficiaries Underprivileged children in rural areas Geographical Coverage: 4 States (Maharashtra, Kerala, Orissa & Rajasthan) & 2 in the preparatory phase (Assam & Jharkhand) Current Reach: 2,98,323 children Targeted Reach: 3,55,000 by March 2011 Partnership Highlights Citi s partnership enabled Meljol to initiate a financial literacy programme outside Maharashtra for the first time Citi-Financial Times Financial Education Summit provided a strong platform for Meljol to network with stakeholders & potential partners 10
New Partnerships Swadhaar FinAccess Partner Since 2009 Partnership Goal An 8-module bi-lingual financial education program for 1,200 women in two slum communities in Mumbai covering: understanding the difference between income and cash flow the importance of budgeting and how to maintain budget diaries how to save and where to save - linked to an existing savings program managing credit 11
12 Thank You!