A purpose-driven digital transformation for nano financing
A few years ago, I met Ratna, a small business owner and single mother in a village in Gujarat. Her earnings were just enough to make ends meet. But her single-minded goal was to get her daughter to achieve her dreams of becoming a doctor. To help her access quality education in Ahmedabad or Baroda, Ratna saved every rupee she could by putting her money in various chit funds. At the end of the month, she would withdraw just enough money to pay her insurance premium, and all the rest was directed towards her daughter’s education fund.
Although Ratna knew the importance of saving – and did save diligently – the problem lay in the risk involved. Some of her chit funds never saw a return, putting a dent in her savings and slowing progress toward her financial goals.
This story represents the experience of our rural population, where people are savvy enough to understand the importance of formal financial services but are unable to access them.