Urban Outreach – Doorstep Banking

One of the key features of microfinance, distinguishing it from other, more formal banking operations, is the prevalence of client friendly delivery systems.

SEWA Bank’s clientele is made up of economically active low-income women. They do not have the time or the means to make trips to the Bank. So, SEWA Bank goes to them.

Doorstep Banking was pioneered by SEWA Bank in 1978, when its first mobile van travelled to areas of high customer concentration, to facilitate cash collection. Today, two mobile vans cover the city daily, with average collections of Rs.10,000 to Rs.15,000 each, per day.

Following the introduction of the mobile van, SEWA Bank began opening extension counters throughout the city. At present, 8 counters service the banking needs of SEWA Bank customers, within their own locality. The latest addition to SEWA Bank’s outreach service is its team of ‘Handholders’ and ‘Banksaathis’ (‘Saathi’ means companion).

In order to decentralize the activities of SEWA Bank further and effectively reach integrated financial services to clients, SEWA Bank’s "handholder" team was developed by Smt.Elaben Bhatt in 2000. Comprised of 15 fieldworkers, each responsible for one area within Ahmedabad city and between 400-500 clients, the handholders are all round counsellers for clients. Besides offering savings, loan and insurance related financial advice, they also counsel women to plan for the future, advise them on SEWA and SEWA Bank’s services and products and facilitate their linkage to SEWA’s services. In other words, they provide all round advice and friendship to clients at their home or place of work. They also collect savings and loan repayments, as well as paying visits in case of over dues or when a pre loan check visit is needed, prior to sanction of a loan. They know their clients’ circumstances intimately – a very valuable necessity in the microfinance business.

Handholders are aided by the "Banksaathis" – a team of community leaders, servicing the financial needs of women in their local area. One of the SEWA and SEWA Bank’s key strengths is its leaders – those who own institutions, who take keen interest in day to running and contribute heavily through their time advocacy and example. SEWA Bank’s backbone is its team of banksaathis – a cadre of financial community leaders, who aid in collecting cash, informing women about SEWA Bank and all its products and winning people’s beliefs. For this work, they are paid a nominal incentive, based on the cash they collect.

The Handholder-Banksaathi outreach system begun in the year 2000, has been very successful in reaching to more women and ensuring sustainable and strong financial performance.

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