HSBC brings a business model of banking to the doorsteps of the poor

Posted by aprilbizz December 6, 2009

Pramod Marar, Balaji S. Iyer, Unmesh Brahme
The Hongkong and Shanghai Banking Corporation Limited, Mumbai, India

Abstract
Tiny loans can make a huge difference, especially when coupled with financial literacy and capacity building. With a global commitment to sustainable business through financial inclusion, HSBC partners with microfinance institutions and other organizations to empower micro-entrepreneurs among India's rural poor, who in turn are changing lives, families, and entire communities. The authors provide an overview of HSBC Group's sustainability strategy, a brief history of microfinance in India, and HSBC in India's role in serving the microfinance industry. They also discuss the bank's multi-stakeholder initiatives for capacity building, which include two schools where rural women learn essential business and technical skills and financial literacy, and an environmental and social village-based initiative for water conservation and livelihood creation. © 2009 Wiley Periodicals, Inc.

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References

1 Consultative Group to Assist the Poor, What do we know about the impact of microfinance? Accessed on September 26, 2008, from http://www.cgap.org/p/site/c/template.rc/ 1.26.1306.
2 HSBC in India also has a fully enabled and established insurance advisory of international standards. It is one of the leading players in domestic and export factoring, and one of the leading banks for an increasing number of SMEs. More than 5 percent of India's exports and imports pass through HSBC in India's banking channels.
3 Shankar, S. (2006). Transaction costs in group micro credit in India: Case studies of three micro finance institutions. Institute for Financial Management and Research, Centre for Micro Finance, Working Paper Series . Links
4 SEWA is India's largest movement of more than 700,000 self-employed women working in the informal economy in the urban and rural areas of the western India state of Gujarat.
5 Federation of Indian Chambers of Commerce and Industries, India's premier industry federation.

Financial inclusion

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