ESAF started its journey as an NGO during the year 1992, with a larger vision of the sustainable and holistic transformation of the poor and marginalised. The success of Grameen Bank in Bangladesh reinforced the vision of Shri. K. Paul Thomas, Founder, ESAF Group of Social Enterprises. In 1995, he launched Micro Enterprises Development (MED) services and it resulted in the formation of ESAF Microfinance and Investments Pvt. Ltd., in 2008, which became one of the pioneers in establishing a formal and structured form of lending through mutually trusted joint liability groups (JLGs) at the grassroots level that could not only perform for financial inclusion but also reinforce the fact that ‘the poor of our country can develop peer dynamics for financial and social inclusion’. In 2017, ESAF started its operations as a Small Finance Bank. The Bank strives hard to build an equitable society.
Financial Inclusion Philosophy of ESAF Bank
It is with over 25 years of legacy in social inclusion that ESAF Bank was established as a social bank in the year 2017. The Bank’s stated vision is “To be India’s leading social bank that offers equal opportunities for the whole society through universal access and financial deepening, thus promoting financial inclusion, livelihood and economic development as a whole”.
The seven-strand financial inclusion philosophy of the Bank is as follows:
1. Inclusion through differentiated social banking productsbr
2. Inclusion by synergising with gender inclusion
3. Inclusion through joint liability groups’ peer dynamics
4. Inclusion through continuous upskilling to higher levels of financial education across various segments
5. Inclusion through technology for last-mile digitisation
6. Inclusion through an ecosystem approach
7. Inclusion by building synergies with Sustainable Development Goals (SDGs) and CSR
1. Inclusion Through Differentiated Social Banking Products
In the words of the founder of the Bank, Shri. K. Paul Thomas, “I chose business (products and services) as a tool for social transformation.” Embracing this vision, all our products and services are purposefully designed to drive social change, delivering a triple bottom line impact by generating Social, Environmental, and Financial capital, thereby contributing to a sustainable future.
Each product's Environmental Social Governance (ESG) performance capacity is assessed based on its ESG quotient. Products with significant impact are highly rated for their potential to foster social inclusion.
These are some of the many products that have been tailored to promote both financial and social inclusion.
2. Inclusion by Synergising with Gender Inclusion
Gender inclusion and gender equity is the pivot at which the sustainability agenda is performed. Realising this, ESAF Bank has given prime importance to SDG 5 as a synergising factor for financial inclusion. The Bank places significant emphasis on serving women customers and operates in various rural areas across India. ESAF Bank has successfully established credit histories for numerous women, demonstrating their creditworthiness
3. Inclusion Through Joint Liability Groups’ Peer Dynamics
Joint Liability Groups have proven positive peer dynamics for inclusion. By standing together, they thrive against the odds in life. ESAF Bank is specifically focusing on supporting JLGs in segments where financial inclusion is crucial.
4. Inclusion Through Continuous Upskilling to Higher Levels of Financial Education Across Various Segments
We have a variety of financial education programmes catering to different segments of society. Based on the specific needs, curriculums are made and training methods are deployed.
5.Inclusion Through Technology for Last-Mile Digitisation
ESAF Bank has been earnestly working towards reaching the last mile geographies through partners like Business Correspondents to distribute the products and services. It is in the DNA of the Bank to render financial upliftment to the underserved and unbanked communities in the lower strata of society. One notable project was the deployment of Micro-ATMs, made possible through a collaboration with the National Bank of Agriculture and Rural Development (NABARD) under the Financial Inclusion Fund (FIF). ESAF Bank has a longstanding association with NABARD and has collaborated on numerous social and financial inclusion projects that benefit marginalised segments of society. This specific project was executed in the states of Kerala and Tamil Nadu.
6. Inclusion Through an Ecosystem Approach
Being an organisation that began its journey as an NGO, ESAF has always stood beside its customers over the years. Beyond giving them access to finance, we also engage with them for the long term, providing forward and backward linkage, propelling them to succeed. The Bank has facilitated the creation of employment opportunities for micro-entrepreneurs.
7. Inclusion by Building Synergies With Sustainable Development Goals (SDGs) And CSR
Local self-governments in India possess a remarkable vision for the country's governance system. While the National Government and the State Government focus on macroeconomic development plans, the elected local self-government at the grassroots formulates plans for local economic development. One unique initiative in this direction is the Local Sustainable Economic Development Programme (LSEDP) which was designed and implemented jointly by the National Bank for Agriculture and Rural Development (NABARD) and ESAF Bank. This project aimed to equip leaders of Local Self-Government (LSG) bodies with the necessary knowledge and skills to instil financial discipline among unreached populations.
Major Financial Inclusion Projects Implemented in 2022 – 23
Financial inclusion of the deprived has always been the priority of the government. This commitment to inclusion has always been a part of the Bank’s DNA. As a part of the Bank’s financial inclusion mission, tailored programmes have been developed to reach diverse segments of society, including children, women, and the elderly. Each programme features a customised module specially developed to reach the target segment. The Bank's financial inclusion initiatives encompass:
1. ESAF Dhansree: Financial and Digital Literacy Programme for JLG Women
No. of programmes: 2,311, No. of participants attended: 94,053
ESAF Dhansree- Sironcha Branch
ESAF Dhansree- Kalladikode Branch
2. ESAF Bank Balajyothi: Financial and Digital Literacy Programmes for Students, Children and Young Adults
No. of programmes: 579, No. of participants attended: 36,880
ESAF Bank Balajyothi programme conducted by Katghora Branch.
ESAF Bank Balajyothi programme conducted by Thrissur Mission Branch.
3. ESAF Bank Vayojyoti: Financial and Digital Literacy Programme for Senior Citizens
No. of programmes: 576, No. of participants attended: 24,527
ESAF Bank Vayojyoti programme conducted by Vadakkencherry Branch.
ESAF Bank Vayojyoti programme conducted by Thathamangalam Branch.
No. of programmes: 593, No. of participants attended: 12,637
5. ESAF Bank Udyog Jyothi – MSME Week
No. of programmes: 97, No. of participants attended: 680
ESAF Bank Vayojyoti programme conducted by Vadakkencherry Branch.
ESAF Bank Vayojyoti programme conducted by Thathamangalam Branch.
6. Score up Your Credit Score: Special Training to Maintain and Score up Credit Scores
No. of programmes: 18, No. of participants attended: 776
7. Financial Inclusion Through JLG Formation
8. Inclusion by Synergising With CSR Interventions
9. Special Programmes at Unbanked Rural Centres
Financial Inclusion Training- The Grand Panorama
No. of programmes: 48,373, No. of participants attended: 10,50,894*
Sl. No.
Name of the Programme
Segment
No. of Programmes
No. of Beneficiaries Reached
1
ESAF DHANSREE
SHG/ JLG Women
2,311
94,053
2
ESAF BANK BALAJYOTHI
Children/Students
579
36,880
3
ESAF BANK VAYOJYOTI
Senior Citizens
576
24,527
4
RBI FLW- LSEDP FOLLOW UP
Entrepreneurs & Traders
593
12,637
5
ESAF BANK UDYOG JYOTHI
Nano Entrepreneurs
97
680
6
SCORE UP YOUR CREDIT SCORE
Advanced Training for Credit Discipline
18
776
7
REGULAR FINANCIAL LITERACY AT BRANCHES
Rural Communities
736
10,456
8
JLG FORMATION ORIENTATION
Rural/Urban Poor Communities
43336
8,66,713
9
FINANCIAL INCLUSION THROUGH CSR INTERVENTIONS
Variety of Segments
127
4,172
Total
48,373
10,50,89410,50,894
*Please note that the aforementioned figure pertains specifically to direct formal training programmes, such as small group meetings and orientations. It is important to note that the KYC document training for each new account, as well as the product orientations, are not encompassed within this particular calculation.
Awards and Accolades
During the year, the Bank bagged the prestigious Inclusive Finance India Award 2022 under the Financial Inclusion by Small Finance Bank category. The award was in recognition of all the financial inclusion efforts taken by the Bank to make the poor and the marginalised bankable. The Bank’s financial inclusion initiatives like the Local Sustainable Economic Development Programme, Balajyothi, Vayojyoti, etc. were greatly appreciated by the jury members. They also commented that the initiatives were unique programmes with special focus areas, enabling different sections of society to be a part of the formal banking platform.
Shri. K. Paul Thomas, MD and CEO, ESAF Small Finance Bank, bagged the Excellence Award- APY Big Believers for significant enrolment of APY and Circle of Excellence Award by PFRDA.
