Jan Dhan Yojana: What does it mean for MFIs?

Prime Minister of India, Narendra Modi’s “Jan Dhan Yojana” initiative, which aims to increase financial inclusion in India by equipping the majority of the population with a bank accounts...

Vidur Jain 17th September 2014

Prime Minister of India, Narendra Modi’s “Jan Dhan Yojana” initiative, which aims to increase financial inclusion in India by equipping the majority of the population with a bank accounts and debit cards, is viewed as a huge step towards alleviating poverty if successful. Currently in India almost 50% which is approximately 600 million of the people do not have access to core banking services.  Thus excludes them from access to financial services and left socially immobile.



This also happens to be the key demographic for MFIs in India, who can expect to be impacted by this scheme in the way they operate when dealing with the economically weaker sectors. MFIs can now have basic information to confirm the applicant’s identity, occupation, and financial history.  This should make micro-finance lending more secure and efficient, and free up a lot of the human capital invested in manually collecting that information.



The way MFIs position themselves regarding this change will impact their ability to scale and remain competitive. Those that adopt loan management systems such as CL Microfinance, will now be able to invest their human capital in activities that really matter instead of basic loan administration and management. Lenders can now spend more time supporting borrowers for example by providing basic financial education and business mentoring; thus increasing the loan’s social impact and improving the borrower’s risk profile.



Cloud Lending has become a leader in providing solutions to MFIs, our product CL Microfinance is tailored for MFIs and is currently adopted globally in countries such as Kenya, Afghanistan and Marshall Islands. We aim to technologically empower MFIs so they mature and make Microfinance a better practice for all.

Resources

NEWS

Cloud Lending Solutions Expands Leadership Team with New Executive Hires

Cloud Lending Solutions adds Chief Revenue Officer and Chief Financial Officer as the Company Focuses...

DigitalLEND Connects Borrowers and Lenders Through Rapid Deployment-Ready Customizable Solution

Cloud Lending Solutions, Crowdnetic and eOriginal Partner to Offer Turn-Key Solution to Solve Traditional Lending...

BLOGS

Regtech Meets Fintech – How It Improves Lending?

Lending as an industry is prone to risks and frauds. The added weight of growing ...

Opti-channel banking – way forward for better customer engagements

With an upsurge in technological innovation and the rise of digitally equipped millennials, banking and ...

EVENTS

NEFA Finance Summit 2018 (Conference)

The National Equipment Finance Association (NEFA) is a national association serving small- to mid-size independent ...

Money 20/20 Europe 2018

Europe's largest FinTech event is coming to Amsterdam If you’re thinking about how consumers and ...