Barclays to invest Rs 5.46 cr in India towards microfinance initiative

Barclays Bank Plc, India today announced the launch of a new initiative, “Banking on Change", a savings led microfinance programme which is being implemented in partnership with CARE International and Plan International.  Banking on Change is being implemented across 11 countries in Asia, Africa and South America, with a total budget of INR 70 crores. The Banking on Change India Programme has a sanctioned budget of INR 5.46 crores to be granted to CARE International and Plan International over the next three years.

This partnership focuses on savings-led community finance initiatives which are effective in meeting the needs of the poor – providing a way to manage their money and increase their ability to deal with life emergencies. The partnership has 3 main objectives:

• Outreach: Make use of savings-led community approaches to reach clients who are excluded from or have limited access to formal or informal financial services;
• Impact: Achieve positive socio-economic impact on poor people through the provision of basic financial services within communities that enable people to manage their household finances, and through development of new add-on services (such as enterprise training) and improvement of existing savings-led community finance methodology; and
• Inclusion: Target and reach new or existing clients to improve their level of financial inclusion through the use and trialling of informal and formal financial services, channels and products tailored to the requirements of communities.

The program objectives for India are defined as follows:

• Demonstrate access and sustainability of financial services 
• Demonstrate cost effectiveness of promoting and linking women groups in a rapidly maturing microfinance market
• Demonstrate social and economic empowerment of beneficiary women

“India is a rapidly maturing market with microfinance institutions spreading rapidly to reach out effectively to the lower income strata of society. Through the Banking on Change programme, in association with CARE International and Plan International we aim to provide access to financial services through authorised channels to these people, with a special focus on marginalised women. With experienced partners in Care and Plan we expect to successfully fulfill these objectives within the three year period.” said Karan Bhagat, Managing Director & Country Head, Barclays Corporate India.

“This is an extremely important and strategic partnership for CARE India and Barclays will help promote community based microfinance institutions that strengthen self-help groups, unleashing their potential as vehicles for advancing financial inclusion and eventually helping communities move out of poverty” said R N Mohanty, Chief Operating Officer, CARE India.

“Plan India is excited and privileged to enter into a strategic alliance with Barclays Bank to help improve the quality of life for economically disadvantaged people by extending, innovating and accelerating sustainable access to savings and other financial services. This alliance combines Plan’s programmatic capacity in the field of micro-finance with Barclay’s expertise of the financial sector with the over arching aim of poverty alleviation” said Bhagyashri Dengle, Executive Director, Plan India.

The Banking on Change programme will be implemented in the urban and semi urban areas on the Self Help Group (SHG) and the Joint Liability model.

About Barclays:
Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people. Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide.

About CARE India:
CARE is an international humanitarian agency working in over 70 countries and has been  working in India since 1950. Working in eleven states in India, they ensure that all benefit from social and economic development without discrimination on the grounds of gender, race, caste or occupation.

CARE focuses on working with the very poor, especially women and girls, to increase access to:

• Education: primary education and functional literacy
• Healthcare and nutrition: Reproductive and child health, HIV/AIDS and TB.
• Economic opportunity: promoting entrepreneurship, bank linkages and micro insurance.
• Critical support during disasters.

Women are at the heart of their interventions. Equipped with the proper resources, women have the power to help whole families and entire communities escape poverty. By developing the potential of women and girls, CARE helps millions of people effect real, positive changes in their lives, every year.

About Plan India:
Plan’s vision is of a world in which all children realise their full potential and puts children at the centre of community development. For over 30 years, Plan along with partners have worked with communities throughout India to break the cycle of poverty by helping children access their rights to protection, basic education, proper healthcare, a healthy environment, livelihood opportunities and participation in decisions which affect their lives. Plan encourages children to express their views and be actively involved in improving their communities. Plan India currently works in 11 states in India and has touched the lives of over a million Indian children.

Plan India is a member of Plan International, one of the world's largest child centred community development organisations. For more information on Plan India, please visit planindia.org.