Growth of participant base occurs through Saathi
introductions as well as referral by current participants
with the same process occurring for each.
This program can be replicated by any organization with
access to a Financial Advisor, accredited Broker
(sourceable through referrals), and an IPO sector in their
national stock market. Time needs to be invested in
establishing relationships with each as well as
establishing a pool of investors willing to lend funds to
allow community members to benefit from investment
opportunities. There are several steps to establishing the
program from this point:
- Research local banks, facilities available, and
stringency of type of documentation establishing proof of
identification/residence, and minimum balances.
- Ensure laws overseeing conduct of NGOs allows for
this
facilitation.
- Begin sourcing participants from the organization s
own
community as there is established rapport and trust.
These concepts will most likely be completely new to them
and will require in-depth discussion and ongoing
explanation. The ongoing process is in itself intended to
be a learning experience for the participant of basic
financial tools, bank processes, exploration of new ideas,
and to foster critical questioning.
- Be prepared to facilitate paperwork from bank account
applications to IPO bid form applications. As a momentum
is established, this becomes more streamlined.
5) Key Strategy Elements:
i. Mobilizing Citizen Support:
Stakeholder involvement is an important goal of the
program as the intention is to empower the community
member to explore alternative streams of income and learn
about basic financial tools. We also see the exclusion of
any community from Capital Markets as disadvantageous. The
participants are involved and informed at every step and
their active participation is encouraged. This is done
through official correspondence going through the
participant, regular dialogue, and planned monthly
stakeholder meetings discussing assorted topics by guest
speakers and the Program Team.
ii. Generating Financial and Nonfinancial Resources:
Financial resources generated include an income stream for
the program participant as well as cost recovery/income
stream for Saathi as the facilitating organization. These
financial resources are generated via returns on
investments.
iii. Establishing Relationships with Strategic Partnerships:
As the Financial Advisor and Broker see the many benefits
arising from the program, including the increased client
base, the ability to make the equity culture work for
those that need it most, and the low risk associated
through careful analysis and several checks and balances,
the general agreement has become a stronger strategic
partnership. The Financial Advisor and Broker are now
assisting in speaking with new investors to become
potential microloan lenders, thus increasing the reach of
the program. Each new lender-investor not only acts as a
source of microloan but also becomes involved in the
program, learning about issues facing those from the lower
strata.
iv. Engaging and Managing Volunteers:
Saathi s intern program has become involved in the program
allowing a larger working team as well as giving the
intern an in-depth view of the program so as to share the
idea with others when they return to their homes in hopes
of increasing resources as well as eventual replication.
Several professionals have been consulted for advice to
ensure this program fully adheres to all rules governing
the functioning of NGOs. This includes multiple lawyers
and Chartered Accountants who have acted on a probono
basis and continue to offer their services for further
questions.
v. Developing Information and Spreading the Message:
Systematic documentation of problems and issues arising
in
connection with the Participant, broker, bid process,
bank, etc. is done along with evolving strategies to
address them.
The vast majority of the program participation has been
built mainly through word of mouth and direct
communication.
6) Increasing Self-sufficiency and Social Impact:
Saathi is assisted in becoming self-sufficient through the
fees paid by the participants out of their returns on
investment. It also assists in self-sufficiency by
assisting to meet staff financial aspirations without
taxing already-tight budgets. Staff members are welcome
to join the program, thus supplementing their salary.
The social impact of this program is potentially huge.
The investment world has the ability to create money from
money. For the impoverished community, this is area they
see as out of their reach due to their inability to
provide the seed funds necessary. Through starting with
microloans to create returns able to be further invested
to create income streams, we are able to supplement, and
in some cases provide, incomes to those most in need.
Through the education component, they are hopefully
inspired to save what they can to continue growing an
asset pool.
8) Organization Mission and Vision:
Saathi is working towards creating a Just and Equitable
world with a specific focus on youth living on the streets.
Looking Forward to the Next Three Years:
The program continues to grow as community participants
refer family and friends. The economic boom India is
currently witnessing has happened many times in other
countries such as the U.S. and Indonesia. It has been
observed that not widening the reach of the capital market
to include the underpriviledged has resulted in disparity
with tragic consequences. Our goal is to have touched
thousands of lives and see the program replicated far
beyond that and recognized for its powerful potential.
Contact Information:
Valerie Tripp
Coordinator
Saathi
Agripada Municipal School, 1st Floor, Opp YMCA Swimming Pool, Farooque Umarbhouy Lane, Agripada, Mumbai 400011
India
Tel: +91 (22) 2300 9117
Fax: n/a
Email: info@saathi.org
Website: www.saathi.org
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