Mega Micro Banking:
Delivery of modern banking facilities covering the whole strata of the population pyramid in cost effective ways is one of Mega Bank's key corporate goals. In action we have set up separate departments (corporate, SME and Micro) to implement programs that are designed for each of these customer segments. Amongst them, a team of more than 30 personnel has been explicitly working in the Mega Micro Banking Department that has been implementing innovative products/services other than conventional banking practices that aims to enhance access to finance. Our major micro banking products comprise of micro credit, micro deposits, remittance services, cards, ABBS (Any Where Branch Banking Services), mobile banking services, etc. to rural smallholder customers. Through this program, we endeavor to reach a considerably large number of smallholder rural clients offering services right at their door steps. Unlike the past subsidy focused programs, we attempt to establish corporate relationships with the customers under the norms and values of the commercial world. On the contrary, ours is an inclusive approach in providing financial services without any discrimination based on the caste, class, color, gender, religion, occupation, economic status, region or political inclination of the client.
Through our micro banking program, we strive to offer small size loans and small saving products to the micro entrepreneurs and low income groups supported with state-of-the-art technology and mobile devices that best suit our targeted rural clientele groups. Client friendly procedures, a highly professional team, efficient service delivery as per the customer business requirement, and an outreach to the mass population, are the basic characteristics of Mega Micro Banking. In addition to providing the highest level of appropriate financial services to our micro customers, the goal of Mega Micro Banking is to also facilitate linkages between mega micro customers and our Mega SME and Mega Corporate customers, so as to develop markets by using Value Chain Financing Approach to enhance the business prospects of our micro clients. With all of these, we have drawn a pathway to serve the top, middle and the bottom of the economic pyramid adding synergistic value by providing not only financial services, but complete solutions. In line with this, our micro banking corporate slogan states: "Financial Inclusion for Economic Empowerment".
By the term "Financial Inclusion" we understand the delivery of modern banking services to all customers throughout the country from small entrepreneurs to large corporate and all the individuals in between. We always focus on the quality of services that we deliver to bring an existing or potential customer's satisfaction to the experience of Customers Delight where we will design and implement our products that suits the best for our target market. Essentially, it is ensured that the right product is offered to and reaches the right customer to match their needs. In addition, we have also built a corporate culture within the Bank's Team to respect the entire segment of customers and we design our processes to deliver services in more convenient ways to all customers at affordable prices.
Specialties of Mega Micro Banking Program:
1. All products/services offered equally to smallholder customers.
2. Targeted to the deprived sector and people with lower income group.
3. Inclusive programs – without considering the economic status, caste, culture, race, ethnic group, political reference, religion etc.
4. Value chain financing model - financial services are provided to all value chain actors.
5. Micro saving and loan services programs being launched considering people with lower incomes.
6. Loan provided with and without collateral; based on the size of business.
7. Door to door delivery of all banking facilities and services with credit assessment process completed locally.
8. Less paper work though easy managerial process through the use of state of art technology.
9. Credit plus programs to target customers in alliance with development organizations, particularly on entrepreneurship development and market linkage.
10. Social development trainings on the basis of groups’ demand/ necessity.
How we conduct the Micro Banking Program:
While striving for small size loan and small saving products to the micro entrepreneurs and low income groups we find lack of entrepreneurship developments in rural areas which is the main hurdle of rural entrepreneurship development. To overcome this limitation we developed and used two strategies: (i) Use of Value Chain Model and (ii) Have strategic Alliance with development organizations.
While using the Value Chain Finance Approach we integrate all actors of the value chain into our banking system. In action, we facilitate to develop linkages between mega micro customers and our Mega SME and Mega Corporate customers, so as to develop markets and supply chains to enhance the business prospects of our micro clients. Through this approach with Mega Corporate, Mega SME and Mega Micro Banking together we aim to service the top, middle and bottom of the economic pyramid adding synergistic value by providing not only in financial services, but complete solutions. End result of these initiatives will ultimately grow rural entrepreneurs on a sustainable ways as we not only provide financial solution but also facilitate them to get secured agricultural market.
Working with development organizations/NGOs/INGOs and local government bodies is our next approach to develop micro entrepreneurship. Since inception, we have been working with different development related projects. Such project has provided technical assistance to the target groups mainly on:
• Entrepreneurship development
• Technology Transfer and
• Other social development activities
From the partnership with these organizations, we seek technological transfer from them to small borrowers' group to create credit absorption capacity by utilizing locally available resources. These partners provide technical assistance to the end customers developing a market system by coordinating with the other players in the value chain. Our micro credit services will be better utilized when we enter jointly after enhancing their entrepreneurship capacity.
For further information, please contact:
Mega Bank Nepal Limited
Rising Mall, Kamaladi, Kathmandu
Ph: 01-4169216/7, 4169204/5