Global IME Bank (Project 2)

SAKCHYAM BANKING SOLUTION: Through BLB and Extension Counter Facility in Mid- and Far Western Development Regions

Background

The southern belt of Nepal’s mid- and far-western regions is home to stretches of farmland that turn golden come harvest time, yielding enough to feed the farmers, their families, and leaving plenty to sell. However, severely affected by the lack of access to financial products and services while vulnerable to natural disasters like earthquake and floods; their lifestyles are facing new challenges.

Challenges Faced

Lack of access to finance for the region’s farmers has far-reaching consequences. Prices of crops are at their lowest immediately after the harvest season. With high-interest loans taken from informal money lenders, little to zero financial literacy and no proper way to store their crops, farmers are forced to sell their produce for a bargain. Unable to earn tidy profits, such trends have ripple effects – affecting factors like the region’s health and education levels. It has also driven hundreds of farmers to pursue migrant labour jobs.

Sakchyam’s Intervention

With Global IME Bank Limited’s (GIBL) innovative Sakchyam Banking Solution through Branchless Banking (BLB) and Extension Counters Facility, the idea was to provide financial access to rural communities that are deprived of financial services by expanding the outreach of the bank through alternative delivery channels – BLB service point and extension counter facilities. Such innovation would help include more people from this region and bring them into the larger financial system.

Impact

Due to Sakchyam’s intervention, locals of the area had access to financial products and services and also enjoyed better prices for their products. Till March 2018, the bank has opened more than 13,000 accounts with total deposits of over NPR 171 million and total loans of over NPR 28 million. All three extension counters and all 10 BLB touchpoints are operational. With support from Sakchyam, G2P Payments has also been launched for the first time in Global IME Extension Counter in Jogbuda, Dadeldhura. The extension counter has collectively disbursed NPR 131 million in G2P payments to over 4,500 beneficiaries.