In Conversation with Vivek Tiwari: Shaping a new paradigm of women empowerment through Microfinance
BEST CEO OF THE YEAR 2023
Vivek Tiwari | SATYA MicroCapital
“Economic empowerment through financial literacy is a serene commitment to bridging the gaps and enriching lives.”
Founded in 2016, SATYA MicroCapital Limited successfully caters to more than 15 lakh active micro-entrepreneurs and households across 25 states in India. With its extensive network of more than 500 branches and robust employee base, SATYA employs 100% women living in rural and semi-urban areas. The microfinance institution (MFI) is integrally focused on extending social and financial support to the unbanked section of the population living at the bottom of the pyramid and providing affordable credit offerings for their income generation and income growth. SATYA serves a diverse range of clients, including small business owners, entrepreneurs, and individuals with limited access to traditional banking services. Each success story is special, as the company empowers individuals to achieve financial independence.
SATYA is not restricted merely to facilitating financial services but is also inclined towards empowering its clients by utilizing financial literacy, digitization, education, and employment creation. Considered one of the fastest-growing and technologically advanced MFIs (microfinance institutions) across India, SATYA envisions serving as an impetus for the socio-economic upliftment of 5 million households by the year 2025.
Well, that was just a brief introduction of today’s brand in focus; the real saga of excellence is what we will be unveiling through this read. The editorial team of Prime Insights invited Vivek Tiwari, Managing Director, CEO, and CIO at SATYA MicroCapital Limited, for the cover story of its captivating edition, “Best CEO of the Year 2023”. The dignitary shared many prominent nuggets about his thriving entrepreneurial journey, his company’s milestones, the entire inception tale of his brand, and so much more! We hope that our readers will truly relish this knowledgeable read and imbibe valuable lessons from Vivek Tiwari’s entrepreneurial stint.
Standing Strong Against the Odds
The foundation of SATYA was followed by the unprecedented arrival of demonetization. It was quite difficult for others to believe that a new entrant in the Indian MFI space would sustain itself in the sector. SATYA triumphed in these challenging times with its only aim being to set its footprints in the industrial ecosystem. With undying dynamism and compassion, team SATYA maintained their calm and dedicatedly affixed the name of the organization to BFSI terrain.
SATYA disbursed its first microfinance loan to low-income groups in the Sikandrabad branch in Bulandshar District of Uttar Pradesh on November 1, 2016. SATYA achieved an Assets Under Management (AUM) value of over INR 5,000 crores in less than 6 years, thus emerging as one of the fastest-growing, highly technology-driven microfinance institutions in the country.
The organization’s firm belief in modern technology and its potential to increase efficiency is apparent in its adoption of the most cutting-edge innovations to power its operations. SATYA has established its terrestrial footprint in more than 50,000 villages across 25 states.
SATYA’s loan products are specially curated to fulfil the credit requirements of people coming from the bottom of the pyramid. These target individuals who are looking to raise their working capital.
With a vision to help aspiring students pursue certifications, diplomas, degrees, and other skill development courses, SATYA offers skill loans. These loans are provided to students looking to upskill themselves and become future-ready. These skill loans are made to bridge the financial boundaries for aspiring candidates, thus making access to skill development programs convenient for them.
PRAYAAS Business Loan
SATYA introduced the PRAYAAS Business Loan for self-employed individuals running small businesses for more than three years in a similar line of business. SATYA provides cheap and accessible loans to people who are engaged in earning a livelihood and are trying to expand or diversify their business.
HospiCash Insurance (TP)
HospiCash is an allowance cover that provides cash benefits in case the insured gets hospitalized. It provides daily cash benefits of INR 1000 per day for a maximum of 30 days per year in the event of the hospitalization of the borrower or co-borrower. In addition to it, the TP provides benefits of INR 1,00,000 in case of accidental death of the borrower or co-borrower as per loan tenure. The benefits are doubled if the insured is admitted to the ICU.
Water and Sanitation Loans
Safe drinking water, proper sanitation, and the termination of open defecation to lead to a healthy and dignified human life should be accessible to everyone. With the intent of providing enhanced life quality where hygienic facilities of water and sanitation are cost-effective and accessible, SATYA brings a Water and Sanitization Loan. This loan eradicates the hurdles restricting access to basic sanitation facilities that are responsible for causing serious health hazards to people. For the women in the rural landscape, this loan provides a framework for privacy.
Limited Liability Loans
SATYA has adopted a unique Joint Liability Group (JLG) lending model, helping a group of individuals take loans for income generation and income growth. Under this, each group member is equally liable for repayment through a formal agreement. Since its inception in 2016, this loan product has been one of SATYA’s main offerings. Through the model, the company aims to add a social touch to its credit offering by integrating modern technology into the Indian microfinance sector. Furthermore, it also meets the credit needs of the poor by combining the informal credit system’s flexibility, sensitivity, and responsiveness with the strength of formal credit institutions’ technical and administrative capabilities and financial resources.
SATYA’s Guiding Mantras
- Trust: Building a relationship of supreme trust and truthfulness within the ecosystem of SATYA.
- Transparency: Aiming to foster a transparent culture across the organization.
Team: Adhering to the values of “team strength” and promoting “coordination and cooperation” in all verticals.
- Technology: Nurturing the organization through avant-garde technology in real-time data, reducing TAT, and moving towards paperless transactions.
- Training: Capacity building and social awareness programs for all stakeholders of SATYA.
Rigorous Strategies to Adhere to Market Trends
With the advent of technology, every industry is encircled by an array of innovations and advancements in its operations. SATYA closely monitors industry developments, leverages data analytics, and engages in continuous market research. This allows the team to introduce innovative products and services that meet evolving client needs. SATYA’s digitization initiatives are based on its aspiration to emerge as a “New Age Digital MFI”, while also driving operational efficiencies, process optimization, and productivity enhancements. The company’s technological transformation is in synchronization with its digital strategy to make processes and delivery outcomes more agile.
To achieve the aforementioned, research and development take center stage. SATYA emphasizes intricately investing in R&D to enhance operational efficiency, create customer-centric solutions, and remain competitive in a dynamic market landscape. SATYA has comprehensively leveraged the advent of digitization in its operations to harness enhanced customer experience, innovation, and accuracy.
Fostering Growth Through an Affluent Work Culture
When asked about the initiatives SATYA has implemented to build a collaborative and productive work culture, the dignitary asserts that employee satisfaction directly impacts any organization’s success. Through competitive compensation, growth opportunities, and a supportive work environment, SATYA ensures that the team feels valued and motivated to contribute their best. The company has a participatory culture, which further enables employees to have an open conversation with the upper management, giving them a clear idea of how the company is progressing, how they can participate, and how to develop a stronger sense of purpose.
Elaborating on this with ebullience, Vivek Tiwari says, “We’re proud of milestones like reaching more than 15 lakh previously unbanked individuals with more than 5000 crores in AUM, launching innovative digital platforms, and receiving recognition for ethical business practices, all of which contribute to our reputation as a leader in the microfinance sector.”
Impacting Lives with Nobel CSR Activities
Corporate social responsibility is integral to SATYA’s mission of having an impactful influence on people’s lives. The company has a separate CSR implementation arm, the “SATYA Shakti Foundation,” that actively supports sanitation, health, education, and empowerment, thereby contributing to the holistic well-being of the communities. The SATYA Shakti Foundation organizes a remarkable number of health camps across various states, providing preventive medical support to a substantial number of individuals across the country. Furthermore, through the establishment of E-clinics, a total of 14482 treatments have been conducted, while SATYA’s health program has reached out to 36,000 individuals.
With the primary objective of offering general health consultations and facilitating counselling on basic healthcare practices, the foundation has successfully conducted 102 health camps in different parts of the country. Over 18,100 individuals availed themselves of medical guidance and consultation from qualified MBBS doctors. This is not merely a collection of initiatives; it is a concerted effort to transform lives, elevate communities, and instigate change at its core.
Vision for the Future
With the vision of becoming the catalyst for the socioeconomic upliftment of 5 million households by the year 2025, SATYA is gearing up to expand into underserved regions with technological advancements for streamlined services. The team is filled with enthusiasm to reach out to more and more people via company’s financial literacy initiatives.
Words of Wisdom for the Readers
Coming towards the end of the conversation, Prime Insights expresses enormous gratitude to Vivek Tiwari for joining us for this enticing release and inspiring our global readership panel. It was a mandate for us to ask the dignitary to quote a few words for all the aspiring entrepreneurs and readers reading this draft. Here is what Vivek Tiwari says:
“To Prime Insights readers, I encourage you to embrace challenges as opportunities and strive for purpose-driven success. By working together, we can shape a brighter future for individuals and businesses alike. For those who find a spark of inspiration in my story, I would like to convey the importance of integrity, strategic thinking, and community engagement. I urge you to shatter all the limitations and move towards your ambitions. Embrace your unique perspective, challenge conventions, and persevere. Your journey can inspire positive change and redefine success.”
From the CEO’s Desk
“The quality of service an organization offers leaves an everlasting impression in the hearts of its consumers. SATYA’s vision is not limited to sales numbers, rather the team has always believed in taking a double bottom line approach (entrepreneurial ventures that strive to achieve measurable social and financial outcomes). This forms the core of SATYA’s business processes and motivates the entire workforce.
SATYA’s unshakeable focus on exceeding the expectations of its clients, solving their concerns with a robust approach, incorporating technology in its operational workflow, and maintaining absolute transparency has cemented an irrefutable position in the market. Through our sincere efforts, we aim to provide sustainable and efficient digital solutions to promote entrepreneurship among the underprivileged masses, thereby stamping a positive difference in the society. SATYA has committed itself to fulfilling everyone’s financing dreams and is grateful for the entitlement and responsibility that comes along!”