SATYA MicroCapital is moving ahead on technologies like cloud, analytics and payments:
Satya MicroCapital, led by Managing Director Vivek Tiwari, had 580 branches across 25 states and Union Territories in India, reaching over 51,664 villages. Established in October 2016 and operational since 2017, this New Delhi-based microfinance institution (MFI) serves nearly 1.7 million borrowers. SML focuses on empowering women entrepreneurs in rural and semi-urban areas through the Joint Liability Group (JLG) model, providing unsecured microcredit to strengthen their livelihoods.
Impactful Initiatives
In the last 12 months, SATYA has made significant strides in various initiatives. The organization focused on enhancing cybersecurity awareness among over 7000 employees, ensuring that they are well equipped to handle digital threats. Additionally, SATYA organized depositor education and awareness (DEA) workshops in collaboration with the RBI across PAN India to promote financial literacy.
The company has also made commendable efforts to reduce its environmental footprint by minimizing paper usage in client enrollment and loan processes. This initiative has led to a reduction of approximately 142,545 kg of CO2 emissions associated with paper use. “Our commitment to sustainability is reflected in our actions, and we strive to create a positive impact on the environment,” avers Vivek.
Moreover, SATYA initiated a plantation drive across 72 branches in 11 states, successfully planting 5100 trees to help restore ecological balance. In celebration of its 7th anniversary, SATYA organized a camp for the visually impaired, facilitating 200 cataract surgeries through the SATYA Shakti Foundation. Furthermore, the organization provides call-on-doctor facilities to assist underserved communities in accessing healthcare services.
Significant Achievements
In the last 12 months, SATYA has achieved significant milestones, notably assisting over 930,000 new households by extending its reach to more than 7000 new villages. The organization has also earned a gold level rating in client protection certification from MFR, alongside a grade A in ‘AFISAR by agents for impact,’ affirming its alignment with the United Nations’ sustainable development goals (UNSDGs) and its commitment to environmental, social, and governance (ESG) criteria over the last 3 assessments.
Vivek asserts: “Our continuous improvement and dedication have not only made us a great place to work for the third consecutive time but have also garnered us the international pride award for MFI & nation building.” Additionally, SATYA has received the highest grade of C1 in the ‘code of conduct assessment (COCA)’ for the past 3 years.
Furthermore, the latest AFISAR evaluation placed SATYA among the top 5 financial institutions assessed on the nuanced AFISAR questionnaire V 3.0.
Rating Evolution
Regarding the evolution of SATYA’s ratings over the last 3 years, Vivek emphasized the organization’s focus on formalizing operational systems through comprehensive documentation and binding protocols. “We have come a long way since our inception, and our emphasis on scalability, sustainability, and reliability in our internal processes has allowed us to conduct regular financial and social evaluations,” he noted.
SATYA has consistently received top grades in various ratings, including the GOLD level certification in client protection standards after a thorough assessment in October 2023. The organization aims to continue this upward trajectory by adapting innovative practices and strengthening its systems and processes in the coming years. Future assessments will include ESG ratings, second-party opinions on its social loan framework, and social ratings.
Funding Diversification
SATYA has strategically expanded its funding base by partnering with a diverse array of lenders. The organization has fostered strong relationships with over 80 unique lenders, onboarding nearly 40 new partners during this period. These partners include prominent Indian banks like the State Bank of India, Bank of Baroda, IDFC First Bank, and Kotak Mahindra Bank, as well as international banks such as Sumitomo Mitsui Banking Corporation, Standard Chartered Bank, and HSBC.
SATYA has collaborated with NBFCs like Aditya Birla, Tata Capital, Northern Arc, and Vivriti Capital, alongside development finance institutions (DFIs) such as FMO, Blue Orchard, Proparco (AFD Group), and Frankfurt School (UK). The total funds raised over the last 3 years amount to approximately Rs105 billion, which have been sourced through term loans, non-convertible debentures (NCDs), external commercial borrowings (ECBs), direct assignments, and pass-through certificates (PTCs).
Vivek states: “Our ability to continuously raise equity has been demonstrated year after year, with an addition of around Rs3.15 billion in the last 3 years.”
Technology Advancements
In the past 24 months, SATYA has implemented several significant technology initiatives that have transformed its operations and enhanced customer experience. One of the most notable advancements is the adoption of a cloud-based core banking system. This initiative has led to improved cost efficiency, scalability, enhanced security, and greater accessibility for both staff and clients.
SATYA has also integrated digital payment solutions, which have streamlined operations by allowing real-time transactions and increasing convenience for customers. This enhancement also ensures better payment trackability. The organization has also implemented easily integrable credit scoring solutions, which have improved risk management, fostered financial inclusion for rural audiences, and expedited loan approval processes.
Vivek emphasized the role of data analytics in these advancements, stating: “Our data analytics capabilities enable us to develop customized financial products, mitigate risks, and make more informed decisions.” Moreover, SATYA has introduced a human resource management software that has facilitated the onboarding of over 2000 new employees, incorporating e-signatures for all onboarding documents, thereby improving efficiency in the recruitment process.
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