SKS Microfinance's Vikram Akula on Mobile Banking
Episode Description
Vikram Akula, founder and CEO of SKS Microfinance, launched the company in 1998 to offer small loans to very poor borrowers. Some 10 years later, SKS has become India's fastest growing microfinance institution (MFI), with more than two million borrowers. In the next two years, Akula would like SKS Microfinance, whose backers include venture capitalists such as Sequoia Capital, to grow to eight million borrowers -- which would make it the world's largest microfinance lender, surpassing Bangladesh's Grameen Bank. In an interview with India Knowledge@Wharton at the recent Wharton India Economic Forum, Akula spoke about emerging trends in microfinance.
Brief Summary
Vikram Akula discusses SKS Microfinance's strategies for poverty eradication and the challenges of microfinance in India.
Key points
- Vikram Akula's Vision for Microfinance. Vikram Akula shares his journey from witnessing poverty to founding SKS Microfinance, aiming to eradicate poverty through innovative financial solutions.
- The Future of Mobile Banking. Akula emphasizes the importance of mobile banking in revolutionizing microfinance, despite regulatory challenges.
- Balancing Profit and Purpose. Akula discusses how treating borrowers well can lead to a successful business model in microfinance.
- Interest Rates in Context. Akula clarifies that SKS Microfinance offers competitive rates compared to traditional lenders, benefiting the poor.
- Political Challenges in Microfinance. Akula highlights the political misunderstandings surrounding microfinance and its impact on operations.
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Episode highlights
- Vikram Akula's Vision for MicrofinanceVikram Akula shares his journey from witnessing poverty to founding SKS Microfinance, aiming to eradicate poverty through innovative financial solutions.“I want to do something to try and eradicate this kind of poverty.”1:14May 1, 2008
- The Future of Mobile BankingAkula emphasizes the importance of mobile banking in revolutionizing microfinance, despite regulatory challenges.“Mobile Banking is the future.”3:59May 1, 2008
- Balancing Profit and PurposeAkula discusses how treating borrowers well can lead to a successful business model in microfinance.“We think that if you do what’s right by the borrowers, that’s the way to build a good business.”5:32May 1, 2008
- Interest Rates in ContextAkula clarifies that SKS Microfinance offers competitive rates compared to traditional lenders, benefiting the poor.“We’re actually the lowest cost financing available to the poor.”6:52May 1, 2008
- Political Challenges in MicrofinanceAkula highlights the political misunderstandings surrounding microfinance and its impact on operations.“The biggest challenge is the political environment.”8:36May 1, 2008
