Esaf or Fincare Small Finance Bank

The Evangelical Social Action Forum (ESAF) was started as an NGO in 1992 as a microfinance firm for farmers and customers with low credit history. After the regulations put into action by the Reserve Bank of India (RBI) in the budget of 2014, ESAF bank was established in March of 2017 as a small finance bank. Under the leadership of Paul Thomas, the current managing director of ESAF bank, ESAF has raised more than ₹190 crores as of 2020. It was touted as the first microfinance company coming out of Kerala; however, it is now the 5th established bank there.

Operations

A brief history and legacy of operations of ESAF or Fincare small finance bank

Started as an NGO in 1992, ESAF bank has grown to be the go-to bank for underbanked, underprivileged classes. Yet, it still caters to India’s urban and growing cities through a very smooth transition into banking since its inception as a small finance bank. 

ESAF bank has drastically increased the local household income in Kerala’s low-wage landscapes. It has also contributed to social upliftment, women’s employment, and social inclusion through financial planning.

Boasting a customer base of 4.3 million, it follows a very keen ideology involving technology, financial education and modern banking in a retail capacity to many customers who have not had a bank account since 1947. The personal touch is also predominant with ESAF, with its team of 3300 employees serving the needs of almost all its customers daily and with personal scrutiny. It is also established as an NRI customer serving the bank as of 2018. With 550 branches across 21 states and 2 UTs, ESAF is just getting started!

As of 2021, ESAF bank is looking to go public and is trying to raise over ₹900 crores as IPO capital. Major market runners like Allianz capital, PNB MetLife and PI ventures have joined hands with ESAF to make this possible. A pre-placement of ₹300 crores is also in talks as of now.

The technology aspect of ESAF is also noteworthy. Along with mobile banking, net banking and cashless ATMs, ESAF is also looking to capture the UPI market and launch its quick credit and loan schemes. It has adopted mobile banking very well, looking at its rural banking methodologies and has taken the social initiative in making sure the rustic people have started using technology in banking. The major difference between market leaders and ESAF is that even though it caters to the underprivileged classes more and has a small berth for urban and semi-urban bases, it is growing its capital in numbers and not with potential high-end customers. There might be not more than lakh millionaires in the country, even lesser billionaires; however, over half a billion customers have recently started opening bank accounts with low or nil balances. The movement of money in small numbers but through many customers is a great policy adopted by ESAF bank, and it has only looked forward to its growth and development.

Things to look out for about ESAF small finance bank

• IPO is about to launch soon
• Hrudaya Deposit Scheme
• Urban expansion in 2022
• Microfinance schemes with easy payback and lenient instalment systems
• Responsive banking
• Equal opportunity and financial inclusion
• Quality service and innovative use of technology.

Types of deposits and loans in Fincare small finance bank 

• Saving account
• Fixed account
• Current account
• Recurring deposits 
• And NRI fixed deposits

 Types of loans in fin care banks are:

• Microloans
• Cash draft
• Loans beside gold
• Loans beside property 
• two-wheeler loan and Institutional finance.

What are fin care bank values?

These are fin care bank values :

F- be FAIR 

I- be innovative, be innovative to achieve great goals.

N-  be Nimble, understanding the market’s needs and giving responses accordingly.

C- be Collaborative, power of cooperation for everything.

A- be Accountable- standing on the promises.

R- be Resolute-moving from value-based culture to being zealous about values.

E- be Excellent- striving for greatness from a good bank to a great bank.

Conclusion 

The ESAF small finance bank aims at becoming India’s leading social bank that promotes social inclusion and financial knowledge sharing. It has publicly stated that it wishes to include every single underbanked and underprivileged person in the country in its banking system. With customer service, innovative banking methods and the prudent use of technology in day-to-day operations, ESAF bank stands to be a premier banking authority in India, matching shoulders with HDFC Bank, Standard Chartered and others. Every penny made from Hrudaya as an interest, 1% goes to the education of a girl child, provides water access, and creates sanitation facilities in the most rural locations. Fincare small finance bank cares.