MICROCAPITAL BRIEF: Business Correspondent Sub-K Impact Launching Digital Platform for Insurance, Investing, Microfinance Referrals with Support from Accion, Mastercard

Sub-K Impact Solutions, a subsidiary of India-based BASIX Social Enterprise Group, is releasing a digital platform called SARTHI (Seamless Advanced Resourceful Tech-driven Hybrid Interface) to facilitate access to insurance, microloans and investment services. SARTHI will place users in contact with financial services providers via mobile device, phone call or referral to a nearby staffed location. These referrals will be to Sub-K’s network of branch locations and agents as well as to third-party institutions.

“Sub-K’s proven commitment to reaching last-mile customers, their expansive reach through their agent network and bank partnerships, and their demonstrated embrace of digital technologies made them an ideal partner for our efforts with Mastercard to help microbusinesses benefit from the digital economy,” said Victoria White, the Managing Director of Accion Global Advisory Solutions, a division of US-based nonprofit Accion that advises organizations on investments in microfinance and fintech.

SARTHI is partially funded by a partnership between Accion and US-based NGO Mastercard Center for Inclusive Growth that seeks to connect microbusinesses with digital services. Accion also assisted with the design and development of SARTHI.

Sub-K is a Hyderabad-based company founded in 2010 that intermediates between banks and their customers. During the 12 months ending July 2020, it facilitated the disbursal of INR 35 billion (USD 479 million) in loans to 3 million customers of 10 public and private banks. For the fiscal year ending March 2020, Sub-K held total assets of INR 12.8 billion (USD 174 million).

BASIX, which serves rural and agricultural clients in India through nine subsidiary corporations, is owned by Bhartiya Samruddhi Investments and Consulting Services (BASICS Limited), a holding company established in 1996 that offers consulting services for microfinance institutions and information technology firms targeted toward underbanked people and enterprises in rural India.

The Mastercard Center for Inclusive Growth was founded in 2013 with a contribution of USD 500 million from US-based payment services firm Mastercard that is used to support the growth of micro- and small enterprises via access to technology. The Mastercard Center for Inclusive Growth has supported Accion since 2011.

Founded in 1961, Accion is a nonprofit that seeks to alleviate poverty by offering services such as microenterprise loans and business training. The organization has 110 partner microfinance institutions (MFIs) providing financial services to entrepreneurs in 50 countries in Africa, the Americas and Asia. As of 2018, Accion reports total assets of USD 345 million. The investment subsidiaries of Accion include Accion Venture Lab, Accion Global Investments and Accion Frontier Investments. Accion also conducts research via The Center for Financial Inclusion.

By Kate Finster, Research Associate

Sources and Additional Resources

Accion press release
https://www.accion.org/sub-k-launches-sarthi-a-digital-finance-platform-that-provides-financial-services-to-indias-underbanked

Sub-K 2019-2020 annual report
https://subk.co.in/year-end-review/

BASIX Social Enterprise Group 2013-2014 annual report
http://www.basixindia.com/BSFl/DATA%20Room%20Infor_/BASICS_%20Ltd/BASICS%20Ltd%20-%20Company%20Profile.pdf

Accion annual report
https://www.accion.org/financials

Accion and Mastercard Center for Inclusive Growth partnership
https://www.accion.org/mastercard-and-accion-partnering-for-inclusive-growth

Previous MicroCapital news on Accion
https://www.microcapital.org/microcapital-brief-accion-venture-lab-takes-equity-stake-in-pintek-of-indonesia-provider-of-online-loans-to-students-schools/

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