Vikram Akula - SKS Microfinance

Vikram Akula is CEO of SKS Microfinance, an MFI serving 1.5 million clients in India. He tells Global X that his passion for changing the world started when as a young boy, he realized that something as simple as 12 grains of rice could make a difference for a family.

After working for an NGO, he went back to the University of Chicago to get his PhD and find out how to design a microfinance institution in a way that "you never have to say no to any poor person who is simply asking for an opportunity."

His response:
1- Use a for-profit approach to access capital
2- Draw from best practices from the business world to overcome the constraints of capacity
3- Use technology to overcome the constraints of cost

That's how SKS Microfinance was able to scale so quickly.

Vikram Akula also shares a piece of advice with Global X: "Think big! Think in a way that has never been done!" It is undoubtedly because his goal was initially to eradicate poverty that he was able to achieve so much.

Category:

Nonprofits & Activism

Tags:

• globalx
• socialedge
• socialentrepreneur
• VikramAkula
• SKS
• microfinanceindia

[mdkumarz]

But Indian poor have a leech-like moneylender on the other side charging 10% per month interest compared to 30% from MFI(Micro finance institutions). So, I think MFIs are here to stay.

[yupyupnopenope]

@ahvanam Plus I know the professors with which he did his PhD at University of Chicago, All brilliant people and noble laureates. Key thing I like about his mission style is, he has identified the solution to the problem of scaling in a diverse market and that is "It has to stay localized" So individuals' situation, access to resources and viability of the idea decides interest rate. By not putting it up as a charity, he puts a +ve spin on it. He wouldn't been able to scale without +ve response.

[yupyupnopenope]

@ahvanam BOP pie is further segmented into discrete classes. As he is not using a NGO approach (which has been proved lot less effective than social entrepreneur for-profit approach, example - Africa for last 50 years), he must have to setup differential pricing model with variable interest rates for different consumers based on risk vs reward balance, skill, knowledge and motivation. Based on these, interest rates can vary and just taking example of few 30% or 40% shouldn't be generalized.

[ahvanam]

This man loans poor people for 30% interest and he is talking about humanity, poverty !!! Indian poor are not new to this kind of men but limited by region known as parasites .........I am surprised this man got awards too!