How has SKS created a scalable model of microfinance?
Most microfinance institutions have difficulty in scaling up. SKS identified and addressed three constraints to scaling up: capital, capacity and costs. Capital: In 2005, SKS transformed into a non-banking financial company, which helped attract commercial capital and increased access to debt through banks. With access to capital, the organization was able to grow geographically and increase its reach. Capacity: By adopting best practices from the business world, SKS has been able to scale up operations. Processes were standardized, beginning with loan amounts and loan collection. A disciplined methodology of distribution and payment is instilled in loan officers and borrowers. Costs: Early on, SKS launched a robust database to make collection and accounting more efficient, accurate and transparent. Standardization was also applied to recruitment and training of employees. Since distributing loans to the poor is an expensive and labor-intensive process, SKS uses technology to bring dow
