In an effort to increase financial security in India, this co-operative bank is for beggars and run by beggars. An underprivileged group in Gaya founded the Mangala Bank, specifically to serve other underprivileged people like themselves. Encouraged by the State Society for Ultra Poor and Social Welfare, the autonomous bank enables its members to begin saving and helps in emergency situations.
Without appropriate modes of identification, these people are unable to start bank accounts at other institutions. This means they don't have a method of saving the alms they do get begging at a temple close by. On Tuesdays Mangala Bank's members deposit 20 Ruppees.
The co-operative bank is able to make loans to its members in a crisis, which they have to start paying back the next month. After that, the bank charges 2-5% interest as incentive.
Autonomous Underprivileged Banks
This Co-Operative Bank in Gaya, India Helps Beggars Save Alms
Trend Themes
1. Financial Inclusion - Disruptive innovation opportunity: Create specialized banks or financial institutions that cater to underprivileged and marginalized communities.
2. Alternative Banking Models - Disruptive innovation opportunity: Develop autonomous and co-operative banking systems that provide services to individuals who are excluded from traditional banking.
3. Empowering Social Welfare - Disruptive innovation opportunity: Collaborate with government agencies and non-profit organizations to establish financial initiatives that address the specific needs of underprivileged populations.
Industry Implications
1. Banking - Disruptive innovation opportunity: Explore new ways of serving the unbanked and underprivileged populations through innovative banking models and financial services.
2. Fintech - Disruptive innovation opportunity: Leverage technology and digital solutions to create accessible and user-friendly financial platforms for individuals who face barriers to traditional banking.
3. Social Welfare - Disruptive innovation opportunity: Develop partnerships and initiatives that promote financial inclusion and empowerment for underprivileged communities, aligning with government social welfare programs.