Day 16-17: Writing

On Friday and Saturday I continued to work on the report. I was very busy trying to incorporate information from all of the departments. I did manage to get a picture of the office details before I left Saturday afternoon.

Day 15: Flipping Through Departments

Today I spoke to the head of many different departments. This morning I talked to the Audit Department again. We discussed, in depth, the changes the audit department underwent. Now, it has quarterly meetings to discuss changes in the industry, yearly tests to make sure that employees are qualified to audit, and other measures to ensure maximum optimization. In addition, they covered more at the branch level, including interviewing more customers and carefully inspecting the CRS's. In the afternoon, I spoke with the Operations Department, which approves (or denies) customers’ loan applications. During the financial crisis, the operations department went more online, helping save time and money (on mailings). Finally, I spoke to the Finance and Accounts Department, which oversees the movement of cash. During the crisis, they moved to a cashless system, helping save money on processing fees while also directly depositing funds into clients' bank accounts. 

Day 14: Audit Department and Interview w/ Mr. Pampilly

Today I had a very important call with Mr. Martin Pampilly, the COO of the East Branch. However, during the crisis years he was head of Operations. I was going to ask him about the different efficiency measures Ujjivan took to help keep company growing and running smoothly. While many of the things he said was similar to Ms. Carol, there was one efficiency concept that really stood out to me. He said, in order to get the branches to run at optimal level, he devised a contest for these branches. The branches that met a certain criteria were given rewards and other benefits. He used this method to bring up the best in the branches, and within one year the efficiency of the branches increased 3-fold. In the afternoon, I spoke to the Head of the South Region Audit Department. I was really confused what the audit department actually did, and he explained that the audit department was like an internal checking system. He said that he put together audit teams who would go to the branches unannounced  and either do a complete audit or partial audit. The complete audit would take hours as they go through books, loans receipts, and customer queries. The partial audit only goes through certain processes, and is a much faster process. This is the desk where all my work gets done!

Day 12-13: Credit Department

On Saturday I continued to research and write the report. With the staff busy at meetings throughout the day, the office was quiet. I managed to work efficiently and get more done than I had originally planned. This morning I spent time with the credit department learning about their operations and the changes the crisis precipitated within the department. The different branches of the department include Field Operations, the Credit Approval Team, the Individual Loans Team, and Collection Management. The Field Operations staff, Field Credit Officers (FCO), manages the branches (about 8-10 branches each). The Credit Approval Team approves only the Group Loans, making sure they are reasonable and fair for borrowers. The Individual Loan Team approves only Individual Loans, going through a very similar procedure as the Credit Approval Team. The Collection Management team deals with customers who default on their loans. I also learned a lot about the changes the department underwent during the crisis such as stricter credit checks, faster loan disbursements and major changes in customer policies. The credit department was most affected of all departments, having strict regulations put into place by the government. The second half of the day I worked on my report.      

Day 11: Beginning of My Research

Yesterday, I began researching and writing my report about the 2010-2011 Andhra Pradesh Crisis. I began the very basic research and wrote about the causes leading up to crisis. I also explained and analyzed the nitty, gritty details about the Andhra Pradesh Ordinance. Today, I have off and plan to spend it with my cousins.

Day 10: Interview w/ Ms. Carol Furtado

Today I went back to the Head Office after 3 days in the branch. In the morning I went over manuals and presentations about Individual Housing Loans and Individual Business Loans. In order to qualify for these loans, the borrowers must have been part of Ujjivan for 2 years, must have a working business/actual house, and must be trust worthy credit wise. These individual loans can range from 50k - 100k (rupees), which is much more than the group loan range (6k - 50k). I went through the step-by-step process and procedure in clients secure these loans including house/business visits, business/house plan, credit background checks, and so on. In the afternoon I talked to the COO of the South Branch, Ms. Carol Furtado. I asked her detailed questions about the 2011 MFI crisis such as its effect on Ujjivan, effect on customers, what expenses did they cut, what she thought of the new regulations, and so forth. Her responses where in depth, and will be very beneficial to my research. I also talked to the head of finance and she gave me more inside on alternate source of funding during the crisis such as securitization loans and non-convertiable debentures. Tomorrow, I will begin my research. This photo is of the front door into the head office.

Day 9: CGT

Today I witnessed the last of the field processes, a CGT. CGT stands for Compulsory Group Training, and this is where the CRS teaches the women about Ujjivan's different types of loans, safe borrowing techniques, insurance, importance of ID cards, and other services. The women at this CGT were very friendly and open. They welcomed me graciously and allowed me to ask questions. I asked why they chose Ujjivan over other MFIs. There response was the it had many different types of loans, had monthly not weekly re-installments, life insurance for their husbands and low interest rates. I was also talking to the cashier today who informed me that the branch was going to expand next month and have 8 CRS's instead of 6. He is hopeful that having an extra 2 CRS's would bring the number of customers from 750 to 1250. The picture below is of the CGT meeting.

Day 8: House Visit

Since I have gone through most of the field processes, I didn't have to get to the branch until 1:30 pm. Due to miscommunication, I came in slightly early. Today I went house to house with the CRM for home visits, which are essential in getting to know the credibility of the customer. They are quite short, as the CRM double-checks the customer’s ID card, type of loan, and loan amount, while also ensuring they understand the rules and regulations of Ujjivan and asking them a variety of other essential questions. The pictures below are of the meeting between the CRM and the client. 

Day 7: Asking Questions

Today I got to come in late, around 10:30 am. Praneeta came around 10:45, and we proceeded to wait for about an hour before interviewing clients. Praneeta wanted to interview the clients about their knowledge of banks and bank accounts. She has a vision of making Ujjivan process through bank accounts to help ensure the safety of the clients' money. The first client we interviewed has had a bank account for 13 years, and she knew the ins and outs of dealing with banks, and fully supported Praneeta with her vision. However, she warned Praneeta that there are many shady agents around banks who try to scam people. The second client had a negligible savings amount. She claimed that her income and (necessary) expenses leave her with few savings and that there was no need for a bank account. The final client was in between, and she understood the importance of an account but was hesitant to open one. The picture below is of Praneeta with the clients. 

Day 6: Back at the Head Office

Today I was back at the head office to go through a formal orientation as well as meet the other interns. They include a rising senior (like myself) named Rohin, who is from Hartford, Connecticut, and a first-year college student at a UK university named Urvi. There was also a rising junior from Bangalore named Vaibhav, who incidentally goes to the same school as my cousins and whose father helped secure my internship at Ujjivan. Our formal orientation took about two hours, as we went into depth about Ujjivan: its mission, history, resolve, products, services, future, and uniqueness. We learned about its growth from pilot to aggressive growth to post-crisis (2010 Andra-Pradesh Crisis). We also learned about its different types of loans, its target population (urban clients), and its plans for expansion. In the afternoon, Praneeta discussed my formal report for the company. I asked her if I could write about the effects the 2010 crisis had on Ujjivan, and she approved my proposal. Tomorrow, I will accompany her to the branch to interview clients about how they use their bank accounts.

Day 5: Staying in the Office

Today the CRS and CRM had a lot of paperwork to do, so I sat quietly as they finished it. The cashier (who manages the accounting books) explained his job to me. He manages 25+ books. Whether it's a log on where the center meetings are that day or the loan disbursements and the signing in and out of various keys, he has to manage a slew of data. Some of the books he manages include Postdated Checks, Key Location, Loan Collection, Loan Disbursement, Head Office Report, Installment Due Report, Petty Cash Report, various Receipts, etc. He went through each book in detail with me and their importance to the branch. He also has to enter these data into the computer, and he showed me the ins and outs of that as well. I also learned about the CCR (Customer Care Representative), who helps resolve client complaints. Today, the CCR also described her roles and importance to the branch. The pictures below are of the clients waiting for the CCR and the stack of accounting books.

Day 4: Diksha

Today, Thanveer was a bit late, so I reached the office at around 8:45 am (15 minutes late). However, it was no problem because I made it before most of the workers anyway. I sat and read my book for about an hour before I was told that we were ready to go. The employee I shadowed today works for Ujjivan's sister company, Parinaam. Parniaam was founded by the wife of of Ujjivan’s founder, and it helps clients gain social skills. One way they do this is through a program called Diksha (associated with initiation of learning), which consists of in-depth training sessions over  five weeks so clients can better understand their options with savings and debt management. 

In addition, I went to two separate but similar Diskha meetings, each of which was attended by about 30 women, all jovial and eager to learn. The staff members gave each woman a calculator and a diary to track their expenses.  These classes reminded me of similar Financial Literacy Classes conducted back home in the United States. They then used "role play photos" (shown below) to help explain to the women the do's and don’ts of saving and spending. They use two women as their example, Sukhi and Dukhi. Sukhi is very careless with her finances and pays for her carelessness by losing her home, whereas Dukhi is very careful with her finances and able to buy herself an expensive gift from the store. They also make sure the women understand the difference between needs and wants, and whether an expenditure is necessary or unnecessary. Finally, they also help the customers open a bank account to ensure they begin the process of saving money as well as make sure they understand the proper ID they should bring when going to the bank. 

On another note, the kindness of these women continued to impress me (even after I spilled my water on their floor!), as they treated me with respect and compassion. The pictures below are of the Diksha pledge in Kannada or Urdu (I'm not sure which), the Diksha logo, and of the role play mentioned above.

Day 3: The Translator

Still dissatisfied with my lack of knowledge about India, I asked my aunt this morning for suggestions on how best to remedy the situation. She said that I should use my driver (who drives me to work—trust me, it’s too dangerous to drive yourself), Thanveer, as a translator. I was skeptical, but on the car ride over I asked him what languages he speaks. He rattled off the names of five or six languages, and this convinced me to try and ask my CRM if I could have a translator. At the office, I did ask and even though they said yes, I felt as certain handicap. However, the translations were crucial in making this day a complete success. 

The first three meetings this morning were loan collection meetings just like yesterday. However, today the CRS made the clients recite the Ujjivan pledge about being safe and responsible with their loans. As on Day One, there were 20-25 people at these meetings. While they went well, there was one obvious complication: Many of the clients did not like the timing of these meetings, as they were held during normal business hours. At each meeting, they respectfully told the CRS that they did not like the meeting times. Other than this hiccup, meetings were smooth and disciplined. 

Today, the CRS could speak English well, and explained the many small details of the loan process, including maximum amounts and eligibility of clients. I also had my driver ask the women what they use the loans for. The majority of women responded with education. These women care about giving their children a better future by providing them an education. Unlike in the United States, education is not mandatory here. However, many clients understand the importance of education for their children. Other clients reported using the loans for their businesses (including cloth weaving, running a hotel, jewelry tiling, baking, etc.). 

In the afternoon, I attended 3 GRTs (Group Recognition Tests), where each group of women (women apply for loans in groups) are made to understand and comprehend Ujjivan's loaning system, mission, and rules. They also have to show ID and proof of ownership. They are asked many questions, and the CRS makes sure they work together cohesively as a group. These tests can be quite long, making the 3 meetings very tedious work. However, seeing the joy on the women's faces as they pass the test, knowing that they are one step closer to achieving their dreams, is worth it. The pictures below are of two different group meetings.

Day 2: Watching Micro-finance at Work

Today was a life-changing day for me. It put everything into perspective, and taught me to appreciate what I have. As Bob Harris (http://en.wikipedia.org/wiki/Bob_Harris) puts it, I was lucky enough to "win" the birth lottery. Today I went to one of the branches the company slightly outside the heart of Bangalore. The branch is literally an old house converted into an office, with no A/C, one fan, and one computer. The Client Relationship Staff (Branch staff, aka CRS) and the Client Relationship Manager (Branch manager, aka CRM) spoke very little or no English. They mostly communicated with one another in the local language, Kannada. I can only speak and understand English, so it was quite difficult to communicate with them. However, they were friendly and helped me whenever they could. 

About an hour after I arrived at the branch, a CRS staffer named Munjranu took me to a “center meeting,” where CRS staffers collect the loan payment from the clients. Center meetings take place in the clients home, so we hopped on his motorcycle and we went off toward the slums (this was the first time I ever rode a motorcycle). As soon as we reached, we went into the small, rundown, dark home of one of the clients. We sat at the front of the room, on a small mat. As I wrote in my notebook, I got curious stares from the 27 different women. They could tell I was foreign, and that I couldn't speak the language. I got lost throughout the center meeting, as it was conducted all in the local language (Urdu or Kannada). About an hour later and after another bumpy motorcycle ride, I was at another center meeting in a different woman's house. It was slightly less awkward as there were only 25 women this time. 

Finally, a few hours later I attended my last center meeting, and one of the clients could speak English. She was talkative and adamant about showing me her house (the meeting was held at a different client's house). She proudly showed me her house, which was a small, unlit, dark room. But the fact that she was proud and eager to show me her house spoke volumes to me. These clients are proud people, happy people, and simple people. They give the CRS staffers the utmost respect, and are grateful for Ujjivan's help. The pictures below are of the different rooms and the streets they live on.

Day 1: First Day

Today was the first day of my internship. Not wanting to be late, my uncle and I arrived 30 minutes early. Around 9 am, my project manager, Praneeta, came in and introduced herself. Then, I met the founder and CEO of Ujjivan, Samit Ghosh. A very nice gentleman, he helped set up my internship and my plan for the next seven weeks. This week, excluding today, I will be at one of the branches watching the Micro-Finance Institution (MFI) at work. I am  there only to observe, as doing so will help me understand more about micro-finance and how it works. Today, I read through many of the training manuals and Power Points, soaking in the information and the million acronyms they use. I learned about the different loans, their emphasis on group work and women, how they implement their loaning system, and the many responsibilities of the employees. The picture below is of the Ujjivan headquarters. 

Landing Day

I landed at Bangaluru (Bangalore) International Airport this morning. By the time my luggage came in and I got through immigration and customs, it was around 2:15 am. It took another 45 minutes to get from the airport to my aunt's house. After I changed and unpacked, I finally slept in a bed for the first time in two days. It was 3:45 am. Due to jetlag and restlessness, I woke up at around 8 am. I spent the entire day catching up with my cousins. I also straightened out a few details about my first day on Monday. I am excited to start my internship!

Tomorrow

Tomorrow is the big day when I embark on my trip. I just found out I will be gone for 7 weeks, meaning an extra week to volunteer. I will be working on a small case study of Ujjivan micro-finance, writing a report and presenting a paper. My supervisor's name is Praneeta and she seems to be a very pleasant person. I am excited to meet her. Also, I can't wait to see my extended family, as it has been almost two and a half years since I last saw them. It's going to be hard to be away from my parents, sister, and friends for these 7 weeks—I will miss them dearly.