Idealism and persistence to instill financial behavior changes in borrowers are Koperasi Kasih Indonesia’s key differentiator with other similar institutions:
Financial education is often seen as unimportant
When people get more money, they could achieve higher education, better housing, etc.
It is not amount of income that matters, but how they are managed.
Koperasi Kasih Indonesiaobserves that borrowers who has average income but could manage and save their money well improve their life in the long-term, while others remain the same.
However, financial education is not fully justifiable financially
Therefore most microfinance are not interested to do it.
Koperasi Kasih Indonesia is different. Our end goal is social impact, not profit
Therefore we keep our idealism and persistence to educate our borrowers, as we firmly believe that the gold of social impact lies here.
We are not just idealist. We are visionary and creative
We do not stop when others say financial education could not be done without disturbing profit. We innovate to achieve behavioral change with affordable costs: (1) we give understanding via video training as it is cheap while providing standardized quality (development under progress), (2) we provide chance for them to do what we taught them (free savings facility) and (3) we instill the behavioral changes by ‘forcing’ them to experience benefit of having savings. We believe that when they know the benefit, they will start doing it without being forced.