K. Adi Swarup Patnaik

Founder & CEO, The Amarvathi Co operative Society

Financial planners are readily available in urban and metro markets, but if we look at semi-urban and rural areas, there is a lack of sufficient professional financial planners. This gap leaves rural investors vulnerable to Ponzi schemes, MLM activities, and unorganized local financiers, resulting in significant financial losses. Furthermore, rural financial markets, predominantly agrarian and labor-oriented, present substantial growth opportunities. Recognizing this, The Amaravathi Co- Operative Society’s promoter Adi Swarup Patnaik, with over 20 years of experience at Shriram Chits, Dhanalaxmi Bank, Axis Bank, DCB Bank, and AMP Sanmar Life Insurance, decided to address this need. In 2017, he founded The Amaravathi Multi-Purpose Mutually Aided Co-Operative Society Limited, a cooperative institution registered under The Andhra Pradesh Mutually Aided Co-Operative Societies Act - 1995, dedicated to rural financial planning.

“Our financial planning services encourage investors to make small investments in recurring and fixed deposits, helping them save for marriages, education, and old age. Starting with just 9 investors and INR 9,000 in deposits in 2017, we have grown to over 2,800 investors and INR 8 crore in deposits by June 30, 2024,” stated Adi Swarup Patnaik, Founder & CEO at Co-Operative Society.

“Educating rural investors has been challenging, as they often lack basic financial planning knowledge. However, we have found that, with proper guidance, they are highly capable of understanding the importance of savings and managing household expenses. Our efforts are focused on educating rural women, who we believe are the backbone of household financial planning,” he adds.

The Amaravathi Co-Operative Society’s financial products are tailored to meet the needs of rural investors, particularly women. It remains committed to empowering rural households through effective financial planning, ensuring they are better equipped to manage their finances and avoid financial traps.

Established by a team of seasoned banking professionals, the company operates as a Quasi Banking Co-Operative Society (MACS), offering a range of services comparable to traditional banks. These services include Core Banking Solutions (CBS), SMS services, NEFT/RTGS/IMPS services, and mobile banking. This robust infrastructure not only meets but exceeds the expectations of its members, providing them with convenient and efficient financial solutions tailored to their needs.

A Noteworthy Journey

If we speak of Adi Swarup Patnaik, he brings over 20 years of extensive experience in the banking, finance, and insurance sectors. While most new entrants in the financial market aim to establish their presence in urban and metro areas for rapid business growth, he chose a different path, wherein, he decided to launch The Amaravathi MMA Co-Operative Society in rural and semi-urban financial markets, despite the challenges of attracting investors in these areas. In 2017, The Amaravathi MMA Co-Operative Society opened its first branch in Velama Kothuru Village of Tuni Mandal, Kakinada Dist of Andhra Pradesh. From the get-go, it strongly believes in Mahatma Gandhi's words: ‘Indian Economy depends on Rural Areas’. Initially, they managed to attract just over 10 investors per month. However, their genuine approach and responsible financial products have led to significant growth, now attracting over 100 investors per month.

Contrary to the common belief that financial planning is only about savings, true financial planning involves the effective use of resources, whether through savings, loans, or a combination of both. The Amaravathi MMA Co-Operative Society supports comprehensive financial planning with products that include savings and small loans for rural people. Furthermore, its savings products feature recurring and small deposits, with its flagship Swarna Lakshadhikari recurring deposit policy being one of the best in the market. It also offers various loan products, such as gold loans and rural business loans, to meet diverse rural needs.

And despite the challenges of low cooperative movement penetration in Andhra Pradesh, The Amaravathi MMA Co-Operative Society stands out by empowering rural and semi-urban communities with innovative financial services. It embodies core cooperative principles, including voluntary membership, democratic control, economic participation, autonomy, education, cooperation among cooperatives, and community welfare, guiding its promising mission to serve and uplift all the members."

A Competitive Edge

One of the company’s distinguishing features is its unwavering commitment to member satisfaction and financial integrity, even during challenging times such as the COVID-19 pandemic. Throughout this period, it ensured that all maturities were paid promptly, directly at the doorsteps of its depositors. This dedication underscores The Amaravathi MMA Co-Operative Society's reliability and responsiveness to the needs of its community, reinforcing its role as a trusted financial partner.

Beyond financial services, the company places a strong emphasis on community development and empowerment. By fostering education, training, and information dissemination, the company not only enhances financial literacy among its members but also strengthens the social fabric of the communities it serves. Through cooperative collaboration and a shared vision for sustainable growth, the company continues to pave the way for inclusive economic development in Andhra Pradesh.

Additionally, all branches of The Amaravathi MMA Co-Operative Society are equipped with a Core Banking Solutions (CBS) platform, and the employees are well-versed with financial planning. A key aspect of advising rural clients is the patience to listen, a skill which the company emphasizes in its training programs. The company ensures that the employees empathize with clients, thereby becoming not just financial advisors but also trusted members of their communities.

Robust Roadmap Ahead

"Our mission is rooted in empathy for rural clients. We integrate deeply into communities, offering personalized financial planning tailored to their unique needs. With branches in Velama Kothuru Colony and expansion across Tuni Assembly Constituency, we're committed to empowering rural communities through accessible and empathetic financial services. Our goal is to be a trusted name in the rural areas of Andhra Pradesh for reliable financial services, contributing to economic stability and growth through inclusive financial solutions,” concludes Adi Swarup.

By 2030, the company aims to establish a Small Finance Bank in Andhra Pradesh, focusing on financial inclusion and promoting savings habits among underserved families. Going forward, it also envisions to expand 20 branches across Uttarandhra, targeting a turnover of INR 100 crore and creating over 1000 jobs for rural youth in the banking sector.