‘Dvara’ coined from the Sanskrit word dvarata, meaning access, speaks to our vision of enabling opportunities and new beginnings for millions of low-income households. We are a group of professionals with a strong belief in the transformative power of financial services. We are interested in systemic change and therefore undertake two kinds of activities: policy research and investing in/supporting commercial efforts where we believe there is a market gap.
Our mission is to ensure that every individual and every enterprise has complete access to financial services.
We believe that a good financial system should deliver on both inclusion as well as stability. We think a financial system that has the best chance of delivering on this mission would encourage specialisation and be characterised by the following pillars:
1. High Quality Origination – Originators are customer-facing institutions. In a country as diverse as India, we believe that we need a large number of high quality originators (typically non-deposit taking entities) who bridge the “last-mile” challenge. These would be equipped to fully understand each and every household they serve, and with the ability to take full responsibility for the quality of financial services they offer each household. We believe that quality in the context of origination should be guided by the principles of continuity, flexibility, reliability, convenience and suitability.
2. Orderly Risk Transmission – In keeping with the theory of risk to be transferred to those with the best capability to manage it, the financial system must provide mechanisms for orderly risk transmission from local originators to well-capitalized and well-regulated risk aggregators. Local originators are vulnerable to systemic risks, like natural calamities. Such risks need to be transferred to well-capitalized, diversified institutions like large national banks, mutual funds and insurance companies that have the ability to manage such risks. Orderly risk transmission must carefully preserve economic incentives of all parties.
3. Robust Risk Aggregation – Finally, we need a reasonable number of large, diversified and well-regulated financial institutions (Banks, Insurance Companies, Pension Funds) that can warehouse and manage risks transmitted by originators & their customers.