Global Citizenship Report 2017

Financial Inclusion An estimated 2 billion adults around the world — in both devel- oping and developed markets — remain outside the formal banking sector. Access to financial products and services is an essential part of financial resiliency — the ability to weather income shifts or unexpected costs — for both individuals and communities, and is related to wider macroeconomic health. Banks have a respon- sibility to correct historical mistrust of financial institutions among many traditionally underbanked communities. Citi offers direct-to-consumer financial products and services that help improve financial resiliency and inclusion. We also work with partner organizations to increase access to financial services and provide educational resources in low-income communities. Our extensive work on financial inclusion contributes to progress on SDG 8, which aims among other things to provide full and productive employment and decent work for all. For example, Citi’s work on financial inclusion in the U.S., Mexico and elsewhere contributes to target 8.10 , which aims to strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all . Inclusive finance is also a key success factor for progress on goal SDG 9 , which aims to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innova- tion , specifically enabling progress on target 9.3 , which seeks to increase the access of small-scale enterprises, particularly in developing countries, to financial services to facilitate integration into value chains and markets. SDG SPOTLIGHT: GOAL 8 Decent Work and Economic Growth SDG SPOTLIGHT: GOAL 9 Industry, Innovation and Infrastructure 12 “Employment in Agriculture (% of Total Employment),” The World Bank (website), accessed February 2018, https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS. 13 IFMR Lead, Harvard University and Duke University, Expensive but Worthwhile: Resolute Informal Financier Markets (April 2016), page 1, http://www.ifmrlead.org/wp-content/uploads/2016/04/KGFS_Brief2_Financiers.pdf. SUPPORTING AGRICULTURE IN INDIA Agriculture is a critical part of India’s economy and its largest provider of livelihoods. An estimated 44 percent of the country’s population is employed in agriculture . 12 Technology, including the introduction of artificial intel- ligence and new sources of analytics, largely driven by ag-tech startups, is changing the way that rural farms operate and providing new solutions to boost agriculture across the country. Yet access to finance and concerns about money management and debt repayment are road- blocks to stability and growth for many rural farmers. For example, in the province of Tamil Nadu, researchers found that more than half of loans were through informal lenders charging up to 54 percent interest . 13 Citi India has focused extensively on agriculture and has grown our portfolio in the segment significantly in recent years, including providing valuable crop loans and credit that enable farmers to secure inputs such as seeds, fertilizers and labor at very affordable rates. Our overall lending to the agriculture sector in India, led primarily by investment credit, has benefited almost 31,000 farmers. We also recognize the importance of helping these farmers improve the long-term sustain- ability of their businesses by building their financial capability. Citi supports a range of efforts focused on building the financial knowledge and skills of low-income families across India, and we are working to bring these resources to farmers in the coming years. This support of agriculture is one part of Citi’s effort to advance economic progress in India, along with financ- ing affordable housing, micro- and small enterprises, economic development and trade. Citi 2017 Global Citizenship Report 105 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance    Inclusive and Resilient Communities