1. CITIZEN ACT IV
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SG TRUSTS YOU
Executive Summary
SG Trusts You is an innovative way to approach a very common problem faced by poor families: lack
of confidence. The company will develop new microcredit insurance, applying the best practices in the credit
insurance industry to microcredit products.
Through this product, borrowers will improve their capacity to lend in better interest rates and
conditions, also improving their ability to run their business and focus in lending, instead of spending most of
their time concerned about credit risks.
To reach these objectives, partnerships will be celebrated with Microfinance Institutes (MFI) and will
benefit both SG Trusts, who will be able to have MFIs as distribution channels, at the same time that this
institutions themselves will have financial and management improvements.
Management Team
Caio V. M. Bolognesi – Business Administration(BA) undergraduation student. Winner of the USP@C40
Case Competition and second place on the T&M International Competition, London, 2010 - Financial
Planning &Analysis Intern at General Electric – Water Unit
Felipe P. Ribeiro – B.A. undergraduation student. Founder of both SIFE USP Organization and AREA
(Entrepreneurship Environment Unit). Attended the Artemesia’s summit for Social Business for young
entrepreneurs. Community Specialist Intern at Thomson Reuteurs.
Walter Cavalcante - B.A. undergraduation student at the University of São Paulo, co-founder and former
president of FEA-USP Finance Club. Worked as an intern at the National Investment Banks Association.
Interested in M&A and Equity and Debt Markets.
Index
1. Introduction .............................................................................................................................. 2
2. Mission and Vision................................................................................................................... 2
3. Macroeconomic Context.......................................................................................................... 2
4. The Microcredit market in Brazil .............................................................................................. 3
5. Product..................................................................................................................................... 4
6. Financial and Operational Viability Analysis............................................................................ 5
7. Internationalization / Replication.............................................................................................. 7
8. Innovation ................................................................................................................................ 7
9. Risks ........................................................................................................................................ 8
10. Benefits.................................................................................................................................... 9
11. Buzzing .................................................................................................................................... 9
12. How our Project complement the Société Générale’s actions .............................................. 10

2. CITIZEN ACT IV
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1. Introduction
Our Project started with the question: How’ll tomorrow’s bank be?
This challenge was, for a few weeks, our biggest source of discussion, so what, after all, a bank
must have or must be to fit the new standards of the market? Our answer began when we realized that this
bank must serve markets not operated or not explored yet by commercial banks (and by patterns) of present.
Thinking in the context of low income was natural at this point. According to the Report of the United Nations
Conference on Trade and Development (UNCTAD), by 2015 about 420 million people will live in poverty
around the world.
This, even though a social disaster, is a great opportunity to develop new businesses that suit not
only the really poor families, but those who have left or are leaving the poverty and continue out of common
banking markets.
But how to reach this market in an effective and innovative way? Our project meets a clear problem
for poor people: lack of confidence. When Muhammad Yunus started Grameen Bank in 1976 he had to deal
with the same problem: lack of market confidence in its banking business model focused on the poor people.
It was not an easy path for him, which nowadays accumulates a loan volume of about 7.6 billion dollars and
more than 2000 agencies around the world.
Trying to comply with the problem of confidence faced by these people, we want to create something
that helps them to cope with the uncertainty. A Insurance.
Insurance are instruments that, among other benefits, improve the distribution of risks and the
allocation of resources in the society, reducing the impact of unexpected events in people's lives.
Nowadays, there is no news of a bank, insurance company or multilateral agency that offers an
insurance product focused in credit insurance. The credit insurance usually covering death, disability or loss
of ability to generate income, is not commonly applied in a low-income context. This is an opportunity for a
social business that is still totally unexplored. Note that this is not a life insurance, health, or something that
has already been developed for people in need, but an insurance that helps families to cope with unexpected
changes in their income.
We realized that the bank of the future is the one that provides services and products that bring
social results, sustainable development and value creation for its shareholders.
Insurance microcredit fits in perfectly with the concept of the bank of the future. It is a product which,
as we shall show below, brings sustainable social results and still creates value not only to SG’s
shareholders but for all stakeholders.
2. Mission and Vision
Our mission and vision for "SG Trusts You" are outlined below, which is a company of SG Group, that
would be responsible for managing the microinsurance product(s) of the group.
Mission: Providing universal access to the microcredit market and promoting its development as a factor
for social integration and motivation for entrepreneurship.
Vision: Providing microcredit insurance to lenders through either microcredit institutions distributers or
directly to consumers. This second modality will be implemented where Société Générale has strong
presence or could obtain considerable synergy gains.
3. Macroeconomic Context
For the last eight years, Brazil has moved from an emergent country with narrowed possibilities to a safe
and attractive country for investors. This change occurred due to a series of facts, such as the political
stabilization started with the past government, strong and active monetary and fiscal policies and a never
seen purchasing power of lower income classes.

3. CITIZEN ACT IV
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These factors combined with incentives from the public sector for investments in infra-structure have
attracted many investors to the country. The success of this formula was crowned by the selection of the
country to receive both FIFA World Cup in 2014 and the Olympic Games in 2016.
Despite a projected growth of 5% for 2010 and the fact that the country was nearly not even affected by
the financial crises which doomed the world in 2008, social indicators don’t fit to the economic wealth.
However, much has changed in the past years, allowing more than 20 million inhabitants have overcome
poverty line. The challenge is to sustain the economic growth including more and more people to the system,
without raising income discrepancies.
4. The Microcredit market in Brazil
The microcredit market in Brazil is still in consolidation. For the past five years, this market has seen a
steady growth, reaching more people and with an increase in the volume of loans. Even so, this market is far
way from its potential and even further from levels in mature markets, such as the Indian and the European
one, presenting a great opportunity.
Data below shows this market growth:
632
829
963
1.274
748
0
500
1.000
1.500
2.000
2005 2006 2007 2008 2009 (Q1+Q2)
Millions
0
200
400
600
800
1.000
1.200
1.400
Thousands
Amount granted (in R$) Microcredit Operations (units)
This expansion can be attributed to a conjuncture of facts which helped to change the previous state.
Among them are worth mentioning:
• Microcredit is adapting to the Brazilian reality: the most common microloan type in Brazil is the
credit for the microentrepreneur, offered by large institutions such as “Banco do Povo”, “Banco do Nordeste”
and supported by renowned institutions in the country, such as SEBRAE, that helps micro and small
entrepreneurships to get and manage credit.
• Brazilians is more susceptible to take credit in general: Offer and demand for credit is growing
sustainably for the past years in Brazil and, despite the recent crisis, it continues to increase. The sectors
that are taking the most advantage of this framework is real estate market (with an substantial increase of
volume of credit released and more clear and moderate regulation), fleet credit - longer terms and smaller
interests rates – due to a consolidation of the sector, dominated by big players related to the major financial
institutions
• Governmental subsidy for microcredit products: The National Bank For Economic and Social
Development (BNDES) has created a program named BNDES Microcredit totally focused on the industry
whose mission is "Promoting the local economy through the provision of resources for productive micro-
oriented individual and corporate entrepreneurial activities, of small and micro sized companies, in order to
encourage the creation of jobs and income.". The resources for this program are largely under-utilized.
According to federal law number 10.735, of September 2003, one part of all compulsory reserves of
commercial banks must be used in microcredit activities. This fact clearly expresses concern from the

4. CITIZEN ACT IV
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Brazilian government to this matter. Other actions such as tax exemptions are also being taken in order to
popularize credit access.
Moreover, certain barriers arise from this development. A growing number of defaults made
Microfinance Institutions request more collateral from the borrowers, approaching this modality of credit to
the convention one, reducing the access and the amount given in each operation. This has also made credit
more expensive and less current, getting way from its mission to provide the means needed for those who
would not have any other alternative.
Thus, this industry presents a clear opportunity to redefine the market rules and conditions under which
credit is provided. There are no players offering products beyond microcredit itself, being an effective way of
entering the market, bringing differentiation and know-how on banking and insurance industries, and acting
as strategic partners for MFIs, enhancing all market benefits. According to a study by consultancy
McKinsey
1
, acting as a strategic partner with NGOs, who know very well local markets and its
characteristics, is the best way to improve value for both society and business. In this same report, the
authors claim: “In such ventures (partnerships, the focus of the business moves beyond avoiding risks or
enhancing reputation and toward improving its core value creation ability by addressing major strategic
issues or challenges. For society, the focus shifts from maintaining minimum standards or seeking funding to
improving employment, the overall quality of life, and living standards. The key is for each party to tap into
the resources and expertise of the other, finding creative solutions to critical social and businesses
challenges.”
5. Product
In this section we describe the technical and operational aspects of the product we are proposing. We
explore in detail each of the concepts that make up the insurance. Definitions:
What is insurance : We used as parameter the credit insurance, which is a product where the insured
have agreed to pay installments to the insurer to discharge its debt or to meet the commitment. The first
beneficiary is the borrower itself by the value of the debt or liability. The difference that exceeds the balance
will be paid to the second recipient, nominated by the insured.
Insurance Coverage: Death, disability (temporary or permanent, partial or total) and loss of income. In
this case the loss of income can be caused by loss of employment, failure to develop the business which
was intended and other cases. The definition of coverage is in agreement with SUSEP (Superintendence of
Private Insurance), organization that regulates the Brazilian insurance market, to credit insurance.
Clients: Customers are the microcredit borrowers who accept to contract the insurance in exchange for
a reduction in the loan interest rate, increased amount of resources or simply a safer part of the loan
contract. Insurance acts as a cushion of protection against any unexpected changes in the flow of receipts
of households borrowing loans.
Distribution: The distribution of the product will be done through partnerships with institutions that make
the transfer of credit directly to borrowers of funds. Our negotiation model is in the next page.
As we can see, the IMF will sell the insurance, becoming thus a strategic partner. Relationship with
these institutions is one of the most important aspects of the project and deserves special attention and a
dedicated team. According to Esty and Winston, who wrote the blockbuster book Green to Gold, “As true
partners, NGOs can help companies track what’s coming over the horizon and how the brand is perceived.
Picking their brains and really listening to will give a company a Eco-Advantage over competitors who
ignores what this important part of the market is saying”.
This structure allows the product to reach areas that would be inaccessible by other means to the bank
as rural areas, hazardous locations, distant and difficult communication. In addition, maintaining this type of
partnership improves the learning curve of SG Trusts, enabling continuous improvement of the product. It
1
McKinsey Global Institute: Making the most of Corporate Social Responsibility, 2009, New York,
NY, USA

5. CITIZEN ACT IV
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1 – Blue arrows indicates the flow of resources outward MFIs
2 – Orange arrows represents the flow of resources into the MFIs
3 - The asterisk indicates who is hosting the operation
4 – Grey arrows designate the constant resources exchanges between investors and resources providers
5 – The red arrow indicate the solidarity relationship on the risk, between SG Trusts and the MFI
6 –Thin arrows represent the insurance would be sold along with microcredit to end customers
MFI*
Resources
Provider BorrowerInitial resources
`reserve
SG Trusts
You*
Investor
Insurance
Insurance
acquisition
Indemnity
payment when
occurs
Insurance
incomes
1 – Blue arrows indicates the flow of resources outward MFIs
2 – Orange arrows represents the flow of resources into the MFIs
3 - The asterisk indicates who is hosting the operation
4 – Grey arrows designate the constant resources exchanges between investors and resources providers
5 – The red arrow indicate the solidarity relationship on the risk, between SG Trusts and the MFI
6 –Thin arrows represent the insurance would be sold along with microcredit to end customers
MFI*MFI*
Resources
Provider BorrowerInitial resources
`reserve
SG Trusts
You*
SG Trusts
You*
InvestorInvestor
Insurance
Insurance
acquisition
Indemnity
payment when
occurs
Insurance
incomes
also leads to a reduction of information asymmetry given the interdependence between the IMF and SG
Trusts You.
We believe that the IMF will enjoy great benefits in getting involved in the project, among them, improved
fundraising (since we now have the brand SG as support), improved management, distribution of its risks
and improve management of loans, once the institution can expand the focus on efficiency of internal
processes.
Legal and governmental
frame work: Microfinance
activities are highly encouraged
by the Brazilian authorities, in
direct actions (bank financing
of “Banco do Povo” by the
government of Sao Paulo) and
indirectly through entities for
development, such as BNDES,
or the creation of laws that
encourage economic entities to
invest in this type of product.
In this context we can cite
the law 10735th published in
September 2003 that directs
the resources of the
compulsory reserve of
commercial banks to the
activity of microcredit, or decree 5142 of 2004 which reduces the IOF tax rate related to insurance operations
for life insurance.
The insurance market in Brazil is regulated by SUSEP (Superintendence of Private Insurance).This
organization, linked directly to the federal government issues standards and regulates the market in all its
branches of activity, including microinsurance. To develop this topic, it was created through decree 2960 of
12 June 2008, a working group focused on developing technical, legal and operational microinsurance
issues.
On the fiscal stands out the except from the report of SUSEP August 2009: “The main reason for the
potential impact of suggested lies in the fact the deck market Microinsurance not yet, not implying any
diminution or termination of government revenue”. On the contrary, would increase revenue
indirectly. Obviously, that depends on the assent of the university by the IRS.
The quote makes clear that the fiscal risks of the project are extremely low. We emphasize that our
project was developed in line with the features suggested by the SUSEP’S working group.
6. Financial and Operational Viability Analysis
Price - The price of the insurance will be a percentage of the ticket obtained by the policyholder with the
MFI. We believe that, in this way, the claims are balanced and the risks of a large unpredicted default are
more easily absorbed because, as large policyholders pay more, the reserve fund capitalization is
potentiated. Mentioned below is an example of the pricing methodology for the Brazilian context. The
company is a medium-sized institution with an average of 5.000 operations per year, of which 70% are
insured with an average ticket of R$1,397.50:
In order to explain the pricing methodology we have to, first of all, discuss each of the premises of the pricing
model:

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Revenue Forecast Model - We have based our financial evaluation of the project in a synthetic MFI acting
exactly within the Brazilian industry average of volume lending, average ticket and credit default rate
The model basic premises are:
1 - We have imagined a situation where 70% of the lending volume of the partner MFI are insured. This
would keep the incentives for the institution to maintain the quality of its credit rating analysis', under the risk
of losing the partnership if they don't do it in a coherent way.
2 - We have considered for the revenue forecast of the first year of the project an enrolment rate of 5%
of the 278 MFIs registered in the PNMPO (National Program for Oriented Microcredit Productive) of the
Ministry of Labor and Employment, in a total of 14 institutions.
Default Risk Forecast Model - There is no reliable history of the average default rate in the Brazilian
microcredit market. We have opted to use a 5% rate as a safe guess as we consider it much higher than the
probable real default rate. This premise is based in the average default rate of Grameen Bank, which
operates with rates between 1% and 2%. As a strategy to learn how to deal and mitigate this risk, we have
chosen a MFI co-responsibility scheme, with a limit of credit of 70% of its portfolio.
Besides that, we have opted to work with institutions participating in a government project called
“Microempreendedor Individual” (Individual Microentrepreneur) in which these institutions are registered and
obliged to comply to certain requirements. This considerably increases the level of formality, lowering the
risks of lending.
This risk is the largest risk affecting SG Trusts operations and should be monitored continually by highly
skilled professional, exclusively dedicated to this activity.
Financial Viability Analysis - Our model indicates that the insurance is profitable with prices near to 9%
of the lending volume. The pricing also indicates that, if the projected volumes in the premises are reached,
SG TRUSTS YOU has a net profit margin of 0,6%. This profit can be given to SG as a dividend or
reinvested.
In case SG TRUSTS YOU decides to act as a NGO, it becomes exempt from Brazilian income taxes and
its net profit margin increases to 0,9% of revenues. If we consider only the operational margin (without taking
SG&A expenses into account) it has a margin of 11,4% of revenues.
Our model proves that our business plan is profitable and can generate satisfactory results either as a
regular business or as a NGO, without distributing profits.
The main thing was noticing that, even though it is our main expense, claim payments don't swallow the
whole revenues, leaving margin for investments in company infrastructure, development and human
resources.
Resources Needed for Implementation - the resources
needed to implement the project are basically technical
specialists, partner institutions and financial resources.
A) Human Resources: We understand that the subject of
microinsurance, even though it is innovative in this
context, is not entirely unknown. Highly skilled
professionals able to work in this area can be easily
encountered in the market or within SG itself. There shall
be no problems in arranging these resources.
B) Partner Institutions: Building partnerships with MFIs
is essential to the success of the project. Finding, discussing and closing partnership deals will demand
learning and work.
In the model we developed, the MFI would be evaluated and approached after being selected as targets
based on criteria such as region, number of clients, average ticket and portfolio default rate. The closing of
the partnership deal would happen after reaching mutual understanding on themes such as risk, portfolio and
information management between institutions.
Total Operations insured 3.500
Total loss to be absorbed (by MFI) 400.288,71
Average loss per operation 114,37
Risk Rate 5,60%
Actuarial Risk 114,37
Pure Premium (pl) 117,80
Comercial Premium(margin and expenses) 129,58
Taxes over the insurance Impostos s/ o seguro (IOF) 1,38%
Charges (policy emission) 1,00%
Gross Premium Price 132,68
Monthly bases 11,06
Price calculation base on R$1397,38 average ticket

7. CITIZEN ACT IV
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C) Financial Resources: In order to evaluate opportunities of fund raising external to SG, we took into
consideration criteria such as availability, cost and the position of these sources in regard to microinsurance
and microcredit.
We have identified, in the Brazilian context, three main sources of financing for the project. They are:
BNDES: The National Bank of Economic and Social
Development has a line of credit exclusively for
microfinance products whose mission is to promote the
local economy through the provision of resources for
productive micro-oriented individual and corporate
entrepreneurial activities of small productive in order to
encourage the generation of employment and income. The
bank also points out that it will support projects that use
microcredit as an instrument of social inclusion,
complementation of social policies and / or promotion of
local development. The cost is LTIR (6%) + Spread (1.5%),
considered quite low compared to other available sources.
The HR expenses will be used to cover payroll and taxes
related to labor force on the first year. The table
summarizes the needs for resources:
Compulsory deposits: Today, according to the law
10735 September 2003, 2% of the volume deposited at the
central bank by commercial banks to title of compulsory
should be directed to microfinance activities. According to
information from Professor Lauro Gonzalez, coordinator of the research center for microfinance of Getulio
Varga’s foundation (FGV) only half of these resources is used today in Brazil. This results in more than R$ 1
billion available for application. We estimate the cost of this source in accordance with the Brazilian risk free rate
of 8.75% per year, considered extremely low by Brazilian standards of long-term interest.
Auto constitution of the fund by premiums paid: Premiums received as payment of insurance can be
reversed, in part, to formation and maintenance of cash flow of SG Trust You ensuring liquidity and oxygenation
into the system, this ensures that the institution not need to seeks for sources of funding for long-term very often.
7. Internationalization / Replication
The product we have proposed is based on the microcredit model used in Brazil, his numbers (average
ticket, volume of transactions, laws, etc.) are all of this local market as well as the legal apparatus. But we
believe that its replication is absolutely feasible. The idea of an insurance product that absorbs loan losses
can easily be applied as long as in compliance with the legal framework and economic context.
If SG already operates in a specific market location, its replication becomes extremely easy, and only
minor adjustments in products and the development of local partnerships would be required. It then
strengthens the project as is feasible not only in the context studied, but in any other with small changes.
Thus, it can become a powerful tool to strengthen the overall regional entrepreneurs.
8. Innovation
Our project is innovative because it combines two established – and very useful - concepts to society:
credit insurance and microcredit.
Total Revenue 6.365.855
Groos Revenue
Income from insurances sales 6.454.933
Quantity sold 48.650
Average selling price 133
Other incomes -
Tavxes over incomes (IOF) (89.078)
Net Revenue 6.365.855
Expenses Statement 6.307.808
Òperational Expenses 5.726.513
Indemnity Payments 5.564.013
Interest paid 162.500
Admistratives expenses 581.295
HR 511.295
Sales infra-structure 50.000
Amortization and depreciation 20.000
EBIT 58.046
(-) Taxes over income (19.736)
Net Profit 38.311
Net margin 0,6%
Gross margin 0,9%
Operational margin 11,4%
Income Statement for SG Trust - Year 1
Payroll Quantity Monthly wages Total Compensation Taxes Total
Manager 1 7.000 91.000 80.990 171.990
Analyst 2 3.500 91.000 80.990 171.990
Technichal 2 1.250 32.500 28.925 61.425
Comercial 8 1.000 104.000 890 105.890
Total 13 12.750,00R$ 318.500,00R$ 191.795,00R$ 511.295,00R$

8. CITIZEN ACT IV
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We believe that the growth of credit markets is followed by the growing market for
related products, which are not credit, but are related to it somehow. Insurance lender is one of them. This
type of insurance is already in widespread use in electronics stores and credit company’s staff. But there
were no reports of its use for microcredit.
It is noteworthy that the project is not a common microinsurance, which covers just life or personal injury,
because there is no compensation paid to the insured, only the discharge of the debt with the MFI.
Our idea of joining these two products comes from the following logic: if the credit market has grown, in
part, with the help of related products, why the same would not apply to the market for microcredit? Our
answer to this question is: insurance and other credit products can be applied in the low-income markets and
are highly profitable, with potentially huge markets and absolutely controllable risks. This justifies our project.
9. Risks
Project risks were mapped using the methodology of the Project Management Institute (PMI), where the
level of attention given to each risk is divided between the probability of its occurrence and the impact it can
cause on the project. Subsequently, it concerns a level of attention to each risk and actions to mitigate them
can be designed with clarity.
The first identified risk and that can cause more impact on business is a delay in the release of public
funds and other funding sources. These resources may run into bureaucratic obstacles to the disbursement
of funds, requiring a high level of attention: a plan for ongoing monitoring by the management team of the SG
TrustsYou. Delays in fundraising may delay the entire project.
Another important risk is the loss in quality of credit analysis by the MFIs. The fact that they are covered
by an international institution can provide incentives for them to relax their credit analysis, causing increases
of losses and SG Trusts You would have to cover this new loss. To avoid this situation, there will be a ceiling
of 70% of the portfolio of clients that may be insured. Losses of the two portfolios should also be at similar
levels otherwise the partnership will be interrupted. Thus it keeps the incentive for good quality of credit
appraisal and MFIs must also shoulder the responsibility for some losses.
Probability
Low
Medium
High
Low Medium High Impact
4
6
5 2
3 1
Lack of resources for
implementation.
Decline in quality in credit
analysis in MFIs
Increase in Long-term interest rate
(LTIR)
Non-acceptance of the
partnership by the MFIs
Changes in the credit markets
Lack of trained professionals in the
microfinance institutions
Metodology source:, PMBoK
5
6
41
2
3

9. CITIZEN ACT IV
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In the same way, another risk that deserves caution is developing partnerships with Microfinance
Institutions. This is due to the fact that these institutions are often unwilling to manage and share information
with a more robust and complex partner. They fear that this may lead to loss of control and dependence on
an international partner. To deal with it, a work with these institutions will be conducted in order to show them
the benefits, but also help them to move forward on their own endeavors if wanted. Even with this strategy, a
medium level of attention must be established.
Among other risks, many are linked to external factors such as increased interest rate of the economy,
augmentation of funding costs for the insurer, as well as the risk of changes in the current credit market,
making it more accessible to customers that normally would seek microcredit. As these factors are beyond
control of the company, it is necessary to maintain a moderate level of attention, to monitor market trends
and plan movements in advance.
Operational risks of the project are related to the flow of resources and information as well as the legal
aspects. The flow of resources and information can be hampered by poor infrastructure; some MFIs may not
even have internet access or financial statements. To overcome these factors, actions will be taken in order
to teach these institutions to prepare these reports, to establish ways of charging borrowers more efficiently
(keeping the culture intact), and even provide the necessary infrastructure for the information flow runs
without problems. As there are relatively few institutions that operates this form of credit in Brazil, there is the
possibility of having a closer relationship with them, contributing to long-term actions to promote growth.
10. Benefits
The benefits of the insurance will extend to different audiences, to the most diverse social classes and in
different ways. We can divide the benefits into four groups, namely Société Générale, the microfinance
institutions, borrowers and the society in general. It is important to highlight the fact that the first three
stakeholders are at the same time key strategic partners to the success of the project, with the possibility of
increasing its value through more effective and efficient planning.
To Société Générale, the project is an innovative way to enter the microcredit market in Brazil. Although
SG is already a player in this market in other countries, Brazil’s vast geographical extension would require a
huge network to replicate the model adopted abroad. With this insurance product, the Bank could increase
its capillarity to become a strategic partner of the MFIs. By showing that the Bank really believes in micro-
entrepreneurs, SG could enjoy the great image benefits. Positioning in this way, the bank could book large
market reserves. Successful customers in this endeavor will require a commercial bank to perform larger and
more complex operations, looking for the partner that allowed him credit when he most needed.
In its turn, MFIs would enjoy a better risk distribution and moreover, they would be covered by a global
partner that would give them the necessary quietness to focus on its operations. That way, they could
increase the volume of extended credit - as part of their losses will be absorbed - attracting more investors -
traditional or social - and contributing even more to the consolidation of this project.
For borrowers, the major benefits are the extended access to the operations and the trust they put into
them. With a structured network and an insurance product covering losses of income, borrowers feel more
confident in getting a loan. Besides, the insurance enables access to microcredit and an increase of
information flow to potential borrowers. This expansion is supported by a reduction in actual costs of credit
operations, improving those from MFIs that still cannot be self-sustained without insurance.
Finally, the society as a whole will be beneficiated. The increase in the purchasing power of the lower
classes reduces social segregation and generates consumer market for other products. Microcredit may
therefore be a tool for social inclusion and risk distribution chain, since there will be transfer of risk between
economic bodies, strengthening the country during economic crisis. The credit expansion also allows the
development of new investors, making it possible that social investors or not inject more resources into the
system.
11. Buzzing
During the development of our project we had the help of many people, including teachers, classmates,
friends from other universities, friends, relatives, neighbors and people who were previously unknown, and

10. CITIZEN ACT IV
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even unknown people who we met through the blog and became closer having showed interest in our
project, even helping us.
Fundamentally two teachers participated in our project: Professor Phd Lauro Gonzalez (coordinator of
the Center for Studies in Microfinance from EAESP FGV) contributed analyzing the feasibility of the project
and also collaborating with the context of the Brazilian microcredit. At the completion of the project Professor
Phd Luiz Eduardo Afonso cooperated with technical and operational aspects, and also granted an interview
for our blog.
Collaborated extensively in support of our actions our college classmates (undergraduate course of
business administration) and also colleagues from other universities, promoting the project and raising
questions and criticisms that helped us enormously.
Through the disclosure made by our friends and relatives, and also their cooperation in the Wikiblog, we
could reach people who we not even knew and got interested in the subject.
It was still very important to show up in websites such as USP’s (University of Sao Paulo), Planeta
Universitário (College Planet) and Buffet de Ideias (Ideas Buffet) , sites that have cooperated with our
numbers on the blog: about 2300 page views, more than 220 comments and visitors that came from more
than 20 countries.
12. How our project complements the Société Générale’s actions
The project, in addition to being aligned with the values of SG - professionalism, team spirit and above
all innovation, for being a product which is not widespread (specially in Brazil but also worldwide) - will act
with a public that SG does not meet in Brazil, the microentrepreneurs.
Locally, SG primarily offers loans to individuals - through one of its branches, Banco Cacique - and also
on loan to corporations through Banco Pecunia, working with small and medium businesses already
established.
The SG TRUSTS YOU, given its direct sustainable means of action into the communities, through MFIs,
- the development and expansion of the supply of credit - is working for SG group to meet global
commitments such as "The Global Compact", the "Principles of Responsible Investment and the "Equator
principles".
The project also will work with the MEDEF (working group on sustainable development), putting into
practice a highly feasible and innovative solution for the sustainable development of microcredit in Brazil,
aligned with the study groups, such as MEDEF itself, with examples of successful micro-enterprise benefits.
We believe that the project is a value generator for all stakeholders, complementing and enhancing the
actions that Société Générale has been developing in Brazil and worldwide in case replicated.