WELCOME! #emw2018.

Transcription

1 WELCOME! #emw2018

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3 OPENING REMARKS Manuel Tonnar Luxembourg Ministry of Foreign and European Affairs Directorate for Development Cooperation and Humanitarian Affairs Luxembourg General Development Cooperation Strategy: The Road to 2030

4 FINANCIAL INCLUSION THROUGH TECHNOLOGY Martin UNCDF-MM4P

5 FINANCIAL INCLUSION THROUGH TECHNOLOGY Graham Wright MicroSave

6 Lisa Chassin PHB Development Albert Sié Dah Advans Cote d'ivoire : Gera Voorrips Triple Jump FINANCIAL INCLUSION THROUGH TECHNOLOGY Paul Thomas Kadambelil ESAF SFB Karlygash Raikhanova KMF

7 KMF: MOBILE EXPERT APPLICATION

8 ABOUT KMF Largest MFI in Kazakhstan and CIS countries; 55% of MFI Market in Kazakhstan 113 Units & 1,865 Employees $300 mln. Loan Portfolio $43 mln in Loans Disbursed Monthly 86% LP is Engaged in Business And Agri 46% - Group Lending ~230,000 Active Clients 60% Women, 67% Rural Clients

9 MOBILE EXPERT APPLICATION MENU: Schedule the loan officer s daily work Collect data for loan application Consult client credit bureau Financial analysis of loan application Credit committee decision on the loan approval Repayment of loans through own terminals; Monitoring of the loan repayment

10 MOBILE EXPERT IMPACT 22% INCREASE OF PRODUCTIVITY of loan officers 1 DAY LOAN APPLICATION process shortened, from 3,5 days 100 KM COVERAGE RADIUS per 1 Loan Officer expanded, from 25 km 19% IMPROVEMENT of Operational Efficiency 2.5 TIMES INCREASE of Loan Applications per business day 2X INCREASE of Disbursed Volume per month 37% DECREASE of Overhead ratio

11 ADVANS: DIGITAL SAVING, LOAN AND PAYMENT SOLUTIONS FOR COCOA FARMERS

12 Advans Cote d Ivoire Branchless banking solution for Cocoa farmers

13 Advans digital solution: Giving 14,000 farmers access to A mobile banking service available on a simple USSD menu A current and savings account Wallet to bank and bank to wallet transfer service in partnership with MTN Additional services: Digital school loans So that farmers have access in remote cocoa zones to save some of their income from their crop harvest to withdraw or deposit cash at agents to pay for children s school fees in the low season

14 The customer journey digital school loan Type: *170*3# Welcome to your Advans menu Enter your client number (RIM) XXXXXXX and pin code XXXX 0. Close You have requested a loan of 50,000F at a rate of 2% per month. Please confirm: 1-Validate this amount 2-Cancel this request 0-Back 1-My balance 2-Mini statement 3-Account reactivation 4-Dormant account 5-Digital loan 6-Telephone credit 7-Other option Enter your pin code to validate your loan disbursement request of 50,000 FCFA. XXXX 0. Exit Select your account 1-SA Home Results Enter the amount you require FCFA Your loan disbursement has been accepted, you will receive a confirmation message in a few minutes Dear Mr X, Your FCFA 50,000 loan has been transferred to your Advans account Repayment :

15 ESAF: DIGITISING BANKING OPERATIONS

16 2.5 Million Customers US $118.5 Million US $ Million US $ 1,057 Million US $ Million

17 CLIENT IDENTIFICATION THROUGH IRIS- SCAN Capturing client information and validation through Biometric ESAF uses IRIS technology

18 CARD USED BY CLIENTS Agent Point ATM POS Machine Convenient Banking - Client can use ESAF Debit Card at various points for transactions

19 TABLETS FOR LOAN OFFICERS Collections are undertaken in TABLET Confirmation through SMS Loan Utilization check through TABLET

20 IMPACT Opened 2.7 million Savings Bank Account Loan eligibility confirmation in 10 mins Faster TAT (reduced from 19 days to 3 days for new clients) Loan sanctioned in 15 mins for existing clients Loan disbursement-direct transfer to bank accounts Borrowers > from 1 Million to 2.5 Million Portfolio > from US $ 315 Million to US $ 636 Million Productivity increased by 59% Average new borrowers per month 83k

21 FINALISTS IN THE GLOBAL CONTEXT OF TECHNOLOGY & FINANCIAL INCLUSION

22 Use digital field applications (DFA) Be an agent Partner with a DFS provider Build your own agent network Create own mobile banking channel Hybrid models Digital Finance options for FIs Mobile as a service Agency banking Mobile banking A tailored approach depending on your objectives Time, financial and HR investments and control increase as we go into more complex models These are non exclusive models

23 CHALLENGES AND LESSONS LEARNT

24 Some challenges Some lessons learnt Regulatory restrictions/lack of clarity Partnerships Connectivity issues and technology integration Client adoption and literacy issues Liquidity management Create dialogue with regulators & Foster transparency Invest in client (digital) education Implement change management and get staff buy-in Agile approach / Learn from small & concise pilots Start from your own objectives, capacity & client needs (HCD)

25 The main challenges we faced Challenge 1: We needed to give farmers access to cash at low cost Challenge 2: Cocoa farmers need education to understand the benefits of financial services Solution: Partnership with MTN offering subscription at less than 4 EUR per year and free money transfers Solution: Hiring a team of financial inclusion agents to accompany, support and enable farmers to use their mobile account 25

26 Lisa Chassin PHB Development Albert Sié Dah Advans Cote d'ivoire : Gera Voorrips Triple Jump FINANCIAL INCLUSION THROUGH TECHNOLOGY Paul Thomas Kadambelil ESAF SFB Karlygash Raikhanova KMF

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