Without a bank account in the formal financial system, the SLGs have no financial history or credibility to access credit. Their savings systems have been conducted rather informally over the years storing money in locked boxes under their bed.Our Digital Financial Services Model include 3 Components:
Through our partnerships with Mobile Financial Service Providers, we leverage mobile technology and use mobile money wallets to establish a bank account and build a credit history for members to access services and make payments through the formal financial system. Our team begins by using data collection surveys to document information about individual members on their farm sizes and their production of valued commodities such as coffee, maize, beans and horticulture. Information on mobile phone usage and other details are collected to inform their financial account profile and creditworthiness.
We then leverage digital financial products and delivery systems through the mobile money wallet to improve access to financial and non-financial services that include E-savings, bill payments, school fees payments, agricultural inputs, micro insurance, solar kits and discounted call rates all at the tip of their fingers.
Technological innovations such as the online bulk payment platform are incorporated to make loan disbursements to our clients who in turn remit loan amortization off their mobile money wallets to a predetermined collections account at affordable rates. This reduces the need for women and youth to travel long distances to access financial services. The same platform profiles the savings groups to provide relevant financial information which forms a basis for future interactions with financial services providers.
Once documented and a credit history created for the SLGs, we use the same information to link them with other credible agricultural value chain actors. This includes input suppliers, processors and buyers that are willing to advance money to farmers based on their now documented and managed credit history. ************************Through the Shared Action Fund, we provide additional loan products that are tailored to women and youth preferences and constraints to make it easier for them to gain access to credit for their business plans and grow quickly. Our Green Loans help members adapt and mitigate climate change, while our Matching Grant Program helps groups invest in value added infrastructure that generates income and benefits all members.