GEEP: Driving Financial Inclusion at the “Bottom of the Pyramid”

July 5, 2019

FARMER

2

The challenges of microenterprise led to the creation of GEEP, the largest

public microcredit scheme in the world.

Targets

groups Market

women/tradersArtisans and

General EnterpriseEnterprising

Youth

Farmers and

agric. workers

Target 4.3 million

Drivers

▪ Unique Identification via BVN & biometrics▪ Working through accredited trade clusters,

market associations, and women coops.

▪ Driven heavily by technology for credit assessment,

disbursement, payback and M&E▪ Using four channels (aggregators, banks/MFIs, Vouchers,

Agent networks)

▪ A Social Intervention Fund set up to provide microcredit to up to 20 million Nigerian microenterprises

▪ Mandated by the Office of the Vice President; executed through the Bank of Industry.▪ Loans of N10,000, N20,000, N50,000, N100,000 and (for more sizeable micro enterprises) N300,000.

GEEP

Products

Rollout

Mandate▪ ALL 36 states and FCT | 774 LGAs

Government Enterprise & Empowerment Program (GEEP)

Petty

traders

Focused on

Traders, artisans

and enterprising

youth in

cooperatives

Focused on

farmers in

Structured farming

cooperatives

Focused on Petty

traders, for whom

BVN/ bank/

association req. are

a barrier

Milestones 50% to create at

least 1 new job

1.1 million

Each to create at

least 1 new job

850,000

….

850,000

50% to create at

least 1 new job

12.9 million

GEEP

GOVERNMENT AND FOCAL PERSONS

National Assembly, States, NSIO, MBPN

Regulatory; Budget Approval; Steering

ASSOCIATIONS AND BENEFICIARIES

Iyalojas; Trade Associations; Beneficiaries across the country

Target Audience; Sensitization; market access

BANK OF INDUSTRY

State Offices, I.C&A, Legal, Directorates

Approvals; advocacy; dissemination

CIVIL SOCIETY ORGANIZATIONS

Youth&Gender; Politics and Gender; Training and Development; Advocacy and Human Rights

Advocacy; Third Party Monitoring

THE ACADEMIA

Research Institutions;Universities; Professors

Think Tank; Research

THE ECOSYSTEM

Tech Startups; Venture Capitals; Accelerators & Incubators

Innovation advisory; Hackathons; potential vendors

SNAPSHOT OF GEEP STAKEHOLDER UNIVERSE

GEEP Program Stats

Inclusion• 1.62m Mobile Wallets• 319k Bank Accounts

Disbursements• N31bn Disbursed• 2.2 Million Beneficiaries

Demography• 52% Women Loans• 53% Youth Loans

(18 -34 years)

₦

(as at June 7, 2019)

Loan Disbursement Metrics

TARGETED 500,000 loans 2,000,000 loans

DISBURSED 330,711 loans 1,616,728 loans

TOTAL LOAN WORTH N15.1 Billion N 16.2 Billion

AVERAGE LOAN SIZE N 50,725.34 N 10,000.00

LOAN DELIVERY RATE(% of Targets)

66% 81%

Distribution By Loan Product (Loan Count)

17%

83%

MarketMoni TraderMoni

(as at June 7, 2019)

Loan Disbursement Metrics

Challenges Mitigants

▪ Ability to reach remote locations – rural areas & groups

▪ Hand-holding; time and labor intensive

▪ Targeting- Reaching the right beneficiaries

▪ Beneficiary perception – grants, vote buying…

▪ Leverage existing partnership structures –MFBs, Associations, Market/Cluster and State structures to reach beneficiaries

▪ Standardize processes and use Mobile Telephones & Technology to scale

▪ Engagements through accredited trade associations, clusters and markets

▪ Communication – Mass Market Media Strategy, Market and Stakeholder engagements

Customer Support

Data Analytics

Artificial Intelligence

GEEP: Technology Overview

Client /Product Setup System

• Project onboarding

• Product design

• Product configuration (all terms, requirements, restrictions)

• Product standardization

Agent Network MgtSystem

• Agent companies onboarding/KYC

• Setup of agent org structure/ hierarchy

• Agent onboarding (BVN, KYC) and training

• Agent approvals

Enumeration System + App

• Custom data collection

• Restrictions based on Client/Product setup

• Data deduplication via:Facial recog..

• Biometrics (10-printing)

• Multi-level of vetting (Workflow)

Whitelist® System

• Data warehousing

• Data auditing/cleansing

• Data analytics and presentation

• Data verification (algorithm/automation)

• Quality Assurance

• Custom views across clients and stakeholders

Disbursement/ Value Transfer Sys.

• Auto creation of bank account

• Auto creation of wallet

• Funds transfer

• Report generation

• Cashout support

Loan Management + Collections Sys.

• Core banking application

• Loan schedules and repayment accounting

• Collections middleware (everybody plugs in)

• Automated reconciliations

1 432 65

Middleware (API)

Database

NIBSS

BIOMETRIC AND SMILE ID

INTERSWITCH

CAC

BANKONE

Registration

GEEP 2.0: TECH ROADMAP

Examples of 3rd Party Technology Systems

BOI MED GEEPTechnology Systems

GEEP 2.0: STRUCTURE & SUSTAINABILITY

2 pronged strategy will continue to drive scale while achieving higher collection rate

Structured Lending

Sustainability First

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2

GEEP 2.0

Value ChainsCooperatives & Trade Groups

Market ClustersYouth-Centric

Groups

Exam

ple

s

FMCG• Uniliver• TolaramAgriculture• Dangote Sugar

Out-Grower Scheme

• Plank Sellers Association

• Butchers Markets Association

• Etc

• Sabon -Gari• Ariaria• Mile 12• Etc

• NYSC• N-Power• Etc

Primary De-risking Mechanism

Beneficiary• BVN (digital collateral)

Group• 50%-75% guarantee (interest accruing T-bills, Post

Dated Checks, or other liquid assets)

Secondary De-risking Mechanism

Beneficiary• Individual guarantors

Group• Phased lending dependent on group

repayment