Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
-
Upload
jamie-frank -
Category
Documents
-
view
220 -
download
0
Transcript of Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
1/23
Yewande Adewusi
Programme Manager
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
2/23
Innovation Fund Overview Project focus areas
Eligibility criteria
Evaluation criteria
Reasons for application rejection
Innovation Grants Overview and RFP Round 3 Launch
Technical Assistance Grant Overview
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
3/23
EFInA & The Bo t t om o f t he Pyram id
EFInAs purpose is to promote pro-poor Financial Sector Development and Financial Inclusionin Nigeria.
EFInAs aim is to become an innovation centre targeting catalytic change across Nigeriasfinancial sector, to make markets work for those currently excluded from formal financialservices.
EFInAsTarget Market
Mass Market
Small & MediumScale
Businesses
MassAffluent
LocalCorporates
Multi-nationals
Traders
HNIs
Economically PoorIndividuals
Micro
Businesses
CommercialBank focus
CommercialMicro-lending
IndustryFocus
DevtalMicro-financeFocus
In 2010, 70%of Nigerias
Adultpopulation
are unbanked
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
4/23
EFInA Inn ovat ion Fun d
The EFInA Innovation Fund was launched in 2009
The Fund seeks to support financial services providers to innovate,diversify and increase their product range to better meet the needs ofthe large segment of potential customers in Nigeria who remainunbanked or under-banked.
As innovation involves taking risks, EFInA will share the risk of
developing and implementing innovative products by providing grantfunding
The Innovation Fund currently provides two different types of grantsupport:
The Technical Assistance Grant formerly called Seed Grants
The Technical Assistance grant supports the research into,
development and field testing of innovative financial and non-financial products, services and delivery mechanisms that contributeto financial inclusion
The Innovation Grant
The Innovation Grant supports the roll-out and implementation ofproducts, services and/or delivery mechanisms that have alreadybeen researched, designed, planned and piloted
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
5/23
Pro ject Fo cus Sect o rs
Branchless Banking Agent banking
POS
Mobile
Payment Services
Savings
Payment System Platform
FiFinanci
al Services
Providers
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
6/23
Pro ject El igibi l i t y Cri t er ia
The project must involve providing access to financial services for the unbanked andunder-banked low income customers
The service proposed must be innovative to the Nigerian market and itsdevelopment likely to be accelerated with the support of the EFInA Innovation Fund
The proposed project should be designed so that it will be viable at the end of thegrant period, either because it is self-sustaining or because additional resources areidentified to continue the operations
Technical Assistance grant funding must be utilised within a time frame of 12 months
and Innovation Grant Funding within 24month and impact objectives should beachieved by 6 months after the project has been completed
Policy related grants will be available to advance policy formulation. These grantswill produce outputs such as diagnostic studies, draft regulations and manuals whilebuilding capacity in policy and regulatory agencies
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
7/23
Evaluat ion Cri t er ia
Technical AssistanceGrant
Innovation Grant
Innovation 30% 30%
Viable Project Idea 30% 25%
Developmental Impact 20% 20%
Capacity 20% 20%
Consumer Protection &Financial Education
0% 5%
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
8/23
REASONS FOR APPLICATION REJECTION
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
9/23
Inn ovat ion Grant Rou nd 1:
Reason s fo r Ap p l icat ion Reject io n
Incomple te App l i cat i on
2 1 %
Low Cus tomer Out reach
N u m b e r s
16 %
Inel igible use of EFInA
Funds-Onlend ing
1 6 %
Inel igible Project Focus Sector
2 3 %
Capaci ty to imp lem ent p ro jec t no tdemons t ra ted and insu f f i c ien t
match ing funds
1 2%
Inel igible customer target
3%
Pro jec ts wer e
no t
sustainable
9 %
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
10/23
Inn ovat ion Grant Rou nd 2:Reason s fo r Ap p l icat ion Reject io n
Ine l ig ib le use o f EFInA Funds
1 8 %
Pr o j e c t o b j e c t iv e s w e r e n o t
a d e q u a te l y d e f i n e d
4 %
Ine l ig ib le Pro jec t Focus Sec to r
9 %
Capac i ty to Imp lement
p r o j e c t n o t d e mo n s t r ate d4 %
Incomple te App l ica t ion
2 6 %
Pro jec t no t unsus ta inab le
4 %
Proposa l unc lear : d id no t
s tate c lear assum pt ion s &i mp l e me n t a t io n s t r ate g y
4%
M obi le Payme nts L icense
p e n d i n g
1 3 %
Pro jec t in d es ign ph ase-
innova t ion g ran ts a re fo rp r o j e c t s r e ad y f o r f u l l
i mp l e me n ta t i o n1 8 %
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
11/23
Techn ical Assist ance Gran t s 2010
Reaso n s fo r Ap p l icat ion Reject io n
Lack of Inno vat ion
1 6 %
Inelig ib le Project Focus Sector
17 %
Focus and Impact of Projec t
wer e no t adequate ly de f ined
17 %
Inelig ib le use of EFInA Fund s
5 0 %
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
12/23
INNOVATION GRANT ROUND 3REQUEST FOR PROPOSALS
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
13/23
Inn ovat ion Grant Rou nd 3: Savings
Set t in g asid e sm all su m s in a safe p lace allo w s p eop le t o gu ard again st r isks like illn ess o rcro p fail ure, b u ild a sse t s, an d p ro vid e o p p o rtu n it i es to th e n e xt g en e ra t io n .
Poor househ olds w it h access t o savings accoun t s and o t her basic f in ancial services can
m an age u nexp ect ed event s, in vest in o pp or tu nit ies l ike ed ucat io n, an d b uild f in an cialsecuri ty
The issue: The EFInA Access to Financial Servi ces in N ige r ia 2010 Survey h igh l igh ted tha t 23 .8m il li on ad u lt s are cu r ren t ly sa vin g a t h o m e .
There is dem and fo r a range o f af fo rdab le, conven ien t and accessib le fo rm al savingsp r od u ct s f o r lo w v alu e sav er s. Th e d esign an d d ev elo p m e nt o f su ch p r od u ct s is cr it ical t o t h esuccessfu l in m obi l iza t ion of sav ings deposi ts.
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
14/23
W hat are w e look ing fo r?
W e are seek ing p roposa ls fo r the development and launch o f i nnova t ive and e f fect i ve fo rma lsavings prod ucts in term s of convenience, f lexibil i ty and cost, targeted at t he low er incom esegmen t that encourages th em to save.
The p roduct and business m ode l shou ld enab le the co l lect i on o f low -value savings f romunbanked an d under-banked savers, especially w om en . The project pro posed shou ld besustainable and scalable for the financial services provider
EFInA Innova t ion g ran ts can be used to imp lement speci f ic p ro jects tha t shou ld be ta rge tedat the unb anked.
A ll app li can ts w i l l be expected to fund at l east 50% o f the to ta l p ro ject cost
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
15/23
Gran t Pro po sal Cat egor ies
Grant proposals must fall under one or more of the following categories:
Savings Products for W om en
Sm all Value Savings Accou nt s
Rem ittances & Savings
Branchless ban king & Savings
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
16/23
Essen t ial Pro po sal Req uir em en t s
Grant pr opo sals should dem onstrate t he fol low ing:
Outreach:
dem onst rat e t he ab il it y t o reach h igh num bers o f unban ked o r underserve d gr oups
Products and se rvi ces o f fe red mus t have the fo ll ow ing featu res
co nven ien ce f lexib le
secure
usab le
af f or dab le
Fina ncial Lite racy t he use o f m ar ke t in g an d f in an ci al educa t io n cam pai gn s t o dem onst rat e t o cu st o m er s t he
imp ort ance of saving; how to set savings goals; and change their saving behaviour to save w ithform al f inancia l services providers.
Consume r Protection
Pr ic in g m ust be t ran sp ar en t an d proposals sh ou ld in co rpo rat e co nsu m er pro t ec t io n red ress
mechanisms.
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
17/23
Eligibi l i t y Crit er ia-
Inn ovat io n Grant s Rou nd 3
Eligible Expenditure
Lau nch in g an d im p le m en t in g a n ew
prod uct, service or d el ivery m echanism ,including:
Syst em s upgr ad es / ad ju st m en t s
Pro je ct -sp ec if ic p rocu rem en t o f dev ices fo r t heinnovat ion
Trai n non-b an k ag en t s
M ar ke t in g and ad ve r t isi ng e xp en ses sp ec if ical ly t oimp rove f inancial capabi l i ty
Tech n ical ass ist an ce co nsu lt an cy
Non- Eligible Expenditure Ge ne ral o p er at io n s e xp en se s
St ar t -up cap it al
A cq u isit io n o f f ixe d asse t s
Lo an ca pit a l ( on -le n di ng) o r gu aran te efunds
Ge ne ral A dv er t isin g o r M ar ke t in g
Eligible Applicants
Com m ercial Banks
M icro fin an ce Ban ks
N o n-Ban k Fin an cial In st it u t io n s
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
18/23
EFInA evaluates proposal based on presentation & supportingdocuments and our evaluation criteria
Inno vat ion Grant App l icat io n Process
Funding for product/ service launch and full implementation (on amatching funds basis)
EFInA invites shortlisted applicant to make a presentation basedon eligibility criteria
RFP for Innovation Grant Round announced
80 Workin Da s
ApplicationSubmission
Evaluation Approval
Applicant submits application form, business plan, andsupporting documents for EFInA Review
If Project is Approved for Funding
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
19/23
TECHNICAL ASSISTANCEGRANTS
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
20/23
Eligibi l i t y Cri t er ia- Techn ical Assist ance Gran t s
Eligible Expenditure
Bu sin ess Plan Dev TA
M arket Research
Product Dev
Co nsu lt ancy fees
Consu l tancy fees fo r business case devl inked to EFInA A2F dat a
Pilo t (w h e r e b u sin ess p lan r ead y)
Non- Eligible Expenditure Ge ne ral Op er at io n s e xp en se s St ar t -up cap it al
A cq u isit io n o f f ixe d asse t s
Lo an ca pit a l ( on -le n di ng) o r gu aran te efunds
Adver t isin o r M arket in
Eligible Applicants
Com m ercial Banks
M icr of in an ce Ban ks/ I n st it u t io n s N o n-Ban k Fin an cial In st it u t io n s
Tech no lo gy Pr ovid er s
M o b ile Te le co m m u n icat io n s Op er at o rsPaym ent Services Providers
Po li cy a nd Re gu lato r y A ge n cie s
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
21/23
I. Project Objective
Statement of product/service to be offered and linkage to key focus sectors Statement of how the product/service is innovative in Nigeria
Brief statement of how the solution will benefit the unbanked/under-banked low incomecustomer segment and promote financial inclusion
Need for EFInA funding (additionality)
II. Background
Project Rationale
Product/ Service description
Product/ service delivery channel
Source of the idea (e.g. Similar project in other markets)
How does this product/ service offering fit into the overall strategy of the organisation
Proof of resources to implement the project plan List names project team members and their role
Capacity e.g. partner financial services providers, technology, software development,consultants
III. Work Plan andRequirements
Detailed work plan (who will do what when) linked to the objectives A description of what is required to implement the plan A cost/benefit analysis of the plan
IV. Targets
A set of outcomes linked to the objectives: Customer segment target: banked, unbanked, under-banked
Out reach: Number of unbanked/ under-banked targeted Geographic target: urban, rural, peri-urban (specify location) Gender target: male, female both
Development Impact - Direct/Indirect in terms of increasing access to financial services Customer acquisition costs
V. Key Risks & Mitigants Identify key risk and mitigation strategy
VI. Budget Budget for the project, including funding gaps
Tech n ical Assist an ce Gran tApp l icat ion Requ irem ent s & Process
Concept Note (max 10 pages)
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
22/23
EFInA evaluates proposal based on presentation, supportingdocuments and our evaluation criteria
Tech n ical Assist an ce Gran tApp l icat io n Process
Funding for
Pilot where business plan is ready and robust
ORBusiness Plan DevMarket ResearchProduct Dev
EFInA invites applicant to make presentation
Applicant submits concept note and supporting documents for EFInA review
EFInA shortlists for further evaluation based on eligibility criteria
45 Workin Da s
ApplicationSubmission
Evaluation Approval
Consultancy feesConsultancy fees for business case dev linked toEFInA A2F data
IF Project is Approved for Funding
-
7/30/2019 Promoting Financial Inclusion Through Effective Savings MobilizationEFInAY Adewusi
23/23
Website:
www.efina.org.ng/innovation
Email the Programme Manager
Q&A