01 - shift 2w presentation for information workshop (1)

8/16/2019 01 - SHIFT 2W Presentation for Information Workshop (1)

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Photo by Khánh Hmoon

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Fostering innovative business models for women’s financial inclusion

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Second window:

Fostering innovative business models for

Women’ financial inclusion in CLMV

THE CHALLENGEThe SHIFT Challenge Fund Facility second window challenges financialservices providers and real economy actors to develop or scale-up

innovative and sustainable business models, and cross-sector

partnerships, for advancing women’s financial inclusion in Cambodia, Lao

PDR, Myanmar and Viet Nam.


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The bottom line for SHIFT Challenge Fund: It’s all about impact. We are trying totrigger change that either: i) increases the volume of financial services available to

Women (consumers or entrepreneurs) in CLMV; and/or ii) increases the number ofWomen (consumers or entrepreneurs) that have access to formal finance productsand services;

SHIFT looking to support projects that are perceived by commercial financialproviders as too risky to be wholly or partly funded by ‘the market’. Nonetheless,projects must have the potential for commercial sustainability

Projects must demonstrate some potential for growth and/or replication

Scale-up and growth stage projects must have additionality and promises anexponential increase in outreach

Project must be innovative in some way: SHIFT views innovation in its broadest

sense including: i) a new approach, new idea, new product or new service that hasnot been tested anywhere; ii) new to CLMV; or iii) has not been applied to the sectorin question of the proposed project

Some Key Principles


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Who is eligible to apply?

o Licensed financial institutions (Banks and non-banks financial institutions,including State-owned commercial banks or other state-owned financialinstitutions)

o Registered financial services providers, companies from all sectorsand federations/associations (in consortium with businesses and/orfinancial institutions)

o A minimum of three year of operations and statutory account(s);

o Applicants may be registered in CLMV or foreign, provided the projectbenefits women’s financial inclusion in CLMV.

Examples of eligible applicants are: Telecommunication providers, garmentfactories, input/seed suppliers, equipment suppliers/distributors; dairy groups;

tourism chains; large agro-processors and exporters, large agriculture (women)cooperatives, business incubators, energy providers, renewable energyappliances producers, recycling plants, housing corporations, regional andmultinational companies with extensive supply chains, and alternative platformsthat connect women entrepreneurs to long-term capital, commercial banks,leasing companies,, etc.


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Closing ofthe EoIphase

Continuoussupport toapplicants

Informationworkshops

Opening ofthe 2nd

window forEoI

Informationphase

What is the process?

Evaluationof

proposals

Closing ofthe

proposalsphase

Continuoussupport toshortlistedapplicants

Informationworkshop

Eligible EoIare invitedto submit aproposal

End of theproject

Follow-upand disburse-

ments

Proposal

Implementa-tion

Signing of thegrant

agreement

Notification ofwining

proposals

22nd February

201615 April 2016

May 2016 June 2016

2018 at

the latest

From August 2016


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EoI evaluation

• EoI are first screened to check that they are eligible (country,focus on women, legal status of applicants, EoI template fully

filled in etc.

• Eligible EoIs are brought to our Investment committee (IC)

meeting on 28 April in BKK

• The EoIs are reviewed by the IC with attention to three areas:

• 1. Technical merit: How good and relevant is the idea?

• 2. Organisational capacity: Are the applicants capable of

carrying out the idea?

• 3. Cost sharing: Is the applicant fully committed financially

to the success of the project?


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EoI evaluation…Con’tEvaluation area

The idea Does the EoI focus on women’s financial inclusion?

Does it meet a need/demand in the market?

Are other organisations providing the same service/product/delivery channel already in the country/area?

How financially sustainable is the idea? Does the applicant use subsidies to lower the costs of products/services

below market rate?

How large is the expected impact for women?

Is the EoI focusing on innovation or scaling up?

Does the project have the potential to be copied/replicated by other organisations?

Are there some potentially negative consequences to the project?

Does the project meet international good practices regarding inclusive financial services?

The applicant(s) Does the applicants/consortium demonstrate the required expertise/skills to implement the project?

Can the applicant continue to provide the service/product after the grant funding?

Did the applicant experiment with the concept already?

Did the applicant conduct preliminary research for the idea?

Is there a clear role for each applicant in a consortium?

Is there a clear exit strategy for applicants that will only participate to the development/piloting of the project?

Financial

commitment

Is the propose contribution of the applicant appropriate considering the project size?

Are the costs in the budget realistic?

Is the proportion between in-kind/cash/other funding appropriate?

Can the applicant demonstrate its capacity to provide the proposed contribution?

Is the applicant financially solid enough to carry out the project?


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Project Partners: Financial Institution Limited, Mobile Network Operator and FMCG

Project Fundamentals:

• XYZ is a smartphone based mini ERP system enable MSEs to record and produce their sales and transactioninformation in accessible reports through the use of smartphone.

• Facilitate creation of ‘business information’ of MSEs, make MSEs more attractive to banks to provide finance.• MSEs enter in sales information through the day either by scanning a barcode or by punching in a code.• XYZ will produce financial and business reports for assessment of MSEs customers, enabling banks to source

reliable MSEs data for loan decisions.

Impact:• XYZ Project will target 3,000 MSEs during the initial phase of pilot testing

• Aims to identify 50,000 MSEs to participate in the projectInnovation:• Will be the first time that the Frogtek in Latin American and Kopo Kopo in Kenya business model will be introduced

to CLMV• XYZ is a innovation to access to finance, enabling MSEs to record and produce their business information to apply

for loans• XYZ is a technology Innovation that offers MSEs a customized mini ERP system to enhance business

management operations, which previously would be out of the reach of micro and small enterprises.

Capacity to Implement:• FMCG is specializing in technology and innovation, together with their partners – Mobile network operator is the

third largest mobile company in CLMV and Financial Institution Limited is a SME focused bank - have thecapacity to implement this project

Estimated SHIFT Funding: US$ 250,000 (45% of total project costs)

Mini-ERP System XYZ Project...example

01 - shift 2w presentation for information workshop (1)

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