EQUITY BANK

SOCIAL PAYMENTS

Payments Mechanisms around Social Cash Transfer

2

How Payments fits in Social Cash

Transfer Programmes

Selection of beneficiaries by Government or Selected NGO’s

Payment made every 2mths, Monthly by

Agents overseen by Equity Bank and Driven by

Technology

List confirmed by Managing Secretariat

The Rights of beneficiaries overseen by Rights groupings

The impact of the programme monitored and evaluated by Selected M& E

Requirements of Payment

Mechanism • Cost effective - minimising transaction costs for the

funder

• Maximize functional security and integrity for funders

• Minimize costs for the recipients

• Financial accessibility

• Re-use of Technology to deliver other complimentary services

Equity Bank Innovative Payment Mechanism

Recipients Individual eligible to collect payment. Either the enrolled beneficiary or a recipient nominated by the beneficiary to collect the payment on their behalf

Payment instrument Smart card with fingerprint of correct recipient, inserted in agent’s POS device

Authentication finger print of recipient read by POS matches fingerprint on card

Distribution Points Local Shop keepers acting as agents of Equity bank carryout payment transaction

Transaction Device POS device with biometric fingerprint reader is operated by agent.

Payment Service Provider (PSP)

Challenges With Cash Transfers

• Very poor infrastructure

• Poorly educated population

• Poorly developed cash economy

• Insecurity

Agency Model - Delivery Agents

Benefits

• No transport of cash - security

• Payment made closer to recipients

• Faster service

• Service from member of the community

• Cash is used to develop local economy increase stock levels

• Less cash in duka and on roads

Challenges

• Needs sufficient cash in local businesses

• Need sufficient Agents

• Need to communicate collection time to recipients

• Recipient needs national ID

• Recipient giving cash to Beneficiary

Equity Bank Experience With Social Cash Transfers

• Hunger Safety Net Programme Funded by UKAID

The HSNP is a partnership between DFID and the Kenyan Government to provide bi-monthly cash transfers to 60,000 families in Kenya’s most arid areas using state-of-the-art biometric technology and network of points-of-sale beyond the traditional Bank Branch model. The program is focused in Northern Kenya, one of Kenya’s remotest regions.

Partnerships in Social Cash Transfer

• Index Based Livestock Insurance (IBLI) Funded by FSD, USAID & World Bank – Partnership with ILRI to collect insurance premiums

targeting 10,000 pastoralists in Marsabit location of Northern Kenya.

• World Food Programme – The Seasonal Cash For Assets (SCFA) pilot, under WFP

Kenya’s Protracted Relief and Recovery Operation (PRRO) – Partnership with WFP to effect cash payments

• Orphaned and Vulnerable Children – Cash transfer programme funded by The World Bank

through the Ministry of Gender

Partnerships

• Post-election Emergency Cash Intervention in Kenya (ECHO Funded Emergency) – ACF-USA began working in Nakuru Town in Rift Valley Province

immediately after the violence erupted, supporting the displaced population in major camps through emergency water, sanitation and hygiene, nutrition programmes and non-food distributions.

– ACF decided to develop a cashbased intervention to support the immediate and longer-term livelihood needs of IDPs and host communities in Nakuru Town

– Equity Bank was chosen because of the ease and accuracy of monitoring through the bank’s system, its transparency and accountability and the potential sustainability and longer-term impact encouraged by its micro-finance and savings policy

Other Cost Effective Technologies Being Piloted

• Mapped Equity Bank Account with Telecoms Money transfer services to Increase the reach.

– Orange Money with Orange Telkom

– Mkesho with Safaricom

– Yucash With Obopay’s Essar Telecom

– Eazy 24-7

THANK YOU