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


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


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


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


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


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


7/23

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%


8/23

REASONS FOR APPLICATION REJECTION


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 %


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 %


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 %


12/23

INNOVATION GRANT ROUND 3REQUEST FOR PROPOSALS


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.


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


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


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.


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


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


19/23

TECHNICAL ASSISTANCEGRANTS


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


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)


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


23/23

Website:

www.efina.org.ng/innovation

Email the Programme Manager

[email protected]

Q&A

promoting financial inclusion through effective savings mobilizationefinay adewusi

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