Qwikloan's innovative SME financing on MoMo, strategies for recruiting and retaining female agents, and the unique needs of underserved Communities

Digestible bites of knowledge from this week [February 24th]

1. ?? Qwikloan: Partnership design for SME financing via the MoMo platform
2. ?? How can we recruit and retain more women agents?
3. ???? Tailored Products to meet the unique needs of underserved Communities

?? Before you start ??         

• ?? There is a new business model in the Business Model Innovation library! Banco Mumbuca and its G2P model using Community Currency show an interesting digital public infrastructure made possible with local community support, a relatively small scale (42.000 beneficiaries), and the usage of blockchain in local UBI. Blueprint area: https://barefooteconomist.substack.com/p/libraries
• ?? ReFinD_ISSER and Innovation Poverty Action (IPA) will be hosting an interesting webinar on the cost of using digital financial services, especially mobile money, which is a significant barrier to adoption and continued usage in low- and middle-income countries. Register here: https://refind-isser.ug.edu.gh/evidence-ipas-transaction-cost-index-measuring-true-cost-digital-financial-services

Enjoy your reading!

1. ?? ?? Qwikloan: A partnership designed for small business financing via the MoMo platform

MTN has partnered with JUMO to offer small, short-term loans to its mobile money customers, leveraging its #mobilemoney platform and Jumo's banking infrastructure.

Qwikloan allows MoMo users to access small, short-term loans ranging from R250 to R10,000 with interest rates as low as 10%, offering an affordable alternative to traditional banking institutions.

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• MTN has partnered with fintech company Jumo to offer a new lending facility called "Qwikloan" for small businesses through its MoMo mobile payments platform.
• Jumo has received significant funding and operates in seven countries, with MTN SA's partnership coinciding with a $200 million investment in its fintech business from MasterCard
• Jumo's technology infrastructure and MTN's mobile money platform are geared towards empowering local entrepreneurs and the informal sector by delivering financial solutions with lower interest rates compared to traditional banks.
• The new "Qwikloan" offering aims to provide affordable access to loans for small businesses, with interest rates as low as 10%, in contrast to traditional banking institutions' 24% rate.
• The service is available to both smartphone and feature phone users, reflecting MTN's focus on accessibility and affordability for loan service

?? Curious about How Mpesa score customers and agents to automate loan disbursements with a similar "asset-light" Business model? Check out the blueprint area below.        

2. ?? ?? Agent gender matters for women customers but how can we recruit and retain women agents?

TIndia, through the office of female business correspondent (agent network) agents, is driving financial inclusion and economic empowerment in India. It highlights the findings of the BEADS project, which aimed to enhance the viability and participation of women agents in the financial sector.

FinDev Gateway identifies 4 proven strategies for recruiting and retaining female agents, emphasising the importance of understanding their motivations, engaging family support, promoting community impact, and recognising and rewarding their contributions.

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• Female business correspondent agents value social prestige and financial independence more than their male counterparts, emphasising the need to tailor recruitment pitches to reflect these motivations.
• Engaging family members and spouses in discussions about the benefits and challenges of being a female agent significantly increases support for and representation of women in the workforce.
• Recognising, rewarding, and setting aspirational goals for female agents can motivate more women to participate and thrive in the agent business, contributing to gender inclusivity and economic empowerment.

?? Closing the gender gap requires specific, customised interventions that are tailored to the local context. It's a complex issue, but with the right strategies in place, we can make a real difference.        

Comment of the Week

Financial bridge builders: I do believe a huge added benefit of increasing female agent ratios, especially in industries which overlap finance is their direct ability to influence financial inclusion for women in spaces where men traditionally retain control of household funds. - Kristen Binda

?? Keep digging into this subject with the IDEO article below.

3. ??????? Tailored Financial Products: Meeting the Unique Needs of Underserved Communities

There are over 360 million unbanked and underbanked households in Africa. These communities often struggle to access financial services that meet their unique needs.

?? This lack of access perpetuates inequality. Underserved groups can't build credit, save for the future, or access capital to invest in their communities without tailored products. The results are generational poverty and reduced economic mobility.

?? Fintech innovations allow financial institutions to fill this gap. New data analytics help banks understand the specific pain points in underserved communities. Digital platforms and human-network distributions make it possible to offer customised products, convenient access, and the necessary literacy and digital support.

?? This is a huge opportunity to drive financial inclusion. With the right tools, banks can create tailored products for diverse segments. Products like alternative free/low-minimum accounts, sachet-loan collateral free-scoring, or early wage access can have an incredible impact.

?? Financial institutions now have the power to meet underserved communities where they are. By listening to their needs and innovating, we can build products that create access, build assets, and open doors to prosperity. The time is now to harness technology and human-centred design to drive an inclusive financial system.

?? The success of Mumbuca in Marica has led to increased local circulation, demonstrating the potential for local currencies to have a transformative impact on economic activity.        

Read the full article here ??

THE BAREFOOT ECONOMIST

???? My name is Hugo Pacheco; drop a comment and let's chat!

?? I help financial providers reach last-mile customers with alternative channels

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