carlos at bangla.net
05-14-1999, 07:19 AM
<x-flowed>
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^
Paul Swider of PRIDE Africa mentioned about their microfinance project in
Kenya where a software links microfinance clients to banks. This sounds
unique and strange, but their webpage provides more information (see
below). It talks about an approach similar to credit cards and they use
human ATMs to dispense cash! Your comments are welcome. - Carlos Ani
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^
PRIDE IS ENTERPRISE
Benkindogo (Baby Banks)
A mass-market approach to commercialise Microfinance through a network of
Human Teller Machines (HTMs)
As part of its commitment to market financial services to the micro and
small enterprise (MSE) sector, PRIDE AFRICA will begin a new product and
delivery methodology through a network of Benkindogo Human Teller Machines
(BHTMs) in Nairobi. The concept will seek to retail financial services, in
partnership with commercial banks, to people who are otherwise unbankable.
This project aims specifically to pilot a generic financial intermediation
software system, known as SunLink, which would be accessible to
participating banks and microfinance institutions (MFIs) involved in
lending
to the MSE sector. Strategic outputs for the project include the
establishment of the Main Processing Facility (MPF) and five BHTMs during
the first eighteen months of the project.
Depending on the level of success of this Project; the long-term aim is to
convert the pilot activity into a commercial company into which
participating commercial banks could invest and thereby reach a much larger
virtual clientele. The concept is modeled in part on the business concept
used by MASTERCARD and VISA whereby participating banks are invited
to join and take equity positions in a larger franchise. The project
objectives are
defined as follows:
To develop linkages between commercial banking institutions, financ
ial intermediaries, and MFI clients to facilitate the provision of cr
edit and other financial services to microentrepreneurs,
To design, test and apply new technologies that will reduce the adm
inistrative costs of lending to the informal sector,
To develop sustainable service delivery mechanisms and client
interfaces,
To design, test and apply new credit products aimed at maintaining client
levels and thereby reducing traditional MFI drop out rates.
Project Outputs
Specific BHTM project outputs will include:
Installation and piloting of the SunLink systems with the BHTM envi
ronment, which in this pilot will be a refurbished 20 foot shipping
container.
Disbursement of over 15,000 loans to more than 7,000 micro and small
entrepreneurs in the Nairobi area over the 18 month project period
and the maintenance of a 95% loan recovery rate.
Mobilization of client Loan Insurance Funds over the period as loan
collateral.
Credit Method
The credit methodology will be adapted from the PRIDE AFRICA model
which has been successfully implemented over the past 10 years. The
project
will take a 2-phase approach. Funds in the form of grants and
loans/guarantees
will be sought for the first two phases of the project over an I8 month
period.
Phase I (months 1-6)
During Phase I, the project will design and pilot a Main Processing
Facility
(MPF) and one Human Teller Machine (HTM) in Nairobi. This will take the
form
of a credit and savings (Loan Insurance Fund) cash point, designed to
handle
up to 1,500 clients and equipped with SunLink electronic management
information systems which can be linked to one or more commercial banks
and,
eventually a credit reference bureau. To reduce costs, the MPF will
initially be located in the same premises as the first Service Center.
Phase II (months 6-18)
During Phase II, the project will replicate the BHTMs in at least 4 new
sites. Sustainability and profitability would be determined on the basis of
differential spread on -interest charged at each level. This approach
should
guarantee that the end-user, the client, always pays a market rate of
interest.
Projected Outreach
Over the course of the 18 month project period a target has been set to
establish at least 5 pilot HTMs in the Nairobi area,-disbursing over 15,000
loans to MSEs A BHTM is projected to serve a maximum of 1,500 clients,
maturing to full capacity over a 24-month period. The staffing of a mature
BHTM will, include one manager plus one teller for every 1,500 clients.
Criteria for selection of a BHTM will include the existence of a wide pool
of micro and small businesses with an approximate minimum of 1,500
potential
clients within a 2-mile radius of the HTM Site. A BHTM market survey
will be
conducted prior to final site selection. The following criteria shall
apply:
75% will comprise micro enterprises' employing 0-9 people, 25%
will be drawn from small-scale enterprises employing 10-49 people
While the initial plan appears to focus mainly on the MSEs in the urban
areas of Nairobi, it is envisaged that once the pilot project is fully
developed and operational that more rural locations will be targeted. This
initial focus has been selected to ensure that during the pilot phase of
operations development, testing, implementation, quality and compliance can
be more cost-effectively monitored.
Once the model is developed, a franchise methodology for roll out to other
locations wilt be implemented. The key result of the pilot will be to prove
that commercial banks can become partners in the provision of financial
services to a mass market, hitherto considered inaccessible andunbankable.
By simplifying systems and products, very rapid expansion can be safely and
rapidly achieved.
Source: prideafrica webpage
= = = = = = = = = = end of article = = = = = = = =
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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^
Paul Swider of PRIDE Africa mentioned about their microfinance project in
Kenya where a software links microfinance clients to banks. This sounds
unique and strange, but their webpage provides more information (see
below). It talks about an approach similar to credit cards and they use
human ATMs to dispense cash! Your comments are welcome. - Carlos Ani
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^
PRIDE IS ENTERPRISE
Benkindogo (Baby Banks)
A mass-market approach to commercialise Microfinance through a network of
Human Teller Machines (HTMs)
As part of its commitment to market financial services to the micro and
small enterprise (MSE) sector, PRIDE AFRICA will begin a new product and
delivery methodology through a network of Benkindogo Human Teller Machines
(BHTMs) in Nairobi. The concept will seek to retail financial services, in
partnership with commercial banks, to people who are otherwise unbankable.
This project aims specifically to pilot a generic financial intermediation
software system, known as SunLink, which would be accessible to
participating banks and microfinance institutions (MFIs) involved in
lending
to the MSE sector. Strategic outputs for the project include the
establishment of the Main Processing Facility (MPF) and five BHTMs during
the first eighteen months of the project.
Depending on the level of success of this Project; the long-term aim is to
convert the pilot activity into a commercial company into which
participating commercial banks could invest and thereby reach a much larger
virtual clientele. The concept is modeled in part on the business concept
used by MASTERCARD and VISA whereby participating banks are invited
to join and take equity positions in a larger franchise. The project
objectives are
defined as follows:
To develop linkages between commercial banking institutions, financ
ial intermediaries, and MFI clients to facilitate the provision of cr
edit and other financial services to microentrepreneurs,
To design, test and apply new technologies that will reduce the adm
inistrative costs of lending to the informal sector,
To develop sustainable service delivery mechanisms and client
interfaces,
To design, test and apply new credit products aimed at maintaining client
levels and thereby reducing traditional MFI drop out rates.
Project Outputs
Specific BHTM project outputs will include:
Installation and piloting of the SunLink systems with the BHTM envi
ronment, which in this pilot will be a refurbished 20 foot shipping
container.
Disbursement of over 15,000 loans to more than 7,000 micro and small
entrepreneurs in the Nairobi area over the 18 month project period
and the maintenance of a 95% loan recovery rate.
Mobilization of client Loan Insurance Funds over the period as loan
collateral.
Credit Method
The credit methodology will be adapted from the PRIDE AFRICA model
which has been successfully implemented over the past 10 years. The
project
will take a 2-phase approach. Funds in the form of grants and
loans/guarantees
will be sought for the first two phases of the project over an I8 month
period.
Phase I (months 1-6)
During Phase I, the project will design and pilot a Main Processing
Facility
(MPF) and one Human Teller Machine (HTM) in Nairobi. This will take the
form
of a credit and savings (Loan Insurance Fund) cash point, designed to
handle
up to 1,500 clients and equipped with SunLink electronic management
information systems which can be linked to one or more commercial banks
and,
eventually a credit reference bureau. To reduce costs, the MPF will
initially be located in the same premises as the first Service Center.
Phase II (months 6-18)
During Phase II, the project will replicate the BHTMs in at least 4 new
sites. Sustainability and profitability would be determined on the basis of
differential spread on -interest charged at each level. This approach
should
guarantee that the end-user, the client, always pays a market rate of
interest.
Projected Outreach
Over the course of the 18 month project period a target has been set to
establish at least 5 pilot HTMs in the Nairobi area,-disbursing over 15,000
loans to MSEs A BHTM is projected to serve a maximum of 1,500 clients,
maturing to full capacity over a 24-month period. The staffing of a mature
BHTM will, include one manager plus one teller for every 1,500 clients.
Criteria for selection of a BHTM will include the existence of a wide pool
of micro and small businesses with an approximate minimum of 1,500
potential
clients within a 2-mile radius of the HTM Site. A BHTM market survey
will be
conducted prior to final site selection. The following criteria shall
apply:
75% will comprise micro enterprises' employing 0-9 people, 25%
will be drawn from small-scale enterprises employing 10-49 people
While the initial plan appears to focus mainly on the MSEs in the urban
areas of Nairobi, it is envisaged that once the pilot project is fully
developed and operational that more rural locations will be targeted. This
initial focus has been selected to ensure that during the pilot phase of
operations development, testing, implementation, quality and compliance can
be more cost-effectively monitored.
Once the model is developed, a franchise methodology for roll out to other
locations wilt be implemented. The key result of the pilot will be to prove
that commercial banks can become partners in the provision of financial
services to a mass market, hitherto considered inaccessible andunbankable.
By simplifying systems and products, very rapid expansion can be safely and
rapidly achieved.
Source: prideafrica webpage
= = = = = = = = = = end of article = = = = = = = =
-------------------------------------------------------------------------
SHARENET - electronic mailing list for microfinance professionals.
Practical give and take. Sharing of valuable information.
To post message: send email to sharenet@egroups.com
To subscribe: send email to sharenet-subscribe@egroups.com
To Unsubscribe: send email to sharenet-unsubscribe@egroups.com
Moderator: Carlos Ani - <carlos-ani@mail.com>
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