Best Ideas 2020 features all the nominated entries submitted under ‘Submit your Idea’ category. All the entries consist of innovative solutions or propositions for an enterprise that champions the Sustainable Development Goals. They can be on the conceptual, planning, or start-up stage.
Explain your idea in details:
The Financial Sector is important to economic growth and development and the country has seen a range of innovative products that have deepened levels of inter mediation, fact is majority remains under served those with low incomes, technologically challenged and those in remotest areas. While there is little debate on the relationship between Financial Inclusion and economic performance, research shows that it is not cheap for Financial Service companies to extend their facilities to all corners of the country. The Ministry of Finance in conjunction with the Central Bank in 2017 launched the National Strategy for Financial Inclusion seeking to facilitate an increase in the delivery of Financial services at affordable costs especially to the low income segments and the rural masses from 35 to 55%. We recognized this as an opportunity to reach out to the vast untapped market by providing a solution to this problem by sharing our innovation with a vast array of people deprived by the Financial Services and we hope to reap dividends by taking advantage of the ongoing Financial Literacy drive and help push for individual economic independence. Like GSM providers (Cash points) we are going to establish branches in the urban and rural markets, where people trade targeting populated areas. Our plan is to erect well branded Kiosks and will be manned by credit officers and each will be equipped with an android phone with an app to interface with the cloud based credit management system and the loans will be disbursed and repaid through GSM mobile money apps. The product is called vendor loan given to groups of 5, 35USD per person, 23% interest, 1.38USD loan fee, 30 days loan tenure, 5 days grace period and 25 days repayment period paying 1.72USD a day.
Expected impact of your idea on sustainable development
We are targeting 75% women and 25% men in urban and rural areas those who own small businesses in informal sectors with clear record of operating for not less than three months those buying and selling stock on a daily basis trading in fast moving agriculture products able to repay portions of their loans every day. Despite fairing less than their male counterparts on social-economic indicators including literacy, education enrollment and completion, wage equality and political participation. Women are more responsible borrowers, savvy business operators and better savers. Women in Malawi, working in the vendor space, are quite likely to be mothers, married, single, divorced or widowed. Their three major focus areas are their children, business and their homes and 60% of these women in the rural areas are widowed or divorced bread winners and are responsible for the general planning of their homes. Malawi has 28 districts four major trading cities and these have at most not less than a combination of 100 major markets with a minimum of 50 and maximum of 2000 traders per market on daily basis. Other districts have a market in each district council and under the jurisdiction of the district council and many informal markets in remotest rural areas and we are targeting more than 500 markets country wide with over 3 million vendors trading daily. Our wish is to have presence in each and every major market starting in the major cities. We are currently doing a pilot in one market that started 3 weeks ago and the response has been very good we invested 1000 USD and as of now we have got about 7 groups and 28 customers and our loan portfolio is now at 1315 USD and its growing steadily but we are limited to satisfy the growing demands.
Plans for implementation and sustainability
Our business model is to create a strong brand that would be easily recognizable and well-articulated so that we should be easily aligned and accepted by our targeted audience this will include branding our kiosks with bright outstanding colors that will be visible from a distance in order to get the attention, recognition and to offer our services in such a way that no other microfinance or bank has ever done it before us by invading and erecting our kiosks where our clients are at. By so doing we know that masses as well as our competitors will be talking about us because we are going to be the first in Malawi to take our financial services to our customer business environment. Our best marketing tool will be to erect large colorful posters in the entrance and exits of these markets as well mass meetings, personal marketing on regular basis with potential clients through the market chairpersons. Our major source of funds is through interest earned and loan commissions and we recently won a local entrepreneurship challenge were we were awarded a seed capital of 1000 USD. Other team are members are Victor Custom, a graduate from Malawi Chancellor College in Bachelors of Education Social Studies, majored in Home Economics & minor Geography, a certified marketer. He has been instrumental in the development and perfection of our product up until product test he has been our face in the market that we have conducted our pilots. Chifundo Chikoja holds a Bachelor Degree of Science in Information Technology from University of Malawi, Polytechnic. A developer who has been instrumental in developing our Credit Management System. Worked as a research assistant on adoption of cryptocurrencies with Reserve Bank of Malawi
Born on the 27th of April 1974, I have over 14 years experience in the development and support of Globus T24 banking system and implementations. I am skilled in analysis, GAP and business requirement specifications, including developing functional specification documentation, tests scripts and execution. I have been on several T24 implementation projects from the initial stages through to deployment and post support project phases. I have provided T24 training courses on T24 and Globus modules. My areas of expertise include Customer, Funds Transfer, Foreign Exchange, Accounts, Interest, charges and commissions, limits, collateral, Cheque issue and management, Data Capture, Teller, Money Markets, Loans and Deposits, MGs, Past Due, T24 Financial Accounting and reports. 45 DEGREES EXPERIENCE, 13 August 2013 to 20 March 2015, NBS Bank Malawi, Technical Consultant Preparation for system update from R12 to R14 SOFGEN EXPERIENCE, 22 March 2012 to 1 August 2013, Standard Bank Angola, Technical Consultant T24 R11 re implementation on Linux Redhat platform with browser and jBASE Standard Bank Angola, 22 March 2012 to 15 November 2012, Technical Consultant T24 R11 re implementation on Linux Redhat platform with browser and jBASE AGRI Bank Zimbabwe, August 2011 to November 2011, Technical Consultant T24 R10 re implementation on Linux Redhat platform with browser and jBASE NMB Bank, Zimbabwe, April 2011 to July 2011, Technical Consultant T24 R10 re-implementation on Unix Aix platform with browser and jBASE The levels of poverty among women in Malawi though they try their best in supporting their family in doing small businesses but without support from the main stream financial services it is a tall order for them. And we believe with our small amounts and model of business we will be able to reach to the marginalized the low income earners, technologically challenged and those living in the remotest areas.