Software Group - Technology-Enabled Financial Inclusion Solutions

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Technology-Enabled Financial Inclusion Solutions:

Presenter: Josephine Wainaina

Business Analyst

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

AgendaAbout Software Group

What Is e-Recording

e-Recording Background

e-Recording Benefits To Groups

e-Recording Progress To Date

A Look Inside e-Recording

e-Recording In Use

Initial Challenges

Next Steps

How To Access e-Recording

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

About Software Group

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

What is e-Recording?e-Recording is an android application used by savings groups to manage their book keeping

Designed to provide an alternative to the manual ledgers and passbooks

Runs on low cost smart phones in offline mode with sync options to a portal for backup and reporting purposes

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

e-Recording Background

The Project was initiated by Financial Sector Deepening Kenya (FSD) in 2012, with Care and CRS as pilot implementation partners

Designed based on extensive knowledge of the VSL and SILC methodologies, with specifics validated through group visits and prototypes. Principles of simplicity and ease of use built into the design

The project is seen as one step towards moving groups to a digital financial service, eliminating both cash and physical records

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

What Are The Benefits To The Groups?Maintains accurate and up to date financial records Eliminates manual calculations of loans and loan repayments Supports the share out process with auto calculations of amounts due to each memberProvides real time reports for group members, trainers and supervisorsStandardizes group administration and upholds the rules of constitution throughout the group transactionsProvides a secure backup of group records through the online portal

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

E-recording Progress To DateFSD Kenya- Initial pilot phase successfully closed with more than 100 groups trained and using the application. FSD Kenya- Phase 2 initiated with aim to scale up the usage to at least 6000 groups by end of 2015FSD Zambia- pilot project underway to rollout to 20 groupsWorld Relief- with AFR funding e-Recording app was translated to Kinyarwanda for use in RwandaGates Foundation- as part of the DFS platform e-Recording will be adjusted to operate with a mobile wallet

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

A look inside

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Menu Overview

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Group and Cycle Creation

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Member Registration

11

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Constitution Summary

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Attendance Register

13

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Bank/Cash Register

14

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Contributions & Fees

15

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Loan Issue

16

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Loan Payment

17

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Group Income and Expense

18

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Member Exit

19

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Meeting Management – Meeting Summary

20

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Share Out

21

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

in use

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Savings Group meeting about to start - Zambia

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

e-Recording training session

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Happy to learn a new skill - Zambia

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

The old and young not left behind - Kenya

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

A group meeting in Kenya

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Initial ChallengesVariations of the methodology under different FAs which complicated the process of standard requirements for the appLack of understanding of the methodology by some groups and/or non standard practices which then conflicted with the rules enforced by the appLanguage barrier between the members and the trainersDifficulties in using smart phones by group membersConcerns of group members over transparency of using the app

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Next StepsDevelopment of an E-toolkit that will include training material that will be beneficial to groups such as video demos of usage of the application, training of VSLA and SILC methodologies etcRollout of Phase 2 of the application in Kenya, adding more functionality including SMS, property management and improved usability. Ongoing pilots in Zambia and RwandaIntegration with financial institutions or m-wallet so that groups have options to store cash with a formal financial institutionCare plans to use e-Recording data to build credit scoring information for group members

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

How to access the application

1. Register a Gmail account

2. Access Google Play store

4. Install the application

5. Play with it!7. e-Recording phase

II developmentMore features added to the application

3. Search for application named

e-Recording

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

Watch it in action

https://www.youtube.com/watch?v=WeHyQc76pEo

Quotes from Care Cosalo Project Members (Kenya)‘it makes our work much easier’‘keeps our records clean’‘ it helps us remember our rules and laws’‘ in case of loss or damage or data we can easily recover it from the internet’

#17MCSummit

17TH MICROCREDIT SUMMITGENERATION NEXT: INNOVATIONS IN MICROFINANCE

www.softwaregroup-bg.cominfo@softwaregroup-bg.com

Asia 5F La Paz Center, Salcedo Corner Rufino Streets, Makati City 1229 Philippines+ 63 2 556 2016

Sub-Saharan AfricaSuite 14, The Green House Ngong Road 28804-00100 Nairobi, Kenya+ 254 717 639 392

SG HeadquartersEurope & Central Asia:115N, Tzarigradsko shosse blvd1784, Sofia, Bulgaria+359 2 923 17 83

West AfricaFayza Plaza 2nd Floor, App.3 Oyarifa Accra, Ghana +233 302 975617

Latin AmericaAv. Venustiano Carranza 1041Zapopan, Jalisco, 45180+52 1 331 3317513

Thank you for the attention

Australia & PacificSuite 4, 36 Agnes Street, Fortitude Valley 4006, Queensland, Australia+61 7 3172 3249