Click to edit Master title style

Transcription

1 Illuminated by Data New Tools to Develop Financial Solutions for Smallholders Click to edit Master title style CGAP, i2i, MIX, and One Acre Fund 8 May 2018 WEBINAR Photo: Allison Shelley

2 Logistics This is an audio broadcast. Attendee microphones will remain muted during the entire webinar session. To ask questions during the webinar, please use the Chat box on the right-hand side of the Webex session. Please submit your question at any time during the webinar presentation. To ensure your question is seen by the moderator, select All Participants from the drop down menu when sending your question. The webinar recording will be ed to all attendees and registrants. 2

3 Speakers Jamie Anderson CGAP Henry Bruce MIX Anne Maftei One Acre Fund Michael dos Santos i2i 3

4 Agenda 9:00 Introductions and agenda 9:05 Meet Alberto and Alina s family 9:10 CGAP Smallholder Families Data Hub 9:20 i2i Data Portal 9:30 MIX-1AF Smallholder Finance Explorer 9:40 Q&A 4

5 Why smallholder families? Jamie Anderson Photo: Allison Shelley Photo: Allison Shelley 5

6 Why smallholder families? Jamie Anderson 500 million smallholder families with diverse financial needs Photo: Allison Shelley Photo: Allison Shelley 6

7 Why smallholder families? Jamie Anderson 500 million smallholder families with diverse financial needs Photo: Allison Shelley Largest client segment by livelihood living on less than $2/day Photo: CGAP Allison 2017 Shelley 7

8 Meet Alberto and Alina s family Jamie Anderson Alberto, Alina, and their eight children five still at home live in northern Mozambique. They grow cotton, maize, beans, millet, and cassava, and Alberto also works as a tailor. They re building a house and want to connect to the electrical grid. Photo: Allison Shelley 8

9 Meet Alberto and Alina s family Jamie Anderson Apio s parents have a bank account with a Ugandan bank. When their savings fall short, they take loans from the bank to pay school fees, hospital bills, and other expenses. Photo: Allison Shelley The family does not have a bank account. Says Alberto, It would be better for me to have a card. It would help me to save money. If I have a worry, I could take the card and withdraw in the city. 9

10 Diving into the data Jamie Anderson Photo: Allison Shelley 10

11 Diving into the data Jamie Anderson 1. What are their family s most common expenses? Photo: Allison Shelley 11

12 Diving into the data Jamie Anderson 1. What are their family s most common expenses? Photo: Allison Shelley 2. What sort of financial tools are they using, and which providers do they trust? 12

13 Photo: Allison Shelley 1. CGAP Data Hub National surveys of smallholder households

14 National surveys in six countries Jamie Anderson 14

15 Who was surveyed Jamie Anderson 15

16 What the surveys cover Jamie Anderson 16

17 Diving into the data 1 Jamie Anderson Photo: Allison Shelley 17

18 Diving into the data 1 Jamie Anderson 1. What are their family s most common expenses? Photo: Allison Shelley 18

19 Diving into the data 1 Jamie Anderson 1. What are their family s most common expenses? Photo: Allison Shelley 2. What sort of financial tools are they using, and which providers do they trust? 19

20 CGAP Smallholder Families Data Hub Six country tabs feature easy-to-use data visualizations of the surveys and links to in-depth resources 20

21 Click the gray tabs to explore different data visualizations Disaggregate data by key demographics and characteristics 21

22 Export charts as PNG images for your presentations, or as XLS or CSV files Dig deeper by downloading data sets and analyses 22

23 Disaggregate by gender and age to view regular expenses. 23

24 Disaggregate by age to see use of financial tools. 24

25 Disaggregate by age to see trust in providers. 25

26 Photo: Allison Shelley 2. i2i data portal National surveys and financial diaries

27 Diving into the data Michael dos Santos Photo: Allison Shelley 27

28 Diving into the data Michael dos Santos 3. What is Alberto and Alina's monthly income? Photo: Allison Shelley 28

29 Diving into the data Michael dos Santos 3. What is Alberto and Alina's monthly income? Photo: Allison Shelley 4. Are families saving in the Nampula district? 29

30 Data count Michael dos Santos 30

31 Financial diaries data - interface What are Alberto and Alina's monthly Income? Michael dos Santos Photo: Allison Shelley 31

32 What are Alberto and Alina's monthly Income? Widget results from Alberto and Alina s monthly expenses are; 32

33 National survey data interface Are family's saving in the Nampula district? Michael dos Santos Photo: Allison Shelley 33

34 Are families saving in the Nampula district? Widget results from 34

35 Photo: Allison Shelley 3. Explorer Profiling supply-side providers financial products

36 Lack of information on successful product models inhibits growth Accessible and practical information supports: Providers design/deploy better products Funders increase investment in smallholder finance Henry Bruce Client-centric products improve farmer outcomes Learn from other providers Save money & time Design farmer-centric products Reach under-served clients, profitably Save time on market research Identify providers with robust product offerings Invest in new, innovative providers Improved quality & availability of products for smallholder farmers Increased farmer investment in farms Increase yields & income 36

37 Operationally useful product information Henry Bruce Overview and Scale Description of Total Clients Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Financial and Pricing Credit and Repayment Credit Pricing and Transparency Insurance Features Savings Features Payment Features Pricing and Transparency for Payment (s) Organization Level Sustainability (OSS) Level Sustainability Value Chain Support Measuring Impact Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact 37

38 Smallholder Finance Explorer 38

39 Diving into the data 3 Henry Bruce 5. What kind of product should we design for our target client? Photo: Allison Shelley 6. What other product features could we include to increase impact on their livelihood? 39

40 What kind of product should we design for our target client? Anne Maftei Source: i2i Data Portal, Mozambique Financial Diaries Main source of income: farming Financial goal: saving money for children s secondary school fees Constraints: 1. Inputs need to be purchased in September 2. School fees are due in January 40

41 What attributes should the product have? Outside of cotton, grows mainly staple crops Overview and Scale Anne Maftei Description Object of of the Total loanclients þ Access inputs q Access land Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Credit and Repayment Credit Pricing and Transparency Insurance Features Financial Commodity and Pricing Savings Features þ Maize þ Beans þ Cassava þ Payment Millet q Client Features type þ Non-commercial smallholder Pricing and Transparency for Payment (s) Organization Level Sustainability (OSS) Value Chain Support farmer Measuring Impact Level Sustainability Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact 41

42 What attributes should the product have? A flexible repayment schedule would better suit their cash-flow Overview and Scale Anne Maftei Description of Total Clients Object of the loan þ Access inputs q Access land Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Credit and Repayment Credit Pricing and Transparency Insurance Features Financial and Pricing Savings Features Commodity þ Maize þ Beans þ Cassava þ Millet Pricing and Payment q Transparency Client type for Payment þfeatures Non-commercial smallholder farmer (s) Organization Level Sustainability (OSS) Level Sustainability Value Chain Support Measuring Impact Repayment structure is flexible þ Yes Post-harvest Post-harvest Grace Pre-harvest period offered Support: Support: þ Yes support Storage/ Market Loan or product Management term covers growing Linkages season þ Yes q No Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact 42

43 What attributes should the product have? Not part of a local savings group Overview and Scale Anne Maftei Description of Total Clients Object of the loan þ Access inputs q Access land Credit and Repayment Number of Clients Group or individual Credit loanpricing Insurance q and Group þ Individual Transparency Features Portfolio Key Players / Partnership Financial and Pricing Savings Features Farmer and Value Chain Categories Commodity þ Maize þ Beans þ Cassava þ Millet Pricing and Payment q Transparency Client type for Payment þfeatures Non-commercial smallholder farmer (s) Client Segment Organization Level Sustainability (OSS) Channels Level Sustainability þpre-harvest Yes support þ Yes q No Value Chain Support Measuring Impact Repayment structure is flexible þ Yes Grace period offered Post-harvest Support: Storage/ Management Loan or product term covers growing season Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact 43

44 What attributes should the product have? Open to receiving cash via his mobile phone Overview and Scale Anne Maftei Description of Total Clients Object of the loan þ Access inputs q Access land Credit and Repayment þpre-harvest Yes support þ Yes q No Credit þ Individual Pricing and Transparency Number of Clients Group or individual loan q Group Insurance Features Portfolio Key Players / Partnership Financial and Pricing Savings Features Farmer and Value Chain Categories Commodity þ Maize þ Beans þ Cassava þ Millet Pricing and Payment q Transparency Client type for Payment þfeatures Non-commercial smallholder farmer (s) Client Segment Channels Disbursement, Organization repayment and/or Level savings channels Level Sustainability þ Mobile banking Sustainability (OSS) þ Field agents q Value chain actor Value Chain Support Measuring Impact Repayment structure is flexible þ Yes Grace period offered Post-harvest Support: Storage/ Management Loan or product term covers growing season Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact 44

45 What attributes should the product have? Looking for a solution that capitalizes on his savings habit Overview and Scale Anne Maftei Description of Total Clients Object of the loan þ Access inputs q Access land Credit and Repayment Credit þ Individual Pricing and Transparency Number of Clients Group or individual loan q Group Insurance Features Portfolio Key Players / Partnership Financial and Pricing Savings Features Farmer and Value Chain Categories Commodity þ Maize þ Beans þ Cassava þ Millet Pricing and Payment q Transparency Client type for Payment þfeatures Non-commercial smallholder farmer (s) Client Segment Channels Disbursement, repayment and/or Organization savings channels þ Mobile banking Level þ Field agentslevel Sustainability q Value Sustainability chain actor (OSS) þpre-harvest Yes support þ Yes q No Value Chain Support Measuring Impact Repayment structure is flexible þ Yes Grace period offered Post-harvest Support: Storage/ Management Loan or product term covers growing season Post-harvest Support: Market Linkages Type of saving product q Current account þ Regular savings account Measurement q Fixed deposit of Farmer þ Compulsory Accessibility savings Yields Impact on Farmer Yields Measurement of Livelihood Impact 45

46 What products match those attributes? Overview and Scale Anne Maftei Description of Total Clients Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Agricultural loan Ethiopia 100k 500k Number of product client: 51,732 Average loan size/client: $172 $2M 10M Type of provider: MFI Last mile partner: None partner: None Commodity: Maize Target customer: Noncommercial smallholder farmer Target client by income: <$3.20/day % clients that are female: 45% Client acquisition: Field agents Number of field agents: 65 Digitized customer registration: Partially Input loan Ghana 500k 1M Number of product client: 232,753 Average loan size/client: $98 +$20M Type of provider: Social lender Last mile partner: None Commodity: Maize Target customer: Noncommercial smallholder Target client by income: <$3.20/day % clients that are female: 65% Client acquisition: Field agents Number of field agents:

47 What products match those attributes? Financial and Pricing Anne Maftei Credit and Repayment Credit Pricing and Transparency Insurance Features Savings Features Payment Features Pricing and Transparency for Payment (s) Organization Level Sustainability (OSS) Level Sustainability Repayment is flexible Loan term covers growing season Grace period is offered uses declining balance interest rate Compulsory cash deposit No penalties for early interest repayment Life/funeral insurance Average $2.50 premium / client Compulsory savings of 10% of total loan amount for the first cycle None N/A >100% -level sustainability: Breakingeven / costneutral Annualized repayment rate: 90-95% APR: 24% Repayment is flexible Loan term covers growing season Compulsory cash deposit No penalties for early interest repayment Life/funeral insurance Average $2.50 premium / client 15% of loan amount required as upfront deposit None N/A >100% -level sustainability: Profitable 47 Annualized repayment rate: 95-98%

48 Smallholder Finance Explorer What other product features could we include to increase impact on their livelihood? Anne Maftei Key challenges: 1. Low rates of fertilizer usage 2. Accessing good-quality seeds 3. Poor harvests due to changing weather patterns 48

49 What attributes should the product have? Agronomic training on proper fertilizer use Overview and Scale Anne Maftei Description of Total Clients Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Credit and Repayment Pre-harvest support Credit Pricing and Transparency Insurance Features Financial and Pricing Agricultural training offered þ Yes Pricing and Savings uses Payment formal curriculum Transparency þ Yes for Payment Features or Features tools are mobile-based þ Yes (s) þ No Organization Level Sustainability (OSS) Value Chain Support Measuring Impact Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Level Sustainability engages clients in participatory learning Measurement þ Yes Measurement Impact on of Farmer is offered in a convenient of Livelihood location Farmer for clients Yields Yields Impact þ Yes 49

50 What attributes should the product have? Insurance to help protect from weather-related crop loss Anne Maftei Description of Type of insurance product q Life/funeral insurance þ Traditional crop Number insurance Total Clients of þ Weather-index based Clients insurance q Livestock insurance q Overview and Scale Portfolio Key Players / Partnership Financial and Pricing Farmer and Value Chain Categories Client Segment Channels Credit and Repayment Credit Pricing and Transparency Insurance Features Agricultural training offered Savings þ Yes Pricing and Payment uses formal curriculum Transparency þ Yes for Payment Features or Features tools are mobile-based (s) þ Yes þ No Organization Level Sustainability (OSS) Value Chain Support Measuring Impact Level Sustainability Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility engages clients in participatory learning Measurement þ Yes Measurement Impact on of Farmer is offered in a convenient of Livelihood Farmer Yields Yields location for clients Impact þ Yes 50

51 What attributes should the product have? Facilitated access to good-quality farming inputs Overview and Scale Anne Maftei Description of Type of insurance product q Life/funeral insurance Number þ Traditional crop insurance þtotal Weather-index Clients based of insurance Clients q Livestock insurance q Portfolio Key Players / Partnership Financial and Pricing Farmer and Value Chain Categories Client Segment Channels Credit and Repayment Pre-harvest support Credit Pricing Insurance Inputs and are readily available Transparency þ Yes Features Inputs are available at a time demanded by clients þ Yes FSP involvement þ Direct Post-harvest þ Indirect Post-harvest Type Support: of inputs offered Support: þ Usable Storage/ Market q Assets Management Linkages q Services Agricultural training offered Savings þ Yes Pricing and Payment uses formal curriculum Transparency þ Yes for Payment Features or Features tools are mobile-based (s) þ Yes þ No Organization Level Sustainability (OSS) Value Chain Support Measuring Impact Accessibility Level Sustainability engages clients in participatory learning Measurement þ Yes Measurement Impact on of Farmer is offered in a convenient of Livelihood Farmer Yields Yields location for clients Impact þ Yes 51

52 What products match those attributes? Overview and Scale Anne Maftei Description of Total Clients Number of Clients Portfolio Key Players / Partnership Farmer and Value Chain Categories Client Segment Channels Input loan Ghana 500k 1M Number of product client: 232,753 Average loan size/client: $98 +$20M Type of provider: Social lender Last mile partner: None partner: Input suppliers, extension workers Commodity: Maize Target customer: Noncommercial smallholder farmer Target client by income: <$3.20/day % clients that are female: 65% Client acquisition: Field agents Number of field agents: 1163 Digitized customer registration: Partially Agricultural loan Ethiopia 100k 500k Number of product client: 51,732 Average loan size/client: $172 $2M 10M Type of provider: MFI Last mile partner: None Commodity: Maize Target customer: Smallholder farmer, segment Target client by income: <$3.20/day % clients that are female: 45% Client acquisition: Field agents Number of field agents: 65 52

53 What products match those attributes? Value Chain Support Measuring Impact Anne Maftei Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact Inputs are readily available, at time demanded by client Inputs are of good quality FSP involvement: Direct Who pays for service: Clients Formal postharvest management program FSP involvement: Direct Where storage takes place: On farm Who pays for service: N/A No formal or informal linkages exist between clients & buyers FSP involvement: Nothing Multiple agricultural trainings delivered during product cycle Who pays for service: N/A Delivery party/ mechanism: Input suppliers, extension workers /tools not mobile based Classroom / theoretical training offered: No engages clients in participatory learning is offered in a convenient location for clients Regular measurement of farmer yields Formal measurement with strong control group Method of data collection: Infield Frequency: Annually Who pays for service: Donor 21-40% Measurement of change to profit / income takes place Independent study of impact done: Yes, longitudinal quality of life Type of poverty measurement metric used: N/A Who pays for service: Donor 53

54 What products match those attributes? Value Chain Support Measuring Impact Anne Maftei Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact Inputs are readily available, at time demanded by client Inputs are of good quality FSP involvement: Direct Who pays for service: Clients Formal postharvest management program FSP involvement: Direct Where storage takes place: On farm Who pays for service: N/A No formal or informal linkages exist between clients & buyers FSP involvement: Nothing Multiple agricultural trainings delivered during product cycle Who pays for service: N/A Delivery party/ mechanism: Input suppliers, extension workers /tools not mobile based Classroom / theoretical training offered: No engages clients in participatory learning is offered in a convenient location for clients Regular measurement of farmer yields Formal measurement with strong control group Method of data collection: Infield Frequency: Annually Who pays for service: Donor 21-40% Measurement of change to profit / income takes place Independent study of impact done: Yes, longitudinal quality of life Type of poverty measurement metric used: N/A Who pays for service: Donor 54

55 What products match those attributes? Value Chain Support Measuring Impact Anne Maftei Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact Inputs are readily available, at time demanded by client Inputs are of good quality FSP involvement: Direct Who pays for service: Clients Formal postharvest management program FSP involvement: Direct Where storage takes place: On farm Who pays for service: N/A No formal or informal linkages exist between clients & buyers FSP involvement: Nothing Multiple agricultural trainings delivered during product cycle Who pays for service: N/A Delivery party/ mechanism: Input suppliers, extension workers /tools not mobile based Classroom / theoretical training offered: No engages clients in participatory learning is offered in a convenient location for clients Regular measurement of farmer yields Formal measurement with strong control group Method of data collection: Infield Frequency: Annually Who pays for service: Donor 21-40% Measurement of change to profit / income takes place Independent study of impact done: Yes, longitudinal quality of life Type of poverty measurement metric used: N/A Who pays for service: Donor 55

56 What products match those attributes? Value Chain Support Measuring Impact Anne Maftei Pre-harvest support Post-harvest Support: Storage/ Management Post-harvest Support: Market Linkages Accessibility Measurement of Farmer Yields Impact on Farmer Yields Measurement of Livelihood Impact Inputs are readily available, at time demanded by client Inputs are of good quality FSP involvement: Direct Who pays for service: Clients Formal postharvest management program FSP involvement: Direct Where storage takes place: On farm Who pays for service: N/A No formal or informal linkages exist between clients & buyers FSP involvement: Nothing Multiple agricultural trainings delivered during product cycle Who pays for service: N/A Delivery party/ mechanism: Input suppliers, extension workers /tools not mobile based Classroom / theoretical training offered: No engages clients in participatory learning is offered in a convenient location for clients Regular measurement of farmer yields Formal measurement with strong control group Method of data collection: Infield Frequency: Annually Who pays for service: Donor 21-40% Measurement of change to profit / income takes place Independent study of impact done: Yes, longitudinal quality of life Type of poverty measurement metric used: N/A Who pays for service: Donor 56

57 Translating data & insights into action Anne Maftei I want to benchmark my product against robust product examples from the region. I d like help identifying gaps in my existing product / service. I need to understand the cost and pricing structure of smallholder finance products in order to get internal buy-in from senior management. 57

58 What opportunities will you find? CGAP Smallholder Families Data Hub i2i Portal MIX-1AF Smallholder Finance Explorer

59 1 2 Q & A For questions, please use the Chat box on the right-hand side of the Webex session to send in your questions. To ensure your question is seen by the moderator, select All Participants from the drop-down menu when sending the question. Jamie Anderson CGAP Michael dos Santos i2i Henry Bruce MIX Anne Maftei One Acre Fund 59

60 Questions? Ideas? Jamie Anderson, CGAP Michael dos Santos, i2i Smallholder Finance Explorer 60

61 Poll Please take a moment to respond to the poll questions on the right-hand side of your screen. 61

62 What s Next? 1 2 We will you when the webinar recording and related materials become available on the Microfinance Gateway website. Join the Microfinance Gateway s next Webinars: 15 May - Microfinance: Revolution or Footnote? Microfinance Over the Next Ten Years 24 May - Making the Case for Digital Learning, Gateway Academy 62

63 Thank you To learn more, please visit Facebook LinkedIn