Low-income people face economic turmoil in the wake of the pandemic.

Only half of people worldwide have any savings.

Extreme weather affects the poorest households most.

Low-income farmers need new tools to feed their communities.

The world’s entrepreneurs face a $5 trillion financing gap.

We focus on global challenges

How we work

Devraj Hom Roy

Markers and strategies for healthy early-stage vertical B2B marketplaces

Brief

What makes a successful B2B marketplace

Debdoot Banerjee

A guide to help financial service providers understand the challenges involved in managing customer relationships through digital channels and address common gaps

Toolkits and Guides

Traditionally, financial service providers that focus on serving micro and small business owners have relied on physical touchpoints and customer-facing employees to build and maintain personalized customer relationships. They depend on leveraging these relationships to ensure customers understand products and repay loans on time.

As institutions increasingly turn to digital channels to interact with customers, these personalized experiences must somehow be replicated digitally. In many cases, this requires multiple digital touchpoints across a single customer journey and building customized experiences based on individual customer needs.

Accion developed <a href="https://content.accion.org/wp-content/uploads/2023/08/Accion-Toolkit_Building-Strong-Customer-Relationships_EN_FINAL_082923.pdf" target="_blank" rel="noopener noreferrer">this toolkit</a> to help guide institutions through this process. We focus on five key recommendations:
<ol>
 	<li>Map out formal and informal interactions for strong customer relationships</li>
 	<li>Segment customers by digital maturity</li>
 	<li>Build digital interactions that avoid common pitfalls</li>
 	<li>Be clear on the infrastructure required to support digital relationship management</li>
 	<li>Monitor and measure success</li>
</ol>
To learn more about how to effectively manage customer relationships in a digital environment, download our toolkit in <a href="https://content.accion.org/wp-content/uploads/2023/08/Accion-Toolkit_Building-Strong-Customer-Relationships_EN_FINAL_082923.pdf" target="_blank" rel="noopener noreferrer">English</a> and <a href="https://content.accion.org/wp-content/uploads/2023/08/Accion-Toolkit_Building-Strong-Customer-Relationships_ES_FINAL_082923.pdf" target="_blank" rel="noopener noreferrer">Spanish</a>.

Building strong customer relationships in a digital environment

Michael Schlein

Article

At Accion, we know financial services are powerful tools to help reduce poverty and create opportunity. We work to create a fair and inclusive economy where underserved people have quality financial choices and opportunities. And in our recently published <a href="https://www.accion.org/2022-impact-report" target="_blank" rel="noopener noreferrer">Impact Report</a>, we dive into how we translate our vision into action — and impact.

We support innovative companies. We create responsible digital financial solutions. And we conduct rigorous research toward building a fair and inclusive economy for underserved people globally. Since our founding in 1961, we have helped build 235 financial institutions across 75 countries, and our work reached 106 million people <a href="https://www.accion.org/2022-annual-report/" target="_blank" rel="noopener noreferrer">last year, </a>helping them secure a brighter future.

That’s only a snapshot of our impact. To understand exactly how our work is making a difference in people’s lives — and how to maximize our impact — we systematically gather feedback from our partners and their clients so we can quickly learn what is and isn’t working, and share and promote best practices across our global networks.

By doing so, we’re able to learn and respond quickly to insights as they arise, which is key to equipping the people we serve — who are largely small business owners, smallholder farmers, and women — with financial tools that answer their unique needs and enable them to make better financial decisions. We also advocate for progress across the field of inclusive finance to elevate responsible impact measurement and customer-oriented solutions everywhere.
<h3>To understand impact, listen to clients</h3>
For a clearer picture of our impact, we need to listen to clients. This means looking beyond their ability to access new financial solutions and learning more about how they are using new tools to improve their lives. For example, are they saving money for the future? Are they able to respond to unexpected emergencies? Are they investing in and growing their businesses?

We integrated these questions into our first four-year partnership with Mastercard, which drove the digital transformation of small businesses and their financial service providers around the world. <a href="https://www.accion.org/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard" target="_blank" rel="noopener noreferrer">Our impact research</a> showed 5.6 million microentrepreneurs started using new digital financial products on a regular basis. Critically, rates of 30-day usage increased by roughly four times the initial rate, showing how clients are making good use of new digital financial tools. Three-quarters of digital product users are women, and nearly 80 percent of users reported improved financial health thanks to digital solutions. This means being able to pay bills on time, having access to funds when they need them, and strengthening their finances against economic shocks.

To further center client voices, we became a founding partner of <a href="https://60decibels.com/insights/microfinance-index/" target="_blank" rel="noopener noreferrer">a new index</a>, released last year, which shows the impact of inclusive financial services on customers around the world. Created by the firm 60 Decibels, the index includes data from more than 18,000 customers from 72 microfinance institutions globally, many of them Accion partners.
<h3>Promoting transparency and standards across the industry</h3>
According to <a href="https://thegiin.org/assets/documents/pub/2023-GIINsight/2023%20GIINsight%20%E2%80%93%20Impact%20Measurement%20and%20Management%20Practice.pdf" target="_blank" rel="noopener noreferrer">a recent report</a> by the Global Impact Investing Network, 94 percent of surveyed impact investors assess their impact at least once per year, and 76 percent are aligning their impact priorities with the UN’s Sustainable Development Goals. But only 15 percent of impact investors can compare their impact results to peers, and 76 percent consider this a major challenge.

In short, we need better, more transparent, more universal standards. And as more companies orient toward impact, they must back up their claims with evidence and align their impact reporting with common practices and metrics.

To promote progress across the field, Accion recently signed up to the <a href="https://www.impactprinciples.org/" target="_blank" rel="noopener noreferrer">Operating Principles for Impact Management</a>, joining a global community of impact investors who commit to bringing greater transparency, credibility, and discipline to the impact investing market.

We are also harmonizing our impact measurement practices and priorities with those of our partners. This helps ensure that our diverse network of partners around the world are doing their best to periodically evaluate the quality and effectiveness of their solutions for their clients and their communities.

You can read more about Accion’s impact framework, our legacy of impact, and our ongoing commitment to creating locally led, systemic change in our just-released <a href="https://www.accion.org/2022-impact-report" target="_blank" rel="noopener noreferrer">2022 Impact Report</a>.

Strengthening our impact requires rigorous measurement

Liza Curcio-Rudy

Why we invested in Channel19, a user-friendly digital platform for independent, refrigerated trucking businesses in the United States

The United States relies on hundreds of thousands of refrigerated truck operators to ensure that vital goods, like vaccines and fresh produce, are delivered safely to consumers. <a href="https://www.trucking.org/economics-and-industry-data#:~:text=Number%20of%20Companies%3A,operate%2010%20or%20fewer%20trucks." target="_blank" rel="noopener noreferrer">Nearly 96 percent</a> of the trucking companies that power our supply chain manage a fleet with fewer than ten trucks, according to the American Trucking Association. While these small businesses are essential to the freight industry, they lack access to digital tools and financial services that can help them run more efficiently and grow.

This week, <a href="https://www.accion.org/channel19-picks-up-2-7-million-to-streamline-refrigerated-freight-trucking" target="_blank" rel="noopener noreferrer">we announced our investment in Channel19</a>, the first digital platform for refrigerated trucking companies, and our first investment in the US logistics industry. <a href="https://www.channel19.io/" target="_blank" rel="noopener noreferrer">Channel19</a> aims to help small truckers to strengthen their businesses by overcoming operational challenges and increasing their revenue. We’re thrilled to partner with Tony Singh, Duane Moore, and the rest of the Channel19 team as they create opportunities for small business owners to increase revenue, streamline operations, and access the financial services they need to grow their businesses.

We’re excited to invest in Channel19 as the platform:
<h3>Addresses pain points for small, refrigerated trucking businesses</h3>
The US trucking industry is highly fragmented, with nearly 96 percent of operators managing fewer than ten trucks. While larger trucking companies typically employ someone to search for, bid on, and book routes for their drivers, small companies often have an owner-operator who is trying to multitask. Channel19 streamlines the dispatch process by aggregating refrigerated freight opportunities found across hundreds of load boards, recommending the best routes for customers, and enabling them to book work digitally.

For refrigerated truckers, proper temperature management is equally vital. Channel19 is designed to help refrigerated truckers seamlessly manage their refrigeration unit and protect their cargo, which is usually their most expensive asset. By saving operators time that was previously spent on manual tasks, Channel19 allows them to instead focus on growing their businesses.
<h3>Provides MSMEs with access to well-designed, affordable financial services</h3>
Trucking is a capital-intensive industry. Coupled with high gas prices and a harsh freight recession, managing cash flow can be extremely difficult for these small businesses. Shippers typically offer 30-day payment terms, which is too long to wait for small trucking companies operating on thin margins. This has made it commonplace for truckers to use factoring companies, which typically charge two to five percent of the invoice value but layer on hidden fees and lock truckers into predatory long-term contracts. These contracts result in some customers paying up to ten percent of the invoice value to access the cash they need to operate. Channel19 accelerates cash flow for these companies through their simple, easy-to-use factoring product, which leverages transaction data on the platform to validate invoices and reduce the cost of accessing capital.
<h3>Reaches a new generation of truckers</h3>
<a href="https://www.census.gov/library/stories/2019/06/america-keeps-on-trucking.html" target="_blank" rel="noopener noreferrer">The median age for a truck driver</a> in the United States is 47 years old, which is five years older than the average American worker. As this population heads toward retirement and the shortage of drivers continues to grow, these roles are increasingly filled by Central American, Indian, and Eastern European immigrants. In Texas, the epicenter of US trucking, the number of immigrant drivers <a href="https://www.houstonchronicle.com/news/houston-texas/immigration/article/trucking-labor-shift-immigrants-houston-17774264.php" target="_blank" rel="noopener noreferrer">has nearly tripled since 2000.</a> According to a Houston-based resettlement agency, many of these newcomers get their footing in the industry by working for a friend or family member’s trucking business before starting their own. Channel19 is dedicated to reaching these immigrant entrepreneurs and providing them with a pathway to earn more money, save time, and accelerate cash flow.
<h3>Brings a team with deep industry experience</h3>
<a href="https://www.linkedin.com/in/tony-singh-3359b21" target="_blank" rel="noopener noreferrer">Tony Singh</a>, CEO and co-founder of Channel19, has been in and around the trucking industry his entire life. While growing up in Northern India, he was exposed to the inner workings of his family’s trucking business. After immigrating to the US, his family remained in the trucking industry, gaining experience in fleet operations, repairs, and other aspects of the sector. Tony’s first-hand exposure to the challenges that these small businesses face led him to build Channel19 alongside his co-founder, <a href="https://www.linkedin.com/in/duane1024" target="_blank" rel="noopener noreferrer">Duane Moore</a>. Duane, CTO of Channel19, was one of the first engineers at Clover and brings more than 20 years of computer engineering experience to the team.

Digital tools have the potential to transform and strengthen small businesses in the refrigerated freight sector. We’re proud to support Channel19’s journey to build a user-friendly platform that allows truck owners to make informed decisions about their business, alleviates operational pain points, increases their profitability, and provides embedded financial services.

Leading a digital evolution for refrigerated trucking businesses in the United States

Bridging financing gaps for young entrepreneurs in India

Fintech for the People: Season 6, Episode 1 featuring Sophie Sirtaine, CEO of CGAP

Podcast

Rapid digitalization, climate change, economic instability, AI and automation, and other trends have shifted how people around the world live and work. For low-income and underserved people, these shifts have created new work opportunities, like gig work, and new risks and challenges, like the need to learn new digital skills. In this season of Accion Venture Lab’s Fintech for the People podcast, we’re exploring the role of fintech in the changing future of work. In the first episode of the season, host <a href="https://www.accion.org/bio/rahil-rangwala" target="_blank" rel="noopener noreferrer">Rahil Rangwala</a> interviews <a href="https://www.cgap.org/about/people/sophie-sirtaine" target="_blank" rel="noopener noreferrer">Sophie Sirtaine</a>, CEO of CGAP, a global partnership of leading development organizations working to advance the lives of people living in poverty — especially women — through financial inclusion.

They discuss the intersection of fintech and the future of work, particularly for blue and gray collar workers, like gig workers. Sophie shares CGAP's mission to make financial services accessible to the world's most vulnerable communities. The episode explores the importance of building responsible and inclusive financial ecosystems for a green, resilient, and equitable future. Tune in to learn more about the importance of inclusive financial solutions as global shifts change the nature of work, especially for low-income and underserved populations.

To learn more about Accion Venture Lab, visit our <a href="https://www.accion.org/how-we-work/invest/accion-venture-lab" target="_blank" rel="noopener noreferrer">website</a>.

<img class="size-large wp-image-28793 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/09/Accion-CGAP-Quotecard-1024x576.png" alt="podcast quotecard with a headshot" width="1024" height="576" />

Navigating the intersection of fintech and the future of work

<img class="wp-image-28789 size-large aligncenter" src="https://content.accion.org/wp-content/uploads/2023/09/fintech-for-the-people-rahil-1024x576.png" alt="Fintech for the People season 6" width="1024" height="576" />

This season, we'll dive into one of the hottest topics investors and entrepreneurs are discussing: The intersection of the future of work and fintech. Global shifts and trends — like rapid digitalization, climate change, migration, and generative AI — are changing the way that people around the world live and work.

Host <a href="https://www.accion.org/bio/rahil-rangwala" target="_blank" rel="noopener noreferrer">Rahil Rangwala</a>, Managing Partner of Accion Venture Lab, will speak with five industry experts, ranging from entrepreneurs to investors to stakeholders in the ecosystem, who are playing a critical role in shaping this transition. We are excited to navigate this complex topic of the future of work with you this season and aim to share what future work means and how it is affecting the lives of a vast emerging workforce that is often overlooked.

Learn more about <a href="https://www.accion.org/how-we-work/invest/accion-venture-lab" target="_blank" rel="noopener noreferrer">Accion Venture Lab here</a> and follow us on <a href="https://twitter.com/accionvlab" target="_blank" rel="noopener noreferrer">Twitter</a> and <a href="https://www.linkedin.com/showcase/accion-venture-lab/" target="_blank" rel="noopener noreferrer">LinkedIn</a>. Listen to the <a href="https://link.chtbl.com/3S4T3Gut">intro episode here</a>.

Navigating the future of work: Intro to season 6 of Fintech for the People

Announcement

WASHINGTON, D.C., September 12, 2023 — Global nonprofit Accion announced today that Anurag Saxena has joined as VP, Asia, Global Advisory Solutions. Based in Mumbai, Anurag will lead advisory projects across Asia and expand its reach with innovative new partnerships.

“With his wealth of expertise in business growth, public policy, and digital transformation, we are excited to welcome Anurag,” said Victoria White, Managing Director, Accion Global Advisory Solutions. “His deep experience and extensive network will further our ability to deliver top quality services in South and Southeast Asia and expand Accion’s footprint in the region.”
Prior to joining Accion, Anurag was the COO and Head of Strategy at EasyGov, a Jio Platforms subsidiary. He drove business growth for public-private clients and contributed to developing an innovative AI solution that reduces errors of inclusion-exclusion for social protection. Previously he held leadership roles at MicroSave Consulting (MSC), Accenture, PwC, and IBM. 
He has also served as a member of the Global Expert Committee of the Arab Economic Unity Council and a faculty member at Accenture Management Consulting University in the United States. He contributes as a speaker at various forums for financial inclusion, technology, and impact, addition to serving as a jury member for social impact awards and mentoring startups. Anurag holds a Bachelor of Technology from the National Institute of Technology (NIT) Trichy, where he received the Director's Recommendation. 
 “Accion is one of the leading forces in creating an inclusive economy,” said Anurag Saxena. “I am thrilled to be part of such a committed team that is building on its rich history of spearheading financial inclusion for the last six decades. Through our partnerships offering innovative services, and finding new ones, we can grow the availability of responsible financial solutions to underserved people in Asia and around the world.”


<hr />

<h3>About Accion</h3>
Accion is a global nonprofit on a mission to create a fair and inclusive economy where underserved people have quality financial choices and opportunities to improve their economic wellbeing. We are the leading early-stage investor in fintech for inclusion and experts in digital transformation with decades of experience harnessing the capital markets to deliver cheaper, more accessible, and customer-friendly solutions for the 1.8 billion people left out of, or poorly served by, the financial sector. For more than 60 years, Accion has helped tens of millions of people through our work with more than 235 partners across 75 countries. More at <a href="https://www.accion.org">https://www.accion.org.</a>
&nbsp;
<h4>Media Contact</h4>
Thessa Mooij 
Director of Public Relations 
Phone: +1.917.631.2518 
<a href="mailto:tmooij@accion.org">tmooij@accion.org</a>

Accion Names Anurag Saxena as VP, Asia, Global Advisory Solutions

Report

<h2>At Accion, we know financial services are powerful tools to help reduce poverty and create opportunity.</h2>
Since our founding in 1961, we have helped build 235 financial institutions across 75 countries. Last year, our work to create a more fair and inclusive economy reached 106 million people. And in our recently published <a href="https://content.accion.org/wp-content/uploads/2023/09/Accion-2022-Impact-Report.pdf" target="_blank" rel="noopener noreferrer">Impact Report</a>, we dive into how we translate our vision into action — and impact.

<a href="https://content.accion.org/wp-content/uploads/2023/09/Accion-2022-Impact-Report.pdf" target="_blank" rel="noopener noreferrer">Download our report</a> to read more about Accion’s impact framework, our legacy of impact, and our ongoing commitment to creating locally led, systemic change.

2022 Impact Report

Sebastian Molina Gasman

Why we invested in Licify, a digital platform matching small contractors with building projects and speeding up payments in the construction industry

Despite being one of the largest industries in the global economy, the construction industry hasn’t kept up with technology’s advances. Construction companies procure over $250B in services from contractors each year, yet they rely on manual processes to allocate and manage contracts. This presents a large opportunity to digitize and optimize processes, leading to more projects and efficiencies for the small contractors that power the industry. Colombian startup <a href="https://licify.co/" target="_blank" rel="noopener noreferrer">Licify</a> is seizing this opportunity by helping small businesses bid for construction contracts, speeding up payments in the industry, and underwriting loans through its digital platform.

In Latin America, procurement processes in the construction industry remain largely analog. Contractors — 95 percent of which are micro, small, and medium enterprises (MSMEs) — regularly make bids over the phone, via email, or even through letters. As a result, these processes tend to be opaque and heavily dependent on interpersonal relationships. This not only makes it harder for smaller contractors to secure new projects, and thus grow their businesses, but also makes it impossible to capture data that can verify contractors' track records and capacity to take on new projects. Problems for MSME contractors don’t stop there, however. Once they win a bid for a project, they typically pay upfront for materials and labor to start construction, putting them in a vulnerable position as disruptions in their cash flow cycle will result in project delays.

To change this, Licify has launched a B2B procurement marketplace with embedded fintech offerings for small businesses in the construction industry. <a href="https://www.accion.org/how-we-work/invest/accion-venture-lab" target="_blank" rel="noopener noreferrer">Accion Venture Lab</a> is proud to partner with them on their journey to help construction MSMEs operate more efficiently and grow. We’re excited to invest in Licify as they:
<h3>Allow construction MSMEs to work on more projects, more often</h3>
Starting a project is particularly expensive for MSME contractors. Before they can even create an invoice, they need to pay for materials and human capital to execute a portion of the job. As a result, once a contractor secures a project, they often lay out large sums of money to kickstart it. Furthermore, given the unique risks inherent in construction, contractors are often unable to secure credit from banks and other MSME lenders to finance this initial cash outlay.

During conversations with contractors in Colombia, we found that this was one of the key pain points that prevented contractors from undertaking larger jobs, or working on additional projects, despite having the ability and capacity to complete them. One contractor recounted that he was forced to sell his own car every time he secured a contract, as this was the only way that he could obtain enough capital to pay for the drywall materials he needed to start working.

Through Licify’s platform, contractors can bid on projects tendered by construction companies, leveling the playing field to give them access to high-quality opportunities. Once a project is granted, Licify uses the data gathered on both the project and the contractor to advance payments and underwrite working capital loans. Through this access to capital, the amount of cash at hand no longer becomes a barrier to undertake a project and contractors can focus on execution.
<h3>Prevent cash crunches that disrupt projects</h3>
Once a project is started, cash flow cycles continue to be a challenge for MSME contractors. After issuing an invoice to the construction company, they typically wait two to four weeks to get paid. This can put them in a challenging cash flow position, as they rely on these payments to continue working on a project. Any delays or disruptions in the process puts their ability to maintain a project timeline at risk. In fact, cashflow delays were cited by Licify customers as the leading reason for project delays and cost overruns. In an industry where 80 percent of projects are delivered late and over budget, alleviating cash flow delays is a priority both for contractors and construction companies.

By plugging directly into the payment flow of construction projects, Licify provides contractors with flexibility on their payment schedules. As contractors finish a project, Licify can advance payments to better match their cash outflows, avoiding delays in payments to workers and enabling the purchase of additional materials. Licify then directly collects payments from the construction companies allowing contractors to focus on executing the project and not on managing multiple receivable schedules.
<h3>Modernize construction procurement technology</h3>
Licify is reinventing how contractors access construction projects. The platform connects builders with the best contractors for their projects by opening up bids to all qualified service providers. To do this, Licify's marketplace presents contractors with ongoing construction projects to bid on. These are posted by builders, who can use Licify to compare potential contractors for portions of a project. This process provides construction companies with data that was previously difficult to obtain, such as a contractor’s operational bandwidth and track record with similar projects while allowing contractors to access new opportunities. This use of technology brings operational efficiencies for both sides of the market and democratizes access to high-quality opportunities.

Once Licify matches contractors to a project, it helps builders manage the payment flow to their small contractors with a suite of digital tools to oversee project progress and manage documentation. With projects often involving over a hundred contracts, Licify frees up valuable administrative time that could be better spent on other parts of a project. So far, this value proposition has resonated with the top-building companies in Colombia, with over 50 clients signing multi-year agreements and tendering contracts with a yearly value above $1B USD to small contractors.
<h3>Support small businesses across Latin America</h3>
Licify is consolidating its presence in Colombia and growing its payment and lending services in the region. Today, Licify has already registered over 16,000 small contractors on its platform who are generating over 2,500 bids per month on active projects. With this new funding, the company plans to expand into Mexico, where they have already secured their first client, in the near future. We believe Licify addresses a key pain point we’ve seen across the region, and we’re excited to work with Licify as they move into new markets.

This is Accion Venture Lab’s first investment in the construction tech industry. We feel confident working with a company with such a strong product-focused mindset and led by two industry veterans, Fernando Olloqui and Pedro Celia, who have worked as both builders and contractors. “We know that if we improve this supply chain development and SME development in construction, we’re going to have a huge impact,” says Fernando. We believe that Licify’s solutions to facilitate connections and alleviate key pain points for small businesses in this large industry represent a great opportunity to catalyze growth for a key segment of MSMEs, and we can’t wait to continue supporting them in this journey.

Hear more about Licify from founder Fernando Olloqui:

[embed]https://youtu.be/5pUU95gpz0Y[/embed]

Licify catalyzes growth for small construction businesses in Latin America

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We harness the power of digital technology to

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What makes a successful B2B marketplace

Building strong customer relationships in a digital environment

Strengthening our impact requires rigorous measurement

Leading a digital evolution for refrigerated trucking businesses in the United States

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