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.

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How we work

Jose  Wolff

By reaching women entrepreneurs with high-quality, affordable, and responsible financial services, we can empower them to seize opportunities in their communities and better support themselves and their families.

Article

At 7 a.m. each morning, Claudia opens her store. For 28 years, she has imported and sold bed linens to wholesalers and individual customers from her storefront in Guatemala City. The hours are long and the work is difficult, and she is proud of the business she built. This business has allowed her to provide for her two children and send them to school – one is currently an aeronautical engineer and one is a medical student. She’s also been able to offer job opportunities to members of her community over the years. To build her business, Claudia became a customer of <a href="https://genesisempresarial.org/" target="_blank" rel="noopener noreferrer">Fundación Génesis Empresarial,</a> a financial services provider that helps small businesses in Guatemala improve their digital capabilities and financial management.

“I started with Génesis with a <a href="/can-group-lending-work-in-a-socially-distant-world" target="_blank" rel="noopener noreferrer">group loan</a>, where one person was the leader, and the others only had to make our payment to be able to grow so that Génesis could trust each of us.” Some banks, she recalls, had too many requirements for a fledgling business like hers. “Génesis has been much more accessible,” she says.

Today, she makes use of a variety of their products to sustain and expand her business. “I have worked with Génesis since I started. I think we are both growing, and I am still a client of Génesis to this day.”

Like many small business owners, Claudia faced unprecedented challenges in recent years. In response to the COVID-19 pandemic, <a href="https://www.accion.org/claudia-moves-her-business-online-during-the-pandemic" target="_blank" rel="noopener noreferrer">she worked with Fundación Génesis Empresarial to adopt new digital tools</a>, including social media and digital payment options that allowed her to reach customers who were not able to leave their homes. She credits Fundación Génesis Empresarial’s support, along with the dedication of a longtime employee, for helping her business weather the crisis.

“Today, I think we are even more solid than before,” she says. “Many businesses that did not have good support, good capital, or good staff went bankrupt. Several of the ones here closed. We are one of the few that have continued to distribute these kinds of products.”

<img class="aligncenter wp-image-27605 size-large" src="https://content.accion.org/wp-content/uploads/2023/02/claudia-de-aldana-genesis-guatemala-city-1024x683.jpg" alt="Claudia in her textile shop in Guatemala City" width="1024" height="683" />

Accion and Fundación Génesis Empresarial have a longstanding partnership and a shared commitment to <a href="/guatemalan-entrepreneurs-save-time-and-money-with-digital-products" target="_blank" rel="noopener noreferrer">helping Guatemala’s small businesses thrive</a>. Claudia is one of many hard-working business owners in the country who are trying to get ahead but are at risk of being left behind as the global economy becomes increasingly digital. And she's an example of how high-quality, affordable, and responsible financial services can help women entrepreneurs seize opportunities.

Accion is committed to helping micro and small enterprises like Claudia’s keep up with the technology trends that are reshaping the global economy. Since 2018, we have partnered with Mastercard Center for Inclusive Growth to support the digital transformation of financial service providers, like Fundación Génesis Empresarial, who serve these types of businesses. Through this work, we have learned a few key lessons: using digital products can build financial health, empower women, and unlock growth; frequent users of digital products see more benefits to their business; and while digital payments and other technologies are in high demand, a human touch is essential for maintaining trust in the new products. These findings are described in our report, <a href="/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard#4.-frequent-users-can-see-more-business-value" target="_blank" rel="noopener noreferrer">The impact of digital transformation on underserved microbusinesses</a>.

Accion and Fundación Génesis Empresarial are also <a href="/partnering-to-create-economic-opportunities-in-the-northern-triangle" target="_blank" rel="noopener noreferrer">taking part in the Partnership for Central America</a>, an effort to address the root causes of migration in the Northern Triangle countries of Guatemala, Honduras, and El Salvador. By working with local partners like Fundación Génesis Empresarial, Accion aims to increase economic opportunity in a region that struggles with food insecurity, violence, climate change, and other threats to citizens’ livelihoods.

Hear Claudia tell her story in our video, <a href="/claudia-moves-her-business-online-during-the-pandemic" target="_blank" rel="noopener noreferrer">Claudia moves her business online during the pandemic</a>.

[embed]https://youtu.be/NhLbibJh6CQ[/embed]

Creating economic opportunities for women in Guatemala

Victoria White

How we’re driving inclusive digital transformation for underserved small businesses

Four years ago, we <a href="https://www.accion.org/mastercard-and-accion-partnering-for-inclusive-growth" target="_blank" rel="noopener noreferrer">set out</a> to bring eight million people—including three million merchants and microentrepreneurs—into the digital economy. At the time, we knew this work was important, but we didn’t know just how important—and challenging—it would become. The pandemic made digital transformation vital to the survival of financial service providers and their clients. Now, high inflation and slowing economic growth are creating more difficulties for low-income communities and their small businesses.

Digital financial tools have a <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">demonstrated positive impact</a> on the financial health and resilience of small business owners. Going digital can enable entrepreneurs to purchase insurance to protect against climate disasters, access revolving credit to manage inventory, boost income through accepting digital payments, and more.

But digitizing underserved small businesses is not a straightforward endeavor. Historically overlooked and excluded clients often lack essential digital and financial skills, and many are hesitant to change how they’ve always operated. Simply put, they don’t trust digital tools with their finances.

To overcome these challenges and drive digital transformation, we <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">teamed up with Mastercard</a> to work with nine financial service providers (FSPs) and 47 fintech companies around the world. With these partners we created new digital financial tools that meet the complex and shifting needs of small businesses. We surpassed our goal, with our partners now reaching 11.5 million individuals, including 4.4 million micro and small business owners using these digital tools on a regular basis.

<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">Eighty percent</a> of people using these tools said financial outcomes for their business improved, as they were able to purchase inventory, pay wages, and make loan repayments on time. And our institutional partners are seeing cost savings, operational efficiencies, and enhanced customer experiences thanks to digital transformation.

Here are three strategies we used to achieve these results:
<h3><strong>1. Meet customers where they are</strong></h3>
For many small businesses, adopting new digital financial services requires new investments, skills, and ways of operating. By meeting customers where they are on their digital and financial journeys, FSPs and fintechs can better address their unique needs, and thus increase adoption and usage of digital products.

During the pandemic, we applied this strategy to support clients of our partner <a href="https://annapurnafinance.in/">Annapurna Finance</a> in India. Annapurna lends to MSMEs through individual and group loans, working with clients in some of the poorest parts of India. Many of Annapurna’s clients lack access to a smartphone, but most have less advanced feature phones that can send text messages. To meet these customers where they are, we developed a digital emergency loan that small business owners can access in a matter of minutes, by sending a WhatsApp or SMS message to access a pre-approved loan amount. These clients could then use these funds to pay business expenses, order inventory, and stabilize their operations during the crisis.

According to a survey of Annapurna’s women-owned small business clients, the loans help alleviate some of the financial pressures they face during disruption, with more than <a href="https://www.accion.org/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard">90 percent</a> of users saying they were able to pay their operating expenses on time.
<h3><strong>2. Embrace innovation to encourage frequent usage</strong></h3>
Frequently using financial products is critical to building financial health. We’ve seen that clients who used digital products <a href="https://www.accion.org/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard">more frequently</a> were 30 percent more likely to link improvements in business growth to digital products. This is where FSPs can get innovative and creative in designing new products, services, and apps.

Our partner in Bolivia, <a href="https://www.bancosol.com.bo/">BancoSol</a>, wanted to find a way to increase savings rates among their clients. Many vulnerable small business owners keep their savings at home in cash or were not saving at all, so they lacked funds to cover family or business emergencies.

To encourage healthy financial habits through digital savings, we <a href="https://www.accion.org/gamification-motivates-microentrepreneurs-to-save-in-bolivia">worked with BancoSol</a> to develop GanaSol, a gamification platform that enables customers to earn prizes for depositing cash regularly and retaining a minimum monthly balance. Soon after the initial launch, BancoSol adapted the platform to reward on-time and digital repayments of loans.

GanaSol boosted uptake for BancoSol’s digital financial services, increasing its monthly active digital user base by more than 50 percent. A majority of GanaSol users said the product <a href="https://www.accion.org/gamification-motivates-microentrepreneurs-to-save-in-bolivia">helped them</a> resolve financial challenges, boost business growth, and save time. The platform has also helped BancoSol manage risk and lower costs, thanks to a 30 percent increase in users who were able to pay back their loans on time.
<h3><strong>3. Apply a tech-touch balance</strong></h3>
Our work with Mastercard reinforced the benefits of digital financial services among underserved small businesses—but it also highlighted the ongoing challenges that users face in accessing and using these tools.

Many small businesses <a href="https://www.centerforfinancialinclusion.org/digital-adoption-of-msmes-during-covid-19" target="_blank" rel="noopener noreferrer">moved back to cash</a> as the world recovered from the pandemic. Underserved and excluded clients often lack essential digital and financial literacy, and most importantly, they don’t trust digital tools. These challenges are particularly notable among women.

Applying a tech-touch balance that incorporates interactions with real people in the customer journey is key to helping clients build comfort, knowledge, skills—and trust. Loan officers or customer support representatives build personal relationships with these clients, and these relationships can create a game-changing foundation in driving digital adoption.

FSPs should also consider the needs of their own employees. There is a big learning curve that comes with digital transformation, and many people may need time to adapt to new ways of serving customers. Only then will they be incentivized to drive digital uptake with clients.

Every day, more of the economy moves online. Across the world, digital IDs are becoming mandatory, utility providers are no longer accepting cash, and small businesses are struggling to compete with larger competitors that are more digitally savvy. At Accion, we’re working to ensure that the world’s most vulnerable people are included and uplifted in digital transformation—and that they have the tools they need to build a brighter, more resilient future.

Three strategies we used to help millions of small businesses go digital

Gift Mahubo

Kwashie Agbitor

How human-centered design, technology, and partnerships unlocked the benefits of embedded insurance for Mozambicans

[caption id="attachment_27543" align="alignright" width="251"]<img class=" wp-image-27543" src="https://content.accion.org/wp-content/uploads/2023/01/Elisa-Cecilia-Paruque-Lowe-1-e1674737435286-633x1024.jpg" alt="Elisa Cecilia Paruque Lowe, a small business owner and Socremo customer, during a difficult time" width="251" height="406" /> <em>Caption: Insurance relieved financial burdens for Elisa Cecilia Paruque Lowe, a small business owner and Socremo customer, during a difficult time</em>[/caption]

Life throws unexpected changes our way. For most low-income individuals and households, those changes can be extremely costly, especially for those that are uninsured. Low-income households typically lack social safety nets, so when an unexpected event or expense arises, the financial impacts are very challenging to navigate. Insurance helps alleviate the cost of serious life events, like illness, job loss, or the death of a loved one, but for many in this group, these policies seem unattainable and only for the elite.

Accion partner <a href="http://www.socremo.com/" target="_blank" rel="noopener noreferrer">Socremo</a> has low-income people and entrepreneurs in Mozambique for more than two decades. A leading microfinance bank based in Maputo, Socremo identified funeral coverage as one of the most important needs of its customers. Socremo took the opportunity to leverage this insight into creating a product that would help their customers relieve one of their biggest burdens — bearing significant funeral costs for their loved ones. In Mozambique, funerals are a major event with great cultural significance that carry many additional costs beyond the money spent on burials. Bereaved families bear the costs of organizing and hosting relatives and community members, sometimes depleting family savings or forcing them to draw down on money from their small businesses to cover costs.

With support from the <a href="https://scbf.ch/" target="_blank" rel="noopener noreferrer">Swiss Capacity Building Facility</a>, we worked with Socremo to refresh its savings product, Vitamina, and bundle it with a funeral insurance benefit. Building on the success of an existing credit life insurance product, Socremo worked to provide funeral benefits to existing loan customers and, with time, extended this benefit to its savings account holders. A key feature of the revamped savings product is a “balance multiplier,” which pays out double the savings account balance in the event of death of the customer.

The team used human-centered design to test and iterate the product, refine processes, uncover new channels, and incorporate customer feedback at every stage to refine the final product. We documented the experience and learnings in our latest report, <strong>“<a href="https://www.accion.org/unlocking-the-benefits-of-embedded-insurance-for-micro-and-small-businesses" target="_blank" rel="noopener noreferrer">Unlocking the benefits of embedded insurance for micro and small businesses: Insights from Mozambique</a>.” </strong>

Launching the new and improved Vitamina savings product and attracting more customers was not without challenges. However, the eventual increase in customers using the product and its new funeral insurance benefit is clear proof that financial service providers have an important role to play in supporting customers throughout the product adoption journey: by investing in the right infrastructure, researching customer needs, and leveraging partnerships.

Socremo customers are already realizing the positive impact this product has on their livelihoods. Elisa Cecilia Paruque Lowe, a widow, saw the value of insurance during a time of distress. Elisa recounted, “The amount I received really helped as I did not get family support and resorted to taking money from my business. With this insurance money, the negative impact on my business was reduced.”

Read Accion’s <a href="https://www.accion.org/unlocking-the-benefits-of-embedded-insurance-for-micro-and-small-businesses" target="_blank" rel="noopener noreferrer">full report</a> on the benefits of embedded insurance and bundling products to achieve scale.

<em>This report was developed with support from the </em><a href="https://scbf.ch/" target="_blank" rel="noopener noreferrer"><em>Swiss Capacity Building Facility</em></a><em>.</em>

Insurance gives low-income families financial stability in Mozambique

Introduction

<h3>Why a bundled product with a funeral benefit?</h3>
<p>Funerals are a major life event and are culturally significant in sub-Saharan Africa. Mozambican communities make funerals societal affairs and thus they carry additional costs beyond the money spent on coffins and burial-related activities. Funerals may last for several days, with community members gathering to console the bereaved families, who bear the costs of hosting. These costs have negative effects on immediate family members post-burial, as family savings can be depleted from organizing funerals. Micro and small business owners who do not have enough savings are forced to draw down on money from their businesses, affecting their long-term financial health. There are informal and well-established mechanisms such as funeral associations, community groups, and church welfare groups that may provide support, but in most instances, these mechanisms are inadequate. This is where funeral insurance becomes critical.</p>
<p>There are various insurers offering funeral insurance, but uptake is very slow due to the sensitive nature of issues around death, limited distribution channels, lack of an understanding of the targeted market, and the negative perception of insurers when it comes to claims. After two decades of working with low-income clients, Socremo has a deep understanding of their customer base. With Accion’s support, the organization partnered with a leading insurance provider in Mozambique, Hollard Insurance, to provide funeral insurance as a bundled product to be combined with Socremo’s existing savings product called Vitamina. This partnership provides Socremo the opportunity to add value through an existing, well-known product and meet the needs of its customers. It also helps Hollard reach a segment of the market it would not typically reach due to misconceptions about insurance as something only for the affluent.</p>
<p>Additionally, the fact that customers do not have to contact Hollard, and that Socremo handles all the paperwork and premium payments, makes for an easier, more seamless customer experience. As an organization that puts customers at the center of all its actions, Socremo’s decision to introduce this insurance product as a bundled product was influenced by direct engagements with customers.</p>
<blockquote class="blockquote"><p>Funerals are societal affairs, and any benefit that reduces the burden on the family is highly regarded. <span style="color: #fe6800;">Socremo designed a savings product with funeral insurance for its clients.</span> The value proposition: a balance multiplier, easy premium payments, no customer input required, and increased benefits with increased savings.</p></blockquote>


Product design journey and prototyping for savers

<h3>What is Vitamina?</h3>
<p>Vitamina is a savings product that has the basic features of an ordinary savings product but with added benefits, such as bundled funeral insurance benefits and accompanying digital tools for product onboarding and utilization. This product is a voluntary product available to micro and small business owners who have an existing loan or who wish to only save with Socremo. Product enrollment is done via the loan officer, the branch network, or mobile application.</p>
<h3>Iterating Vitamina</h3>
<p>From its inception, Vitamina was conceived to be a savings product with very basic features, delivered like any other competing savings product. A product review exercise revealed a rather weak uptake and low product utilization, inspiring several recent iterations, which ultimately led to the current product. Human-centered design principles — spending time with clients in their real environment, following the client’s leads and needs, thinking about the whole customer journey around the product, prototyping and testing the product, and small and simple interventions — influenced the product iteration at each major stage.</p>
<p><img class="size-large wp-image-27444 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.40-1024x591.png" alt="iteration 1" width="1024" height="591" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.40-1024x591.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.40-300x173.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.40-768x443.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /><img class="size-large wp-image-27445 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.58-1024x671.png" alt="iteration 2&amp;3" width="1024" height="671" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.58-1024x671.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.58-300x197.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.23.58-768x503.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<h4>The final product has the following features, including its key value proposition that in the event of death, double the savings balance is paid out:</h4>
<ul>
<li>Voluntary savings</li>
<li>M1,000 (US$16) minimum balance to qualify</li>
<li>Socremo deducts the M1.76 (US$0.03) per M1,000 (US$16) premium cover from the interest paid monthly into the account, paying the insurer directly on behalf of the client</li>
<li>Interest paid at 7 percent per year, above the average market rates between 4 to 5 percent per year</li>
</ul>
<h4>In the event of a valid claim, the benefit amount (which is double the savings account balance) will be paid to (in order):</h4>
<ul>
<li>The Socremo savings account holder</li>
<li>The nominated beneficiary</li>
<li>The estate of the deceased</li>
</ul>
<h4>Distribution and payment channels:</h4>
<ul>
<li>Branch network</li>
<li>M-PESA wallet integration</li>
<li>Socremo mobile app</li>
<li>Staff field tablet application (DFA)</li>
</ul>
<h4>The benefits to Socremo include:</h4>
<ul>
<li>Increase in number of savers</li>
<li>Deposit mobilization</li>
<li>Microinsurance inclusion</li>
<li>Transaction income (as a collection agent for the insurer)</li>
<li>Customer retention and stickiness</li>
</ul>
<p><img class="size-large wp-image-27446 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.29.18-1024x309.png" alt="conclusion for the chapter" width="1024" height="309" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.29.18-1024x309.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.29.18-300x90.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.29.18-768x231.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>


Growing an existing partnership

<p>Socremo and Hollard first introduced credit-life microinsurance in Mozambique in 2014 through Socremo-funded credits (loans) to protect the client and the client’s family. Socremo administers the credit-life insurance in partnership with Hollard, and is responsible for distributing the product, collecting premiums, and paying the benefit amount directly to customers in case of death. This credit-life insurance is available for the duration of the loan facility and has been quite successful and impactful over the years.</p>
<p>Building on the success of the credit-life insurance and to address the challenges that clients have with funeral expenses, Socremo and Hollard introduced a funeral benefit that is available to credit clients (during the lifetime of the loan facility) and Vitamina clients (driven by the saving balance). This new benefit:</p>
<ul>
<li>Guarantees a dignified funeral for customers and their dependents.</li>
<li>Allows, in case of loss of life of the customer themself, for the family to avoid seeking funds for the funeral and repayment of credit, as well as giving up household goods for credit reimbursement.</li>
<li>Helps reduce the incidence of customers taking money from their business to defray funeral expenses and thus a negative impact on the growth of the business.</li>
<li>Helps prevent a situation where a customer has to sell family property to finance funeral expenditures.</li>
</ul>
<h3>Growth of the Vitamina product</h3>
<p><img class=" wp-image-27448 alignright" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.36.09.png" alt="" width="284" height="149" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.36.09.png 650w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.36.09-300x157.png 300w" sizes="(max-width: 284px) 100vw, 284px" />Through its various iterations, the Vitamina product has grown by over 60 percent since 2020, from 6,400 clients early in the year and after a regulatory determination in 2021 that called for the compulsory closure of accounts without adequate KYC. Socremo has also managed to mobilize deposits above US$2.4 million, with an average balance of US$235, by improving the value proposition of the Vitamina product.</p>
<blockquote class="blockquote"><p>Partnerships and long-term relationships with established players help with product design, go-to-market strategy, administration, and client retention. <span style="color: #fe6800;">Socremo benefited from bundling microinsurance with its loan and savings products.</span> By building on the experiences learned with lending customers, Socremo has been able to leverage the existing partnership with Hollard to extend this benefit to savings customers and increase customer stickiness.</p></blockquote>
<hr />
<h3>Client Testimonial: Abilio Rubao Langa</h3>
<p><img class="wp-image-27450 size-large aligncenter" src="https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards1-1024x512.png" alt="Abilio Rubao Langa" width="1024" height="512" /></p>


Vitamina: Implementation challenges

<p>The challenges to adopting and using microinsurance products encountered in similar markets are also present in Mozambique. Throughout the implementation process, Socremo, Accion, and Hollard worked together to understand customer struggles, reduce friction points, and increase awareness of the customer target market. Involving field staff who have built long-term relationships with clients was important as trust is key; leaning on them to communicate the product offering made the process simpler and more consistent. The customers’ loyalty to field staff and Socremo also helped with adoption. After carefully considering key customer pain points, which were common to both the existing loan customers without savings accounts and the new savings customers being targeted, the team managed to overcome each challenge area as highlighted below.</p>
<p><img class="size-large wp-image-27453 aligncenter" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.55.11-1024x763.png" alt="" width="1024" height="763" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.55.11-1024x763.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.55.11-300x224.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.55.11-768x572.png 768w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-05-at-22.55.11.png 1522w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<hr />
<h3>Client Testimonial: Elisa Cecilia Paruque Lowe</h3>
<p><img class="alignnone size-large wp-image-27451" src="https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards2-1024x512.png" alt="Elisa Cecilia Paruque Lowe's quote" width="1024" height="512" srcset="https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards2-1024x512.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards2-300x150.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards2-768x384.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>


Vitamina: Adoption challenges

<h3>Barriers and enablers to adoption</h3>
<p>Socremo had to undergo numerous iterations of the savings product Vitamina, due to low adoption and conversion rates. Some of the barriers and enablers employed over the two-year project period were as follows:</p>
<p><img class="aligncenter wp-image-27459 size-large" src="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-06-at-00.31.39-1024x786.png" alt="challenges and enablers" width="1024" height="786" srcset="https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-06-at-00.31.39-1024x786.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-06-at-00.31.39-300x230.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Screen-Shot-2023-01-06-at-00.31.39-768x589.png 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>Results from the project show that institutional capabilities and capacity can drive the adoption of microinsurance for micro and small businesses through focused research, investments in digital infrastructure, partnerships, and digital literacy tools.</p>
<hr />
<h3>Client Testimonial: Albertina Joao Chavana Balate</h3>
<p><img class="aligncenter wp-image-27452 size-large" src="https://content.accion.org/wp-content/uploads/2023/01/Socremo-client-quote-cards3-1024x512.png" alt="Albertina Joao Chavana Balate" width="1024" height="512" /></p>


Conclusions and recommendations

<p>Socremo has been able to design and develop an inclusive microinsurance product to increase their number of clients by 60 percent, create new revenue streams, retain customers, and cross-sell this new product to existing clients.</p>
<p>From this experience, we have learned that:</p>
<ul>
<li><strong>The value of accepting microinsurance for small businesses must be tied to an anchor product.</strong> Accepting microinsurance brings a greater value proposition that leads to the expansion of customers, increased customer spending, improved business management, better insight into revenue and income, ease of access to financial accounts, and increased safety, as well as keeping up with customer preference.</li>
<li><strong>Partnering with microinsurance facilitators is driving inclusion by reaching people and business owners who were not clients before.</strong> Growth can be driven by new businesses through lead generation from non-traditional microfinance clients. Positioning the bank in the market beyond credit can attract women-owned businesses that may be using informal microinsurance products like burial societies.</li>
<li><strong>Digital infrastructure helps with customer onboarding and data collection.</strong> The lead conversion rate can be improved with digital infrastructure that allows for seamless customer acquisition and strategic use of data. Staff-assisted and self-service models like the Socremo mobile app provide customers greater flexibility and payment options.</li>
<li><strong>Payment acceptance supports growth.</strong> Digitally enabling financial service providers and automating systems, from onboarding to payment systems, helps micro and small business owners make claims and receive payments for claims.</li>
</ul>
<p>For other financial service providers that intend to follow suit, these are some of the key considerations that should be examined and acted on:</p>
<ul>
<li><strong>Reliable and easy-to-use technology must be incorporated to increase awareness for small business owners.</strong> Products such as microinsurance do not need complex technology; by continuously making small changes and interventions, financial service providers can continue to bolster adoption, use, and promotion.</li>
<li><strong>Investing in research to better understand clients and their needs is critical.</strong> Market research on existing and new clients can improve the understanding of why, how, and under what conditions various segments of micro and small businesses adopt and benefit from certain products. Testing products with existing clients allows a better understanding of the pain points and needs. Socremo made use of branch champions to solicit feedback faster and make adjustments.</li>
<li><strong>Partnerships can complement your existing product.</strong> Financial service providers can set up partnership frameworks to foster product design, innovation, implementation, support, and client retention. Partnerships require new competencies to manage the new business model and also to support clients who are not typical financial service provider clients.</li>
</ul>
<hr />
<h3><em>Acknowledgment</em></h3>
<p><em>This report was authored by a team led by Gift Mahubo, Kwashie Agbitor, Gildo Daniel, and Wellington Chinanzvavana. </em></p>
<p><em><img class="wp-image-27465 alignleft" src="https://content.accion.org/wp-content/uploads/2023/01/SCBF-logo-longform-color-1024x124.png" alt="SCBF logo" width="363" height="44" srcset="https://content.accion.org/wp-content/uploads/2023/01/SCBF-logo-longform-color-1024x124.png 1024w, https://content.accion.org/wp-content/uploads/2023/01/SCBF-logo-longform-color-300x36.png 300w, https://content.accion.org/wp-content/uploads/2023/01/SCBF-logo-longform-color-768x93.png 768w, https://content.accion.org/wp-content/uploads/2023/01/SCBF-logo-longform-color.png 1550w" sizes="(max-width: 363px) 100vw, 363px" />This project and report were implemented and produced with support from the Swiss Capacity Building Facility (SCBF), an innovative public-private platform to enhance inclusive finance for low-income clients, especially women, smallholder farmers, and micro, small, and medium enterprises in emerging contexts. SCBF enables financial service providers to access the expertise required to develop and scale innovative solutions that address the unique challenges these clients face. So far, SCBF has co-funded over 169 projects across 48 countries, reaching over 2.9 million people with financial services that improve their living standards, build resilience, and advance economic empowerment. Connect with SCBF at <a href="http://www.scbf.ch" target="_blank" rel="noopener">www.scbf.ch</a> or tag @SCBF on <a href="https://www.linkedin.com/company/scbf" target="_blank" rel="noopener">LinkedIn</a>.</em></p>
<p><em><img class="wp-image-27466 alignleft" src="https://content.accion.org/wp-content/uploads/2023/01/Logo-Socremo.png" alt="Socremo logo" width="170" height="85" srcset="https://content.accion.org/wp-content/uploads/2023/01/Logo-Socremo.png 946w, https://content.accion.org/wp-content/uploads/2023/01/Logo-Socremo-300x150.png 300w, https://content.accion.org/wp-content/uploads/2023/01/Logo-Socremo-768x385.png 768w" sizes="(max-width: 170px) 100vw, 170px" />We would like to thank the team at Socremo for working with us on this project and sharing their learnings and expertise. </em></p>
<p><em>We also thank Hollard Insurance for their partnership in providing inclusive microinsurance products to micro and small businesses. </em></p>
<p><em>We are also grateful to Boaventura Chicuele and Sabino Esteira for their valuable inputs, insights, and contributions. </em></p>


Report

<em>Thank you to our partners, Swiss Capacity Building Facility and SOCREMO Microbanco S.A.</em>
<h2>Executive summary</h2>
In Mozambique — as in other parts of the world — microentrepreneurship is an especially risky endeavor. It is fraught with high-impact, disruptive economic events, with few mitigation or management tools available to those affected. Income is often unstable, making it challenging for entrepreneurs to save much money. Normal life events — from births to weddings to funerals — can have major implications for the microentrepreneur. For example, when a family member dies, the family is required to cover the costs of the funeral and hosting the extended family. As a result, many people get into significant debt and become unable to continue with their businesses.

Without adequate savings, access to capital, or other financial means to absorb these costs, many microentrepreneurs find themselves sinking deeper into a financial crisis. While many insurance companies have introduced voluntary products in the Mozambique market, the uptake has been low and many clients have missed payments, resulting in lapsed policies. Culturally, insurance policies are also viewed as a product for the elite among low-income earners and microentrepreneurs, who do not see it as a suitable product for them.

To address some of the gaps in existing offerings, the new product must offer customers significant coverage, convenience, and other benefits, all while incentivizing savings behavior for the long-term.

Bundled or composite products afford an organization the opportunity to offer convenience and cost savings to low-income customers. Having identified funeral coverage as a key need of its customers, Socremo, a leading microfinance bank based in Maputo, Mozambique, first partnered with Hollard Insurance to provide funeral benefits to existing customers of its loan products. With time, Socremo partnered with Hollard again to extend this benefit to its savings account holders. The funeral benefit attached to the savings product features a “balance multiplier,” which credits customers double the amount of their latest savings account balance in the event of death of the customer.

Over a two-year period and with support from the Swiss Capacity Building Facility, Accion used human-centered design to help Socremo improve its savings product to include this savings account balance multiplier benefit, which is paid out by the insurer. During the project, there were several iterations to cater to the needs of customers, increase uptake, and incentivize staff to sell the product. These iterations helped define a value proposition that aligns with customer needs and expands product delivery channels.

Partnerships play an important role in delivering tailor-made products that meet the needs of customers. Strong partnerships help parties leverage their strengths and experiences; this was demonstrated through Socremo’s collaboration with leading Mozambique insurer Hollard. Socremo’s deep understanding of low-income customers and Hollard’s expertise in insurance complemented each other well throughout the product’s development and deployment.

Ultimately, the various iterations and improvements resulted in a 60 percent increase in the savings product’s uptake and usage; however, the undertaking did not come without challenges. An initially weak value proposition, consumer protection issues, and regulatory and social norms were key barriers to adoption. Enablers such as awareness, financial literacy, and the use of digital tools for onboarding helped in removing these barriers, leading to increased adoption. The increase in adoption is clear proof that financial service providers have an important role to play in supporting consumers by investing in the right infrastructure, researching customer needs, and leveraging partnerships.

Unlocking the benefits of embedded insurance for micro and small businesses

Jasiel Martin-Odoom

Lami’s platform connects people across Africa with dependable, affordable insurance that can help them prepare for life’s emergencies and stay resilient when challenges arise.

As a rideshare driver in Karatina, Kenya, Charles Mathenge's income depends on his car. After a collision, he was lucky to be physically unharmed, but his car was not drivable – leaving him without a way to earn a living. His previous insurance provider responded slowly, and he lost income while waiting for them to approve repairs to his car. “There was a time when I was hit from behind,” he says about the accident. “The car was very much damaged. But it took a lot of time for the insurance company to repair my car. So, I was losing my earnings, and I was not able to pay my bills.”

[caption id="attachment_27622" align="alignleft" width="600"]<img class="wp-image-27622" src="https://content.accion.org/wp-content/uploads/2023/02/Lami-client-Charles-small.png" alt="Charles, a rideshare driver and Lami client in Kenya" width="600" height="400" /> <em>As a rideshare driver, Charles Mathenge relies on his car to earn his income.</em>[/caption]

Charles is part of a tiny minority of Kenyans who have access to insurance, which can help protect people in cases of illness, job loss, and accidents. For drivers like Charles, car theft and accidents can cause major disruptions to their income – an income that Charles relies on to support himself, his mother, and the rest of his family.

<a href="https://www.lami.world/" target="_blank" rel="noopener noreferrer">Lami</a>, a Kenya-based insurtech startup and Accion Venture Lab portfolio company, is working to broaden access to affordable and relevant insurance in Africa so that more people can build financial security. Using a digital platform, they’re helping people like Charles get high-quality, dependable insurance, often for the first time.

Founded in 2018 by Jihan Abass, Lami connects low-income customers across Africa with the right insurance products for their needs. “I think insurance is one part of financial inclusion that has really been ignored,” says Jihan. “It brings about a lot of security because here in most of Africa, people rely on single sources of income. So, for us, we are really excited to be able to do that and to provide a safety net for people as they transact on a day-to-day basis.”

<a href="https://www.brookings.edu/blog/africa-in-focus/2021/07/02/capturing-africas-insurance-potential-for-shared-prosperity/" target="_blank" rel="noopener noreferrer">Only three percent of Africans</a>, excluding South Africans, have access to insurance, putting many in a difficult position when emergencies occur. “If I’m not insured, and anything happens, there are so many risks. I will not be able to support my family and will not be able to have any earnings,” says Charles.

Lami’s approach stands out because it supplements a traditionally inflexible, in-person service — selling insurance — with digital technology that has a much wider reach. More than half of Kenyans have smartphones, and the use of mobile phones continues to grow across the continent, creating opportunities to reach more people. By making insurance sales digital, <a href="/tech-opens-the-door-for-low-income-africans-to-get-the-insurance-they-need" target="_blank" rel="noopener noreferrer">Lami has the potential to provide the safety net of insurance to millions</a>.

<a href="/improving-lives-with-digital-insurance-jihan-abass-lami" target="_blank" rel="noopener noreferrer">Lami works with businesses and insurers to design</a> customizable insurance products and make them available through Lami’s platform. Using Lami’s app or website, customers can search reputable insurance providers and purchase products, including medical, motor, employee benefits, and device insurance. Users can get a quote in seconds, customize the benefits, and adjust the premium to suit their needs. When they complete the purchase, they receive their policy documents instantly.

Through their platform, Lami has access to more data that helps underwriters better target and price their products for their expanding pool of prospective customers. In their first few years of operations, Lami reached over 80,000 people and expanded into Uganda, Nigeria, and Malawi with plans to grow further.

After the crash that left him without income or a car to earn it, Charles changed providers and became one of many happy Lami customers. “This business supports me because I can be able to pay my bills, I can be able to support my parents, and I can also be able to support my family,” he says.

<a href="/how-we-work/invest/accion-venture-lab" target="_blank" rel="noopener noreferrer">Accion Venture Lab</a> invests in innovative fintech companies like Lami that leverage technology to reach underserved entrepreneurs, families, and individuals in emerging markets more effectively and efficiently. As fintech investors with a track record spanning a decade across emerging markets, we share global learnings from our portfolio across various fintech models, connecting CEOs working on similar models to share insights on what is working. Accion’s goal is to ensure that accelerating digitization truly uplifts and empowers vulnerable people.

<a href="/digital-insurance-gives-low-income-africans-a-safety-net" target="_blank" rel="noopener noreferrer">Watch how Lami brings affordable insurance to people like Charles</a> so they have a safety net during challenging times:

[embed]https://vimeo.com/697170891[/embed]

Digital insurance offers security for underserved communities in Africa

Debdoot Banerjee

Digital repayments by women group loan customers lead to increased confidence using digital financial products and greater access to credit

[caption id="attachment_27534" align="alignright" width="400"]<img class="size-full wp-image-27534" src="https://content.accion.org/wp-content/uploads/2023/01/sanjukta-entrepreneur-odisha.jpg" alt="Sanjukta, an entrepreneur in Odisha, India" width="400" height="514" /> <em>Sanjukta has become more confident using digital products after repaying her loans online.</em>[/caption]

Sanjukta is the sole breadwinner for her family. She is extremely enterprising and runs a small grocery shop and works as a community helper at an Anganwadi, a government-sponsored rural childcare center, in Bhubaneshwar. To get the resources needed to open and run her business, Sanjukta has been a group loan customer for more than twelve years.

During countrywide lockdowns to prevent the spread of COVID-19, the microfinance institution from where Sanjukta avails of her loans had to shut down their branches. Her loan officer encouraged her to start paying her monthly installments digitally through an app on her phone. While initially reluctant to do so, she started making her repayments digitally after a lot of handholding and training by her loan officer.

Today, she is confident using the Unified Payments Interface (UPI) app to accept money from her grocery shop customers and to receive her earnings from working at the Anganwadi directly in her UPI-linked account.

In fact, she finds accepting money in her online account to be much more convenient than the earlier process of collecting a check and depositing it at the bank, which is located far away. She is also a trendsetter in her meeting center group and has encouraged two of her group members to start paying digitally as well.

Digital repayment opens opportunities for women in rural areas like Sanjukta to become more comfortable with digital products and to create a digital trail for themselves which can help them to access more financial services in the future.

<a href="https://birdlucknow.nabard.org/wp-content/uploads/2022/04/Study_on_Repayment_collection_on_digital_mode_BIRD-Website_upload.pdf" target="_blank" rel="noopener noreferrer">A NABARD study in 2021</a> showed that 48 percent of sample clients who paid their monthly installments digitally also started paying their mobile or telephone bill, 40 percent paid their electricity bill through mobile phone, 36 percent accepted digital payments, 18 percent paid merchants through a digital mode, and 8 percent remitted money digitally.
<h3>The case for microfinance institutions to promote digital repayment</h3>
There has been massive growth in digital payments across India with the huge success of UPI and the increase in smartphone penetration. However, the growth has not been uniform across gender and geographies, with significant differences in uptake between rural and urban India and across gender.

There are various reasons for a comparatively lower intake of digital repayment amongst women, and especially rural women, such as a lack of internet access and device ownership and lower confidence in using digital tools.

<a href="/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard#6.-human-touch-is-still-needed" target="_blank" rel="noopener noreferrer">Accion’s research shows</a> that women are more likely to depend on guidance and training from peers, family members, and loan officers before using digital payment tools. Microfinance institutions with deep rural distribution and strong customer relationships are ideally positioned to promote digital payments. Digital payments also help microfinance increase efficiency and reduce operational risks.

Under an initiative supported by <a href="https://www.hsbc.co.in/" target="_blank" rel="noopener noreferrer">HSBC India,</a> Accion is working with two large microfinance institutions to encourage customers to repay their loans digitally by building efficient repayment tools, training, and handholding of customers.

As more and more women customers like Sanjukta start paying their group loan installments digitally, they will be able to access more digital financial products and influence other women to follow suit.

Repayments open a gateway to the world of digital finance for rural women

Fintech for the People: Highlights from the Fintech for Inclusion Summit, Episode 4

Podcast

Fintech is no longer just about expanding access to financial services; it’s also about increasing their quality. In this episode, Accion Venture Lab’s <a href="https://www.accion.org/bio/amee-parbhoo" target="_blank" rel="noopener noreferrer">Amee Parbhoo</a> sits down with TS Anil, Global CEO of <a href="https://monzo.com/us/" target="_blank" rel="noopener noreferrer">Monzo Bank</a><u>,</u> to discuss his principles of building a sustainable and growth-oriented business, and what he sees for the future of inclusive fintech.

TS shares his personal and professional journey, and how he managed a company through the pandemic. During the conversation, TS also shares some practical advice for CEOs and founders on leading in uncertain times.

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> 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>.

<a href="https://link.chtbl.com/-4Z4mu4R">Listen now</a>.

<img class="aligncenter wp-image-27523 size-large" src="https://content.accion.org/wp-content/uploads/2023/01/FFTP-ep4-1024x576.png" alt="Fintech for the People graphic" width="1024" height="576" />

Building Fintech for the Future

Fintech for the People: Highlights from the Fintech for Inclusion Summit, Episode 3

Climate change threatens vulnerable, low-income populations around the world, including smallholder farmers. In this discussion, we explore if fintech solutions can address farmers' pain points. <a href="https://www.centerforfinancialinclusion.org/bio/mayada-el-zoghbi" target="_blank" rel="noopener noreferrer">Mayada El-Zoghbi</a>, Managing Director of the Center for Financial Inclusion, leads a panel discussion between entrepreneurs and investors to discover how financial solutions can help combat and mitigate climate risks.

Smallholder farmers are a crucial component of the agriculture supply chain; unfortunately, they are also the most susceptible to long-term negative effects of climate change.

Together, panelists explore how financial services and solutions aimed at smallholder farmers can help smooth these effects and create lasting livelihoods for this population.
<div>

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> 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>.

<a href="https://link.chtbl.com/A_DnD53t" target="_blank" rel="noopener noreferrer">Listen here</a>.

<img class="aligncenter wp-image-27501 size-large" src="https://content.accion.org/wp-content/uploads/2023/01/FFTP-ep3_1-1024x576.png" alt="FFTP-ep3 graphic" width="1024" height="576" />

</div>

Combating Climate Risk with Agriculture Finance

Fintech for the People: Highlights from the Fintech for Inclusion Summit, Episode 2

The pandemic greatly accelerated digital adoption. Now, tech is cheaper and more accessible. But innovative fintech products can risk leaving customers behind, especially those who aren’t experienced with or comfortable using technology. <a href="https://www.accion.org/bio/prateek-shrivastava?gclid=Cj0KCQiAtICdBhCLARIsALUBFcELAyPscYlb9YFkPEuRAQyh-pVoFpQrt3gMUqoe392Rr6qHoBe0004aAjKQEALw_wcB" target="_blank" rel="noopener noreferrer">Prateek Shrivastava</a> of <a href="https://www.accion.org/" target="_blank" rel="noopener noreferrer">Accion</a> speaks with four fintech and industry leaders at the <a href="https://www.accion.org/fintech-for-inclusion-global-summit-2022" target="_blank" rel="noopener noreferrer">Fintech for Inclusion Global Summit</a> to explore how to build fintech platforms that are innovative and accessible to customers everywhere.

Together, these panelists share how they balance tech and touch within their products. They discuss how to help clients move from simple to complex products without getting left behind, help communities build trust in new technologies, and build strategies to help customers feel comfortable with new fintech products.

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> 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>.

<a href="https://link.chtbl.com/77iWA_cN" target="_blank" rel="noopener noreferrer">Listen here</a>.

<img class="aligncenter wp-image-27401 size-large" src="https://content.accion.org/wp-content/uploads/2022/12/FFTP_ep2-1024x576.png" alt="Fintech For the People podcast" width="1024" height="576" />

Tech and Touch: Lessons from the Pandemic

Sandra Calderon

How women entrepreneurs are growing their small businesses using digitally enabled financial tools

Large sunflowers and vivid roses line the sidewalk in front of Paulina’s storefront in Ambato, Ecuador. “I put them out and children began to pass by and would ask for a rose, so I would give them a bouquet,” she said. Soon, more and more people began purchasing her floral arrangements and her business began to take off.

As a single mother of three and an entrepreneur, Paulina’s store is the center of her family’s life and livelihood. “I am a single mother, and they are my life,” she says. “Having this place means there is also a place for my children. They go to their schools and lessons and then they come back and spend time here at the store. They have a place to be.”

Paulina started by selling clothing in her small storefront. She expanded her business and began selling gifts and flowers as more people requested her floral arrangements. To grow her business — the main source of income for herself and her children — she needed capital to invest in her store.

<img class="aligncenter wp-image-27366 size-large" src="https://content.accion.org/wp-content/uploads/2022/12/paulina-banco-pichincha-ecuador2-1024x682.jpg" alt="Paulina, a small business owner in Ecuador" width="1024" height="682" />

It has always been challenging for small business owners, especially women, to get the support they need to thrive, and the pandemic made everything harder. Paulina recalls that time, saying, “I felt unprotected, had no work, and wasn't able to do anything.” Innovative digital financial tools and services became a lifeline during this uncertain time. These tools helped millions of small business owners improve and grow their businesses by increasing their ability to repay loans and access credit to cover business expenses and inventory needs.

<img class="alignright wp-image-27364" src="https://content.accion.org/wp-content/uploads/2022/12/paulina-banco-pichincha-ecuador3-636x1024.jpg" alt="Paulina, a small business owner in Ecuador" width="425" height="684" />Digital products can build the financial health of small businesses and empower the women who own them. For Paulina, digital products make it easier to juggle her business and family responsibilities. “The time that it takes to go to a bank, fill out forms, and go with the little ones is slow and tiring for the children as well. But this is not so with digital,” she says. And it’s not just about the convenience — <a href="/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard" target="_blank" rel="noopener noreferrer">from our research, more than 70 percent of women</a> small business owners reported that the financial health of their businesses had improved because of new digital banking products.

<a href="https://www.pichincha.com/portal/" target="_blank" rel="noopener noreferrer">Banco Pichincha</a> in Ecuador has been an Accion partner for more than two decades and is the largest financial institution in Ecuador, with a 115-year history. More than half of Banco Pichincha’s customers are women.

Accion worked with Banco Pichincha to drive adoption of the bank’s digital payment wallet, <em>Billetera DeUna</em>. After 12 months of using the <em>DeUna</em> app, <a href="/the-impact-of-digital-transformation-on-underserved-microbusinesses-findings-from-accions-partnership-with-mastercard#2.-digital-products-can-empower-women" target="_blank" rel="noopener noreferrer">72 percent of women small business owners</a> surveyed said the product improved their financial health, and 80 percent said they felt less overwhelmed about managing their expenses and debt.“With the development of online and digital credit, the client is able to manage themselves with the help of our credit agents, which allows us to be available at all times,” remarks Beatriz Vazquez, the Microfinance Strategy Manager for Banco Pichincha. “The clients who make use of this credit are usually women because they require greater availability depending on their kind of work.”
<blockquote class="pullquote--right">“I’ve evolved, innovated, and grown. I have invested in things that are very helpful for my business. I feel I am financially sound for my children.”</blockquote>

Now that Paulina has the credit she needs at her fingertips, she is hopeful about the future, saying, “I’ve evolved, innovated, and grown. I have invested in things that are very helpful for my business. I feel I am financially sound for my children.”

Watch how small businesses owners in Ecuador are building their financial health with digital tools:

[embed]https://youtu.be/vM1dZqcL3jY[/embed]

Paulina’s small business blooms in Ecuador

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