The working poor may get paid just once a year.

Low-income farmers are vulnerable to extreme weather conditions.

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

Climate change affects the poorest households most.

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Michael Schlein

Spanish version

<h1><strong>Unirse para ayudar a abordar las causas fundamentales de la crisis migratoria</strong></h1>
<p>América Latina es la región <a href="https://www.worldbank.org/en/region/lac/overview">más afectada</a> por la pandemia, y en el Triángulo Norte — El Salvador, Guatemala y Honduras — una atroz combinación de pobreza y violencia impulsa la migración masiva hacia Estados Unidos. Los tres países se encuentran dentro o cerca del tercio inferior del<a href="http://hdr.undp.org/en/content/latest-human-development-index-ranking"> Índice 2020 de Desarrollo Humano</a> de la ONU. La proporción de personas que ganan <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/04/14/remarks-by-vice-president-harris-at-virtual-roundtable-of-experts-on-the-northern-triangle/">menos de $5,50 al día</a> va del 22 por ciento en El Salvador, hasta casi el 50 por ciento en Honduras. En esos dos países, las <a href="https://www.pewresearch.org/fact-tank/2020/08/31/amid-covid-19-remittances-to-some-latin-american-nations-fell-sharply-in-april-then-rebounded/">remesas</a> representaron más del 20 por ciento del PIB en 2019 y estos flujos vitales se vieron afectados por la pandemia.</p>
<p>Mientras miles de migrantes continúan huyendo de sus países, el gobierno de Biden está intensificando sus esfuerzos para abordar las <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/04/14/remarks-by-vice-president-harris-at-virtual-roundtable-of-experts-on-the-northern-triangle/">causas profundas</a> de la crisis. Más allá de cualquier respuesta gubernamental, este problema también requiere la participación activa del sector privado, de las ONG y de grupos humanitarios.</p>
<p>Un esfuerzo coherente de estos sectores es clave para lograr cambios en las vidas de las personas afectadas. En particular, las instituciones financieras del sector privado y las ONG pueden velar por que los recursos lleguen a las personas y pequeñas empresas que necesitan financiamiento y apoyo para crecer, e incentivos para quedarse en sus países de origen.</p>
<p>Durante décadas, las instituciones microfinancieras (IMF) han sido pioneras llevando servicios financieros a algunas de las personas más vulnerables y excluidas del mundo. En el Triángulo Norte, muchas IMF y cooperativas se enfocan en atender a los pobres, precisamente las personas con más probabilidades de emigrar. Si dispusieran de capitales adicionales y <a href="https://www.centerforfinancialinclusion.org/theres-not-an-app-for-that-taking-a-hard-look-at-the-app-ification-of-migration"> nuevas tecnologías</a>, estas instituciones podrían crecer significativamente y ayudar a más personas a expandir sus actividades agrícolas, crear pequeñas empresas y aumentar sus ingresos.</p>
<p>Las IMF ya <a href="https://www.redcamif.org/wp-content/uploads/2020/12/39-Reporte-Trimestral-de-Cartera-Junio-2020.pdf">llegan a casi el 9%</a> de la población de la región, unas 4 millones de personas; atienden a clientes que desempeñan un papel importante en la economía de la región y son las que debemos ayudar: el <a href="https://www.redcamif.org/wp-content/uploads/2020/12/39-Reporte-Trimestral-de-Cartera-Junio-2020.pdf">62 por ciento</a> de los prestatarios activos de las IMF en la región son mujeres, y el sesenta por ciento vive en áreas rurales. Y considerando que la cartera total de las IMF en cada país ya equivale a entre 2 y 7 veces el monto anual de ayuda al desarrollo de los Estados Unidos, la oportunidad de lograr escala e impacto es inmensa.</p>
<h3><strong>Tres formas en las que las ONG y el sector público y privado pueden ayudar a crear oportunidades económicas</strong></h3>
<p>Los sectores público y privado de los Estados Unidos deberían unir esfuerzos para apoyar a las IMF en el Triángulo Norte, sirviendo de salvavidas económico para millones de pequeñas empresas y familias en la zona. Aquí hay tres formas en las que las instituciones financieras de desarrollo de los EE. UU., con el apoyo de aliados filantrópicos o corporativos, podrían ayudar a las IMF a expandir las oportunidades económicas en toda Centroamérica:</p>
<h4>Primero, necesitamos catalizar la transformación digital de las IMF.</h4>
<p>La pandemia continúa ampliando la brecha digital, amenazando con rezagar a personas que carecen de las herramientas y las habilidades que necesitan para adaptarse, reconstruir y recuperarse. Ayudar a las IMF a aprovechar las tecnologías que ahorran tiempo y costos puede permitirles llegar a más clientes y comprender sus necesidades, y mejorar sus operaciones.</p>
<p>Y a medida que las IMF se transforman digitalmente, pueden ayudar a sus clientes a hacerlo también, lo que permitirá a los microempresarios mantener sus negocios en funcionamiento durante los confinamientos, y acceder a los beneficios de la economía digital. Pero dado que estas IMF se enfocan en los pobres, necesitan apoyo a través de financiamiento y subsidios para innovar y transformarse exitosamente.</p>
<h4>En segundo lugar, debemos ampliar el apoyo mediante el financiamiento de la deuda.</h4>
<p>En medio de las prolongadas dificultades de la pandemia, las IMF tienen gran necesidad de liquidez para ofrecer crédito a más clientes. Las agencias de desarrollo estadounidenses deberían establecer mecanismos de financiamiento de deuda para ayudar a las IMF centroamericanas a acceder al capital que requieren ahora, y solo exigirles ulteriormente la amortización de la deuda con pago de intereses.</p>
<p>Este financiamiento ayudaría a las IMF a ofrecer más crédito, seguros y otros servicios que las pequeñas empresas necesitan para crecer y prosperar. También podría permitir a las IMF ofrecer nuevos servicios como el financiamiento de la cadena de suministros, y aprovechar los <a href="https://www.devex.com/news/anticipated-remittance-dive-bucked-by-latin-america-and-the-caribbean-98880">ya elevados niveles de remesas</a> para reducir sus costos relacionados y ofrecer préstamos basados en remesas.</p>
<h4>Y tercero, debemos garantizar que las IMF pueden llegar a personas vulnerables.</h4>
<p>Si las IMF incrementaran su actividad crediticia, también asumirían mayores riesgos a medida que más pequeñas empresas comiencen a recibir crédito. Las agencias de financiamiento para el desarrollo de los EE. UU. deberían crear un garantías de portafolio para apoyar a las IMF centradas en llegarle a mercados con objetivo más riesgosos. Esto ayudaría a estabilizar las IMF a medida que aumentan la actividad crediticia. Garantizando que tengan la base sólida que necesitan para continuar dinamizando las economías locales.</p>
<p>Muchos factores han contribuido a la migración masiva en Centroamérica, y es probable que la persistente pobreza esté relacionada con todos ellos. Mediante el apoyo adecuado para expandir su alcance y aprovechar la tecnología digital, las IMF en Centroamérica pueden actuar como poderosos aliados para estabilizar la economía y abordar los componentes económicos fundamentales de la migración. En este momento, cuando la vicepresidenta Harris se prepara para reunirse con los líderes del Triángulo Norte, estas instituciones deben seguir siendo una prioridad en la discusión sobre cómo ayudar a las personas vulnerables a lograr una base económica en sus países de origen.</p>


With the right support, inclusive financial service providers can help more low-income people in Central America access economic opportunity.

Article

Latin America is the region <a href="https://www.worldbank.org/en/region/lac/overview" target="_blank" rel="noopener noreferrer">hardest hit</a> by the pandemic, and in the Northern Triangle — El Salvador, Guatemala, and Honduras — a vicious combination of poverty and violence is driving mass migration to the United States. All three countries fall near or in the bottom third of the UN’s <a href="http://hdr.undp.org/en/content/latest-human-development-index-ranking" target="_blank" rel="noopener noreferrer">2020 Human Development Index.</a> The share of people earning <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/04/14/remarks-by-vice-president-harris-at-virtual-roundtable-of-experts-on-the-northern-triangle/" target="_blank" rel="noopener noreferrer">less than $5.50 per day</a> ranges from 22 percent in El Salvador to nearly 50 percent in Honduras. In those two countries, <a href="https://www.pewresearch.org/fact-tank/2020/08/31/amid-covid-19-remittances-to-some-latin-american-nations-fell-sharply-in-april-then-rebounded/" target="_blank" rel="noopener noreferrer">remittances</a> accounted for more than 20 percent of GDP in 2019—and these vital flows took a major hit from the pandemic.

As thousands of migrants continue to flee their home countries, the Biden Administration is ramping-up efforts to address the <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2021/04/14/remarks-by-vice-president-harris-at-virtual-roundtable-of-experts-on-the-northern-triangle/" target="_blank" rel="noopener noreferrer">root causes</a> of the crisis. Beyond any government response, this problem also requires active participation from the private sector, NGOs, and humanitarian groups.

A coherent effort across these sectors is key to making a difference in the lives of the people affected. In particular, private sector financial institutions and NGOs can ensure resources go to the individuals and small companies that need funding and help to grow their businesses, and an incentive to remain in their home countries.

For decades, microfinance institutions (MFIs) have pioneered ways to bring financial services to some of the world’s most vulnerable and excluded people. In the Northern Triangle, many MFIs and cooperatives focus on reaching the poor—precisely the people most likely to emigrate. With additional capital and <a href="https://www.centerforfinancialinclusion.org/theres-not-an-app-for-that-taking-a-hard-look-at-the-app-ification-of-migration" target="_blank" rel="noopener noreferrer">new technology</a>, these institutions could grow significantly and help more people expand their farms, build small businesses, and boost incomes.

MFIs already <a href="https://www.redcamif.org/wp-content/uploads/2020/12/39-Reporte-Trimestral-de-Cartera-Junio-2020.pdf" target="_blank" rel="noopener noreferrer">reach almost 9 percent</a> of the region’s population, or 4 million people. They serve clients who play important roles in the region’s economy, and who we need to help: <a href="https://www.redcamif.org/wp-content/uploads/2020/12/39-Reporte-Trimestral-de-Cartera-Junio-2020.pdf" target="_blank" rel="noopener noreferrer">62 percent</a> of active MFI borrowers in the region are women, and 60 percent live in rural areas. And considering that the total MFI portfolio in each country is already 2 to 7 times the annual amount of U.S. development aid, the opportunity to scale and achieve impact is immense.
<h3><strong>Three ways NGOs and the public and private sector can help create economic opportunities</strong></h3>
The United States’ public and private sectors should unite to support MFIs in the Northern Triangle and extend an economic lifeline for millions of small businesses and families there. Here are three ways that U.S. development finance institutions, with support from philanthropic or corporate partners, could help MFIs expand economic opportunities throughout Central America:
<h4>First, we need to catalyze the digital transformation of MFIs.</h4>
The pandemic continues to widen the digital divide, threatening to leave behind people without the tools and skills they need to adapt, rebuild, and recover. Helping MFIs leverage time- and cost-saving technologies can allow them to reach more clients, understand their clients’ needs, and improve their operations.

And as MFIs digitally transform, they can help their clients do the same, allowing microentrepreneurs to stay in business during lockdowns and access the benefits of the digital economy. But given their focus on the poor, MFIs need support through funding and subsidies to successfully innovate and transform.
<h4>Second, we need to extend support through debt financing.</h4>
Amid the pandemic’s continuing hardships, MFIs have a serious need for liquidity to offer credit to more clients. U.S. development agencies should set up a debt financing facility to help Central American MFIs access the capital they need today, while requiring them to pay off the debt at a later date, with interest.

This funding would help MFIs offer more credit, insurance, and other services that small businesses need to grow and thrive. It could also help MFIs offer new services, like supply chain financing, and leverage <a href="https://www.devex.com/news/anticipated-remittance-dive-bucked-by-latin-america-and-the-caribbean-98880" target="_blank" rel="noopener noreferrer">already high levels of remittances</a> to lower their related costs and offer remittance-based lending.
<h4>And third, we must ensure MFIs can reach vulnerable people.</h4>
Should MFIs increase their lending activity, they would also assume more risk as more small businesses start receiving credit. U.S. development finance agencies should create portfolio guarantees to support MFIs focused on reaching riskier target markets. This would help stabilize MFIs as they increase lending activity and take on more losses, ensuring they have the solid footing they need to continue energizing local economies.

Many factors have contributed to mass migration in Central America, and persistent poverty is likely linked to every one. With the right support to expand their reach and harness digital technology, MFIs in Central America can serve as powerful partners in stabilizing the economy and addressing the root economic causes of migration. As Vice President Harris prepares to meet with leaders in the Northern Triangle, these institutions should remain top of mind in the discussion on how to help vulnerable people gain an economic foothold in their home countries.

Coming together to help address the root causes of the migration crisis

Prateek Shrivastava

Foreword to Accion’s digital transformation guide: Six strategies to scale financial inclusion

As the spread of COVID-19 first escalated to frightening levels, nations around the world took drastic action. Lockdowns and travel restrictions caught millions of small businesses off guard. Many shuttered their doors, while others were able to adapt to the circumstances.

Chakrapani, a client of Accion’s partner Sub-K IMPACT Solutions Ltd., owns a small <em>kirana </em>(general goods) store with his wife, catering to the daily needs of neighborhood residents in Hyderabad, India. The store remained open during India’s lockdown because it provides essential goods. Given travel restrictions, more families started depending on Chakrapani’s store to meet daily needs, and traffic in his store doubled. To cater to growing demand, Chakrapani started accepting digital payments through his previously unused mobile wallet account. He also offered home deliveries, stocked up on a variety of in-demand items, and increased his distributor network, all through his mobile device.

Digital tools can help more micro, small, and medium enterprises (MSMEs) like Chakrapani’s build resilience in unpredictable times by expanding access to tools like credit, payments, insurance, and business management advice. This can lay the foundation for an inclusive economic recovery from the ravages of the pandemic.

In November 2018, the Mastercard Center for Inclusive Growth and Accion launched a partnership to transform millions of underserved MSMEs around the world and help them participate in, and benefit from, the digital economy. Among other efforts, the partnership is reaching this goal by driving the digital transformation of financial service providers (FSPs) to help them serve more small businesses and families more effectively.

This work coincides with broad changes in customer behavior that have accelerated as a result of COVID-19. Significant portions of the economy have moved online, and as more interactions become remote, they expose gaps in the operational resilience of traditional financial institutions. In turn, these providers have put more energy into digital transformation efforts to reach and support customers in need.

We are now two years into our four-year partnership, and our teams and the institutions we are working with around the world have learned (and continue to learn) so much. Accion’s advisory team has worked hand in hand with the institutions to create and shape digital strategies, implement and upgrade digital channels, design new digital products, and form strategic partnerships, navigating unprecedented challenges with creativity and vigor. <a href="https://www.accion.org/the-digital-transformation-guide-six-strategies-to-scale-financial-inclusion" target="_blank" rel="noopener noreferrer">Accion shares the insights gained from this work here</a>, as a part of our effort to ensure our endeavors and accomplishments serve as demonstration models for the industry. Given the urgency of digital transformation to build an inclusive recovery, this paper provides timely insights to help FSPs and their partners navigate the digital transformation journey and addresses key questions surrounding digital transformation, including <a href="https://www.accion.org/the-digital-transformation-guide-six-strategies-to-scale-financial-inclusion" target="_blank" rel="noopener noreferrer">where to start and where to focus</a>.

<hr />

<a href="https://bit.ly/3adofG3" target="_blank" rel="noopener noreferrer"><img class="wp-image-24105 alignleft" src="https://content.accion.org/wp-content/uploads/2021/04/Mastercard-e1619578679836.png" alt="Mastercard Center for Inclusive Growth logo" width="274" height="92" /></a>

&nbsp;

<a href="https://www.accion.org/mastercard-and-accion-partnering-for-inclusive-growth" target="_blank" rel="noopener noreferrer"><em>This paper is supported by the Mastercard Center for Inclusive Growth.</em></a>

&nbsp;

<em>Written in collaboration with: </em><em><strong>Payal Dalal</strong>, Senior Vice President, Social Impact, International Markets, Mastercard Center for Inclusive Growth</em>

How to empower small businesses to go digital and rebuild

Gayatri Mehta

Jose  Wolff

Spanish

<p>En foto: Lourdes, una clienta de BancoSol, trabaja en diseños de telas en su taller en La Paz, Bolivia</p>
<p>Lourdes es una esforzada y apasionada diseñadora de vestuarios que trabaja en La Paz, Bolivia. Le encanta la diversidad cultural de su país y dedica su tiempo a diseñar y coser vestidos de danzas folclóricas tradicionales para venderlos en los mercados locales. A la edad de 21 años comenzó su negocio junto con su padre, y ese mismo año obtuvo su primer préstamo con <a href="https://www.bancosol.com.bo/" target="_blank" rel="noopener">BancoSol</a>. Empezaron con 500 dólares, lo que les bastó para comprar una máquina de coser y algo de tela. Siete años después, esa máquina de coser se ha multiplicado y hermosos vestidos y telas brillantes cuelgan de todas partes en su tienda. Su sueño es expandir su negocio más allá de La Paz, incorporando diseños inspirados en la variedad de culturas de Bolivia. “Me encantaría viajar a comunidades indígenas, aprender sus idiomas y costumbres locales y fusionar sus formas de vida en los diseños de mis vestidos. También quiero que se escuchen sus voces”, dice Lourdes.</p>
<p>A pesar de tener un crecimiento orgánico a lo largo de los años, Lourdes se siente aún lejos de lograr sus sueños debido a las limitaciones financieras que le impiden acumular ahorros. Todos los ingresos que obtiene los gasta de inmediato en su negocio o su familia. Cuando se le preguntó si pensaba abrir una cuenta de ahorros, respondió: “Es difícil desprenderse del dinero que tanto me cuesta ganar y ver cómo se queda ocioso en una cuenta acumulando polvo. Quiero que mi dinero trabaje tan duro como yo”.</p>
<p>Lourdes no es la única que piensa así. Esta sensación de hacer que el dinero “trabaje para mí” es compartida por muchas personas que priorizan el valor de las pequeñas oportunidades de inversión para que el dinero crezca. El ahorro suele ser más difícil de vender y, según <a href="https://globalfindex.worldbank.org/basic-page-overview" target="_blank" rel="noopener">Global Findex</a>, solo el 21 % de los adultos de los países en desarrollo ahorran en instituciones financieras formales.</p>
<h2><strong><img class="alignright wp-image-23873" src="https://content.accion.org/wp-content/uploads/2021/04/Picture4.png" alt="GanaSol interface" width="235" height="460" srcset="https://content.accion.org/wp-content/uploads/2021/04/Picture4.png 228w, https://content.accion.org/wp-content/uploads/2021/04/Picture4-153x300.png 153w" sizes="(max-width: 235px) 100vw, 235px" />El ahorro es fundamental para desarrollar la resiliencia financiera<br />
</strong></h2>
<p>El fomentar con éxito un comportamiento positivo hacia el ahorro es una batalla cuesta arriba para los proveedores de servicios financieros alrededor del mundo. Muchos propietarios de microempresas como Lourdes tienen una visión clara de para qué les gustaría ahorrar y cuánto les costaría exactamente, pero a la mayoría le resulta difícil la disciplina y el compromiso de depositar regularmente en cuentas de ahorro formales. Quienes sí logran ahorrar, a menudo prefieren hacerlo de manera informal, ya sea guardando efectivo en casa, o utilizando esquemas de ahorro informales que frecuentemente cobran comisiones por sus servicios. Estas opciones no sólo son más costosas y menos seguras, sino que el tener el dinero cerca hace que resulte más fácil gastarlo rápidamente en lugar de dejarlo crecer.</p>
<p><a href="https://www.accion.org/the-crucial-but-overlooked-factor-for-financial-health-humans" target="_blank" rel="noopener">El desarrollo de la salud financiera</a> y de la resiliencia de las MIPYME es prioritario en las misiones de Acción y BancoSol. La gente necesita de los ahorros y otros activos estables para sobrellevar crisis e imprevistos y apoyar a sus empresas y familias. La pandemia de COVID-19 y sus medidas de distanciamiento social han exacerbado los obstáculos financieros que enfrentan muchas pequeñas empresas, y han obligado a las organizaciones de microfinanzas a adoptar un enfoque digital para atender a sus clientes.</p>
<h2><strong>Hacer que ahorrar resulte agradable a través de la &#8220;Gamification&#8221;</strong></h2>
<p>BancoSol sabía que necesitaban encontrar una manera de hacer que los ahorros fueran atractivos y lograr que las personas sintieran beneficios tangibles por cada depósito que realizaban. ¿Pero cómo?</p>
<div id="attachment_23874" style="width: 245px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-23874" class="size-full wp-image-23874" src="https://content.accion.org/wp-content/uploads/2021/04/ganasol-2.png" alt="GanaSol interface" width="235" height="465" srcset="https://content.accion.org/wp-content/uploads/2021/04/ganasol-2.png 235w, https://content.accion.org/wp-content/uploads/2021/04/ganasol-2-152x300.png 152w" sizes="(max-width: 235px) 100vw, 235px" /><p id="caption-attachment-23874" class="wp-caption-text"><em>En la plataforma GanaSol, los usuarios pueden verificar cuántos puntos han ganado y cómo van en camino a sus metas de ahorro. Este usuario ha ahorrado 100 bolivianos, lo que le da acceso a la lotería semanal que brinda a los usuarios la oportunidad de ganar un premio en efectivo. </em></p></div>
<p>Diseñaron GanaSol, una plataforma digital que permite a los clientes ganar premios y recompensas cada vez que realizan tareas clave, como usar canales digitales para administrar sus cuentas bancarias, depositar dinero regularmente y mantener un cierto saldo mensual. GanaSol, utiliza juegos basados en el azar como &#8220;girar la ruleta&#8221; porque estos juegos fomentan una sensación de productividad ya que los usuarios ganan premios cada vez que lo hacen. Los clientes pueden acceder a GanaSol directamente desde la aplicación de banca móvil de la institución, AppSol 3.0, que fomenta aún más el uso de los canales digitales de BancoSol. Esta aplicación brindará a los microempresarios de Bolivia una solución atractiva para invertir en sus ahorros.</p>
<p>Esta nueva plataforma fue lanzada a través del <a href="https://www.accion.org/bolivias-small-businesses-need-innovative-products-to-help-them-grow">centro de innovación</a> de BancoSol, un espacio donde el banco desarrolla productos y servicios financieros digitales innovadores para atender mejor a los microempresarios. Para la concepción y el diseño del producto utilizaron entrevistas en profundidad con clientes, rondas de ideas creativas y pruebas de prototipos. Para desarrollar la plataforma, BancoSol se asoció con <a href="https://flourishfi.com/">Flourish Savings</a>, un proveedor de &#8220;gamification&#8221; digital con sede en EE. UU. que brinda soluciones de participación para impulsar el ahorro y la lealtad. BancoSol también llevó a cabo un “Datathon”<em> [un evento estilo “hackathon” apoyado por los científicos de datos de Mastercard]</em> virtual junto con Accion y Mastercard, para aprovechar la gran cantidad de datos del banco y así obtener una amplia perspectiva sobre cómo fomentar comportamientos digitales, mejorar el uso los productos financieros y crear relaciones duraderas con sus clientes.</p>
<p>Más del 10 por ciento de los clientes de banca móvil de BancoSol ya han comenzado a utilizar GanaSol desde su lanzamiento a finales de marzo. Tan solo en la primera semana, la nueva aplicación logró más de 3.400 usuarios activos.</p>
<blockquote class="pullquote--right"><p><strong><em>“GanaSol no solo permite al cliente ganar premios en dinero, sino también desarrollar hábitos financieros saludables en sus transacciones e interacciones diarias con el banco. La aplicación fue diseñada pensando en el cliente, tomando en cuenta sus preferencias para que los puntos de contacto digitales con el banco sean más interactivos, convenientes y gratificantes &#8220;. &#8211; Alejandro Camargo, Responsable de Innovación y Transformación, BancoSol</em></strong></p></blockquote>
<p>Si bien la versión inicial de GanaSol se enfoca únicamente en desarrollar hábitos de ahorro, en el futuro BancoSol podrá adaptar fácilmente la aplicación de acuerdo con sus necesidades estratégicas. Por ejemplo, el concepto de ¨ludificación&#8221; podría usarse para interactuar con los clientes de una manera más rentable y conveniente, incentivar el uso de productos y servicios nuevos o mejorados, y optimizar la salud de la cartera. Los clientes que participan en las actividades de GanaSol reciben premios mientras desarrollan hábitos positivos y servicios nuevos o mejorados, y optimizar la salud de la cartera. Los clientes que participan en las actividades de GanaSol reciben premios mientras desarrollan hábitos positivos y resiliencia financiera. GanaSol y el centro de innovación de BancoSol fueron desarrollados gracias a los servicios de asesoría proporcionados por Acción a través de una <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses" target="_blank" rel="noopener">asociación global entre Acción y Mastercard.</a></p>
<p>Los micro-comerciantes son la fuerza que impulsa la economía boliviana y su fuerza laboral, y estimulando la productividad del país. Al continuar atendiendo a los comerciantes a través de un enfoque en el cliente, la relación de BancoSol con ellos trasciende el ser solo un proveedor de servicios financieros: BancoSol es su aliado de confianza y un impulsor clave para su éxito y su crecimiento. Con GanaSol, los microempresarios como Lourdes pueden utilizar los servicios financieros digitales de una manera conveniente, segura y gratificante, lo que les permite desarrollar resiliencia financiera para el futuro.</p>


BancoSol’s new app uses gamification to encourage positive savings behaviors for micro, small, and medium enterprises (MSMEs) in Bolivia

Lourdes is a hardworking and passionate costume designer based in La Paz, Bolivia. She loves her country’s rich culture and has dedicated her time to designing and sewing traditional folk dance dresses to sell in local markets. She started her business with her father at the age of 21 and took out her first loan with <a href="https://www.bancosol.com.bo/">BancoSol</a> that year. They started with $500, which was just enough to purchase one sewing machine and some fabric. Seven years later, that one sewing machine has multiplied into several sewing machines, and beautiful glittering dresses and fabrics hang from all corners of her shop. Her dream is to expand her business beyond La Paz, weaving in design inspiration from Bolivia’s multitude of diverse cultures. “I would love to travel to indigenous communities, learn their local languages and customs, and adopt their ways of life into the designs of my dresses – I want their voices to be heard too,” says Lourdes.

Despite the moderate growth her business has experienced over the years, Lourdes feels far from pursuing her dreams because of financial constraints that keep her from building her savings. She immediately spends any income she earns on her business or her family. When asked about whether she’d consider opening a savings account, she explained: “It’s hard to part with your hard-earned money and watch it sit idly in an account collecting dust. I want my money to work hard the way I do.”

Lourdes isn’t unique in her mindset. This sentiment – making money “work for me” – is shared by many people who prioritize the value of small investment opportunities where their money grows over time. Savings is usually a harder sell, and according to the <a href="https://globalfindex.worldbank.org/basic-page-overview">Global Findex</a>, only 21 percent of adults in developing countries save with formal financial institutions.
<h2><strong><img class="alignright wp-image-23873" src="https://content.accion.org/wp-content/uploads/2021/04/Picture4.png" alt="GanaSol interface" width="235" height="460" />Saving is integral to building financial resilience </strong></h2>
Successfully encouraging positive savings behavior is an uphill battle for financial service providers around the globe. Many microbusiness owners like Lourdes have a clear vision of what they would like to save for and exactly how much it would cost, but most struggle with the discipline and commitment to deposit regularly into formal savings accounts. Those who do manage to save often prefer to save informally, either by saving cash at home or using informal savings schemes that frequently charge a premium for their services. Not only are these options more costly and less secure, having the funds close by makes it easier to spend the money quickly rather than allow it to grow.

<a href="https://www.accion.org/the-crucial-but-overlooked-factor-for-financial-health-humans" target="_blank" rel="noopener noreferrer">Building the financial health</a> and resilience of MSMEs is at the forefront of Accion and BancoSol’s mission. People need savings and other stable assets to overcome moments of crisis, endure shocks, and support their businesses and families. The COVID-19 pandemic and its social distancing measures have exacerbated the financial hurdles many small businesses face and has forced microfinance organizations to take a digital-first approach to serving their customers.
<h2><strong>Making saving fun through gamification</strong></h2>
BancoSol knew that they needed to find a way to make savings attractive and get people to see the tangible benefits of every deposit they make. But how?

[caption id="attachment_23874" align="alignleft" width="235"]<img class="size-full wp-image-23874" src="https://content.accion.org/wp-content/uploads/2021/04/ganasol-2.png" alt="GanaSol interface" width="235" height="465" /> <em>On the GanaSol platform, users can see how many points they have earned and their progress in reaching their savings goals. This user has saved 100 Bolivianos, unlocking access to the weekly lottery that gives users a chance to win a cash prize.</em>[/caption]

They designed GanaSol, a digital gamification platform that allows customers to earn prizes and rewards whenever they perform key tasks such as using digital channels to manage their bank accounts, depositing cash regularly, and retaining a certain monthly balance. GanaSol, adapted from the Spanish verb ganar or “to win”, utilizes chance-based games like “spin-the-wheel” because these games foster a feeling of productivity as users earn prizes every time they play. Customers can access GanaSol directly from the institution’s mobile banking application, AppSol 3.0, further encouraging the use of BancoSol’s digital channels. This app will bring Bolivia’s microentrepreneurs an attractive solution to invest in their savings.

Customers can access GanaSol directly from the institution’s mobile banking application, AppSol 3.0, further encouraging the use of BancoSol’s digital channels. This app will bring Bolivia’s microentrepreneurs an attractive solution to invest in their savings.

This new platform was launched through BancoSol’s <a href="https://www.accion.org/bolivias-small-businesses-need-innovative-products-to-help-them-grow" target="_blank" rel="noopener noreferrer">innovation hub</a>, a space for the bank to develop innovative digital financial products and services that better serve microentrepreneurs. The conception and design of the product was guided by in-depth customer interviews, rounds of ideation, and prototype testing. To develop the platform, BancoSol partnered with <a href="https://flourishfi.com/" target="_blank" rel="noopener noreferrer">Flourish Savings</a>, a US-based digital gamification vendor that provides engagement solutions to boost savings and loyalty. BancoSol also conducted a virtual “datathon” in conjunction with Accion and Mastercard, to leverage the bank’s wealth of data to gain tremendous insight into encouraging digital behaviors, improving engagement with financial products, and creating long-lasting relationships with their customers.

Over 10 percent of BancoSol’s mobile banking customers have already started using GanaSol since its launch at the end of March. The new app received more than 3,400 active users in the first week alone.
<blockquote class="pullquote--right">“GanaSol not only allows the customer to win cash prizes, but also to build healthy financial habits in their daily transactions and interactions with the bank. The application was designed with the customer in mind, taking into account their preference for digital touchpoints with the bank to be more interactive, convenient, and rewarding.” – Alejandro Camargo, Head of Innovation and Transformation, BancoSol</blockquote>
While the initial iteration of GanaSol focuses solely on developing savings habits, BancoSol can easily adapt the app in the future according to it’s strategic needs. For example, the gamification concept could be used to engage customers in a more cost-effective and convenient way, incentivize the use of new or improved products and services, and optimize portfolio health. For customers, partaking in GanaSol’s activities rewards them prizes while also building positive habits and financial resilience. GanaSol and BancoSol’s innovation hub were developed with advisory services provided by Accion through a <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses" target="_blank" rel="noopener noreferrer">global partnership between Accion and the Mastercard Center for Inclusive Growth.</a>

Micro-merchants are the driving force behind the Bolivian economy, powering its labor force and stimulating the country’s productivity. By continuing to serve merchants through a customer-centric lens, BancoSol’s relationship with its customers transcends beyond financial service provider. BancoSol is their trusted partner and a key contributor to their growth and success. With GanaSol, microentrepreneurs like Lourdes can use digital financial services in a convenient, secure, and rewarding way that enables them to build financial resilience for the future.

Gamification motivates microentrepreneurs to save in Bolivia

Priya Punatar

Kathleen Yaworsky

<p>This paper unpacks each strategy through real examples of our implementation experiences across FSP partners.</p>


Introduction

<p>Digitizing swiftly and effectively is vital for FSPs to successfully and responsibly serve their customers at scale and to remain competitive in the face of many digital challengers entering the market. But most FSPs face challenges that make transformation difficult, including a lack of resources, heavy reliance on manual processes, difficulty attracting technical expertise, and poorly organized customer data. This leaves many organizations asking: is our organization ready to undergo a digital transformation? What are the drawbacks or risks to consider before we dive in? Where do we start?</p>
<p>To help FSPs navigate these questions and enable millions of underserved micro, small, and medium enterprises (MSMEs) to enter the digital economy, <a href="https://bit.ly/3adofG3" target="_blank" rel="noopener">Mastercard and Accion launched a first-of-its-kind partnership in 2018</a> that unites our worldwide networks and resources to support the digital transformation of FSPs around the world, as well as the millions of customers they serve. In our first two years of work, we have guided FSPs’ progress on digital transformation and helped them develop digital tools to reach more small businesses and individuals and serve them more effectively. In 2020, as COVID-19 first spread across the world, we helped our partners leverage digital tools to respond to the crisis. This included reimagining group and individual lending for a no-contact world, enhancing digital channels, and rapidly implementing remote customer service. As digital platforms become more pervasive, accessible, and affordable, MSMEs can leverage digital tools and products to rebuild and relaunch their businesses — and in some cases, digitally transform themselves.</p>
<p><img class="aligncenter wp-image-24059" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_1-Map.png" alt="Digital transformation map" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_1-Map.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_1-Map-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_1-Map-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_1-Map-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>We recognize that digital transformation is a journey, not a destination. Our partners have travelled far, but their journeys are not complete — and will likely include some obstacles ahead. In this paper, we share learnings from the first two years of working with institutions to navigate their digital transformation efforts, across every aspect of their business: the customer, processes, partnerships, people, platforms, and products, to achieve a fully digitally enabled business model.</p>
<blockquote class="pullquote--right"><p>There is no single path to digital transformation, nor is it a one-off endeavor.</p></blockquote>
<p>This paper shares our challenges, frustrations, and successes, and also builds on lessons from other ongoing digital transformation efforts around the world. Going forward, we will continue to share lessons as our partners digitally transform and begin to realize the return on their investments.</p>
<p>We hope that the initial lessons shared here will help FSPs start their digital transformation journeys and maintain the momentum needed to succeed. We also hope this paper will demonstrate to the financial services industry at-large the impact that digital transformation can have in supporting the resilience of low-income people.</p>
<p><img class="aligncenter wp-image-24121" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_2-Dig-transform-circle-5-3.png" alt="Digital transformation is multi-faceted" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_2-Dig-transform-circle-5-3.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_2-Dig-transform-circle-5-3-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_2-Dig-transform-circle-5-3-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_2-Dig-transform-circle-5-3-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>An oft-repeated point that bears repeating here: digital transformation is a massive exercise in culture change. It is complex and multi-faceted and requires solid commitment to evolve the core business model from the board all the way down to loan officers. There is no single path to digital transformation, nor is it a one-off endeavor. We believe the goal of digital transformation is not to achieve the same status as a digital-first company, but rather adaptability and an enduring culture of innovation and learning, so that institutions can respond rapidly to changes, challenges, and opportunities as they arise. As Charles Darwin argued, “survival of the fittest” refers not to being the strongest or fastest but being most adaptable to change.</p>


Combat the digital divide on multiple fronts

<p>The COVID-19 pandemic has catalyzed the digital transformation of FSPs, especially those reliant on high degree of face-to-face interaction, like microfinance institutions — and expanded digital financial services holds the promise of greater financial inclusion. But with all the enthusiasm around digital transformation, there is little attention paid to the ways this can lead to financial exclusion. Financially underserved and excluded individuals and businesses represent a diverse set of digital maturities, attitudes, and behaviors. For example, some customers may not have access to the internet even if they own smartphones, others may not feel comfortable conducting financial transactions on a mobile device, and yet others may simply prefer to work directly with a person when conducting financial transactions. FSPs must be careful to ensure that digital transformation is not exacerbating an already pervasive digital divide. For example, the digitization of many government cash transfers during the pandemic has been particularly useful to reduce in-person contact while still providing critical economic relief. However, some reports have highlighted the exclusion of beneficiaries, especially women, who often lack access to the digital and financial tools needed to navigate the system of government to person (G2P) payments.</p>
<p><img class="aligncenter wp-image-24060" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_3-Digital-divide.png" alt="The digital divide" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_3-Digital-divide.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_3-Digital-divide-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_3-Digital-divide-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_3-Digital-divide-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>Therefore, we consider two aspects of the <a href="https://stats.oecd.org/glossary/detail.asp?ID=4719" target="_blank" rel="noopener">digital divide</a>: first, the gulf between those without access to computers, smartphones, and the internet, and those with access, and second, the spectrum of varying digital maturities in terms of trust and comfort with, usage of, and capability to fully enjoy the benefits of digital inclusion. <a href="https://www.gsma.com/mobilefordevelopment/blog/does-just-being-a-woman-reduce-the-likelihood-of-using-mobile/" target="_blank" rel="noopener">Based on recent analysis conducted by GSMA</a>, in low-and-middle income countries, demographics play a key role in determining access to smartphones and usage of mobile internet. Individuals in rural areas, those with lower incomes, and those that have only completed primary education are less likely to own a smartphone or use mobile internet. On top of this, women are less likely than men to own a mobile phone or use mobile internet, even when other relevant socioeconomic and demographic factors are controlled for. For those that do have access to digital tools, results from an <a href="https://www.accion.org/msme-digital-maturity-assessment" target="_blank" rel="noopener">Accion survey of Annapurna clients</a> demonstrated that there are several determinants of how comfortable a person feels using these tools. This includes both trust in digital channels and simply whether they are in the habit of using digital tools.</p>
<p><img class="alignnone size-full wp-image-24122" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_4-Confidence-graphs-5-3.png" alt="Customers with digital habits are more confident using digital technology but are more distrustful of information found online" width="2000" height="1300" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_4-Confidence-graphs-5-3.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_4-Confidence-graphs-5-3-300x195.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_4-Confidence-graphs-5-3-768x499.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_4-Confidence-graphs-5-3-1024x666.png 1024w" sizes="(max-width: 2000px) 100vw, 2000px" /></p>
<p>Digital channels offer some of the most effective ways to reach those that are financially excluded, especially while social distancing orders and lockdowns remain in force. We are already seeing that <a href="https://www.euromoney.com/article/284dqornsk694nkeruz28/treasury/latam-payments-payu-enjoys-e-commerce-boom-during-pandemic">COVID-19 has accelerated digital adoption</a> and has forced some previously reluctant consumers to overcome barriers around trust and tech-savviness because they have few other options. Among our partners, we’ve seen acceptance of digital payments increase 106 percent from December 2019 to September 2020 as microbusinesses move online. However, growth has been concentrated among partners who had digital infrastructure in place prior to the pandemic.</p>
<p>This underscores the pervasive digital divide among low-income people and businesses. Clearly, an undifferentiated focus on digital channels alone is not sufficient to bring useful financial tools to the underserved in a way that promotes trust and comfort. Accion Venture Lab’s 2018 report on the “<a href="https://www.accion.org/the-tech-touch-balance">Tech Touch Balance</a>” demonstrates the importance of continued human interaction in delivering financial services to the poor to build trust, establish relationships, and engage customers. Especially now, in the wake of COVID-19, low-income and vulnerable segments need the support of FSPs to navigate the new normal, restart their businesses, and build financial health so that they can build resilience to future crises and ensure they are not left behind again.</p>
<p>FSPs should be deliberate and thoughtful about how they reach clients on both sides of the digital divide. While they should lean into digital channels when undergoing digital transformation, they should also continue to leverage physical networks (branches, loan officers, groups) to promote greater digital adoption. The percentage of women actively using the digital products and services supported through Accion’s partnership with Mastercard has increased over one percentage point between September 2020 and December 2020, which illustrates the effectiveness of the combined recommendations below in moving us in the right direction to address the persistent gender gaps in digital financial services.</p>


<h5>FSPS CAN ADDRESS THE DIGITAL DIVIDE IN MANY WAYS</h5>
<h2><strong>Build a value proposition for digital products </strong></h2>
<p><a href="https://www.accion.org/helping-small-businesses-build-resilience-in-ecuador" target="_blank" rel="noopener">Banco Pichincha</a> is the largest financial institution in Ecuador, with a 115-year history and a deep commitment to its customers.  The bank is undergoing a complete, large-scale digital transformation, not only to build their own technological capabilities, but to improve its relationship with its customers and to be better able to respond to their needs during tough times. The COVID-19 pandemic has accelerated their digital transformation and improved the uptake of digital channels among their entire client base. In 2020, Banco Pichincha’s mobile app went from having 650 thousand to 1.1 million customers and 50 thousand customers managed the disbursement of their loans entirely through digital channels.  Their recently launched <a href="https://www.pichincha.com/portal/canales-de-atencion/deuna" target="_blank" rel="noopener">Billetera deUna!</a> application, a mobile wallet that supports secure, real time payments for their customers, has been downloaded more than 118 thousand times. While they have seen significant adoption of digital channels, it has primarily been among high-income segments, while uptake has been much lower among merchants and consumers at the base of the pyramid.</p>
<blockquote class="pullquote--right"><p>For customers accustomed to using cash and that enjoy the tangibility it offers, the value proposition of digital is difficult to communicate – particularly when relying on cash is perceived as free and more secure.</p></blockquote>
<p>Accion and Banco Pichincha are working together to promote financial and digital inclusion in Ecuador, and one of the first key actions of the project was to identify the key adoption barriers for the Billetera deUna! mobile wallet through an analysis of the payments ecosystem and conversations with clients and field staff. <a href="https://globalfindex.worldbank.org/archdownload/chapter/11" target="_blank" rel="noopener">Nearly eight in 10 Ecuadorians have mobile phones</a>, but only <a href="https://globalfindex.worldbank.org/sites/globalfindex/files/countrybook/Ecuador.pdf" target="_blank" rel="noopener">32 percent of those with mobile phones are currently using their phones to make digital payments</a>, and cash still accounts for about <a href="https://blogs.worldbank.org/jobs/why-digital-payments-are-key-entrepreneurs-success" target="_blank" rel="noopener">40 percent of payments</a>, particularly in rural communities. The use of digital payments can help small merchants gain more access to credit, formalize, grow their business, reduce time required for reconciliation and risk of theft, and save them multiple trips to the bank to deposit cash. However, for customers accustomed to using cash and that enjoy the tangibility it offers, the value proposition of digital is difficult to communicate – particularly when relying on cash is perceived as free and more secure.</p>
<p>Using this information, Banco Pichincha has reimagined the user experience for underserved microbusinesses by addressing the barriers to adoption with a clear and compelling value proposition. In parallel, the bank is using Accion’s EdTech platform, Ovante, to support their microfinance customers’ digital literacy.</p>
<p>A wallet that can be used for payments and that clearly meets the needs of a small merchant will enable them to build financial resilience, operate digitally where social distancing is still required, and participate in an increasingly digital ecosystem. Being clear about how digital will benefit small merchants specifically, in messages that resonate with them, can thus help overcome any initial barriers to adoption.Using this information, Banco Pichincha has reimagined the user experience for underserved microbusinesses by addressing the barriers to adoption with a clear and compelling value proposition. In parallel, the bank is using Accion’s EdTech platform, Ovante, to support their microfinance customers’ digital literacy.</p>
<h2><strong>Design for both sides of the digital divide </strong></h2>
<p><a href="https://www.accion.org/expanding-the-benefits-of-a-growing-digital-economy-in-indonesia-and-india" target="_blank" rel="noopener">Annapurna Finance Limited</a>, headquartered in Odisha, India, serves 1.9 million individuals in eastern India who would otherwise lack access to high-quality financial services. More than 99 percent of these individuals are group lending customers. When lockdowns due to the pandemic put an end to group meetings, this created a challenge for the members that depended on meetings to access much needed finance, especially during one of their most difficult times of need. Responding quickly to the crisis, Accion worked with Annapurna to reimagine their group lending process and supported the creation of a new digitally accessible emergency loan product for clients to help them manage liquidity constraints or any other financial emergency.</p>
<p>Though Annapurna is interested in developing more smartphone-based lending solutions, only 10 percent of their group lending customers currently own a smartphone. However, a greater percentage had access to less advanced feature phones. To address the digital divide, we created an SMS-based digital loan product that incorporated both <em>tech</em> and <em>touch</em>. Interested customers can provide a few details to their loan officer to ensure they meet the qualifications. If qualified, the loan officer can make an emergency loan limit available to them up to a pre-defined amount. Once this limit is created, a customer can access the funds at any time by simply sending an SMS to a dedicated phone number, which would result in the money being disbursed to the customer’s loan account.</p>
<p>We designed the solution to enable an easy upgrade to a smartphone version when relevant for their customers. Accion’s <a href="https://www.accion.org/msme-digital-maturity-assessment">digital maturity assessment</a> of Annapurna’s customers found that customers who use a digital device more than once per day are more than three times as likely to feel confident in using technology for different purposes and exhibit a greater willingness to try new products in the future. Therefore, Annapurna’s feature-to-smartphone product roadmap will allow customers to increase their digital maturity over time.</p>
<h3><img class="aligncenter wp-image-24123" src="https://content.accion.org/wp-content/uploads/2021/04/Customer-story-stacked-r3-5-3.jpg" alt="Getting back to business: Rosina Das's story" width="1000" height="1278" srcset="https://content.accion.org/wp-content/uploads/2021/04/Customer-story-stacked-r3-5-3.jpg 2000w, https://content.accion.org/wp-content/uploads/2021/04/Customer-story-stacked-r3-5-3-235x300.jpg 235w, https://content.accion.org/wp-content/uploads/2021/04/Customer-story-stacked-r3-5-3-768x982.jpg 768w, https://content.accion.org/wp-content/uploads/2021/04/Customer-story-stacked-r3-5-3-801x1024.jpg 801w" sizes="(max-width: 1000px) 100vw, 1000px" /></h3>
<p>On the opposite side of the digital divide, Annapurna found that the more digitally mature segment of their MSME clients that have individual rather than group loans were interested in greater convenience and wanted to be able to move away from having to visit physical branches. Annapurna knows that they need to digitize even faster for this segment and we are supporting the bank to develop an end-to-end digital loan that clients can apply for without needing to speak directly to a loan officer and through which all repayments can be made remotely.</p>
<h2><strong>Balance tech and touch to bridge the digital divide </strong></h2>
<p><a href="https://www.accion.org/in-a-no-touch-world-tech-cant-leave-low-income-people-behind" target="_blank" rel="noopener">FSPs can do many things</a> to ensure that customers get the human touchpoints they need to feel supported and engaged. For customers with low digital maturity, such as group lending clients who traditionally rely on high-touch models of interaction, institutions should think strategically about hybrid models that leverage digital to automate manual processes while still maintaining the human touch that customers value.</p>
<p><a href="https://www.accionmfb.com/" target="_blank" rel="noopener">Accion Microfinance Bank</a> (Accion MfB), one of Nigeria’s most successful microfinance institutions, is seeking to make digital the new norm and encourage digital behaviors in their client base. As part of this goal, they made the end-to-end application process for their new digital loan accessible only through mobile app or the web portal. But Accion MfB knew that not all their customers are ready for a fully digital process end-to-end, so the product was designed so that customers can initiate the digital loan application process with Accion MfB through several different channels. Customers can submit a request for a digital loan application via USSD mobile codes, which prompts the call center to reach out to better understand their characteristics: Do you have the documentation needed to apply digitally? What is your comfort in completing the application form online? Based on answers to these questions, the call center agent may direct applicants to one of the self-service channels to complete an application, or may refer applicants to a branch where a staff member can assist with a loan application.</p>
<p><img class="alignnone size-full wp-image-24125" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_5-AMFB-digital-loan-5-3.png" alt="Accion Microfinance Bank digital loan" width="2000" height="1400" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_5-AMFB-digital-loan-5-3.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_5-AMFB-digital-loan-5-3-300x210.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_5-AMFB-digital-loan-5-3-768x538.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_5-AMFB-digital-loan-5-3-1024x717.png 1024w" sizes="(max-width: 2000px) 100vw, 2000px" /></p>
<p>Customers who completed the digital loan application but were denied were redirected to a branch so that they could reapply using the traditional application process. Interestingly, the Accion MfB team found that some of the customers who were denied a loan using the digital process were approved using the in-person process for the same loan amount. After digging into the data, they found that customers were responding to questions on the digital loan application differently than they did in the in-person loan application process. It seemed that some customers were misinterpreting the questions on the digital loan application. When they were face to face with someone who could ask the same questions in several different ways, offer clarifications, or suggestions, the number of errors greatly reduced. For example, when asked about their revenues, they may have entered revenue for the <em>day</em> rather than the <em>month</em>. Given this finding, Accion MfB made several changes to the digital loan application to incorporate this human element. They changed how many questions were phrased to more closely resemble how an account officer would ask them, and made more help, examples, and tips available.</p>


Optimize organizational design

<p>Most microfinance institutions were built to be high-touch businesses, focused on meeting the needs of their customers through replicable processes conducted face-to-face and mostly in cash. Technology has helped automate some processes, such as field staff tools and credit risk decisioning. While this model worked well in ensuring that some underserved populations get access to the responsible finance they need, the heavy reliance on loan officers and physical branches results in higher costs and limits scalability.</p>
<blockquote class="pullquote--right"><p>The digital transformation of financial service providers requires careful thought about how two very different operating models, one current and one future state, should be integrated, under the same roof.</p></blockquote>
<p>A purely digital financial services model — with remote application, application processing, approval, and digital transactions — is very different than the high-touch model of traditional microfinance institutions. When a microfinance institution is restricted only by a customer’s access to the right type of device and access to a mobile network, the potential for scale is massive. However, this newer model is diametrically opposite to the historical one in terms of ethos, culture, and style.</p>
<p>The reality for FSPs serving the underserved is that some of their customers do not yet have access to digital devices or a mobile network and will continue to require the high-touch service offered through the traditional microfinance model. Other customers, becoming more accustomed to transacting digitally in other areas of their life, are demanding the accessibility, convenience, and speed of service that digital financial services can provide. Therefore, the digital transformation of financial service providers requires careful thought about how two very different operating models, one current and one future state, should be integrated, under the same roof.</p>
<p>There’s no one right way to organize for digital transformation, and what it looks like can be very different from one organization to the next. A lot depends on the starting point — the as-is digital maturity of the institution — as well as the desired end state.</p>
<ol>
<li>Some companies may want to <strong>integrate digital processes across all departments</strong> from the start.</li>
<li>Others may <strong>create a digital center of excellence, like an innovation lab</strong>, within the organization that is tasked with creating products that serve the institution’s client base.</li>
<li>And finally, others may decide to <strong>create a separate unit or even a wholly owned subsidiary to experiment in a controlled environment</strong> and ensure little or no impact on business as usual.</li>
</ol>
<p><img class="aligncenter wp-image-24065" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_6-Org-design-overview.png" alt="Companies should carefully select an organizational design that will enable them to digitally transform. " width="1000" height="590" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_6-Org-design-overview.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_6-Org-design-overview-300x177.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_6-Org-design-overview-768x453.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_6-Org-design-overview-1024x604.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<h3>For an organization to determine the best model to start with, they should consider the following dimensions:</h3>
<ul>
<li><strong>Target customer segment:</strong> An institution should determine whether they are primarily focused on creating new products for new market segments to expand their reach, or on transforming existing products for existing market segments in order to serve them more efficiently. Those looking to serve new customer segments should look to create some separation between their existing and digital operating model.</li>
<li><strong>Macro-level factors:</strong> Factors such as access to talent, potential for partnerships, level of digital readiness in the country, level of investment in digital transformation, and competitive landscape play a role in determining organizational design.</li>
<li><strong>The level of disruption faced by the business:</strong> Often, a fully integrated digital transformation model takes more time and can create major distractions for business as usual. The higher the potential for disruption, the better to keep the digital unit separate until a point of maturity.</li>
<li><strong>The level of digital maturity:</strong> The earlier a company is in its digital evolution — including digitally enabled processes, skills, and infrastructure — the more likely it is to need a bit of separation from standard operations to concentrate digital skills and move quickly.</li>
<li><strong>Openness to change:</strong> Companies that have a more resistant or traditional culture usually fare better with a separate unit that is solely focused on digital evolution.</li>
</ul>
<p>It is important to remember that organizational design can and should change over time. For most companies, having the dedicated focus of a separate or semi-integrated digital unit may make sense when starting on the journey — but over the longer term, they may want to ensure that digital capabilities become embedded across business lines. We took variations of the fully integrated digital transformation and digital center of excellence approaches with each of the FSPs we worked with as demonstrated by the examples below.</p>
<p><img class="aligncenter wp-image-24066" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_7-Org-design-fully-integrated.png" alt="Fully integrated digital transformation" width="1000" height="590" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_7-Org-design-fully-integrated.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_7-Org-design-fully-integrated-300x177.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_7-Org-design-fully-integrated-768x453.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_7-Org-design-fully-integrated-1024x604.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>In a fully integrated digital transformation model, digital capabilities and processes are integrated across business lines and all business lines have a responsibility to drive business agility, growth, and innovation.</p>
<p>Sub-K IMPACT Solutions Ltd., a banking correspondent company focused on reaching underserved populations in India, started their digital transformation journey from a relatively high level of digital maturity, and with a clear understanding of where they wanted to go with a digitally enabled model.</p>
<p>The team socialized digital transformation across the entire organization, utilizing town hall meetings with those at headquarters and in the field to discuss the importance of digital. They trained nearly all staff to adopt a digital-first approach to customer acquisition, application processing, account servicing and collections and put in place KPIs to drive forward a digital operating model. They also created several working groups with members from product, data strategy, training, compliance, marketing, call center, and agent networks to ensure that the existing assets and infrastructure of the institution could be completely leveraged to offer a distribution model for digital products. These cross-functional teams work together to develop and implement digitally enabled, customer-centric products and services, and to ensure a successful digital transformation at Sub-K.</p>


<p>Aligning around this model enabled Sub-K to launch the <a href="https://www.accion.org/banking-goes-digital-to-reach-rural-entrepreneurs" target="_blank" rel="noopener">SARTHI fintech platform</a> in August 2020. This platform currently offers their customers products such as MSME credit, digital micro-loans, gold loans, health insurance and micro-investments. The platform is integrated with multiple banks and third-party partners. Customers can access the marketplace on their own mobile devices or with the assistance from Sub-K’s staff and agents.</p>
<p><img class="aligncenter wp-image-24068" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_8-Org-design-digital-center.png" alt="Building a digital center of excellence" width="1000" height="590" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_8-Org-design-digital-center.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_8-Org-design-digital-center-300x177.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_8-Org-design-digital-center-768x453.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_8-Org-design-digital-center-1024x604.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>A center of excellence within FSPs can take a variety of forms. The center could have their own profit and loss (P&amp;L) responsibility for products that they develop and take to market, or they could emerge as an internal service that is responsible for working with existing P&amp;L owners to drive new and innovative solutions. As FSPs decide what model is right for them, it is important to consider which existing assets within the business will be leveraged in new digital initiatives. Usually, this model requires a significant shift in how departments such as IT, marketing, audit, and compliance, will operate, plan, and resource themselves to support the new venture, making clear agreements about how to share resources to achieve the organization’s priorities critical.</p>
<p>BancoSol is a financial institution serving more than one million low-income clients in Bolivia. As BancoSol embarked on their digital transformation journey, the bank opted to develop a digital center of excellence – an innovation hub – that would be responsible for leading the digital transformation of the bank. This group would enable BancoSol to better serve current customers and to explore what the future of the bank looks like. To encourage experimentation, the innovation hub was not configured to have P&amp;L responsibility immediately. It was given the freedom to develop a digitally native identity and culture, and the responsibility to work closely with the other business lines to deliver new products and services. This structure enables the innovation hub to leverage the existing capabilities of the bank, including the tech stack,marketing, and operational staff.</p>
<p>The innovation hub also serves as an incubator for new skills for the bank. Currently the hub is focused on building capabilities in three areas: human-centered design, data analytics, and open innovation. As these mature, they will be embedded within the business units — moving the organization closer and closer to a fully integrated digital transformation model. As the digital maturity of the organization grows through this process, the innovation hub will continue to foster cutting edge capabilities.</p>
<p>In the long run, as the capabilities of the innovation hub grow, the vision is to transition to a standalone digital unit that has its own P&amp;L responsibility, and that acts as a service provider for the bank, charging for its services. This bank-led innovation hub model has shown to be successful with <a href="https://www.dbs.com/innovation/dbs-innovates/spaces.html" target="_blank" rel="noopener">DBS Asia</a> X (DAX) and the <a href="http://innovation.brac.net/" target="_blank" rel="noopener">BRAC</a> Social Innovation Lab. Both these innovation hubs were developed by banks to create a space where ideas could be generated, developed, and implemented. The innovation hubs continue to bring internal innovation capability to the bank.</p>
<p><img class="alignnone size-full wp-image-24069" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_9-Org-design-standalone-unit.png" alt="Building a standalone digital unit" width="2000" height="1000" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_9-Org-design-standalone-unit.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_9-Org-design-standalone-unit-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_9-Org-design-standalone-unit-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_9-Org-design-standalone-unit-1024x512.png 1024w" sizes="(max-width: 2000px) 100vw, 2000px" /></p>
<p>A standalone digital unit is a powerful idea for many innovators in the industry. The allure of being able to build, test, learn, and launch products without having to worry about the FSP’s existing business operations is strong. One notable example is ALAT, Nigeria’s first fully digital bank, which is a child of the country’s oldest bank, Wema Bank. ALAT was built from the ground up to provide a branchless customer experience. Today, <a href="https://www.wemabank.com/alat-is-to-nigerian-banking-what-technology-is-to-humanity/" target="_blank" rel="noopener">ALAT has over 200,000 active clients</a>, is Wema Bank’s primary banking platform, and is bringing significant transformation to the Nigerian banking industry. In order to set up a stand-alone unit, the strategy, focus, investment requirement, and management structure of the new unit need to be absolutely clear.</p>
<p>Under the Mastercard and Accion partnership, we have opted not to work with any institutions to create a stand-alone digital unit. Rather, we remain focused on the transformation of the microfinance operating model in order to help existing and new clients access credit faster, make payments digitally, save remotely, purchase insurance, and access other benefits.</p>


Build (and rebuild) a culture of experimentation

<p>Culture is a key determinant of a successful digital transformation. An institution can upgrade technologies, infrastructure, and processes, but without addressing the human element, lasting change will not happen. Many microfinance organizations struggle to build digital capabilities internally, as employees prize their deep relationships with customers, and fear that digital tools such as mobile apps or chatbots may diminish their value and have a negative impact on the customer experience. In some cases, effective digital transformation will require bringing in new talent that has different experiences and exposure outside of the organization.</p>
<p>Likewise, the norm in many financial service providers, is that management tends to be focused on the short term and in reaching quarterly targets, and key performance indicators (KPIs) are not designed to encourage risk and innovation for incumbents in such a heavily regulated industry. But digital transformation requires innovation — or <em>reimagining</em> how to respond quickly to market challenges and opportunities. And this requires KPIs, protocols, and a collective learning mindset that supports a culture of experimentation.</p>
<p>Institutions that adopt a culture of experimentation are invested in learning, rather than expecting a product to turn a profit from day one. DBS Bank for example, <a href="https://bankingfrontiers.com/dbs-bank-innovation-is-part-of-the-culture/">runs over 1,000 experiments every year</a> —they strive to understand the needs of their customer, rapidly come up with ideas to solve their most pressing problems, and then take them back to the customer to test those ideas. While many of these experiments fail, it is the iterated version of those failures that leads to success. We find that many institutions will try something once, and it will fail, and the organization will never take the opportunity to learn from the failure and get past the initial iteration. Realizing the transformative power of experimentation is a commitment and over time, experiments yield thousands of small and not-so-small changes that can collectively result in huge benefits.</p>


<h5>TO BUILD THIS CULTURE OF EXPERIMENTATION, THERE ARE SEVERAL STEPS FSPS SHOULD TAKE</h5>
<h2>Focus on alignment before getting started</h2>
<p>Many FSPs have a perceived need to get new products out the door quickly to demonstrate progress on digital transformation initiatives. However, it can be counterproductive to shortchange the time and effort required to build alignment and a shared understanding of the roles and responsibilities expected of each team member in a new way of working together. Setting norms, from the Board down to each level of the organization, is the first step in defining the rules of engagement when creating and implementing digital transformation initiatives. In practice, key activities for digital transformation initiatives often fall on already over-burdened shoulders, which underscores how essential it is to ensure the incentives are right and that everyone has a shared understanding of the organizational priorities and their role in the strategy execution.</p>
<p>Sub-K’s CEO, Sasidhar Thumuluri, approached the challenge by first aligning with all teams on organizational goals and priorities. He held several strategy-setting workshops with relevant teams to identify gaps within the organizational design and process flows and to identify where concrete adjustments needed to be made. One opportunity area identified was a need to streamline hand-offs between the product and technology teams, which would be increasingly important to support the technological developments in the pipeline. Based on the workshop outcomes, the product and technology teams are working together to ensure hand-offs and configurations between the two teams are seamless.</p>
<p>Sasidhar also appointed subcommittees composed of senior-level staff to determine which activities best supported the organization’s priorities. Over time, this has made the organization much more amenable to running experiments. Their attitude has changed from “we can’t” to “we have challenges, let’s address them.” They have recently started evaluating use cases to implement conversational artificial intelligence and are running surveys to better understand the features and functionalities that their customers would find useful for their new customer-facing mobile application.</p>
<h2>A culture of experimentation requires a test-and-learn approach — and a safe space to fail</h2>
<p><img class="aligncenter wp-image-24077" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_10-Culture-of-experimentation.png" alt="Culture of experimentation in digital transformation" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_10-Culture-of-experimentation.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_10-Culture-of-experimentation-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_10-Culture-of-experimentation-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_10-Culture-of-experimentation-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>With Accion MfB in Lagos, Nigeria, we began the digital transformation process with the awareness that the organization was in very early stages of thinking about digitization. Leadership was excited and motivated to digitize, and they assumed that the organization could just hire a few staff members with key digital capabilities to develop a new digital unit, and that would be enough to move the organization forward. However, we quickly learned that we did not have the buy-in or support from other departments that would be required for the digital team to be effective. The HR, IT, marketing, and risk teams simply hadn’t bought in to the mission of the digital unit, and the KPIs they were asked to meet remained aligned with business as usual rather than the bank’s new digital ambitions. This created a disincentive to take any risks aligned with the digital teams’ ambitions.</p>
<p>Even though the organization’s board and CEO were pushing digital transformation, this trickle-down approach was not sufficient to drive a culture where the shared services of the bank were able to support the needs of a team using a test-and-learn approach. For example, the operational teams had certain risk and compliance measures they had to adhere to and were skeptical of large-scale digital changes where the outcomes had not yet been proven.</p>
<h3>To address these challenges, the organization embedded the desired changes within the day-to-day operations of staff at every level by taking the following actions:</h3>
<ol>
<li><strong>Encouraging management to take risks. </strong>One of the key challenges was to get the management to feel comfortable with learning by doing. They were worried about the impact of failed projects on the profitability numbers of the bank. The board approved an innovation budget and noted that any losses would not be counted against the bank’s profitability or performance-related pay. At the same time, the board held the management team accountable to demonstrate progress against their goals within an agreed timeframe.</li>
<li><strong>Prioritizing a Chief Digital Officer (CDO) with the necessary people skills to drive digital adoption within the bank.</strong> The bank’s new CDO encouraged his team to take risks and learn from failure. It was more important to have someone who could set a vision and evangelize digital transformation than someone with deep technical and digital skills.</li>
<li><strong>Developing digital KPIs and embedding them into the entire organization’s DNA. </strong>For example, the Human Resources team took on KPIs such as speed of recruitment of talent with digital skills, which were aligned around the needed competencies of recruits. The commercial team and branch managers were also given the mandate to contribute 15 to 20 percent of their time to digital support. This helped all teams understand their role in supporting initiatives sponsored by the digital unit.</li>
<li><strong>Implementing several interdepartmental service level agreements (SLAs).</strong> For example, they ensured that audit and compliance will conduct timely assessments of digitally enabled products, marketing would respond to the needs of the new products being produced, risk team would support the needs of digital product innovation. This has been particularly important to ensure that departments develop budgets and plans that support experimentation requirements.</li>
<li><strong>Creating a safe space to fail and encourage experimentation in a sandbox-like environment.</strong> They ringfenced potential risks by creating limits in terms of the maximum number of customers and the total amount to lend during the pilot to quantify the upfront costs needed for the experiment to achieve its learning objectives. The key was to provide a digital unit with autonomy and decision-making power and to frame the new digital loan as a low-risk experiment, rather than a fully fledged product launch. By doing this, the team was able to take a more flexible approach within the bank’s risk management framework for new product launches, to build up enough lending history for the digital loan pilot to validate the alternative scoring model.</li>
</ol>
<h2>Ultimately, digital transformation requires comfort with radical experimentation</h2>
<p>A vital ingredient of any digital transformation strategy is experimentation. To be able to develop new offerings in a digital world, FSPs need the flexibility to experiment safely and effectively. This means that teams need the freedom to fail, all while ensuring that any inevitable failures occur in a secure environment. Leadership teams can create a safe environment for promoting innovation by mastering six skills: be approachable, compassionate, composed, manage conflict, direct others, and listen. Leadership teams that embody these characteristics open surprising doors that create differentiated offerings and innovative solutions to better serve financially excluded populations.</p>
<div id="attachment_24078" style="width: 339px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-24078" class=" wp-image-24078" src="https://content.accion.org/wp-content/uploads/2021/04/civico-phone.png" alt="CÍVICO’s digital loan application provides MSMEs with just in time credit and flexible conditions so MSME’s can continue growing their businesses." width="329" height="558" srcset="https://content.accion.org/wp-content/uploads/2021/04/civico-phone.png 984w, https://content.accion.org/wp-content/uploads/2021/04/civico-phone-177x300.png 177w, https://content.accion.org/wp-content/uploads/2021/04/civico-phone-768x1303.png 768w, https://content.accion.org/wp-content/uploads/2021/04/civico-phone-604x1024.png 604w" sizes="(max-width: 329px) 100vw, 329px" /><p id="caption-attachment-24078" class="wp-caption-text"><em>CÍVICO’s digital loan application provides MSMEs with just in time credit and flexible conditions so MSME’s can continue growing their businesses.</em></p></div>
<p>CÍVICO is a digital ecosystem that has geolocated hundreds of thousands of small merchants and corner stores across Latin America to make it easier for citizens to find what they need in their local environment. CÍVICO is not a traditional financial service provider, but many of the merchants in their network expressed a need for financial services to help them to grow their businesses. Seeing the opportunity to better serve their customers and grow their business, CÍVICO set out to develop an end-to-end digital loan product for underserved businesses to help communities thrive. Because CÍVICO did not have the financial services infrastructure in place, they were initially solely considering partnering with external vendors to develop a digital lending platform. However, due to uncertainty caused by the COVID-19 pandemic, many of the partnerships they had been considering failed to materialize due to perceived elevated risks in lending.</p>
<p>Rather than continue to wait for the perfect partner to come along, especially when they knew that their users needed capital immediately to sustain their businesses, CÍVICO made the bold decision to start lending directly. They launched a low-fidelity product, lending very small amounts and limiting their total investment to just $15,000 USD so that they could conduct tests and learn quickly. This low-fidelity product has enabled CÍVICO to make several adjustments to their processes and product. For example, the team found that they needed to develop a filtering process to determine the specific needs of the MSMEs in their network. They deployed a survey that evolved into a merchant assessment tool. When they cross-referenced these profiles with CÍVICO’s existing data, it helped them to better understand the entrepreneur’s behaviors, their biggest pain points in recovering from the pandemic, and the state of their financial health. With this data, CÍVICO was more easily able to target the merchants most in need of credit and recommend specific educational modules, available on the CÍVICO platform, that would be most useful for the business. This is also helping them identify how to better use alternative data for credit scoring. After six months of running the pilot, they have been able to reach 1000 customers, and they are constantly incorporating learnings into their processes. CÍVICO has also identified several partners with which to scale the digital loan offering and is working toward building a multi-partner flexible product. By launching the pilot early with a small group of customers, they were able to finetune which customers to target and reduce risks for themselves and their partner lending institutions.</p>


Have a clear data strategy

<blockquote class="pullquote--right"><p>Any digital customer experience requires quality and curated data that is readily consumable as close to real-time<br />
as possible.</p></blockquote>
<p>Data capabilities play an essential role in an organization’s digital transformation. Data can inform optimization strategies that increase efficiency and revenue. Data itself can also be monetized creating entirely new business models where data assets become products. Especially today, when FSPs must make unprecedented and rapid decisions, adjust business strategies, segment customers to understand portfolio risks, rethink credit models, and enable remote engagement with customers and staff, data capabilities go hand-in-hand with digital.</p>
<p>For the unbanked and underbanked and the financial providers that serve them, the explosion of available data, data-analytics services, and a growing digital ecosystem <a href="https://www.centerforfinancialinclusion.org/data-for-inclusive-finance-delivering-on-the-promise-for-consumers" target="_blank" rel="noopener">creates unprecedented potential</a>. The possibilities to unlock inclusion, <a href="https://www.centerforfinancialinclusion.org/data-for-inclusive-finance-delivering-on-the-promise-for-consumers" target="_blank" rel="noopener">greater financial health</a>, and opportunity for the underserved are extraordinary, from prospecting and credit scoring for thin-file consumers to well-timed nudges for saving,  to intelligent chatbots, to personalized recommendations, to remote client onboarding, to access to online platforms. Any digital customer experience requires quality and curated data that is readily consumable as close to real-time as possible.</p>
<p><img class="aligncenter wp-image-24081" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_11-Using-data.png" alt="Using data to drive financial inclusion (examples)" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_11-Using-data.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_11-Using-data-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_11-Using-data-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_11-Using-data-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<p>Despite the proliferation of data, the challenges of obtaining and converting raw information into actionable insights are immense. Many organizations become overwhelmed with the possible use cases for data and lose alignment and focus when it comes to creating a data strategy. Some institutions end up creating a parallel siloed data strategy rather than an integrated strategy which acts as a key enabler to their core strategic initiatives. However, microfinance organizations can take several key steps to harness the power of data in their digital transformation. These steps amount to a plan for how to align and prioritize data and analytics activities with key digital transformation priorities, goals, and objectives.</p>
<h2>Derive value first from the data you have</h2>
<p>In the early stages of developing a digital loan product, Accion MfB explored potential data-sharing partnerships with several entities, which would enable them to build a robust scoring model that would leverage alternative data. However, it was challenging to assess the value-add from potential third-party data providers and agree on how best to structure a commercial partnership. This challenge prompted the bank to take a long hard look at their own data. The organization has an arsenal of over 10 years of lending data that has been under-utilized, and the team realized that they could do a lot more with their own data if they got creative and looked at it in a different way. For example, they were able to use what they already know about customers’ willingness to pay and capacity to pay to design the pilot digital loan product. They leveraged historical data collected from existing bank customers and used this to create a benchmark profile against which to compare incoming data from new customers. As the use of their own internal data involved fewer operational and commercial complications, it helped the bank launch a viable pilot quickly even as it continues to explore other collaborations.</p>
<h2>Be practical with how to get from insights to action</h2>
<p>Similarly, BancoSol in Bolivia has been in operation for over 30 years and today serves 1 million clients, making it one of the nation’s largest banks. Mindful that they have a lot of untapped data under their noses, BancoSol wanted to leverage this data to uncover insights that could help to address four key challenges for the bank: drive digital adoption and improve usage, increase cross-product usage, increase savings balances, and maintain customer relationships. Accion and Mastercard supported BancoSol by convening a 36-hour “datathon” during which 40 Mastercard volunteer data scientists collaborated to tackle these key challenges.</p>
<h3>Three key recommendations came from this exercise:</h3>
<ol>
<li><strong>Start by understanding your typical digital customer. </strong>Analyzing customer demographic data and banking patterns can help identify and nudge those customers who are most likely to go digital. In BancoSol’s case, the datathon revealed that its typical digital app customer was more likely to be female and more likely to be younger compared to the average BancoSol client. By understanding the typical digital customer, BancoSol can prioritize those who may be most-inclined toward digital adoption.</li>
<li><strong>Equip loan officers with insights to match customers with products that meet their needs. </strong>The datathon analysis revealed that app users made nearly twice as many deposits as other users — linking digital adoption with increased use. As <a href="https://www.centerforfinancialinclusion.org/data-for-inclusive-finance-delivering-on-the-promise-for-consumers" target="_blank" rel="noopener">research has shown</a>, greater use of financial products, whether that’s insurance, savings, or credit, makes small businesses more resilient to shocks like COVID-19 and also ensures the bank’s own sustainability. Equipped with these kinds of insights, loan officers can better communicate key benefits of going digital and identify when unexpected hurdles might be steering potential users away, like privacy or information security concerns or bad online experiences elsewhere. With insights from users, BancoSol was able to develop clear messaging for loan officers about privacy and security, and continually test and streamline the app experience for customers so it matched expectations.</li>
<li><strong>Retain customers by being proactive, not reactive. </strong>The datathon offered insights on customer retention. When a customer stopped saving or communicating with the bank, for example, his or her risk for a loan default rose. Based on those factors, the data analysts created a risk propensity score, which the bank can use to intervene before a customer begins to disengage. The datathon also revealed that a digital connection can improve retention in the absence of an in-person connection, critical in an era of social distancing. Customers who use digital channels maintain consistent relationships with the bank and have more consistent differentiators between high and low retention risk.</li>
</ol>
<p>Based on the experience of the datathon and seeing the value that could come from the data already in their arsenal, BancoSol has hired a full-time data analyst to join the team and plans to add on additional data experts over time. They know that having dedicated resources skilled in data analytics embedded within the product innovation team will help jumpstart a virtuous cycle of data-driven design.</p>


<h2>Prioritize data management and governance</h2>
<p>To derive value from existing data, microfinance institutions need to invest in structuring their data appropriately and be deliberate in the governance and management of their datasets to ensure their usefulness and adherence to data responsibility principles. Data governance establishes policies and procedures around data and must involve key business stakeholders. Data management comprises the set of activities and logistics involved to enact those policies and procedures with regards to how data is compiled and used for decision-making. FSPs should be proactive in adhering to global best-in-class customer data protection and privacy regulations, even if they are not (yet) required in their country.</p>
<p>Many institutions know they possess valuable data, but it is stored in various places and in multiple formats. They often ignore complicated archives and only manage the limited data that they are required to — or that is easily accessible. Many are preoccupied by fulfilling regulatory reporting requirements or consumed by responding to urgent ad hoc data requests, leaving little time and bandwidth to step back and organize their data. They acknowledge the importance of, but defer investing in, proper data management solutions to a later date, yet as data accumulates, this becomes harder. Annapurna Finance Limited wanted to address this challenge and has recently invested heavily in data management solutions that will improve data reporting, data migration, and data storage for new digital platforms and products from day one, such as the loan origination system, which will expedite credit scoring and origination of new digital lending and other products.</p>
<p>Nearly every financial institution struggles with maintaining accurate customer contact information, a simple yet critical example of data management. For microfinance institutions with high-touch models, having a current phone number on file can seem low priority, since the loan officer regularly visits customers in person. However, when lockdowns were first implemented due to the COVID-19 pandemic, the ability for loan officers to communicate directly with their group lending customers became almost impossible without up-to-date contact information. Annapurna needed to communicate critical loan information, including payment dates, updates on moratoriums, and even introduce new loan offers via SMS, as many of their clients only have access to feature phones.</p>
<blockquote class="pullquote--left"><p>Many institutions know they possess valuable data, but it is stored in various places and in multiple formats.</p></blockquote>
<p>However, they found that their database of phone numbers was outdated, with many numbers  no longer working or belonging to a new individual. Annapurna introduced a standard process to ensure that at every customer touch point — whether during a field visit from a loan officer or a customer visit to a branch — bank staff would confirm the customer’s phone number to ensure a high-quality database. In parallel, they implemented a new communication system, which required them to integrate their SMS messaging system with their loan origination system. These two initiatives helped to standardize communications with customers, create greater engagement, and ensure a more transparent flow of information</p>


Future-proof your transformation

<p>While an institution’s technology infrastructure can be a springboard to leap forward, it can also be an obstacle. Today’s social distancing measures have made technology maturity even more crucial, as technology determines whether the institution can quickly deliver the critical digital functionality its staff and customers need. Underlying all of this is a need to build more flexible core IT and data management systems, which have traditionally been a weakness for MFIs. The ability to evolve and adapt business models, dependent on agile and adaptable IT systems, is increasingly a <a href="https://www.cgap.org/blog/after-storm-how-microfinance-can-adapt-and-thrive" target="_blank" rel="noopener">defining factor in the digital age</a>.</p>
<p>A key to digital transformation, and what makes it so difficult, is balancing both the necessary planning required to transform the organization and the agility needed to innovate quickly. In a <a href="https://hbr.org/2016/10/make-your-strategy-more-agile" target="_blank" rel="noopener">Harvard Business Review article titled “Make your strategy more agile</a>,” Tim Leberecht highlights the union of vision and improvisation:</p>
<blockquote class="blockquote"><p>“Vision incorporates the long-term, if not permanent, purpose and principles of an organization, which serves as the north star for all its actions. Improvisation suggests a fundamental openness and flexibility at the tactical level — the willingness to explore, experiment, and iterate.”</p></blockquote>
<p>Perhaps nowhere do the conflicts inherent in these two opposing concepts come more starkly into contrast than in the technology stack and IT functions of an organization undertaking digital transformation. The fact is, technology decisions made today will impact what’s possible tomorrow, so organizations need to design for the future while understanding the constraints they face today due to legacy systems. Following these key design principles can help your organization balance conflicting priorities and opposing forces to build its future state architecture.</p>


<h2>Balance vision and improvisation</h2>
<p>Balancing infrastructure planning (or vision) with agility (improvisation) often requires a phased approach, with work around solutions enabling products to get to market quickly, while parallel tracking more long-term strategic investments in future-proofing your technology infrastructure. BancoSol was able to effectively take such a parallel approach. At the onset of their digital transformation journey, senior leadership articulated a vision and an implementation plan for the technology stack and analytics platform capabilities which would be required to execute the bank’s digital strategy for the next five years and beyond. The organization committed to ambitious digital adoption targets to set a north star toward which the team should set its sights. Yet, the team also recognized that it was equally important to start somewhere, to commit to improvising an agile approach to innovation rather than wait for the entire technology infrastructure to be deployed before beginning development of their first digital minimum viable product (MVP). Instead, the MVP was designed to function within the existing technology systems with the minimum modifications necessary in terms of API connections, etc., while planning to rollout additional functionality in line with the broader technology roadmap.</p>
<p>Balancing vision and improvisation also requires careful consideration of what to build in house versus what to outsource. As technology evolves, that question becomes increasingly complex. It may be easier to outsource key functions, but institutions need to be careful about protecting their core value-add to the market and not concentrating risk by relying too heavily on one vendor. Sub-K’s digital marketplace, <a href="https://www.accion.org/banking-goes-digital-to-reach-rural-entrepreneurs" target="_blank" rel="noopener">SARTHI</a>, was initially planned for in-house development, as they felt their IT team had the needed capabilities. However, after some deliberation, they realized that it would not be worth the time or effort to develop all of the capabilities needed internally, especially solutions that have already been commoditized in India. The organization decided to partner with several vendors to get access to their existing solutions, with necessary customizations. Sub-K knew that their core value-add was their unique methodology and agility to add new products and partners to the platform, so they needed to work with a technology partner to build a platform that enabled this flexibility.</p>
<p>Finally, a strong and coherent technology team is critical to delivering on the vision. The challenge confronting this team during a digital transformation is: how do we balance new digital initiatives with the tasks of business as usual? And how should we determine what to focus on?  Digital transformation requires that IT departments are clear on the organization’s transformation priorities and can effectively prioritize incoming projects. Sub-K, for example, has established a “change control board” tasked with assessing the business value of each request to prioritize the change requests. This board governs the process for required sign-offs and cross-checks with all affected product owners when a change is requested to the IT work stack. This helps IT manage delivery by prioritizing feasibility and strategic importance of various initiatives and continually reevaluating the current backlog.</p>
<p>Likewise, our partner Bina Artha Ventura in Indonesia had three standalone initiatives they wanted to pursue at the outset of their digital transformation journey: ecommerce, digital identity, and digital lending. In an effort to combine all three into a logical technical architecture, they made the strategic decision to prioritize development of an overarching customer engagement platform, which would support and ultimately be able to deliver their other key initiatives.</p>
<p><img class="aligncenter wp-image-24082" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_12-Prioritization-process.png" alt="Digital transformation: Prioritization process" width="1000" height="550" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_12-Prioritization-process.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_12-Prioritization-process-300x165.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_12-Prioritization-process-768x422.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_12-Prioritization-process-1024x563.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" /></p>
<h2>Think strategically about APIs to modernize legacy systems</h2>
<p>The movement toward open-banking, or the system of allowing access and control of consumer banking and financial accounts through third-party applications, has generated a need for FSPs to be able to consume and produce data for third parties to reap the benefits that partnerships can provide. APIs play an important role in ensuring that a company can access, interact, and engage with a third party’s data and functions. They can also be an effective tool to modernize legacy systems in a way that is low-cost, efficient, and does not require a complete (and expensive) upheaval of the existing core system.</p>
<p>At Accion Microfinance Bank, for example, the team needed to find the right partner to support their ambitions to create a digital loan product. After finding the right partner, the organization quickly realized that to deliver the digital loan capability, it would need to build APIs to connect with the partner’s systems. To evaluate the feasibility of this, the team conducted an API inventory — or an evaluation of how various systems should connect and where vulnerabilities may lie.</p>
<h3>Though this process, they examined:</h3>
<ul>
<li>the various integration points required for the organization’s systems to be able to communicate with various partners or vendors to meet the requirements of the digital lending product,</li>
<li>whether these integration points already existed,</li>
<li>whether they had the capabilities needed to manage the data, and</li>
<li>handoffs that may be required between the technology and operations teams.</li>
</ul>
<p>This inventory helped them to understand the steps they would need to take to develop the capabilities required to manage the data exchanged through the new APIs.</p>
<h2>As you go digital, ensure you are resilient</h2>
<p><img class="aligncenter wp-image-24094" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_13-Digital-resiliency.png" alt="Digital transformation resiliency" width="1000" height="500" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_13-Digital-resiliency.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_13-Digital-resiliency-300x150.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_13-Digital-resiliency-768x384.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_13-Digital-resiliency-1024x512.png 1024w" sizes="(max-width: 1000px) 100vw, 1000px" />Digital transformation requires great reliance on the external and internal technological environment. The external environment includes the availability of mobile connectivity in the region, the ability to connect with others over the internet, and the technological readiness of potential partners. The internal environment includes the systems such as the core banking system, data warehouses, document management systems, and office automation systems. As an FSP begins to digitize, through greater process automation or through new business models, the more vulnerable their systems may be to system failures or cyber-attacks, and the more resilient its internal environment needs to be to avoid these challenges.</p>
<div id="attachment_19099" style="width: 501px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-19099" class=" wp-image-19099" src="https://content.accion.org/wp-content/uploads/2019/07/Accion_Clients_0002-1-e1619557888950.jpg" alt="Accion Microfinance Bank loan officer uses a tablet to serve client Ezeh at his workshop" width="491" height="433" srcset="https://content.accion.org/wp-content/uploads/2019/07/Accion_Clients_0002-1-e1619557888950.jpg 1450w, https://content.accion.org/wp-content/uploads/2019/07/Accion_Clients_0002-1-e1619557888950-300x265.jpg 300w, https://content.accion.org/wp-content/uploads/2019/07/Accion_Clients_0002-1-e1619557888950-768x677.jpg 768w, https://content.accion.org/wp-content/uploads/2019/07/Accion_Clients_0002-1-e1619557888950-1024x903.jpg 1024w" sizes="(max-width: 491px) 100vw, 491px" /><p id="caption-attachment-19099" class="wp-caption-text"><em>Ezeh, a client of Accion Microfinance Bank in Lagos, Nigeria</em></p></div>
<p>To build resiliency, it is important to have well thought out and structured disaster recovery plans with remote disaster recovery sites set up with the appropriate failover and switch back parameters in place. These can include both on-premises (in physical server rooms) and on-cloud architecture. Cloud technologies, particularly, can improve technology resilience through greater regional autonomy (not dependent on other regions to run), data backups, and automated insights for decision-making.</p>
<p>However, regulators often perceive cloud infrastructure for financial services to be risky in terms of its suitability to safeguard customer’s personal and financial information. Financial regulators have a more comfortable view of carefully designed cloud-based architecture held within the country&#8217;s borders. Given the low cost of using cloud architecture and the benefits they offer, institutions can and should explore their use.</p>
<p>Finally, as FSPs digitize, cybersecurity is critical to ensure that the organization can reach its digital vision and the technology stack continues to be future proof. Cyber threats and attacks have increased since the start of the pandemic, particularly ransomware and COVID-themed phishing attacks, and organizations in the midst of digital transformation are very vulnerable. Effective mitigation against cyber risks requires developing layers of governance, accountability, policies, and procedures, all while creating and adhering to new norms of data protection and guidelines.</p>
<p>We worked with Accion AMfB, Sub-K, BancoSol, and Annapurna to recommend the necessary systems for greater resilience. This included suggestions for finetuning their disaster recovery plans, assessing cyber-risk solutions, regular testing, and the cultural changes needed for staff and partners to proactively address cyber risks and ensure business resilience and continuity planning.</p>


Form partnerships to achieve scale

<p>Partnerships are key to success in digital transformation. They can enable new ways to leverage data, evaluate risk, reach new customers, develop new products and services, and strengthen customer touch points. FSPs need to carefully consider when, how, and with whom to partner. The right partners will help accelerate your transformation agenda, bringing in agility and expertise that are beyond the core competencies of the FSP. As FSPs grow and evolve digitally, they are better able to integrate with formal players in the financial services ecosystem, such as payment providers and credit bureaus.</p>
<p>Partnerships are critical to expanding the reach and uptake of financial products among underserved people by supporting the development of a 360-degree digital financial ecosystem. We know that providing customers with digital financial products is only useful in so far that the financial ecosystem in which the customer operates has digital capabilities across the value chain, including merchants being able to accept digital payments, customers willing to pay digitally, and suppliers to small merchants accepting digital payments for inventory. Lacking any of these crucial elements can generate a bottleneck within digital financial transactions that will slow the adoption of digital financial services. To address this, many partnerships are emerging between FSPs and other enabling actors to drive this ecosystem. For example, FSP partnerships with mobile network operators (MNOs) are focused on enhancing mobile payments and increasing the usability of payment-related technologies — and have transformed how people complete financial transactions in many markets. As the density of digital services available within an ecosystem grows, so too will the digital comfort of end-customers.</p>
<div class="mceTemp"></div>
<p><img class="alignnone size-full wp-image-24124" src="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_14-Digitizing-the-ecosystem-5-3.png" alt="Digitizing the ecosystem to support the MSME" width="2000" height="1300" srcset="https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_14-Digitizing-the-ecosystem-5-3.png 2000w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_14-Digitizing-the-ecosystem-5-3-300x195.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_14-Digitizing-the-ecosystem-5-3-768x499.png 768w, https://content.accion.org/wp-content/uploads/2021/04/Accion-MAP-report-graphics-WEB_14-Digitizing-the-ecosystem-5-3-1024x666.png 1024w" sizes="(max-width: 2000px) 100vw, 2000px" /></p>
<p>Some FSPs, however, tend to view partnerships through the narrow lens of a vendor relationship, rather than seeking to create something that is greater than the sum of its parts. The sticking point for many partnerships is a question of who owns the customer relationship and their data and a lack of a clear business case that aligns the goals of all parties. However, there are many ways to address these issues and build partnerships that work.</p>


<h2>Establish win-win partnerships</h2>
<div id="attachment_17004" style="width: 423px" class="wp-caption alignleft"><img aria-describedby="caption-attachment-17004" class=" wp-image-17004" src="https://content.accion.org/wp-content/uploads/2019/01/2018_Accion_BancoSol_Day3_0049-e1619577127308.jpg" alt="Our partners, including the team at BancoSol, are" width="413" height="328" srcset="https://content.accion.org/wp-content/uploads/2019/01/2018_Accion_BancoSol_Day3_0049-e1619577127308.jpg 1190w, https://content.accion.org/wp-content/uploads/2019/01/2018_Accion_BancoSol_Day3_0049-e1619577127308-300x238.jpg 300w, https://content.accion.org/wp-content/uploads/2019/01/2018_Accion_BancoSol_Day3_0049-e1619577127308-768x609.jpg 768w, https://content.accion.org/wp-content/uploads/2019/01/2018_Accion_BancoSol_Day3_0049-e1619577127308-1024x812.jpg 1024w" sizes="(max-width: 413px) 100vw, 413px" /><p id="caption-attachment-17004" class="wp-caption-text"><em>Our partners, including the team at BancoSol, are </em><em>developing innovative products to help small businesses to succeed.</em></p></div>
<p>BancoSol, as one of the leading financial institutions in Bolivia, has a first-class IT team. They were able to develop their latest customer mobile banking app completely in house, and high uptake of the product established them as a pioneer in the market. However, when they planned to upgrade to a 3.0 version, they wanted to find a partner that could help them get to market within 100 days. Partnering with fintech startup<a href="https://flourishsavings.com/"> Flourish</a> allowed them to layer the gamification functionality enabled by Flourish’s platform on top of the bank’s digital assets, as a tactic to drive engagement — in this case, increased savings deposits — within the revamped customer app. The partnership was successful because it went beyond a mere vendor-bank relationship, with both entities collaborating on how to reach shared goals. Flourish was able to bring its knowledge of behavioral science together with BancoSol’s strong understanding of their customer to develop a captivating customer engagement strategy. The partnership was win-win for both entities: Flourish was able to enter the Bolivian market and BancoSol was able to get to market faster.</p>
<p>Partnerships can serve as a mutually beneficial go-to-market accelerator. For example, a good partnership can benefit both an FSP looking to scale their digital offerings and an ecommerce platform looking to grow their customer base. That’s why Accion MfB teamed up with African ecommerce giant <a href="https://www.jumia.com.ng/">Jumia</a> to help onboard their MSME customers onto the Jumia platform to boost sales through ecommerce and increase MSMEs’ comfort and trust in using digitally enabled tools to run their businesses. Jumia customers benefit through access to Accion MfB’s credit offering. Through this partnership, Jumia will be able to grow its customer base, and Accion MfB will be able to leverage ecommerce sales data to underwrite digital working capital loans.</p>
<h2>Expand your definition of partner</h2>
<p>When most people think of partnerships, the first thought that comes to mind is an alliance between two independent entities. However, CÍVICO’s founders are not ones to let traditional concepts define the realm of what’s possible, having invented a crowdsourcing model for citizens to map their own cities by posting missions and offering points and rewards to those who complete tasks, such as confirming the products or services offered at a specific location. In this way, they were able to build out the most comprehensive picture of local small businesses and other civic services available in cities like Bogotá, Colombia, and gain a better understanding of what financial services those small businesses might need.</p>
<div id="attachment_24099" style="width: 544px" class="wp-caption alignright"><img aria-describedby="caption-attachment-24099" class="wp-image-24099" src="https://content.accion.org/wp-content/uploads/2021/04/civico-screenshot.png" alt="The screen shot above is from CÍVICO’s website and describes how everyday citizens can collaborate with CÍVICO to map small businesses in their city, by taking the following steps: Step 1: “Tour the neighborhoods in your city,” Step 2: “Send us information from each place you are able to share,” Step 3: “We will provide you with points that you can later exchange for customer vouchers.” On this page, citizens can upload information about a business or look for other missions to complete. " width="534" height="427" srcset="https://content.accion.org/wp-content/uploads/2021/04/civico-screenshot.png 1160w, https://content.accion.org/wp-content/uploads/2021/04/civico-screenshot-300x240.png 300w, https://content.accion.org/wp-content/uploads/2021/04/civico-screenshot-768x615.png 768w, https://content.accion.org/wp-content/uploads/2021/04/civico-screenshot-1024x820.png 1024w" sizes="(max-width: 534px) 100vw, 534px" /><p id="caption-attachment-24099" class="wp-caption-text"><em>The screen shot above is from CÍVICO’s website and describes how everyday citizens can collaborate with CÍVICO to map small businesses in their city, by taking the following steps: Step 1: “Tour the neighborhoods in your city,” Step 2: “Send us information from each place you are able to share,” Step 3: “We will provide you with points that you can later exchange for customer vouchers.” On this page, citizens can upload information about a business or look for other missions to complete.</em></p></div>
<p>But for CÍVICO’s new digital lending product to be viable, the company needed to find a cost-effective way to mitigate risk by verifying the business location of their online applicants. Rather than deploying CÍVICO staff to visit every potential customer — as a loan officer would do in the traditional microfinance model, and which would be expensive and time consuming for the start-up — CÍVICO turned again to their crowd-sourcing platform. They created new missions where individual citizens were asked to verify the location of the business by taking a picture of it and collect information related to perceived sales activity.</p>
<p>In the few cases where the business could not be verified in this way, CÍVICO would then deploy other more resource-intensive channels to verify the customer, either by phone or by conducting the visit themselves. This crowdsourcing-by-default design enabled an OPEX light business model by leaning on the existing relationships the company had created through their gamified crowdsourcing platform.</p>


Conclusion and next steps

<p>The global pandemic has taken an especially devastating toll on low-income people and small businesses. These vulnerable populations need access to financial tools that can help them rebuild their livelihoods and gain access to the increasingly digital economy, and they need financial services that are convenient, easy to use, and affordable. Digitizing swiftly and effectively is vital for FSPs to meet their customer’s evolving needs responsibly and at scale.</p>
<blockquote class="pullquote--right"><p>Much remains to be done, both by our partners and the industry at large.</p></blockquote>
<p>Our global partnership with Mastercard has laid a solid foundation toward our goal of helping millions of people and small businesses fully participate in and benefit from the digital economy. While digital transformation is a continual and never-ending process, our partners have already accomplished so much. Beyond the digital products and services our partners are launching, what we hope sticks is the transformation process itself: the willingness and ability of everyone — through the culture of innovation and learning they create — to continue on the journey so that they can be responsive to the needs of their customers and meet challenges and opportunities as they arise.</p>
<p>The digital transformation of FSPs can also encourage more people to embrace the use of digital tools and spur the digital transformation of MSMEs. Individuals that are able and comfortable transacting digitally can connect more easily online and participate more fully in an inclusive digital economy. To date, 1.3 million microbusinesses are actively using digital products on a monthly basis as a result of this program. One notable example is 26-year-old Rosina Das, who with the help of Annapurna’s digital emergency loan, was able to reopen her small grocery shop in her village of Odisha, India. Similarly, millions of other MSMEs around the world can benefit from digital financial services to build resilience and seize opportunities.</p>
<p>Yet much remains to be done, both by our partners and the industry at large. Donors should play the important role of catalyzing the digital transformation of microbusinesses through strategic investments in microfinance organizations. Governments and regulators can take steps to reduce the demand for cash through carefully crafted regulations that incentivize digital transactions.  Finally, development finance institutions and multilateral institutions should further embrace digital transformation through technical support that is backed with investment funding.</p>
<p>We hope the learnings, insights, and strategies we share here inspire others to collectively contribute to the building of an inclusive digital economy. We are also hopeful that these examples of how our partners are addressing key challenges, while celebrating milestones achieved along the way, can inform the approaches of other institutions as they evolve and grow in our increasingly digital world.</p>
<p>Now that many of our partners have launched digital products and have others in the pipeline, our focus going forward is on driving uptake and usage, so that low-income individuals and merchants can reap the benefits of digital financial services. To enable greater prosperity and resilience for millions of underserved across the globe, we will support our partners to identify, prioritize, and execute on the key activities that will support and accelerate the digital transformation of the end customer. Ultimately, these efforts have the power to help vulnerable people rebuild from a devastating crisis and create an economy with opportunity for all.</p>
<hr />
<p><a href="https://bit.ly/3adofG3" target="_blank" rel="noopener"><img class="wp-image-24105 alignleft" src="https://content.accion.org/wp-content/uploads/2021/04/Mastercard-e1619578679836.png" alt="Mastercard Center for Inclusive Growth logo" width="274" height="92" srcset="https://content.accion.org/wp-content/uploads/2021/04/Mastercard-e1619578679836.png 1000w, https://content.accion.org/wp-content/uploads/2021/04/Mastercard-e1619578679836-300x101.png 300w, https://content.accion.org/wp-content/uploads/2021/04/Mastercard-e1619578679836-768x257.png 768w" sizes="(max-width: 274px) 100vw, 274px" /></a></p>
<p>&nbsp;</p>
<p><a href="https://www.accion.org/mastercard-and-accion-partnering-for-inclusive-growth" target="_blank" rel="noopener"><em>This paper is supported by the Mastercard Center for Inclusive Growth.</em></a></p>
<p>&nbsp;</p>
<p><em>Contributions from digital transformation experts Vishal Ajmera, Debdoot Banerjee, Iain Brougham, Laura Glenny, Maria Camila Gomez, Mona Kapoor, Gift Mahubo, Balaji Parthasarathi, Prateek Shrivastava, Amy Stewart, Raliat Sunmonu, Victoria White, and Jose Wolff.</em></p>


Report

<a href="https://www.accion.org/how-to-empower-small-businesses-to-go-digital-and-rebuild/" target="_blank" rel="noopener noreferrer">Read the foreword for this report, co-authored by Accion and the Mastercard Center for Inclusive Growth, here.</a>
<h1>Executive summary</h1>
As the recovery from COVID-19 begins, financial inclusion has never been more urgent. Low-income people around the world have lost their jobs or businesses, and the World Bank projects that the pandemic will push <a href="https://www.worldbank.org/en/publication/global-economic-prospects" target="_blank" rel="noopener noreferrer">100 million people into extreme poverty</a>. Vulnerable populations direly need financial tools like savings, credit, and insurance to rebuild their livelihoods and build resilience to the challenges of today and those to come. Financial institutions have a critical role to play in supporting the most vulnerable and equipping them with the tools they need to enter the digital economy.

The pandemic and social distancing have dramatically increased the urgency for innovative and relevant digital solutions to meet the new and evolving needs of vulnerable populations. For many people visiting their local bank branch was unsafe or not feasible during lockdowns, and as economies begin to open, many people have begun to expect the convenience, speed, and affordability digital transactions can bring. To effectively support their clients and reach new populations in an increasingly digital environment, financial service providers (FSPs) need to digitally transform. Many microfinance institutions are built on low-tech, high-touch models designed decades ago to reach millions of low-income clients. Now, these FSPs must find digital ways to reach and interact with their customers efficiently and at scale, use their client data for more efficient credit management and product design, and build more flexible core systems that support adaptability. This requires FSPs to coordinate across every aspect of their business to achieve a fully digitally enabled business model.
<blockquote class="blockquote">FSPs must find digital ways to reach and interact with their customers efficiently and at scale, use their client data for more efficient credit management and product design, and build more flexible core systems that support adaptability.</blockquote>
&nbsp;

Through our work with FSPs and their clients, we uncovered six key strategies that financial inclusion-focused institutions need to keep in mind as they progress down the path of digital transformation:

The digital transformation guide: Six strategies to scale financial inclusion

<p>Mastercard is also working with <a href="https://www.aofund.org/">Accion Opportunity Fund</a> to help small business owners in the United States recover from the pandemic and expand the capital and resources available to entrepreneurs of color. Accion Opportunity Fund provides underfunded small business owners in the U.S. with access to capital, networks, and coaching, and over its history, nearly 90 percent of loans have gone to businesses owned by women, people of color, or immigrants. Mastercard&#8217;s support is helping Accion Opportunity Fund scale their services nationally, use alternative data to improve credit decisioning, and strengthen digital channels and outreach.</p>
<p>Through Accion Venture Lab, we’re helping inclusive fintechs address strategic and operational challenges so they can better serve microbusinesses with innovative, digitally-enabled products and services in emerging markets. To date, our work to support fintechs has reached 500,000 small business clients around the world. As part of this work, we helped <a href="https://www.accion.org/making-education-accessible-through-fintech">the education fintech Pintek</a> optimize their credit policies and processes. This can help Pintek better achieve its goal of providing financing to small private schools and low- and middle-income families who are often left out of Indonesia’s competitive public education system.</p>
<p>To build more relevant financial services, we are conducting research to better understand the needs of underserved people and small businesses. The Center for Financial Inclusion at Accion (CFI) is publishing the results of <a href="https://www.centerforfinancialinclusion.org/covid-19-and-msmes-data-and-analysis-to-understand-impact">a survey of small businesses across four countries</a>—Colombia, India, Indonesia, and Nigeria—to understand the impact of COVID-19 on their operations and finances. The first results from Nigeria and Indonesia showed that 80 and 85 percent of businesses (respectively) saw profits decline—highlighting the critical challenges faced by small businesses during the pandemic.</p>
<p>Mastercard and Accion also set up a talent philanthropy program that allows Mastercard employees to work within Accion to advance the partnership’s mission. Mastercard employees bring additional knowledge and expertise to Accion and our partners—while gaining the opportunity to serve, protect, and empower banking and finance clients around the world. Thus far, Mastercard employees have helped Accion’s partners leverage data, understand clients’ needs, and shape board governance programs.</p>
<h3>Building on the past to focus on the future</h3>
<p>Mastercard has been an integral partner in advancing Accion’s mission to build a financially inclusive world for the three billion people who are left out, or poorly served by, the global financial system. In 2016, Accion honored former Mastercard President and CEO Ajay Banga at its 55th-anniversary gala with the Accion Leadership in Financial Inclusion Award. Under Banga’s leadership, in 2015, Mastercard pledged to reach 500 million people previously excluded from financial services. And in 2020, Mastercard expanded that commitment, pledging to help connect 1 billion people and 50 million micro and small businesses to the digital economy by 2025.</p>
<p>Accion’s and Mastercard’s partnership will make progress toward these ambitious goals by continuing to open doors to the digital economy for underserved people around the world. As vulnerable families and small businesses continue to cope with immense challenges, our shared efforts to support them are more urgent than ever.</p>


Case Study

Mastercard and Accion share a commitment to building an inclusive digital economy. Accion has long worked to ensure the digital transformation of financial services benefits the world’s three billion financially underserved people, and in 2020, Mastercard pledged to connect 1 billion people—including 50 million micro and small businesses—to the digital economy by 2025.

Mastercard has partnered with Accion since 2011, primarily through the Mastercard Center for Inclusive Growth. Our partnership has sustained Accion’s work across many of our teams and programs, including Accion Global Advisory Solutions, Accion Venture Lab, the Center for Financial Inclusion, and Accion Opportunity Fund, Accion’s primary U.S. presence that supports underfunded small business owners in the U.S.
<h3>Our expanded partnership</h3>
In 2018, Mastercard and Accion announced a dramatic expansion of our work together. Our <a href="https://www.accion.org/mastercard-and-accion-partner-to-unlock-growth-for-millions-of-underserved-microbusinesses-around-the-world">first-of-its-kind partnership</a> unites our worldwide networks and resources to help 8 million people, including 3 million merchants, successfully operate in—and benefit from—the digital economy. We are combining insights, innovations, and investments to get critical tools in the hands of small businesses and the financial service providers who serve them.

Around the world, micro-merchants like grocers and ‘mom and pop’ stores, operate largely in cash exchanged in-person, rather than safe and secure digital transactions. This keeps small businesses out of the formal financial sector, and now the pandemic makes their efforts to go online much more urgent.

Seven financial service providers around the world have joined the partnership to digitally transform their operations to reach more small business more effectively. Sub-K, one of these partners, leverages an expansive agent network to reach clients in rural India and connect them with financial services. Accion provided advisory support for <a href="https://www.accion.org/banking-goes-digital-to-reach-rural-entrepreneurs">the development of SARTHI</a>, Sub-K’s new digital financial services platform that provides a range of offerings for small business, including microcredit and health insurance—all accessible from a mobile phone. SARTHI can take Sub-K’s efforts to reach underserved businesses to the next level while its agent network is limited due to COVID-19.

Mastercard and Accion: Partnering for inclusive growth

Maria Camila Gomez Silva

<p><em>En foto: </em><em>Paola recibe pedidos en su ferretería familiar en Bogotá, Colombia</em></p>
<p>En la localidad de Suba, en Bogotá-Colombia, <a href="https://youtu.be/p_YVRE7I8TQ" target="_blank" rel="noopener">Paola dirige el negocio familiar</a>, “Ferretería Figueroa – Centro de Soluciones”. Paola explica que se llama centro de soluciones porque, &#8220;todo lo que el cliente necesite si no lo tenemos, lo conseguimos&#8221;.</p>
<p>Cuando el COVID-19 se propagó a principios de 2020, la consecuente crisis económica y financiera afectó fuertemente a su negocio. La crisis la obligó a recortar gastos y decidió buscar una manera de impulsar las ventas durante la pandemia. Paola nos dijo, “la verdad no puedo decir que haya sido un trabajo fácil”, pero luego encontró una manera de comenzar a vender sus productos a través de Internet, gracias a la plataforma de CÍVICO Negocios. Una vez que puso su negocio en línea, más y más personas comenzaron a comprar sus productos. Un año después, su ferretería ha experimentado un crecimiento significativo en ventas y le está yendo mejor que nunca. Y comenta, &#8220;no hubiéramos sobrevivido de no haber sido por [CÍVICO]&#8221;.</p>
<p><a href="https://www.accion.org/how-one-platform-connects-cities-and-boosts-small-businesses" target="_blank" rel="noopener">CÍVICO es una</a> startup colombiana, que también opera en Ciudad de México y Santiago de Chile, que está transformando ciudades a través de la inclusión digital y financiera para las micro, pequeñas y medianas empresas (MiPyMEs) desatendidas. La plataforma CÍVICO ofrece una aplicación para propietarios de pequeñas empresas, llamada <em>CÍVICO Negocios App</em>, para que sus negocios tengan presencia digital. Los propietarios de pequeñas empresas pueden usar la aplicación para vender sus productos, conectarse con los consumidores locales, entregar productos a domicilio y aceptar pagos digitales. Al proporcionar una herramienta que facilita comprar y vender en línea, esta aplicación ha ayudado a muchas MiPyMEs a mantenerse durante la pandemia, y ha contribuido al crecimiento del ecosistema digital en la ciudad mejorando la calidad de vida de los propietarios de pequeñas empresas y de sus clientes.</p>
<p>Como parte de la <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses" target="_blank" rel="noopener">alianza global entre Acción y Mastercard</a>, CÍVICO ha ampliado su propuesta de valor para microempresarios al ofrecer servicios financieros dentro de su plataforma para ayudar a crecer a las microempresas vinculadas. CÍVICO y Acción trabajaron de la mano para desarrollar un producto de crédito usando una metodología de diseño centrada en el cliente, incorporando los comentarios y las necesidades de los clientes, y sus datos, durante todo el proceso de desarrollo. Hasta la fecha, este producto ha ayudado a más de 1,000 comerciantes a recibir el crédito que necesitaban para crecer.</p>
<p>A través de esta asociación, CÍVICO también desarrolló una herramienta de diagnóstico para los comercios donde los comerciantes comparten datos que le permiten a CÍVICO evaluar sus necesidades y ofrecer el producto de crédito más adecuado. Al mismo tiempo, CÍVICO cruza estos perfiles con sus datos existentes para comprender mejor el comportamiento de sus clientes y el estado de su salud financiera. Gracias a esta información, CÍVICO puede recopilar información para saber cómo utilizar mejor los datos alternativos para la evaluación de crédito, mejorar su producto de préstamos directos y encontrar aliados adecuados para aumentar su oferta de préstamos digitales.</p>
<div id="attachment_23880" style="width: 510px" class="wp-caption alignright"><img aria-describedby="caption-attachment-23880" class="wp-image-23880" src="https://content.accion.org/wp-content/uploads/2021/04/civico-1.png" alt="CÍVICO Negocios App interface" width="500" height="422" srcset="https://content.accion.org/wp-content/uploads/2021/04/civico-1.png 635w, https://content.accion.org/wp-content/uploads/2021/04/civico-1-300x253.png 300w" sizes="(max-width: 500px) 100vw, 500px" /><p id="caption-attachment-23880" class="wp-caption-text"><em>CÍVICO Negocios App ofrece servicios digitales y financieros para ayudar a los pequeños comerciantes a transformar sus negocios.</em></p></div>
<p>En 2020, CÍVICO se asoció con la Alcaldía de Bogotá para lanzar “Despega Bogotá”, el ambicioso programa digital de la ciudad creado para mitigar los efectos económicos de la pandemia de COVID-19. Este programa ha ampliado fuertemente la inclusión financiera de las pequeñas empresas en Bogotá, y ha ayudado a muchos microempresarios a fortalecer y hacer crecer sus negocios. Hoy en día, CÍVICO trabaja con más de 30.000 empresas en Bogotá y Ciudad de México. Estas empresas ofrecen más de 40.000 productos en la plataforma, lo que ha generado más de 10.000 transacciones por un total que supera los 250.000 dólares en ventas hasta la fecha.</p>
<p>Las pequeñas empresas como la de Paola son el motor de la economía colombiana. Una plataforma como la de CÍVICO puede ayudarles a desarrollar resiliencia ante crisis como esta, y a seguir haciendo crecer sus negocios al conectarlos al ecosistema digital. Estamos orgullosos de apoyar a CÍVICO en sus esfuerzos que hacen avanzar la inclusión financiera en Colombia. Como afirma Ricardo Pombo, CEO de CÍVICO, “el constante desarrollo de herramientas digitales nos permite atender las necesidades de nuestros clientes lo cual resulta fundamental para cumplir con nuestro propósito de generar inclusión digital y financiera y, al hacerlo, apoyamos la reactivación económica de nuestros clientes”. Al invertir en herramientas digitales que ayudan a los microempresarios a desarrollar mejores empresas y mejor nivel de vida, podemos cerrar la brecha de los servicios financieros y llevar la inclusión financiera a más personas.</p>


This Colombian startup is transforming cities like Bogotá by enabling small businesses and their customers to buy and sell online 

In the borough of Suba in Bogotá, Colombia, <a href="https://youtu.be/p_YVRE7I8TQ" target="_blank" rel="noopener noreferrer">Paola runs her family business</a>, Ferretería Figureroa y Centro de Soluciones, or Figueroa Hardware Store and Solutions Center. Paola explains that they call their store a solutions center because, “If we don't have something, we get it.”

When COVID-19 spread in early 2020, the pandemic’s economic and financial crisis hit her business hard. The crisis forced her to cut her expenses, and she took it upon herself to find a way to boost sales during the pandemic. Paola told us, “The reality is that it was not easy.” Paola then found a way to start selling her goods over the internet through CÍVICO’s small business platform. Once she got her business online, more and more people began buying her products. One year later, her hardware store has seen significant growth in sales and is doing better than ever. She says, “We wouldn’t have survived had it not been for [CÍVICO].”

<a href="https://www.accion.org/how-one-platform-connects-cities-and-boosts-small-businesses" target="_blank" rel="noopener noreferrer">CÍVICO is a Colombian startup</a>, which also operates in Mexico City and Santiago de Chile, that is transforming cities through digital and financial inclusion for underserved micro, small, and medium enterprises (MSMEs). The CÍVICO platform offers an app for small business owners, called <em>CÍVICO Negocios App,</em> to create a digital presence for their businesses. Small business owners can use the app to sell their products, connect with local consumers, offer home delivery of products, and accept digital payments. By providing an easy tool to buy and sell online, this app has helped many MSMEs stay in business during the pandemic and contributed to the growing digital ecosystem in the city, improving the quality of life for small business owners and their customers.

As part of the <a href="https://www.accion.org/mastercard-and-accions-partnership-to-unlock-millions-of-underserved-microbusinesses" target="_blank" rel="noopener noreferrer">global partnership between Accion and the Mastercard Center for Inclusive Growth,</a> CÍVICO has expanded its value proposition for microentrepreneurs by offering financial services within their platform to help their small businesses grow. CÍVICO and Accion worked together to develop a loan product using a human-centered design methodology, incorporating customer feedback and data throughout the development process. To date, this product has helped more than 1,000 merchants receive the credit that they need to grow.

Through this partnership, CÍVICO also developed a merchant assessment tool where merchants share data that allows CÍVICO to assess their needs and offer the most suitable credit product. At the same time, CÍVICO cross-references these profiles with its existing data to better understand their clients’ behaviors and the state of their financial health. Using this information, CÍVICO can gather information to identify how to better use alternative data for credit scoring, improve its direct lending product, and find suitable partners to scale their digital loan offering.

[caption id="attachment_23880" align="alignright" width="500"]<img class="wp-image-23880" src="https://content.accion.org/wp-content/uploads/2021/04/civico-1.png" alt="CÍVICO Negocios App interface" width="500" height="422" /> <em>CÍVICO Negocios App offers digital and financial services to help small merchant owners to transform their business.</em>[/caption]

In 2020, CÍVICO partnered with the Bogotá’s Mayor’s Office to launch “Despega Bogotá,” the city’s ambitious digital program created to mitigate the economic effects of the COVID-19 pandemic. This program has dramatically expanded financial inclusion for small businesses in Bogotá and has helped many microentrepreneurs strengthen and grow their businesses. Today, CÍVICO works with more than 30,000 businesses in Bogotá and Mexico City. These businesses offer more than 40,000 products on the platform, generating more than 10,000 transactions totaling more than $250,000 in sales to date.

Small businesses like Paola’s are the engine of the Colombian economy. A platform such as CÍVICO’s can help them build resilience to crises such as this one and continue growing their businesses by connecting them to the digital ecosystem. We are proud to support CÍVICO in their efforts as they advance financial inclusion in Colombia. As CÍVICO’s CEO Ricardo Pombo states, “The constant development of digital tools allows us to address our clients’ needs and is instrumental to fulfilling our purpose of generating digital and financial inclusion, and by doing such, we support our clients’ economic reactivation.” By investing in digital tools that help microentrepreneurs build better businesses and better lives, we can bridge the financial services gap and bring financial inclusion to more people.

How 30,000 small businesses moved online during the pandemic

<p><em>En foto: <span class="TextRun SCXW232497440 BCX0" lang="ES-ES" xml:lang="ES-ES" data-contrast="auto"><span class="NormalTextRun SCXW232497440 BCX0">Margarita </span><span class="NormalTextRun SpellingErrorV2 SCXW232497440 BCX0">Viverzca</span><span class="NormalTextRun SCXW232497440 BCX0"> </span><span class="NormalTextRun SpellingErrorV2 SCXW232497440 BCX0">Gomez</span></span><span class="TextRun SCXW232497440 BCX0" lang="ES-ES" xml:lang="ES-ES" data-contrast="auto"><span class="NormalTextRun SCXW232497440 BCX0"> aprendió cómo mejorar el negocio familiar mediante la plataforma Ovante de </span><span class="NormalTextRun SpellingErrorV2 SCXW232497440 BCX0">Accion</span></span></em></p>
<p>Las micro, pequeñas y medianas empresas (MIPYME) de todo el mundo se encuentran en una precaria situación financiera. Luego de más de un año lidiando con la crisis económica del COVID-19, muchos propietarios de pequeñas empresas siguen sin poder cubrir todos sus gastos del mes.  Se enfrentan a una disminución de las ventas, deudas abrumadoras y ahorros agotados. <a href="https://www.centerforfinancialinclusion.org/cautious-optimism-msmes-are-rebounding-from-the-impacts-of-covid-19" target="_blank" rel="noopener">Aunque estamos observando señales de una tendencia ascendente</a> después de la devastación económica inicial causada por la pandemia —las empresas han abierto, comienzan a contratar personal y los niveles de ganancias están empezando a estabilizarse— muchas MIPYME  aún siguen frágiles. Estos microempresarios necesitan apoyo para mantener sus negocios funcionando en un mundo cada vez más digital como el actual.</p>
<div id="attachment_23942" style="width: 326px" class="wp-caption alignright"><img aria-describedby="caption-attachment-23942" class="wp-image-23942 " src="https://content.accion.org/wp-content/uploads/2021/04/ovante-blog-certification-e1618420801242.png" alt="Ovante certification of completion" width="316" height="448" srcset="https://content.accion.org/wp-content/uploads/2021/04/ovante-blog-certification-e1618420801242.png 536w, https://content.accion.org/wp-content/uploads/2021/04/ovante-blog-certification-e1618420801242-212x300.png 212w" sizes="(max-width: 316px) 100vw, 316px" /><p id="caption-attachment-23942" class="wp-caption-text"><em>Después de completar cada uno de los planes de acción de Ovante, el usuario recibe un certificado de finalización que podrá compartir en sus redes en WhatsApp o Facebook.</em></p></div>
<p>Con el objeto de proporcionar a las MIPYME las herramientas que necesitan para restablecer su resiliencia ante esta crisis, y enfrentar los desafíos futuros, Accion ha lanzado un kit de herramientas de recuperación de COVID-19 en nuestra plataforma <em>edtech</em> Ovante.  Gracias a los aportes de nuestro donante <a href="https://www.metlife.com/sustainability/MetLife-sustainability/MetLife-Foundation/" target="_blank" rel="noopener">MetLife Foundation</a>, así como al patrocinio de <a href="https://www.spglobal.com/en/foundation" target="_blank" rel="noopener">S&amp;P Global Foundation</a> y de <a href="https://fedexcares.com/">FedEx</a>, el kit de herramientas está disponible sin costo alguno.  Diseñamos este kit para ayudar a los pequeños emprendedores a administrar sus negocios en momentos de dificultad, ofreciendo una guía sobre cómo mejorar sus finanzas y lograr que sus empresas se pongan en línea rápidamente. Los propietarios de pequeñas empresas pueden acceder al <a href="https://ovante.org/es/adaptar-mi-negocio/" target="_blank" rel="noopener">kit de herramientas de recuperación de COVID-19</a> en <a href="https://ovante.org/es/" target="_blank" rel="noopener">Ovante.org</a> Está disponible en tres idiomas: inglés, español e hindi. Cada plan de acción del kit tarda entre 8 y 15 minutos en ser completado, y está diseñado para ser altamente interactivo, práctico y ameno. Animamos a los proveedores de servicios financieros a compartir este kit de herramientas con sus clientes para ayudar a que los microempresarios de todo el mundo desarrollen mejores comportamientos financieros, y fortalezcan sus capacidades gerenciales y digitales.</p>
<p>El kit de herramientas aborda tres preguntas principales que escuchamos de los propietarios de pequeñas empresas en su objetivo de recuperarse de la crisis del Covid-19 <em>¿Cómo puedo sentir mayor seguridad financiera? ¿Cómo puedo adaptar mi negocio para sobrevivir y prosperar? ¿Cómo puedo llevar mi empresa al mundo digital?</em></p>
<h2><strong>¿Cómo puedo sentir mayor seguridad financiera?</strong></h2>
<p>Para muchos microempresarios, el llegar a fin de mes durante una crisis parece imposible. Acción encuestó a microempresarios en Chile, México, India y Nigeria en octubre de 2020 —seis meses después de la pandemia— y se enteró de que los microempresarios de estas regiones seguían luchando para cubrir sus gastos esenciales. Casi el 60 por ciento de los encuestados nos dijeron que no habían podido pagar sus facturas a tiempo, y el 50 por ciento respondió que ha tenido que pedir dinero prestado para cubrir sus gastos. El kit de herramientas proporciona planes de acción que ayudan a los microempresarios a tener confianza en sus finanzas aprendiendo a:</p>
<ul>
<li><strong>Salir de las deudas</strong> Se pide a los microempresarios clasificar sus deudas de menor a mayor, y reciben recomendaciones sobre qué deuda pagar primero en función de si están garantizadas o no, y de las consecuencias de pagar con retraso.</li>
<li><strong>Crear un plan de gastos</strong>: los usuarios priorizan sus gastos y crean un plan para reducir los gastos. Luego se les pide que desarrollen un presupuesto basado en sus ingresos, y reciben estrategias para cumplir con este plan de gastos recién creado.</li>
<li><strong>Utilizar la banca digital</strong>: Los microempresarios aprenden los beneficios de los servicios financieros digitales para su negocio, incluyendo equilibrar el flujo de efectivo, llevar un registro digital de facturas, realizar pagos de forma segura y acceder rápidamente al financiamiento. También aprenden paso a paso cómo abrir una cuenta digital segura.</li>
</ul>
<h2><strong>¿Cómo puedo adaptar mi negocio para sobrevivir y prosperar?</strong></h2>
<p>El 19% de las microempresas encuestadas en el sector de servicios habían dejado de operar debido al COVID-19. Además, la pandemia ha tenido un <a href="https://www.accion.org/5-ways-to-help-women-entrepreneurs-adapt-during-covid-19" target="_blank" rel="noopener">impacto desproporcionado en las mujeres</a>. Ellas informan haber sufrido mayor estrés financiero, sentirse más cansadas y estar en general en peor estado anímico que los hombres. Para hacer frente a estos desafíos, más del 30 por ciento de los encuestados en México dijeron que buscan otra fuente de ingresos. En Chile, Nigeria e India más de un 40% dijo que deseaba encontrar alguna manera de hacer crecer y expandir su negocio actual, pero que no sabe cómo hacerlo. La caja de herramientas les ayuda a sortear estas dificultades al proveerles instrucciones concretas:</p>
<ul>
<li><strong>Mantener la rentabilidad durante la crisis:</strong> una actividad guiada conduce a los microempresarios a determinar su rentabilidad actual y a evaluar cuáles gastos directos e indirectos podrían ser reducidos para mejorarla. También aprenden a fijar el precio de sus productos dependiendo de si su negocio es de tipo esencial o no.</li>
<li><strong>Solicitar crédito digital:</strong> Los usuarios aprenden cuándo es apropiado solicitar un crédito digital y reciben instrucciones paso a paso para hacerlo. Al final del módulo, los usuarios tendrán mayor confianza en su capacidad de protegerse contra el riesgo de fraude.</li>
<li><strong>Adapte su negocio:</strong> Se pide a los microempresarios que respondan a una serie de preguntas para determinar la urgencia de emprender cambios. En función de sus respuestas, los usuarios pueden explorar oportunidades potenciales para adaptar su negocio, tales como vender nuevos productos o servicios, o dejar de ofrecer ítems de baja demanda, o <a href="https://www.accion.org/how-the-pandemic-is-spurring-microentrepreneurs-to-go-digital" target="_blank" rel="noopener">encontrar nuevas formas de atender a los clientes</a>.</li>
</ul>
<h2><strong>¿Cómo puedo llevar mi negocio al mundo digital?</strong></h2>
<p>A medida que la economía moderna se vuelve cada vez más digital, las MIPYME que pueden vender en línea y operar digitalmente tienen más probabilidades de sobrellevar esta crisis y prosperar en el largo plazo. Con menos clientes que se desplazan físicamente a comprar, muchas empresas sienten la urgencia de poner su negocio en línea, pero no están seguros sobre dónde comenzar. Nuestra encuesta mostró que un 33% de las MIPYME en los cuatro países abrieron una nueva cuenta empresarial en redes sociales, durante los primeros 6 meses de la pandemia. Y el 30 por ciento de los encuestados nos dijo que siente que debe comenzar cuanto antes a vender productos a través de Internet. El <a href="https://ovante.org/adapt-my-business/">kit de herramientas de recuperación de COVID-19</a> explica la importancia  de poner a las empresas en línea y muestra a los emprendedores cómo hacerlo:</p>
<ul>
<li><strong>Comenzar a operar en línea:</strong> los usuarios aprenden sobre plataformas en línea que pueden ayudarles a promocionar y operar mejor sus negocios, como Facebook, Instagram, WhatsApp y Google. Evalúan cuál es la plataforma donde tiene más sentido anunciar su negocio, y aprenden formas fáciles de comenzar a construir su presencia en línea.</li>
<li><strong>Aceptar pagos digitales:</strong> esta lección ayuda a las MIPYME a evaluar las ventajas de aceptar pagos en línea, identificar la plataforma más adecuada para sus negocios, y reciben consejos y aprenden trucos para comenzar de inmediato.</li>
<li><strong>Promocionar el negocio en línea:</strong> se pide a los usuarios que definan por qué necesitan anunciarse en línea, decidir quiénes son sus clientes objetivo y aprender las mejores prácticas para publicitar en redes sociales. Aprenden cómo las promociones en línea pueden expandir su base de clientes y mejorar su rentabilidad.</li>
<li><strong>Ofrecer entregas online:</strong> En tiempos de crisis, resulta un reto mantener el vínculo con los clientes cuando ya no visitan la tienda. Los usuarios aprenden sobre los servicios de entrega y cómo seleccionar el mejor para su negocio.</li>
</ul>
<p>Una vez que las MIPYME completan estos planes de acción, dispondrán de las herramientas, la capacidad y la confianza que requieren para aprovechar el Internet para continuar operando al vender productos y servicios en línea, aceptar pagos digitales, o promover el negocio en las redes sociales. Hasta la fecha, el 90 por ciento de las MIPYME que completaron todos los módulos comenzaron a usar Internet para sus necesidades empresariales, y el 69 por ciento abrió cuentas en redes sociales para su negocio. Al utilizar ejemplos sencillos y herramientas fáciles de usar, Ovante facilita que los microempresarios pongan en práctica los conocimientos adquiridos, y sigan la ruta hacia una mayor salud financiera.</p>
<p>Animamos a los proveedores de servicios financieros a apoyar la recuperación de sus clientes y el desarrollo de su resiliencia ante futuras crisis al compartir los planes de acción gratuitos del <a href="https://ovante.org/es/adaptar-mi-negocio/" target="_blank" rel="noopener">kit de herramientas de recuperación Ovante COVID-19</a> con sus clientes.</p>


Accion’s Ovante edtech platform launches a new COVID-19 recovery toolkit to help microentrepreneurs rebuild

Micro, small, and medium enterprises (MSMEs) around the world are in a precarious financial position. After over a year of struggling through COVID-19's economic crisis, many small business owners still can’t make ends meet. They’re facing decreased sales, overwhelming debt, and depleted savings. <a href="https://www.centerforfinancialinclusion.org/cautious-optimism-msmes-are-rebounding-from-the-impacts-of-covid-19" target="_blank" rel="noopener noreferrer">Though we’re seeing signs of an upward trajectory</a> after the initial economic devastation caused by the pandemic — businesses have opened, profit levels are starting to stabilize, and hiring has started up again — many MSMEs remain in a fragile place. These microentrepreneurs need support to keep their businesses running in today’s more digital world.

[caption id="attachment_23942" align="alignright" width="316"]<img class="wp-image-23942 " src="https://content.accion.org/wp-content/uploads/2021/04/ovante-blog-certification-e1618420801242.png" alt="Ovante certification of completion" width="316" height="448" /> <em>After completing each of the Ovante action plans, the user receives a certificate of completion to share with their networks on WhatsApp or Facebook.</em>[/caption]

To provide MSMEs with the tools they need to rebuild their resiliency in the face of this crisis and future challenges, Accion has launched a COVID-19 recovery toolkit on our <a href="https://ovante.org/" target="_blank" rel="noopener noreferrer">edtech platform Ovante</a>.  With funding made flexible by our donor, <a href="https://www.metlife.com/sustainability/MetLife-sustainability/MetLife-Foundation/" target="_blank" rel="noopener noreferrer">MetLife Foundation</a>, as well as sponsorship from <a href="https://www.spglobal.com/en/foundation" target="_blank" rel="noopener noreferrer">S&amp;P Global Foundation</a> and <a href="https://fedexcares.com/" target="_blank" rel="noopener noreferrer">FedEx</a>, the toolkit is available at no cost.  We designed the recovery toolkit to help small entrepreneurs manage their businesses through tough times by offering guidance on improving their finances and getting their businesses online fast. Small business owners can access the COVID-19 recovery toolkit on <a href="https://ovante.org/" target="_blank" rel="noopener noreferrer">Ovante.org</a> in three languages: English, Spanish, and Hindi. Each action plan in the toolkit takes between 8 to 15 minutes to complete and is designed to be highly interactive, actionable, and fun. We encourage financial service providers to share this toolkit with their clients to help microentrepreneurs around the world build better financial behaviors and strengthen their managerial and digital capabilities.

The toolkit addresses three primary questions we hear from small business owners as they aim to recover from the COVID-19 crisis: <em>How can I feel more confident about my finances? How can I adapt my business to survive and thrive? How can I bring my business online?</em>
<h2><strong>How can I feel more confident about my finances?</strong></h2>
For many microentrepreneurs, making ends meet during a crisis feels impossible. Accion surveyed microentrepreneurs in Chile, Mexico, India, and Nigeria in October 2020 — six months into the pandemic — and learned that microentrepreneurs in these regions were still struggling to cover their essential expenses. Nearly 60 percent of those surveyed told us that they have not been able to pay their bills on time, and 50 percent said they have had to borrow money to cover their expenses. The toolkit provides action plans to help microentrepreneurs gain confidence in their finances by learning to:
<ul>
 	<li><strong>Get out of debt</strong>: Microentrepreneurs are encouraged to list their debts from smallest to largest and receive recommendations on which debt to pay off first based on whether they are secured or unsecured and the consequences for late payment.</li>
 	<li><strong>Create a spending plan</strong>: Users prioritize their expenses and create a plan to reduce spending. They are then prompted to develop a budget based on their income and receive strategies to stick to their newly created spending plan.</li>
 	<li><strong>Utilize digital banking:</strong> Microentrepreneurs learn the benefits of digital financial services for their business, including cash flow smoothing, keeping a digital record of records and bills, securely sending payments, and quick access to financing. They also learn step-by-step how to set up a secure digital account.</li>
</ul>
<h2><strong>How can I adapt my business to survive and thrive?</strong></h2>
Fifteen percent of microenterprises in the services industry we surveyed had completely closed due to COVID-19. Furthermore, the pandemic has had a <a href="https://www.accion.org/5-ways-to-help-women-entrepreneurs-adapt-during-covid-19" target="_blank" rel="noopener noreferrer">disproportionate impact on women</a>. Women reported experiencing greater financial stress, feeling more tired, and being in an overall worse mental state than men. To cope with these challenges, over 30 percent of respondents in Mexico said they are seeking another source of income. In Chile, Nigeria, and India, over 40 percent said they want to find a way to grow and expand their current business but are not clear on how to do so. The toolkit helps them navigate these difficulties by providing instruction on how to:
<ul>
 	<li><strong>Stay profitable during a crisis:</strong> A guided activity leads microentrepreneurs to determine their current profits and consider what direct and indirect costs can be reduced to increase profitability. They also learn how to price their goods depending on whether they are an essential or non-essential business.</li>
 	<li><strong>Apply for digital credit:</strong> Users learn when it is appropriate to seek digital credit and receive step-by-step instructions on obtaining a digital loan. At the end of this module, users will have greater confidence in their ability to safeguard themselves against the threat of fraud.</li>
 	<li><strong>Adapt your business: </strong>Microentrepreneurs are asked to answer a series of questions to assess their urgency for change. Based on their responses, users can explore potential opportunities for adapting their business, like selling a new product or service, taking other low-demand items off their shelves, or <a href="https://www.accion.org/how-the-pandemic-is-spurring-microentrepreneurs-to-go-digital" target="_blank" rel="noopener noreferrer">finding a new way to serve their customers</a>.</li>
</ul>
<h2><strong>How can I bring my business online? </strong></h2>
As the modern economy becomes more and more synonymous with the digital economy, MSMEs that can sell online and operate digitally are more likely to weather this crisis and thrive in the long run. With fewer customers physically walking in the door, many business owners feel the urgency to shift their business online but are not sure where to start. Our survey showed that 33 percent of MSMEs across the four countries opened a new social media account for their business in the first 6 months of the pandemic. And 30 percent of respondents told us that they feel they must urgently begin selling products over the internet. The <a href="https://ovante.org/adapt-my-business/" target="_blank" rel="noopener noreferrer">COVID-19 recovery toolkit</a> explains the value of bringing businesses online and shows entrepreneurs how to:
<ul>
 	<li><strong>Get started online: </strong>Users learn about online platforms that can help them better promote and operate their businesses, like Facebook, Instagram, WhatsApp, and Google. They evaluate which of these platforms makes the most sense to advertise their business and learn easy ways to start building their online presence.</li>
 	<li><strong>Accept digital payments:</strong> This lesson helps MSMEs consider the advantages of accepting online payments, determine which platform is right for their business, and learn tips and tricks for getting started immediately.</li>
 	<li><strong>Promote your business online:</strong> Users are prompted to define why they need to advertise online, decide who their target customers are, and learn best practices for social media advertising. They learn how online promotions can expand their customer base and grow their profits.</li>
 	<li><strong>Offer online delivery:</strong> In times of crisis, it is challenging to stay connected with clients when they are no longer visiting the business. Users will learn about delivery services and how to best select a delivery service for their business.</li>
</ul>
Once MSMEs complete these action plans, they will gain the tools, capacity, and confidence needed to leverage the internet to stay in business by selling their products or services online, accepting digital payments, or promoting their business on social media. To date, 90 percent of MSMEs that completed all modules started using the internet for their business needs, and 69 percent opened social media accounts for their business. Using simple examples and user-friendly tools, Ovante enables microentrepreneurs to put their acquired knowledge into practice and take steps towards greater financial health.

We encourage financial service providers to support their customers’ recovery from the pandemic and build their resilience to future crises by sharing the free <a href="https://ovante.org/adapt-my-business/" target="_blank" rel="noopener noreferrer">Ovante COVID-19 recovery toolkit action plans</a> with their clients.

A guide to pandemic recovery for microentrepreneurs

Shannon Dwyer

Accion Venture Lab continues support for NOW Money to bring app-based financial tools to migrant workers in the Gulf Coast region of the Middle East

Ahsan Ullah moved from his home country of Pakistan to Dubai to find work as an electrician. Like many other people who have relocated to the Gulf Coast region for better work opportunities, he sends 75 percent of his salary back home to his family in Pakistan. Ahsan found a way to transfer money overseas in <a href="https://nowmoney.me/" target="_blank" rel="noopener noreferrer">NOW Money</a>, the first digital banking solution for low-income migrant workers in the Gulf Cooperation Council (GCC). He uses NOW Money’s app to transfer the money he earns servicing cable cars and other machinery, and his family receives it the next day.

When Accion Venture Lab first invested in NOW Money in 2017, we were <a href="/invested-in-now-money" target="_blank" rel="noopener noreferrer">incredibly excited</a> by the company’s vision to tackle the challenges its customers, migrant workers in the GCC, faced. These customers have unique financial needs as they often earn just $200 to 300 a month and typically send 70 percent of those wages to family members back home. The traditional financial infrastructure in the GCC prevents these workers from accessing bank accounts, excluding them from the cashless economy. Without a digital banking solution like NOW Money, workers like Ahsan have to wait in line for hours to send much-needed money back home to their families.

[caption id="attachment_23786" align="alignright" width="450"]<img class="wp-image-23786" src="https://content.accion.org/wp-content/uploads/2021/04/now-money-kat-budd-ian-dillon.jpg" alt="NOW Money co-founders" width="450" height="253" /> <em>NOW Money was founded in 2015 by Katharine “Kat” Budd and Ian Dillon.</em>[/caption]

The last 12 months of the COVID-19 pandemic have only made those realities tougher, as the brick-and-mortar institutions often relied on by this population temporarily closed, all but shutting these individuals out from the financial world. As noted by co-founder Katharine Budd in an <a href="/access-to-digital-finance-is-a-lifeline" target="_blank" rel="noopener noreferrer">episode of our VentureKast podcast</a>, “Having access to digital finance, as long as you’ve got an internet connection, is a lifeline.” Inclusive fintechs like NOW Money are critical to supporting this lower-income and often-overlooked population throughout the pandemic, continuing to provide their products and services safely and digitally.

Accion Venture Lab is pleased to <a href="/uae-based-fintech-now-money-secures-7m-to-expand-digital-banking-solution-across-the-gcc" target="_blank" rel="noopener noreferrer">announce our follow-on investment into NOW Money’s Series A round</a>, to support the company as they continue to build their moat as the first fintech company in the GCC to use digital banking technology to provide access to fairly priced and well-designed financial products to the migrant workers that need them.

To reach these migrant workers, NOW Money partners with businesses to provide an end-to-end digital payroll solution for their employees. They manage the backend for their partner companies and allowing workers to receive their salaries directly into the NOW Money app. NOW Money bundles a suite of relevant, digital financial services into their app, including a contactless-enabled debit card, mobile top-up, bill pay, remittances, and more, aggregating all the services these migrant workers need to manage their financial lives.

We’re excited to continue supporting NOW Money as they disrupt the region’s fintech scene for a few core reasons:
<ul>
 	<li><strong>Focus on an underserved segment:</strong> NOW Money continues to target the migrant worker population in Gulf States like the UAE and the broader GCC. The migrant population in the Persian Gulf Coast region is a historically underserved segment. Employers often mistreat their workers, and workers are in dire need of financial services. These workers earn minimal wages — typically ranging is between $200 to 300 per month, depending on occupation — and often live in overcrowded “labor complexes” with poor living conditions. Additionally, today’s UAE banking standards are exclusionary, preventing customers that earn less than 3,600 dirhams per month (approximately $980) from accessing a bank account. As a result, workers often turn to Wages Protection System (WPS) cards, which function as payroll cards with free once-a-month withdrawal from an ATM, but no functionality at merchants.</li>
 	<li><strong>Multi-product, full-service offering:</strong> Our team at Accion Venture Lab has been excited about the impact potential of <a href="/7-fintech-trends-to-watch-in-2018" target="_blank" rel="noopener noreferrer">holistic neobank solutions</a> for a while, and NOW Money continues to provide us with the ability to test and learn more about this approach. The company continues to design its product and application with its users in mind, providing positive financial benefits in many ways, including bringing workers into the formal financial system, providing a convenient and competitively priced remittance platform, and increasing access to other digital products to better manage one’s financial life (e.g., mobile top-ups and bill pay). We continue to be impressed by the team’s ability to execute on its product roadmap, and are excited to watch it continue to expand.</li>
 	<li><strong>Digital-first solutions during the pandemic:</strong> As the pandemic continues to disrupt life, NOW Money’s customers need these digital products now more than ever. Since the COVID-19 lockdowns began, the company has seen engagement with the app more than double as the pandemic sped up the trend towards digitization. The team has prioritized investing in their user experience and interface during this time by working hand-in-hand with customers to design a product that suits their needs. We believe this digital shift is here to stay and are excited to see the company continue to drive high levels of engagement.</li>
 	<li><strong>Strong future growth potential:</strong> While the company has already made significant progress in building its footprint in the UAE, we continue to be particularly excited by its growth potential, both within and outside of its flagship country. Within the UAE, the company’s <a href="https://nowmoney.me/2020/10/commercial-bank-of-dubai-to-partner-with-now-money/" target="_blank" rel="noopener noreferrer">recently announced banking partnership</a> with the Commercial Bank of Dubai will continue to fuel growth. The need for this product is just as acute outside of the UAE, and we look forward to supporting the company as it <a href="https://www.forbesmiddleeast.com/innovation/startups/fintech-startup-now-money-secures-%247m-to-expand-across-the-gcc" target="_blank" rel="noopener noreferrer">brings its suite of products to Saudia Arabia</a> and the broader GCC region.</li>
</ul>
We’re proud to be a part of NOW Money’s journey and growth over the last few years, and we believe that this series A will propel them to financially include even more migrant workers in Gulf Coast countries. As NOW Money continues to grow and scale, they can provide the critical financial tools and services that migrant workers need to support themselves and their families back home.

Migrant workers in the UAE get a digital banking solution

Victoria White

<p></p>
<p><a href="https://www.accion.org/digital-tools-open-opportunities-for-women-to-thrive" target="_blank" rel="noopener">Los productos financieros digitales pueden ayudar a cerrar las brechas de género</a> que persisten en todo el mundo, pero deben ir al encuentro de las mujeres. Los datos son un componente básico que nos ayuda a entender qué es lo más necesario para que las mujeres superen los obstáculos y aprovechen las oportunidades.</p>
<p>Para destacar el papel que desempeñan los datos en el apoyo a las mujeres, <a href="https://www.accion.org/how-can-data-open-opportunity-for-women-during-and-after-covid-19" target="_blank" rel="noopener">hablé con líderes de tres proveedores de servicios financieros</a>, Bindu Ananth de Dvara Trust, Verónica Gavilanes de Banco Pichincha y Buhle Goslar de JUMO. Ellas comparten cómo están aprovechando los datos para atender mejor a sus clientas al:</p>
<h3>Analizar el impacto del COVID-19 en las mujeres emprendedoras</h3>
<p>No hay duda de que la pandemia ha afectado verdaderamente la vida de las mujeres y ha tenido <a href="https://www.accion.org/5-ways-to-help-women-entrepreneurs-adapt-during-covid-19" target="_blank" rel="noopener">fuerte impacto en las empresas propiedad de mujeres</a>. Nuestro aliado <a href="https://www.pichincha.com/" target="_blank" rel="noopener">Banco Pichincha</a> se dedica a apoyar a las micro y pequeñas empresas en Ecuador. Antes de la pandemia, este banco ya estudiaba las barreras que enfrentan sus clientas emprendedoras a través de datos de encuestas. Debido a que la pandemia ha agregado nuevos desafíos, Banco Pichincha está tomando medidas: al analizar los datos de sus clientes, identificaron cómo luchan las mujeres emprendedoras en particular, y cómo podrían ayudarlas a superar la crisis. Los créditos dirigidos a mujeres consideran las barreras que ellas enfrentan y tienen consideraciones en condiciones, requisitos, garantías y períodos de gracia para cerrar la brecha para las mujeres, y continuar brindándoles el acceso crédito, y acompañando su reactivación económica.</p>
<p>A medida que avanzaba la pandemia, Banco Pichincha también notó que muchas de sus clientas emprendedoras estaban adaptando sus negocios al agregarles servicios como las entregas con repartidores y plataformas de comercio electrónico digital, así que Banco Pichincha comenzó a ofrecer un apoyo flexible para que estas pequeñas empresas se reinventaran. Como lo comenta Verónica Gavilanes, Gerente General de Microfinanzas de Banco Pichincha, “en todos los lugares del mundo las mujeres son muy resilientes y buscan alternativas para progresar, por eso queríamos financiar actividades que fueran adecuadas para la pandemia. Casi un 40 por ciento de nuestras emprendedoras reinventaron sus negocios para buscar estas oportunidades en el mercado”.</p>
<h3>Aplicar un enfoque holístico a los datos</h3>
<p>Los proveedores de servicios financieros no pueden generar impacto solo con los datos, especialmente para las mujeres. Necesiten tomar en cuenta también el contexto del mundo en el que se desenvuelven. <a href="https://www.jumo.world/" target="_blank" rel="noopener">JUMO</a> es una empresa de tecnología fundada para crear una plataforma de servicios financieros para personas que no tienen acceso a productos financieros en Costa de Marfil, Ghana, Kenia, Tanzania, Uganda, Zambia y Pakistán. Para abordar la brecha digital de género presente en sus mercados, JUMO se esfuerza por entender las barreras que enfrentan sus clientas. Como nos dijo Buhle Goslar, CEO de JUMO para África, “para poder incorporar verdaderamente a la economía formal a los clientes rezagados y darles acceso a estos servicios, tenemos que tener una comprensión profunda de lo que está sucediendo en el mundo real, y no contentarnos con su huella digital, porque si lo hacemos los datos carecerán de sentido &#8220;.</p>
<p><img class="alignright wp-image-23706" src="https://content.accion.org/wp-content/uploads/2021/03/iwd-webinar-speakers.png" alt="Leaders from financial service providers join Accion's webinar" width="500" height="316" srcset="https://content.accion.org/wp-content/uploads/2021/03/iwd-webinar-speakers.png 594w, https://content.accion.org/wp-content/uploads/2021/03/iwd-webinar-speakers-300x190.png 300w" sizes="(max-width: 500px) 100vw, 500px" />Cuando JUMO aplicó un enfoque de mundo real a los datos de sus clientes, descubrió que no estaban llegando a tantas mujeres como suponían, debido a los problemas estructurales que enfrentan donde viven y trabajan. Muchas mujeres en sus mercados no tienen con qué pagar teléfonos e internet; y las que pueden hacerlo, tienden a usarlos menos para pagar facturas y realizar operaciones bancarias en línea. JUMO decidió llegar a estas mujeres promoviendo un fondo de impacto para invertir en estas clientas que se estaban quedando rezagadas. “Hay que estar dispuestos no solo a ocuparse de la innovación de productos, sino también de la innovación de modelos de negocio si se desea abrir oportunidades para más personas utilizando el conocimiento de los datos”, dice Buhle.</p>
<p><a href="https://www.dvara.com/" target="_blank" rel="noopener">Dvara Trust</a> es el promotor fundador de Dvara KGFS, una empresa financiera no bancaria centrada en las zonas rurales de la India.  Dvara KGFS utiliza una combinación de sucursales tradicionales y banca digital para llevar crédito, ahorros y seguros a las comunidades rurales de la India; y las mujeres constituyen la mayoría de su casi millón de clientes. Dvara Trust utiliza datos de la vida de sus clientes para construir un modelo basado en una comprensión profunda de sus necesidades. Cuando los clientes se incorporan, comparten sus objetivos, desafíos y circunstancias familiares. Dvara utiliza esta información y los datos transaccionales para saber cómo están funcionando sus servicios. Y cuando las clientas hacen comentarios negativos, el equipo de Dvara los analiza para identificar problemas de acceso o canales y agentes específicos que no están atendiendo bien a las mujeres. El disponer de una perspectiva completa de la experiencia del cliente brinda a los proveedores una comprensión de las necesidades de las personas que atienden, y así identificar los problemas sistémicos que frenan a las mujeres.</p>
<h3>Dar a las mujeres la propiedad de sus datos</h3>
<p>Cuanto más utilicen las mujeres las plataformas digitales para gestionar sus finanzas personales, transacciones comerciales y de ahorros, mayor será su huella digital. Los registros y datos financieros dentro de esta huella pueden ayudar a las mujeres a obtener préstamos y otros servicios, especialmente cuando carecen de un historial crediticio previo. Cuando las mujeres construyen su huella digital en diferentes plataformas, esta tiende a fragmentarse y ser menos valiosa, por lo que debemos encontrar formas de entretejer toda esta información. “Hay que discutir sobre cómo vamos de los silos de datos hacia los flujos de datos, para que las mujeres realmente se apropien del valor de sus huellas digitales y no sean solo los proveedores quienes moneticen y aprovechen los datos, y que los usuarios finales —los consumidores— también compartan esos beneficios”, dice Buhle.</p>
<p>Dado el crecimiento de todas estas fuentes de datos, Dvara Trust enfatiza la necesidad de privacidad y protección para proteger al consumidor y garantizar que los datos beneficien al cliente, y no solo al proveedor: “el sector de los servicios financieros puede beneficiarse de los datos, pero los proveedores deben asegurarse de que el valor se transfiera a los clientes y de que puedan tener control y privacidad”, comenta Bindu Ananth, cofundadora y presidenta de Dvara Trust. Para que las mujeres se apropien y se beneficien de sus huellas digitales, necesitan plataformas que eviten la creación de silos de datos y que también prioricen la privacidad y seguridad de los datos.</p>
<p>Los datos brindan a los proveedores financieros una herramienta poderosa para cerrar las brechas de género y llegar a más mujeres. Pero las empresas deben tener cuidado al ejercer este poder, y también estar dispuestas a corregir el rumbo si los datos replican el sesgo de género existente en la sociedad en general, o no benefician a los clientes a los que se supone que deben ayudar. “El propósito de un sistema es lo que hace; por lo que, si excluye a las personas, es porque fue diseñado para excluirlas. La forma en que pensamos sobre los productos en JUMO es que necesitamos desarrollar unas sistemas deliberadamente diseñados para ser inclusivas. Una de las formas como lo hemos logrado tiene poco que ver con la tecnología o los datos, y mucho con nuestros principios sobre clientes que encarnan nuestra teoría del cambio, y cómo nos gustaría que fuera el mundo”, dice Buhle.</p>
<p><a href="https://www.accion.org/how-can-data-open-opportunity-for-women-during-and-after-covid-19">Vea nuestro debate completo aquí</a> para saber más sobre cómo Banco Pichincha, JUMO y Dvara Trust están utilizando los datos para abrir oportunidades para las mujeres.</p>

How can we harness the power of data to open opportunity for women during and after the COVID-19 pandemic?

<em>This article is available in English and Spanish.</em>

<a href="/digital-tools-open-opportunities-for-women-to-thrive" target="_blank" rel="noopener noreferrer">Digital financial products can help close gender gaps</a> that persist around the world, but they need to meet women where they are. Data is a building block to help us understand what women need most to overcome obstacles and seize opportunities.

To shine a spotlight on the role that data plays in supporting women, <a href="/how-can-data-open-opportunity-for-women-during-and-after-covid-19" target="_blank" rel="noopener noreferrer">I spoke with leaders from three financial service providers</a>, Bindu Ananth from Dvara Trust, Verónica Gavilanes from Banco Pichincha, and Buhle Goslar from JUMO. They shared how they’re leveraging data to serve their female customers better by:
<h3>Analyzing the impact of COVID-19 on women entrepreneurs</h3>
There’s no question that the pandemic has taken a real toll on the lives of women and has had a <a href="/5-ways-to-help-women-entrepreneurs-adapt-during-covid-19" target="_blank" rel="noopener noreferrer">critical impact on women-owned businesses</a>. Our partner <a href="https://www.pichincha.com/" target="_blank" rel="noopener noreferrer">Banco Pichincha</a> is dedicated to supporting micro and small businesses in Ecuador. Before the pandemic, Banco Pichincha already studied the barriers that their women entrepreneur customers faced through survey data. Because the pandemic has added new challenges, Banco Pichincha is taking action. By analyzing their customer data, they identified how women entrepreneurs, in particular, were struggling, and how they could support them through the crisis. Their loan products that are intended for women consider the barriers that women face and include conditions, requirements, guarantees, and grace periods required to close the gap for women.

As the pandemic progressed, Banco Pichincha also noticed that many of their women entrepreneur clients were adapting their businesses by adding things like delivery services using motorbikes and digital e-commerce platforms. Banco Pichincha started to offer flexible support for these small businesses to reinvent themselves. As Verónica Gavilanes, General Manager of Microfinance at Banco Pichincha, remarked, “In every place in the world, women are very resilient and seek alternatives to move forward, so we wanted to fund activities that were suitable for the pandemic. We have almost 40 percent of women who reinvented their businesses to seek these opportunities in the market.”
<h3>Applying a holistic lens to data</h3>
Financial service providers can’t use data alone to drive impact, especially for women. They also need to consider the real-world context. <a href="https://www.jumo.world/" target="_blank" rel="noopener noreferrer">JUMO</a> is a tech company founded to create a financial services platform for people who don’t have access to financial products in Côte d'Ivoire, Ghana, Kenya, Tanzania, Uganda, Zambia, and Pakistan. To address the digital gender divide present in their markets, JUMO works to understand the barriers that their female customers face. As Buhle Goslar, Africa CEO of JUMO, told us, “To really be able to bring customers who have been left behind into the formal economy and to give them access to these services, we have to have a deep understanding of what’s happening in the real world, not just looking at their digital footprint. Because if you don’t do that, then the data doesn’t make sense.”

<img class="alignright wp-image-23706" src="https://content.accion.org/wp-content/uploads/2021/03/iwd-webinar-speakers.png" alt="Leaders of financial service providers join Accion's webinar" width="500" height="316" />When JUMO applied a real-world lens to their customer data, they discovered they weren’t reaching as many women as they anticipated because of structural issues where their customers live and work. Many women in their markets can’t afford phones or internet, and those who can are less likely to use their phones to pay bills and bank online. JUMO decided to reach these women by raising an impact fund to invest in these clients who were being left behind. “You need to be willing to not just look at product innovation, but also business model innovation if you want to use your data insights to open up opportunity for more people,” says Buhle.

<a href="https://www.dvara.com/" target="_blank" rel="noopener noreferrer">Dvara Trust</a> is the founding promoter of Dvara KGFS, a rural-focused non-banking finance company in India.  Dvara KGFS uses a combination of traditional, physical branches and digital banking to bring credit, savings, and insurance to rural communities in India, and the majority of their nearly one million clients are women. Dvara Trust uses data from their customers’ lives to build a model based on a deep understanding of their needs. When customers enroll, they share their goals, challenges, and household circumstances. Dvara uses this information and transaction data to determine how their services are working. And when customers provide negative feedback, Dvara’s team analyzes it to identify access issues or specific channels and agents that aren’t serving women well. Taking a step back and considering the full picture of a customer’s experience gives providers insight into the needs of the people they serve and can uncover systemic issues that are holding women back.
<h3>Giving women ownership of their data</h3>
The more that women use digital platforms to manage their personal finances, business transactions, and savings, the wider their digital footprint. The financial records and data within this footprint can help women get loans and other services, especially when they don’t have a previous credit history. When women build their digital footprint across different platforms, it can become fragmented and less valuable, so we must find ways to weave all of this information together. “There’s a conversation to be had about how we move away from data silos to data flow, [to] allow women to really own the value of their digital footprint so that we don’t just have the providers monetizing and enjoying the benefits of the data, but that the end-user — the consumer — is also sharing in those benefits,” says Buhle.

As all of these data sources continue to grow, Dvara Trust emphasizes the need for data privacy and data protection to protect the consumer and ensure that data benefits the customer and not just the provider. “Financial services industry can benefit from data, but providers must ensure that the value is passed onto customers and that they can have control and privacy,” says Bindu Ananth, Co-founder and Chair of Dvara Trust. For women to own and benefit from their digital footprints, they need platforms that avoid creating data siloes while prioritizing data privacy and security.

Data gives financial providers a powerful tool to bridge the gender gaps and reach more women. But companies should be careful when wielding this power and be ready to correct course if the data is duplicating the gender bias in society at large or otherwise not benefitting the customers it's meant to help. “The purpose of the system is what it does. So, if it’s excluding people, that’s because it was designed to exclude people. The way we think about product at JUMO is that we need to build a system that is deliberately designed to be inclusive. One of the ways in which we have done this is not about technology or the data, it’s about our customer principles which embody our theory of change and how we would like the world to be,” says Buhle.

<a href="/how-can-data-open-opportunity-for-women-during-and-after-covid-19">Watch our full discussion here</a> to hear more about how Banco Pichincha, JUMO, and Dvara Trust are using data to open opportunity for women.

Leveraging data to close the digital gender divide

Elizabeth Winters

shannondwyer

<h3>Shannon Dwyer, Investment &amp; Portfolio Associate, Accion Venture Lab</h3>
<p><img class="alignright wp-image-23604" src="https://content.accion.org/wp-content/uploads/2021/03/shannon-dwyer-accion-venture-lab.jpg" alt="Shannon Dwyer, Accion Venture Lab" width="450" height="424" srcset="https://content.accion.org/wp-content/uploads/2021/03/shannon-dwyer-accion-venture-lab.jpg 2294w, https://content.accion.org/wp-content/uploads/2021/03/shannon-dwyer-accion-venture-lab-300x283.jpg 300w, https://content.accion.org/wp-content/uploads/2021/03/shannon-dwyer-accion-venture-lab-768x724.jpg 768w, https://content.accion.org/wp-content/uploads/2021/03/shannon-dwyer-accion-venture-lab-1024x965.jpg 1024w" sizes="(max-width: 450px) 100vw, 450px" />Shannon Dwyer first discovered the potential of inclusive fintech while working with microentrepreneurs in Cape Town, South Africa. “It became quickly apparent that while they had the hustle and dedication to start and grow their businesses, a lack of access to financial services constantly constrained their operations. Once I got that initial view into the limitations of the financial services industry, the other gaps on both the consumer and MSME sides became readily apparent. The direct link between access to financial tools and the overall livelihoods of these underserved populations made the potential impact of fintech services — and my related excitement around them — too big to ignore.”</p>
<p>Shannon now supports early-stage fintech startups that are reaching underserved populations in her role as <a href="https://www.accion.org/bio/shannon-dwyer">Investment &amp; Portfolio Associate</a> at Accion Venture Lab. On her work with fintech founders, she says, “I continue to be struck and inspired by the downstream impact that <a href="https://ssir.org/articles/entry/how_to_begin_considering_a_gender_lens_investing_strategy">investing in female founders</a> at the earliest stages can have. We know that female founders create more diverse and inclusive workforces, which lead to more inclusive product designs, which lead to more women accessing and utilizing financial tools and services. And when women have access to these tools and services, they often extend the benefits to others as well — by increasing their family’s savings capacity, by using a loan to pay for a child’s education, or by accessing capital to start a business. The potential of supporting this vastly underestimated segment of the founder population — women — is huge, both for the VC industry, but also for the end customers it ultimately touches.”</p>
<p>Inclusive fintech startups can also <a href="https://www.accion.org/fintech-startups-are-small-yet-mighty-partners-in-building-resilience-but-they-need-to-grow-to-succeed">give people the tools they need to build resilience</a> during challenging times like the COVID-19 crisis, which has disproportionately affected the lives of women.  Shannon stresses how the pandemic has exacerbated the inequalities that women face. “The one that feels the most visible to me is the disproportionate rate at which at-home and informal work falls on the shoulders of women. In the US, where I am based, this is clearly shown in the most recent unemployment reports, where women, especially women of color, are more likely to have become unemployed in the last 12 months and more likely to state &#8216;family responsibilities&#8217; as the primary reason. We need policymakers and employers to step up and provide support and flexibility so that people aren’t forced to choose between their family responsibilities and remaining in the workforce. From flexible working hours to more generous PTO to better childcare benefits, there is much more we can do to support working women.”</p>
<p>Shannon believes that the world will be better off with more women in leadership. “It’s important to remember that there are so many different areas and ways to make an impact, and that each is incredibly critical. It doesn’t matter if it’s at the community, national, or global level — we need more women in positions of power, pushing for change across the board.”</p>
<p>&nbsp;</p>


juliaarnold

<h3>Julia Arnold, Senior Research Director, Women&#8217;s Financial Inclusion</h3>
<p><img class="alignright wp-image-23598" src="https://content.accion.org/wp-content/uploads/2021/03/Julia-Arnold-Headshot.jpeg" alt="Julia Arnold, CFI" width="450" height="450" srcset="https://content.accion.org/wp-content/uploads/2021/03/Julia-Arnold-Headshot.jpeg 800w, https://content.accion.org/wp-content/uploads/2021/03/Julia-Arnold-Headshot-150x150.jpeg 150w, https://content.accion.org/wp-content/uploads/2021/03/Julia-Arnold-Headshot-300x300.jpeg 300w, https://content.accion.org/wp-content/uploads/2021/03/Julia-Arnold-Headshot-768x768.jpeg 768w" sizes="(max-width: 450px) 100vw, 450px" />Raised by a feminist mother, Julia Arnold knew from an early age that she wanted to work to improve the lives of women around the world. “I saw how powerful it could be to help women achieve what they want to achieve and found that was exactly what I wanted to do.” Julia was first introduced to the ways that microfinance can empower women while in high school when she listened to an NPR interview with Muhammad Yunus. From there, she decided to focus her studies and career on microfinance, and later inclusive finance for women. She now leads the <a href="https://www.centerforfinancialinclusion.org/bio/julia-arnold" target="_blank" rel="noopener">Center for Financial Inclusion</a>’s research on <a href="https://www.centerforfinancialinclusion.org/reimagining-inclusive-finance-with-women-in-mind" target="_blank" rel="noopener">women’s financial inclusion</a>.</p>
<p>In her research at CFI, Julia explores <a href="https://www.centerforfinancialinclusion.org/the-case-for-a-gender-intelligent-approach-an-opportunity-for-inclusive-fintechs" target="_blank" rel="noopener">how financial services can better serve women</a> and address the constraints that they still face. “Women are 50 percent of the world’s population, and they are never the first person on any policymakers’ mind when they think about ‘What do I do? For whom do I do it?’ If you can help make women’s lives easier, you’re going to make everybody’s lives easier.”</p>
<p>As global gains toward gender equality have <a href="https://www.centerforfinancialinclusion.org/care-work-during-crisis-pandemic-unravels-fragile-gains-in-gender-equality" target="_blank" rel="noopener">reversed during the pandemic</a>, Julia is thinking about how we can help women recover from this crisis. “What it will take is clear-eyed commitment at a global policy level and individual country policy level to better understand women’s needs, women’s roles in their community, the constraints on their time and their mobility — which have been exasperated by COVID-19 — and embedding direct solutions to those needs in government payments, in gender budgeting, in infrastructure development, in consumer protection laws, in debt forgiveness in some form for those under a certain threshold.”</p>
<p>Julia is passionate about building a more equitable world, noting that “those of us who have privilege and opportunity have a responsibility to make room for voices of those who aren’t in the room.” She encourages others to push for change in their own way: “Find a thing that you love and care about and figure out a way that’s most comfortable for you to move forward in that direction and don’t stop.”</p>


Part of Accion’s annual series highlighting women working in financial inclusion

All around the world, financial services enable people to open their own businesses, educate their children, and provide for their families, but they aren’t within reach for everyone — including <a href="https://globalfindex.worldbank.org/">980 million women</a> who don’t have a bank account or even the ability to send and receive money on their phones. The COVID-19 pandemic has <a href="https://www.centerforfinancialinclusion.org/the-case-for-a-gender-intelligent-approach-an-opportunity-for-inclusive-fintechs">exacerbated inequalities that women face</a> and exposed how the <a href="https://www.womensworldbanking.org/insights-and-impact/womens-economic-empowerment-doorway-to-economic-recovery/">gender gap in financial inclusion</a> continues to hold women back.

This year, the <a href="https://www.unwomen.org/en/news/stories/2020/11/announcer-international-womens-day-2021">UN Women theme for International Women’s Day</a> is “Women in leadership: Achieving an equal future in a COVID-19 world.” We’re highlighting women leaders working to open opportunity for women and men through inclusive finance in our <a href="https://www.accion.org/series/women-of-accion">annual International Women’s Day blog series</a>. You can learn about more inspiring women in <a href="https://www.accion.org/women-leaders-open-opportunity-through-inclusive-finance-part-one">our first</a> and <a href="/women-leaders-open-opportunity-through-inclusive-finance-part-two" target="_blank" rel="noopener noreferrer">second article</a> for this series.

Meet some of the women we’re inspired by:
<h3>Winnie Blatchford, Founding member of Accion</h3>
[caption id="attachment_23601" align="alignright" width="500"]<img class="wp-image-23601" src="https://content.accion.org/wp-content/uploads/2021/03/winnie-blatchford-accion-1.jpg" alt="Winnie Blatchford in Venezuela" width="500" height="335" /> <em>Winnie and her Accion colleagues ran a community center in Caracas, Venezuela, that offered classes in literacy, auto mechanics, sewing, and cooking.</em>[/caption]

When Winnie Blatchford (née Marich) was on the cusp of her graduation from UCLA in 1958, she read about volunteer opportunities in her community and around the world in her student paper. One of those opportunities struck a deep chord with her. It was a new, student-run volunteer group called Accion that aimed to improve U.S. relations in Latin America. Founded by Joseph Blatchford — who Winnie later married in 1967 — and other UCLA students, the group sought “<a href="/remembering-accions-founder-joe-blatchford-1934-2020" target="_blank" rel="noopener noreferrer">people with the audacity to think they can make a difference</a>.” They interviewed candidates and chose Winnie among the initial group of 30 volunteers who traveled to the <em>barrios</em>, or disadvantaged urban neighborhoods, in Caracas, Venezuela, where they had the novel idea to ask the people living there what they needed, and how Accion could help.

[caption id="attachment_23599" align="alignleft" width="450"]<img class="wp-image-23599" src="https://content.accion.org/wp-content/uploads/2021/03/winnie-blatchford-accion.jpg" alt="Winnie and Joe Blatchford with Bob Williams" width="450" height="353" /> <em>Winnie and Joe Blatchford in Venezuela.</em>[/caption]

Winnie became interested in Latin America and passionate about fighting poverty from a young age after she visited Peru, where her parents were living at the time, and saw firsthand some of the real challenges that families living in poverty faced every day. Her commitment to making the world a better place was borne from that experience and inspired her to go to that interview, get on a plane to Caracas, and become one of the first women of Accion. From installing sewage pipes, to paving streets, to teaching women to sew and make bread, the early Accion team worked side-by-side with their new Venezuelan friends determined to make a difference in the community. Winnie remembers so many talented women who were smart, capable, and true leaders in their communities. “I can't help but think of my two granddaughters when I think of the women and girls in the barrios of Caracas in the early 1960s, and how impressed they would be by all of the women I met all those years ago,” she says.

[caption id="attachment_23602" align="alignright" width="350"]<img class="wp-image-23602" src="https://content.accion.org/wp-content/uploads/2021/03/winnie-blatchford.jpg" alt="Winnie Blatchford with her granddaughter" width="350" height="467" /> <em>Winnie with her granddaughter Elliette in 2019</em>[/caption]

From the beginning, Winnie and Joe were steadfast in their vision to give those less fortunate the tools they need to improve their lives. Those tools have evolved over the past 60 years since Accion’s founding, but the mission of the first generation of Accion remains the core of our work. And <a href="/topics/women" target="_blank" rel="noopener noreferrer">connecting women to the tools they need to grow businesses, provide for their families, and improve their communities</a>, continues to be a crucial way that we drive impact.

Before Winnie left Caracas, she received the <em>Amiga de Venezuela</em> award from the First Lady of Venezuela for her contributions to community development. She treasures that recognition and hopes it inspires her granddaughters and other young women to get involved in doing good. "You don't have to put your feet in the barrios to make a difference. There are opportunities everywhere, and it’s our job to create them if we can’t find them.”

Women leaders open opportunity through inclusive finance, part three

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