Financial Inclusion Glossary

Financial Inclusion 101

Toolkits and Guides

Kathleen Yaworsky

Prateek Shrivastava

Priya Punatar

Scott Stefanski

Kenya

Mexico

Serbia

Advisory Services

Agent Banking

Alternative Data

Appropriate Product Design and Delivery

Banks

Credit

Data Analytics

Digital Credit

Digital Financial Services

Entrepreneurs of MSMEs

Equity Investing

Financial Inclusion Strategy

Financial Service Providers

Financial Technology

Fintechs

Governance

Impact Investing

Initial Public Offering

Insurance Companies

Microfinance Institutions

Mobile Banking

MSME/SME Finance

Partnerships

Risk and Credit Analysis

Risk Management

Supply Chain Finance

Excel template helps financial institutions conduct a cost/benefit analysis of channels being planned. The purpose of this document is to help obtain board approval to proceed to the next step, to build a detailed business case and plan for piloting and implementation.

High level business case

Accion Global Advisory Solutions

Technological advancements have made collecting, storing, and analyzing customer data easier than ever. While these advancements have unlocked large benefits for financial technology companies, they have also come with their own set of risks and challenges: with more data being collected and stored, <strong>the risk of information being hacked, stolen, or used without authorization has also increased</strong>.

Data protection, defined as both data security and data privacy, has become even more critical to maintain customers’ trust, avoid regulatory scrutiny, and keep companies running. <strong>This data protection resource helps fintech startups understand the policies, protocols, and practices that should be in place to protect their business, customers, and partners from potential data threats. </strong>

In this resource, you’ll find:
<ul>
 	<li>Data audit and risk assessment workshop templates and guidelines</li>
 	<li>Data protection assessment, strategic initiative list, and implementation guide</li>
 	<li>Data policy template</li>
 	<li>Seed stage investor due diligence checklist and portfolio management guide</li>
</ul>

Data Protection

Entrepreneur

Financial Service Provider

Accion Venture Lab

<em>This guide is for institutions interested in developing a supply chain finance solution. For those interested in better understanding how supply chain finance can help small merchants, fast moving consumer goods companies (FMCGs), suppliers, and financial service providers (FSPs) realize their economic potential, access our report, the  <a href="https://www.accion.org/the-supply-chain-finance-opportunity">Supply Chain Finance Opportunity.</a></em>
<h3>Executive Summary</h3>
Supply chain finance (SCF) is the use of financing mechanisms that can optimize the management of liquidity tied up in supply chain processes. SCF solutions have long been offered by big banks to large corporations, such as fast moving consumer goods (FMCG) companies and manufacturers, to support trade.

However, today SCF techniques are being transformed by technology, expanding the addressable market to include micro, small, and medium size enterprises. Improved connectivity, increasingly available customer data, and new technologies lower the cost and make it possible to extend digital SCF solutions to the small merchants at the end of global supply chains.

By tying credit to the flow of goods, SCF facilitates more efficient business operations and cash flow management for all actors along the chain – resulting in higher sales, faster turnover – and ultimately, increased profitability and growth.

A platform-based model that satisfies the interdependent needs of multiple stakeholders simultaneously using digital innovations is well suited to provide SCF solutions. Platform models consolidate digitized data produced by the flows of goods and money throughout the supply chain, building trust and facilitating coordinated decision-making. The net effect is to provide deeper insights into merchant and consumer behavior.

We believe independent third-party technology providers are best positioned to mediate between multiple stakeholders and take the lead in operating a flexible and scalable SCF solution. We also see a major opportunity, particularly for FSPs and FMCGs, to lay the groundwork for such a platform approach to succeed.  A digitized SCF solution will not only help merchants to grow their business but will drive meaningful financial inclusion for the millions left un- or underserved by the status quo. With nearly 141 million microenterprises in developing countries, digitized supply chain finance represents a scalable solution to drive greater sales through the supply chain, which will propel inclusive growth.

<img class="aligncenter" src="https://content.accion.org/wp-content/uploads/2018/09/Citi-Foundation.png" width="240" height="162" />

<em>Accion would like to thank the Citi Foundation for supporting this report. The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. The Citi Foundation invests in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant cities.</em>

&nbsp;

How digitized supply chain finance can help small merchants grow

Tienda Pago

Citi Foundation

Financial Inclusion Practitioner

Supply chain finance

As a company grows, employees benefit from performance management becoming less ad-hoc and more systematized. This guide provides a structure for growing startups to use as they evaluate their employees on their performance, and think about how to maximize the potential of employees at all levels of the organization.

Performance Management

This course explores the importance of operational risk management for microfinance institutions and introduces a key decision-making tool for operational risk management, the detailed risk and control assessment tool.

eModule: Using the detailed risk and control assesment tool for operational risk management

This course introduces the key innovations in assessing willingness to pay, with practical tools and resources to help you identify what techniques may be right for your institution and plan for their implementation.

eModule: Innovations in assessing willingness to pay

This course explores short lessons and a case study to help financial service providers develop a targeted customer acquisition strategy.

eModule: Developing a targeted customer acquisition strategy

This guide, Dialogue on Business, is an award-winning business skills training program that uses interactive games and role-playing to help participants solve real-life business challenges. Because the workshops are based on the real situations of participants, rather than textbook cases, Dialogue on Business is especially engaging for people with little formal education who may not learn effectively in a traditional classroom setting.

Dialogue on Business training program for entrepreneurs

This toolkit is for analysis of the regulatory, technological, competitive, and collaborative opportunities, as well as demographic and cultural factors that will help drive the adoption of a financial institution's target channels.

Digital financial services toolkit: External analysis

Regulators

How our advisory team helps financial service providers (FSPs) capitalize on the value of their data, leveraging technology and automation to transform their business processes and reach their target markets.

Global Advisory Solutions fact sheet

Referral marketing programs generate new customers while keeping past customers active. This guide is useful for entrepreneurs seeking to launch their own referral marketing program in the B2C context. It includes a case study of the program launched by Lyft, a rideshare app.

Referral marketing program design and best practices

This template is meant to guide businesses through creating effective board decks.

Board deck template for startups

This guide outlines how to build and structure a board, including tactics on effectively leveraging board member expertise and networks. Also included are tips on planning effective board meetings.

How to leverage a startup board

This template lays out the initial project planning phase and outlines objectives, budget, and roles and responsibilities, to ensure internal alignment and cross-departmental buy-in.

Digital financial services toolkit: Draft project charter

This guide covers options plans, how much equity to offer, creating terms, and long-term strategies. It includes a <a href="http://www.accion.org/employee-stock-option-plan-model/">model example</a> and resource appendix.
<h3>Part I: Intro to Options Plans</h3>
<ul>
 	<li>What is an ESOP?</li>
 	<li>What is an Option?</li>
 	<li>Lifecycle of a Startup ESOP</li>
 	<li>Common Terms in an Options Package</li>
 	<li>Why Issue Options to Employees?
<ul>
 	<li>A Defining Characteristic of Startup Culture</li>
 	<li>A Necessary Part of the Capital Structure</li>
</ul>
</li>
 	<li>When to Create an ESOP?</li>
 	<li>Communicating Options to Employees: % versus $</li>
</ul>
<h3>Part II: How Much to Grant</h3>
<ul>
 	<li>Two Approaches</li>
 	<li>The Top-Down Process
<ol>
 	<li>How Much Equity to Set Aside in the ESOP?</li>
 	<li>A Typical Distribution Schedule</li>
</ol>
</li>
 	<li>The Bottom-Up Process
<ol>
 	<li>Segment Your Human Resources</li>
 	<li>Establish Pay Multipliers for Each Role</li>
 	<li>Determine the Dollar Value of the Options Grant</li>
 	<li>Determine the Current Share Price</li>
 	<li>Calculate the Options Grant</li>
 	<li>An Example: Hiring a CTO</li>
</ol>
</li>
 	<li>Important Takeaways</li>
</ul>
<h3>Part III: The Fine Print - Terms</h3>
<ul>
 	<li>Strike Price</li>
 	<li>Vesting Schedule</li>
 	<li>The Cliff
<ul>
 	<li>Example: Standard Vesting w/ a Cliff</li>
</ul>
</li>
 	<li>Vesting in a Liquidity Event</li>
 	<li>Exercising Options</li>
 	<li>Tax Considerations</li>
 	<li>Legal Advice</li>
</ul>
<h3>Part IV: ESOPs for the Long Term</h3>
<ul>
 	<li>Retention Grants</li>
 	<li>Discretionary Grants</li>
 	<li>Social Impact Considerations</li>
 	<li>Options Modeling – Overview</li>
 	<li>Options Modeling – A Detailed Example</li>
</ul>
<h3>Part V: Resources &amp; Further Reading</h3>

Startup employee stock option plans: Overview and best practices

This toolkit helps financial institutions review the readiness of existing policies, technology, and business operations to support the channel methodology, outline required additions or changes to successfully launch the channel, and assess stakeholder buy-in and human resources capacity to support implementation and launch.

Digital financial services toolkit: Internal analysis

This toolkit aims to help microfinance institutions plan, pilot, roll-out, and operate digital delivery channels for financial services.

Digital financial services toolkit: Channels methodology

This guide highlights best practices and sample job descriptions for key roles in early-stage financial inclusion startups. It is intended to serve as a starting point for your hiring process.