“inclusive micro finance for women and youth” - · pdf...

“Inclusive Micro Finance for Women and Youth”

NAME: Pauli Prince Suhren OCCUPATION: ACEO – MIS

INSTITUTIONAL BACKROUND

• Established in 1974 as the ‘Development’ arm of Government • Mission: To be a sustainable and successful financial institution meeting stakeholders’ expectations • Vision: To provide affordable credit financing services to support sustainable development in Samoa OVERARCHING MANDATE: To stimulate economic development in the country

DBS MICRO FINANCE SCHEME

Commenced in 2007 with the following core objectives: • To provide WOMEN with access to micro loans enabling them to contribute to the livelihood

of their families through income generating small business activities • To encourage WOMEN to take the first step and build confidence in themselves and their

ability to contribute to development • To train and upskill WOMEN in business activities and wealth creation • To expose WOMEN to financial services and credit financing • To teach WOMEN the value of saving money


THE MOTIVATION?? TO THE GOVERNMENT OF SAMOA Strategy for the Development of Samoa (2008) states as one of its goals “Improved Quality of Life for All” Widely popular government mantra “What is good for Apia, is good for the Outback” National Interest: Bringing vulnerable groups in society out of poverty; stimulating economic activity; social harmony

TO THE DEVELOPMENT BANK OF SAMOA Fits perfectly with our mandate: to stimulate economic growth We are after all the DEVELOPMENT bank first before all else!


RELEVENT STATISTICS • Population: 187,820 • Total Labour Force: 37,830 (14,200 women – 37.5%) • Population NOT participating in Labour Force or Subsistence Production:

36,275 (25,166 female – 69%)


PARTNERSHIP BETWEEN: Development Bank of Samoa (DBS) - Manage the scheme and provide access to credit for women - Manage savings for women - Provide joint training (with MWCSD) for women Ministry for Women, Community and Social Development (MWCSD) - Identified target villages - Identified target women’s groups within villages - Provide joint training (with DBS) for women Ministry of Finance (MOF) - Provided the initial funding to DBS to enable the scheme


THE MODEL The GROUP Model was chosen because:

It acts as the sole collateral mechanism i.e. the combined guarantee of all women in the group

Women are incentivized to make repayments to access savings Women are made collectively accountable; it is in their interests to

honour scheme obligations Social benefit – promotes harmony in the village


Target group Women

Number of members 4 – 6 members

Selection Members should be from the same village as confirmed by the MWSCD

Requirement Members to undertake training on financial literacy to help them commence and manage their micro project

Security Group guarantee

Loan amount Tier 1 at $1,000 per member Tier 2 at $2,500 per member Tier 3 at $5,000 per member

Interest rate 8% per annum

Repayment schedule Tier 1 = $100 per month Tier 2 = $160 per month Tier 3 = $220 per month

Service fee 1% of loan amount


COMMON MICRO PROJECTS • Taro and Banana plantations • Vegetable Gardens • Sewing • Street Vendor • Traditional Handicraft • Weaving


At it’s PEAK in 2011

TOTAL APPROVAL $4,875,650

Repayment Collected $2,926,869

Savings Collected $1,052,285

Savings Withdrawn $682,709

Arrears $63,052 (56 groups)

Total Number of GROUPS 388

Total Number of Members 2142 (492 Upolu, 1650 Savaii)

Villages Assisted 39 (19 Upolu, 20 Savaii)


CHARACTERISTICS OF SUCCESS – At its PEAK in 2011: Approval: 4.875 million tala Reach of the program (388 groups; 2142 women; 39 villages) Introduced new business skills and basic financial management Encouraged SAVINGS Promoted COLLECTIVE RESPONSIBILITY Flow on effects & Indirect Success: New houses, upgraded living quarters etc Promotion of FINANCIAL INCLUSION: - In 2008 27% of population below poverty line - By 2015…that statistic had fallen to 10%


CHALLENGES and SETBACKS Main Problems Funding Limited number of DBS branches: 1 in Upolu & 1 in Savaii Limited number of DBS staff for collection, training and overall relationship management Monitoring Other Issues Administration issues - dishonest staff - favouratism Implied limitation to possible micro-business ventures Lack of flexibility in the scheme Lack of skills Client misuse of loan funds Need for overseas markets Only 39 out of 185 villages


SCHEME REVIEW – July 2016 More funding for new round Expansion to include youth Expansion to include more villages Next of kin to cosign as guarantors Flexibility in the Tier system Incorporation of FORCE MULTIPLIERS


WHERE DOES ICT COME IN??


WHERE DOES ICT COME IN?? • Address expansion of scheme to more villages, more groups, more women and youth… • …while taking into account DBS staff reductions and no addition of new branches…

Efficiencies in CRM

USE OF HANDHELD COLLECTION DEVICES

FORCE MULTIPLIERS

WIRELESS ATMs

FORCE MULTIPLIERS

RFID Technology

BACK – END

CURRENT SYSTEM: Loans Management System (LMS) • Meets and exceeds all current needs • Not designed to facilitate cloud based applications REPLACEMENT?? • BankSoft: Designed for the Cloud and SOA from the get go CONSTRAINTS: • Budgetary / Financial • Justifiability

CRITICAL ENABLING TECHNOLOGIES

Long-Term Evolution (LTE) • Launched in July 2016 • Available mostly in urban areas; being expanded “Tui-Samoa” Cable Project • Expected mid-2017 • New undersea cable link to Southern Cross Cable Network, Fiji • 3 to 8 Terabits capacity

THANK YOU FOR YOUR ATTENTION

“inclusive micro finance for women and youth” - · pdf...

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