presented by (name) on (date) the strengthening of a microfinance institution the rise of its...
TRANSCRIPT
Presented by (name) on (date)
THE STRENGTHENING OF A MICROFINANCE INSTITUTION
THE RISE OF ITS CLIENTS
Our HistoryOur History
We began as Riverbank Crescent Self-Help Group, a gathering of 7 women who owned small businesses in Njiru Quarry. Because they were not qualified for traditional banks, but still wished for financial intermediation to develop their businesses, the self-help group was formed to address their needs. When one of the members needed funds to buy more stock, for example, the money would be borrowed from other members and paid back according to their terms.
Member
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Member Member
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Riverbank
Member
Our HistoryOur History
Later the lending functions of Riverbank were separated from the social functions, and
Riverbank Savings and was officially formed.
Early on, the organization was small and faced many challenges. At times, credit officers were forced to track down clients throughout Nairobi everyday and ask for payments.
In February 2009, Riverbank was officially registered as a Savings and Credit Co-Operative (SACCO).
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Our Vision and MissionOur Vision and Mission
Vision: to create an economic environment where the ability of the poor to do business is not determined by wealth inherited but by the individual’s commitment to capture business opportunities and make the best use of such opportunities
Mission: to be the leading provider of microfinance services in Africa through deep understanding of financial needs by the economically disadvantaged and use information technology to support innovation of solutions to meet such needs
Our Approach – The 5 C’sOur Approach – The 5 C’s
■ Traditional banks regard collateral as the most important feature of a client. ■ Riverbank, however, respects the CHARACTER of our customers most of all. ■ We also emphasize CASH FLOW and CONDITIONS of the business, such as competition, trends, and opportunities. ■ Finally, we consider the CAPITAL and COLLATERAL of the business woman or man. ■ Thus, if a client has little to no inherited or current wealth, but a promising and feasible business plan, we can help them achieve their goals when other financial institutions cannot.
This outlook allows us to uphold our vision of
creating an economic environment where the ability of the poor to do business is not determined by wealth inherited but by the individual’s commitment to capture business opportunities”
Our ApproachOur Approach
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Our Services - Our Services - ProductsProducts Riverbank again separates itself from traditional banks with our uniqueproducts, which arecustomized andrevised to speciallysuit our clients’needs.
Our Services - ProductsOur Services - Products
The Instant Loan (Amka Twende) is intended for clients seeking a small loan of Ksh 2000/- quickly and conveniently.
The member must save in a Riverbank account for 7 days, and the loan is to be disbursed on the tenth day.
An interest rate of 3% is collected daily over a repayment period of 2 weeks.
Savings must equal at least 30% of loan size and a guarantor is needed.
our most popular product
Our Services - ProductsOur Services - Products
Most clients use the loan to grow their small businesses. For example:
Food vendors use the funds to buy more fruits and vegetables, fish, or meat.
Shoe makers use the funds to purchase raw materials.
Merchants use the funds to buy more clothes for their shops.
Carpenters use the funds to purchase timber and tools.
Our Services - ProductsOur Services - Products
The Group Loan (Imarisha Kazi) is available to up to two members of a group of five individuals.
Members must save in a Riverbank account for 4 weeks. A loan may be requested for an amount that does exceed 2 times the individual’s
savings and the total savings of the group. An interest rate of 1.5% is collected daily. After 75% of the loan is repaid, non-lending members of the group become eligible for
a loan. All members of the group serve as the guarantors.
Our Services - ProductsOur Services - Products
Our Services - ProductsOur Services - Products
Hatua plot loans are designed to finance the purchase of a vacant residential lot or land. The member’s savings must equal at least 40% of the plot deposit and the repayment period can extend up to 5 years.
Hatua jenga loans are designed to finance the construction of a home. The member must submit a plan and estimated budget for approval, and savings must equal at least 60% of budget. The repayment period can extend up to 15 years.
Hatua purchase loans are designed to finance the purchase of a house. An interest rate of 9% monthly is collected over a repayment period of up to 5 years. Savings must equal at least 40% of loan size.
The Micro-Housing Loans (Hatua) are a set of loans to finance the purchase and construction of housing.
Our Services - ProductsOur Services - Products
The Kadogo Loan is a loan with a very small interest rate for groups of 5 people selling a product together.
The members must have a minimum savings of Kshs 200/- in a Riverbank account.
The interest rate of Kshs 5/- for every 500/- given is repaid daily over a period of 7 to 14 days.
Our Services - ProductsOur Services - Products
The Motorbike Loan is specially designed for members seeking to purchase a motorbike to start a transport business.
The member must have a minimum savings in a Riverbank account of 40% of the estimated cost of the bike.
The flat interest rate is 15% monthly.
Our Services - ProductsOur Services - Products
Business loans (Biashara Uwezo) are designed for fully developed business set ups.
Emergency loans are available to all members who have active accounts for at least 6 months. These loans can be given simultaneously with other loans.
Education loans (Masoma) are available for the payment of school fees from nursery to secondary school.
Salary loans are advances on a member’s salary, available to those who have saved with Riverbank for at least one month.
Insurance premium finance loans are designed to enable members to access various low cost insurance products for medical cover, fire and burglary and education endowment.
Our Services - InsuranceOur Services - Insurance Problem: We soon realized that a prime cause
of defaults on loans was the overbearing cost of emergency medical expenses. Because we understood that no family should have to choose between the health of their loved ones and repaying a loan, we developed an insurance service to protect our clients and their accounts.
Solution: In partnership with the Co-operative Insurance Company of Kenya and NHIF, we now offer discounted insurance along with insurance premium financing to our members. Since this service was introduced, we have found that a number of members have joined Riverbank simply to gain access to this valuable coverage.
Our Services - InsuranceOur Services - Insurance
Type of Coverage Amount (Kenyan Shillings)
Death and disability cover 100,000/- (less the existing loans)
Loss of income compensation 2000/- weekly for a maximum of
25 weeks
Payment of medical and accommodation bills Full
Funeral cover 30,000/- (per member subject to payment)
Permanent disability compensation 100,000/-
Accidental death cover 100,000/-
• Insurance coverage is mandatory for all members with loans of 100,000/- and above. • Riverbank offers insurance premium financing loans, so that interested members are not turned down due to insufficient savings.
Our Services – Savings Our Services – Savings and Investmentand Investment
The investment plan attracts interest at 0.75% per month for deposits with minimum of Kshs 5,000/-.
Accounts can also be set for Kshs 20,000/-, Kshs 50,000/-, Kshs 100,000/-, and Kshs 1,000,000/-.
Member savings are made into a long term deposit, which can not be withdrawn for a period of 3, 6, 9, or 12 months.
Investment products (Lenga Kikapu) are designed to enable members to accumulate wealth through long term savings.
Our Marketing StrategiesOur Marketing Strategies
Most of our clients learn about Riverbank from credit officers, who are in the field visiting clients everyday. We have also hosted a number of local rallies to register many new members at once, sometimes 60-70 in one day.
Our Marketing StrategiesOur Marketing Strategies
In addition, we have created a number of fliers and brochures to promote the many services we offer and clearly explain the details of our products.
Our NetworkOur Network
Head OfficeNacico Plaza
Central Nairobi
Branch Office:Hawkers Market,
Kibera
Branch Office:Kayole
Satellite services:Dandora Phase 4
Serving Toi Market,Makina Market, andentire Kibera region
Serving Kayole, NjiruQuarry, Umoja and
part of Dandora
Serving Gikombaand Muthurwa
Our Network - GrowthOur Network - Growth
In the future we intend to expand our reach and open offices around the country and eventually around the continent. We are planning the opening of branches in …
Client StoriesClient Stories