LESLEY  DENYES  PROGRAMME  DIRECTOR  

MERCY  CORPS  

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3-4 February 2014 Global Forum for Innovations in Agriculture, Abu Dhabi

Lesley Denyes, Agri-Fin Mobile Program Director

Presentation Overview

Part 1: About Mercy Corps

Part 2: About Agri-Fin Mobile

Part 5: Challenges and Future Trends

Mercy Corps

35 Part 1: About Mercy Corps

Mercy Corps is an international development agency working amid disasters, conflicts, chronic poverty and

instability, activating untapped human potential to create lasting change.

Since 1979, Mercy Corps has provided $1.5 billion in assistance to people in 106 nations. Supported by headquarters in North America and Europe, the

agency’s global programs employ 4,500 staff worldwide and reach 19 million people in more than

40 countries.

An Overview Mercy Corps

Where we work Mercy Corps

Sectors of Engagement Agriculture & Food Security

Civil Society, Conflict & Peace building

Climate/Environment & Energy Poverty

Democracy & Governance

Disaster Risk Reduction

Economic & Market Development Education

Emergency: Food & Non-Food Distribution, Shelter, Water/Sanitation, Food & Commodity Management, Material Aid Financial Inclusion: literacy, microfinance, insurance, franchising, branchless

Gender, Women & Girls

Health: Child Survival; Community Health, Health Services Delivery, HIV/AIDS, Nutrition, Psychosocial, Reproductive,

Infrastructure Rehabilitation Refugees/IDPs/Returnees Social Innovations: social enterprise, technology, partnerships Sustainable Resource Management Youth employment, enterprise & skills training Water/Sanitation

Mercy Corps

*Financial Services active in 22 countries with equity in16 banks/MFIs

MFIs

Mercy Corps

Financial Services: Active in 22 countries; has equity in 16 banks and MFIs

Mobile Phone Penetration Mercy Corps

M-banking Programming

PHILIPPINES: Bank, Telco, MFI partnership model converting ewallets to mobile bank accounts and expanding service to unbanked (Gates Foundation)

INDONESIA: Wholesale Bank provides technology and product platform for thousands of MFIs to expand service to millions of poor clients through POS/mobile (Gates Foundation)

HAITI: Bank & MNO partnership to provide cash-for-work post-disaster to thousands of earthquake victims

UGANDA: Working with mobile network operators to do ag value chain payments

ZIMBABWE: Developing mobile savings, loans and insurance with leading operator

Focus on Mobile Banking Mercy Corps

Worldwide, m-banking is beginning to deliver affordable financial services to millions of the world’s poor by:

•  Lowering cost of access •  Increasing range of services •  Helping provide financial identity, control •  Extending branchless banking network to

underserved areas – rural and low income •  Reducing fraud

Has strong potential in countries with limited banking infrastructure, and high cell phone penetration

Financial Inclusion Approach

CREDIT •  Short-term enterprise and farm loans •  Group-based lending •  Buyer and supplier credit •  Agriculture-specific loans (long-term

investment loans, lending against warehouse receipts)

SAVINGS •  Passbook accounts •  Time deposits •  Purposeful savings,

e.g. retirement, housing

INSURANCE

•  Life insurance •  Health insurance •  Crop insurance

LEASING

REMITTANCES PAYMENTS & TRANSFERS

Delivered through highly accessible client touch points (ATM, mobile, agents) based on the key consumer protection principles.

Mercy Corps

35 Part 2: About Agri-Fin Mobile

SDC funded project to improve incomes of smallholder farmers (SHF) through scalable & sustainable business models Phase 1: 3 countries, 3 years, $2.8m, 180,000 SHF Phase 2: 8 countries, 2 years, $3m, 1m SHF Funding supports: •  Research & Product Development •  Application & Interfacing Development •  Lessons Learned Sharing & Dissemination •  Open sub-grants for partner support

Supported by: Partner in-kind contributions, MC programs

The SDC Grant

Agri-Fin Mobile

The Agri-Fin Mobile Program facilitates sustainable shared

business models between app

providers and banks reaching small holder farmers

through development,

integration and implementation

processes to provide a win/win/win of

access to market, technical and

financial services.

Bundling Mobile Apps & Financial Services for Smallholder Farmers

Agri-Fin Mobile

Improved Access “Bundled Services”

Agri-Fin Mobile Uganda

Mobile Bundling Approach:

Agri-Fin Mobile: UGANDA

What Does This Mean for Farmers?

Agri-Fin Mobile

1.  Identify Primary Commodities

2.  Value Chain Analysis

3.  Product Development Research

4.  Partner Formalization

5.  Application Development & Interface

6.  Training & Implementation

Methodology

Agri-Fin Mobile

Each ecosystem requires… ü MNOs ü Financial Institutions ü Platforms ü Content Providers ü Channels to Small Holder Farmers ü Supporting Organizations

… to build a comprehensive suite of services & operational business model.

The Ecosystem Approach

Agri-Fin Mobile

35 Part 5: Challenges & Future Trends

Mobile Phone Penetration

What Works & Future Trends

ü Agri-Fin Mobile reaching over 140,000 farmers in 3 countries

ü  Seeing measurable impact of applications

ü Driving commercial relationship with banks & MNOs

ü  Buyer records used for credit scoring

ü Mobile being used throughout the value chain

ü  Bundle with financial services off-sets costs for information

New Models in Digital Financial Inclusion

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Thank you for your time & your support of our work!

Contact us: Lesley Denyes, ldenyes@field.mercycorps.org