UGAFODE, one of Uganda's five deposit-taking microfinance institutions (MFIs), is now featured in UNCDF MicroLead's third digital finance toolkit: Leverage an Existing Agent Network.
UGAFODE's prime goal in going digital was to reach new saving clients. Digital financial services (DFS) can provide increased access and convenience for clients, particularly when it comes to savings deposits. By using the DFS model of leveraging an existing agent network and with assistance from its technical service provider, MEDA, UGAFODE tapped into a larger market and was able to reach clients in remote areas where it didn't have a branch. The MFI also increased its revenues through additional commissions and fees and expanded its brand recognition.
You can read about UGAFODE's digital journey – the successes and challenges – in the case study and corresponding DFS toolkit. The toolkit is part of MicroLead and The MasterCard Foundation's series, "How to Succeed in Your Digital Journey: A Series of Toolkits for Financial Service Providers." It follows the first two toolkits, Use Mobile as a Tool and Be an Agent. All the toolkits and cases are available in both French and English.
In this third model, leveraging an existing agent network, the FSP forms a partnership with a digital financial service provider (DFSP), which is typically an MNO, and the FSP provides its own products and services using the DFSP's network. It's a form of agency banking, where customers can deposit into and withdraw from their FSP account using their mobile money account and/or make over-the-counter transactions.
With this toolkit, FSP managers can access a step-by-step roadmap to successfully apply this mobile banking model. "MicroLead has pulled from learnings with our partners in Africa and Asia to develop a practical toolkit," says Pam Eser, the Global Head of MicroLead. "All of the toolkits include an action plan, a budget template, a list of key performance indicators, a risk mapping exercise, a self-assessment grid, and a case study."
The six toolkits, sponsored by The MasterCard Foundation and developed with support from PHB Development, will be released through June 2017. The goals of this series of toolkits are to (i) help financial institutions identify financially sustainable DFS business lines that fit their needs; (ii) provide practical tools that financial institutions can use in their journey towards digital finance; and (iii) share learnings from the DFS experiences of MicroLead partners and other financial institutions. You can download the latest toolkit, Leverage an Existing Agent Network, and its associated case study here
If you missed the first two toolkits, Use Mobile as a Tool and Be an Agent, you can download them here . Or simply download the 3rd toolkit, and you'll receive the first two as well.
For more information on the MicroLead programme, please visit www.uncdf.org/microlead. Follow UNCDF MicroLead at @UNCDFMicroLead.
UGAFODE's prime goal in going digital was to reach new saving clients. Digital financial services (DFS) can provide increased access and convenience for clients, particularly when it comes to savings deposits. By using the DFS model of leveraging an existing agent network and with assistance from its technical service provider, MEDA, UGAFODE tapped into a larger market and was able to reach clients in remote areas where it didn't have a branch. The MFI also increased its revenues through additional commissions and fees and expanded its brand recognition.
You can read about UGAFODE's digital journey – the successes and challenges – in the case study and corresponding DFS toolkit. The toolkit is part of MicroLead and The MasterCard Foundation's series, "How to Succeed in Your Digital Journey: A Series of Toolkits for Financial Service Providers." It follows the first two toolkits, Use Mobile as a Tool and Be an Agent. All the toolkits and cases are available in both French and English.
In this third model, leveraging an existing agent network, the FSP forms a partnership with a digital financial service provider (DFSP), which is typically an MNO, and the FSP provides its own products and services using the DFSP's network. It's a form of agency banking, where customers can deposit into and withdraw from their FSP account using their mobile money account and/or make over-the-counter transactions.
With this toolkit, FSP managers can access a step-by-step roadmap to successfully apply this mobile banking model. "MicroLead has pulled from learnings with our partners in Africa and Asia to develop a practical toolkit," says Pam Eser, the Global Head of MicroLead. "All of the toolkits include an action plan, a budget template, a list of key performance indicators, a risk mapping exercise, a self-assessment grid, and a case study."
The six toolkits, sponsored by The MasterCard Foundation and developed with support from PHB Development, will be released through June 2017. The goals of this series of toolkits are to (i) help financial institutions identify financially sustainable DFS business lines that fit their needs; (ii) provide practical tools that financial institutions can use in their journey towards digital finance; and (iii) share learnings from the DFS experiences of MicroLead partners and other financial institutions. You can download the latest toolkit, Leverage an Existing Agent Network, and its associated case study here
If you missed the first two toolkits, Use Mobile as a Tool and Be an Agent, you can download them here . Or simply download the 3rd toolkit, and you'll receive the first two as well.
For more information on the MicroLead programme, please visit www.uncdf.org/microlead. Follow UNCDF MicroLead at @UNCDFMicroLead.