マイクロファイナンス

Considering the most of the effected people especially in Pakistan are not literate, its a very huge task for them to operate an ATM or even go to a shop & punch in the pin number (other options available in the market). Going to a bank to receive upon Identification payment is another hassle since most of these people would be visiting a bank for the fist time & secondly in situations such as floods their ID's are lost & Its a mandatory requirement of all bank to see the original CNIC "Computerized National Identity Card" thus too does not serve the purpose. A Bio-metric ATM or if we take it a step further which would also have a retina scan would eliminate the issues of incorrect payments & would ensure the correct beneficiary is being paid along with a proper audit trail

Reed Smith advised venture philanthropy fund, Impetus Trust, who co-led an investor syndicate with Bridges Ventures, to fund a special purpose vehicle to deliver a 3-year, £3.25 million payment-by-results contract awarded by the UK Government, Department for Work & Pensions Innovation Fund. The innovative project will be delivered by charity Teens and Toddlers, and other UK charities investing are Big Society Capital, CAF Venturesome, the Esmée Fairbairn Foundation and the Barrow Cadbury Foundation. The Innovation Fund was set up by the UK Government to improve education, employment and training outcomes for disadvantaged young people. The Teens and Toddlers programme provides teenagers with an opportunity to act as a role model to vulnerable toddlers in a safe and supervised nursery environment, helping the teenagers to build a sense of responsibility. Revenues are earned from the Innovation Fund only on delivery of improvements in the behaviour, attendance, attitude and qualifications gained by participating teenagers.

Further, Reed Smith has provided structural and tax advice in relation to the setting up of the US entity of Willow Impact Investors, an award winning impact investment firm that manages social impact funds with a focus on Eastern Africa, Middle East and North Africa.

Provided advice on the formation of social impact investment funds, including working with client I-DEV International to develop a unique structure for a fund designed to invest in environmentally sensitive enterprises operating in communities in areas of high biodiversity.

The business model of this solution would be similar to the one developed by the Grameen Danone Foods company, the joint venture launched by Danone and Grameen in 2006 in Bangladesh (see video). The goal is to create a social enterprise that will produce the planned nutraceutical at a price affordable for the poorest individuals. The nutraceutical factory would be implemented in a LDC to promote local economy development by creating business and employment opportunities for rural communities since raw materials will be sourced locally (farming and distribution jobs). Surrounding farmers will be supported in setting-up cost-effective and labor-intensive production models via microfinance programs and fixed contracts with the company. Moreover, this social business enterprise will have to be profitable to ensure economic sustainability, i.e. profits from the first plant will be re-invested in order to finance the construction of new plants.

Beginning this January, we will host 3 to 4 Venture Clinics over the semester. A Venture Clinic is a short (1 to 2 hour-long) live "case". We bring in a local social enterprise, social entrepreneur, or micro-business, whose success benefits the Vancouver -- or international -- community. They outline to us either obstacles they face or goals they want to achieve; for this short session, the student participants act as consultants. Students are separated into teams with new students and each team tackles a different issue in a rapid-fire, critical problem-solving session; each team works together to produce a list of recommendations which are then given to the organization who presented.

The organization then returns with new, free, thought-out advice -- generated by passionate, intelligent students -- and can decide which suggestions to implement. We invite the organization to update us on their progress.

The result is threefold. Firstly, we play a crucial role in assisting a local organization in doing work that benefits the community. Secondly, students both develop their critical thinking skills and enhance their understanding of Social Enterprise. Lastly, we facilitate a connection between students and organizations which might later turn into work positions or other relationships.

Crowd Scholarships is a concept that allows the student to encourage large amounts of people to give small amounts of money. This term originates from the term Crowd Funding, which is the concept that an entity can raise a significant amount of money by receiving relatively small contributions from a large amount of people. Typically these people are from inner circles of friends or social networks. An example of this would be raising money for a cause whereby an individual has a network of 1,000 individuals. Out of these 1,000 individuals, if only 100 of them each contribute only $50 to the cause, the total contribution would be $5,000. This is the power of Crowd Funding. BrainFund takes this concept even further and specializes it for college students. We connect donors and students in one central web based community, empowering the student by allowing that student to set up a profile that utilizes a student’s current network to attract donors, who are able to donate to a specific college student of their choice through our unique patent pending process. We will also attract outside donors from corporations to give to students that they can search for by their own alma mater, degree, key words, and more! Corporations will be able to sponsor giving campaigns and encourage their employees to give to students on BrainFund.net to provide a tremendous impact on our nation and economy. Companies will participate in partnering with BrainFund, because it promotes great corporate responsibility for the future of our nation and our economy!

Ifigenia y Everardo have eggs, chicken and fish to take to the community market. There, Evardo offers also his bio digesters services. They interchange their products for others such as bread, cheese, coffee, cinnamon, lemon, banana, plum, pear, etc. In exchange of a bio digester installation, Everardo got an ecological heater, an eco dry W.C. and solar cells. At the end of the day, Everardo and Ifigenia won $100 (pesos) in sales and interchanged some products, except 2 kg of fish. They went to the ADR and agreed to sell that balance for $45 per kg. The ADR got the fish and pay $90 by electronic means to Ifigenia’s bank account, or to a phone number they gave at that moment.
Besides the exchange of products and services, they left the community market with a profit of $190, $90 saved in there bank account or mobile phone.

Through allied providers, we offer an ad hoc portfolio of products and services to their clients: credit, insurance, prepaid accounts, correspondent services and financial education.
The “working capital credit” is a very good example. This is a financial product only for buying products of a particular company. It has length according to the product cycle (max. 45 days) and a fixed pricing, in order to simplify the total cost of the product. All the proceeds are made in the store, including the delivery service. The companies’ trucks have an electronic device to receive credit payments (all of which simplify the invoicing process).

A few days ago we received a call from a shopkeeper asking for information on the history of a client user of the C3 Card in order to carry out a sale.
The data in the transactions of this client demonstrate that in 7 months he had 4 invoiced issued, totalizing R$411, 18. All these invoices were paid, however, there was an average delay of 8 days. Because of this delay, that is, the risk in the transaction, the merchant received R$4, 11 in default interest and penalties.
The charges for late payment (risk) that used to go to a bank or financing agent remained in the community, promoting local development. It is worth noting that this value is significantly less than the interest rates practiced by conventional credit cards.
The first phase in promoting the C3 Card is the membership of a commercial establishment, forming an accredited network.
The establishments get their best customers to join this network, formalizing pre-approved credit to customers who can buy in the accredited network.
On the day of maturity of the invoice, the client can make a payment between the minimum value and the total value. If the total amount of the invoice is not paid, bank interest rates, today around 430% per year in Brazil, are not applied as with conventional credit cards.
Hence, the submission of this proposal aims to raise funds for investment in the C3 Card initiative in the city of Viçosa, Minas Gerais (MG), consolidating it to become a case replicable in other communities.

Thanks to Barared’s model, our users have the opportunity to get financial services. For example, today our users have to travel a lot to pay services, such as water, electricity, cable TV, etc. That represents a lot of time and money for them, all of which can be avoided with the Barared Booths located in their own communities.

Ten years ago, Marias has small sewing business. Today she has 3 micro-credits that come to a total of 30,000 pesos and she will pay an annual rate of 85%. She entered kubo.financiero asking for 30,000 pesos. kubo applied risk models in a credit bureau basis, submitted her profile, history and authorized her a loan at an 35% annual rate.
Maria’s project is published on the web and Juan, as a borrower, studies Maria’s history, her challenges, financial needs and decides to support her with 250 pesos of investment, getting an interest rate of 20%.
Other 120 people, as Juan, support Maria’s project and she gets her credit in more affordable conditions, saving 10,000 pesos in interests. Juan gets better interests and also knows that his money supports Maria’s project.

To effectively build inclusive financial systems, we need to examine the activities of the local communities and try to attach some economic value on those activities or assets. Most rural communities would ordinarily have livestock on their homesteads, and to unlock the financial value of those livestock, we need to attach an estimate value. For example in Africa, cattle are the most common store of value for communal farmers or subsistence farmers. If we manage to attach value on each beast, we can increase access to credit for most rural subsistence farmers that are currently excluded from our financial systems.

Here we propose how we might go about securitising cattle, and broadening financial access to rural subsistence farmers. We assume that the MFI is a hybrid MFI which offers not only loans, but the full range of financial services.