Social Investment Certificates of Deposit (SICD)
SICDs are innovative social investment products that align incentives among stakeholders to provide market-based solutions to promote financial inclusion.
Sobre Você
Sobre Você
Nome
Nicholas
Sobrenome
Romano
URL do Twitter
URL do Facebook
Sobre Sua Organização
Nome da Organização
Unitus
Página da organização na internet
País da organização
Estados Unidos , WA, Seattle
Países onde este projeto vem gerando impacto social
Índia
Sua organização é
Híbrido
Há quanto tempo sua organização está em operação?
Mais de 5 anos
A organização recebeu algum prêmio ou reconhecimento público? Por favor, conte-nos mais detalhes
Many of the founders of Unitus have been recognized around the world for their contributions to the field of social entrepreneurship and their social innovation solutions to end poverty.
As informações que você fornecer aqui serão usadas para preencher todas as partes do seu perfil deixadas em branco, como interesses, informação da organização e website. Nenhuma informação do contato será tornada pública. Por favor, desmarque aqui se você não deseja que isso aconteça..
INOVAÇÃO
Selecione o estágio que melhor se aplica à solução
Ideia (você está para lançar)
Há quanto tempo está em funcionamento?
Ainda na fase de ideia, mas você deseja lançá-lo em breve
A necessidade: Qual é o problema que você está tentando resolver?
Never before has there been such worldwide enthusiasm and interest by individuals and organizations to participate in activities with the scope of serving the poor. In order to make financial inclusion a reality, properly incentivized market-based programs need to be implemented that can harness the power and goodwill of society.
Presently, there is a lack of innovative solutions that allow individuals to participate in social development through social investment activities. The great wealth disparity between the rich and the poor around the world persists, with little hope in closing the gap. Collaboration among financial institutions can facilitate the mobilization of capital which can bridge the chasm of wealth disparity and create more abundant opportunities to serve the poor.
A Solução: Qual é a sua solução? Seja específico!
I have developed a social investment and savings tool called a Social Investment Certificate of Deposit (SICD). SICDs use the known financial instrument of Certificate of Deposits (CDs) to broaden the participation and funding for microfinance participants. Similar to the CD, the SICD is a savings and investment vehicle that would be offered to bank clients. Customers who deposit savings in an SICD will receive a specified return on their deposit after a fixed-term which is guaranteed by the bank. In addition to fair-market returns on their savings, the bank customers will have the added benefit of knowing that their deposits are being used to assist in social development and microfinance initiatives to serve the poor. These social investment products will be piloted and scaled through the existing infrastructure of traditional banks and microfinance institutions (MFIs) in developed and developing countries worldwide. The SICD provides a new and innovative approach to ending poverty.
O Modelo: Demonstre através de um exemplo específico como sua solução faz a diferença; inclua suas atividades primárias
The SICD has two direct applications that foster financial inclusion. As is typical with commercial financial institutions, the bank uses customers’ deposits to invest in income-generating activities to earn a profit. An MFI would market the SICD to traditional bank customers as an opportunity to allocate their savings in an SICD with an interest rate comparable to that of a typical CD. The MFI will then loan the SICD money out in the form of second cycle microfinance loans. Second cycle loans are loans that microfinance bank clients qualify for upon the safe repayment of their first loan and have become eligible to receive additional loans. An MFI uses the SICD as a way to draw in more traditional clients to save at their bank; this is a way to bridge the gap between the wealthy and the poor.
Secondly, traditional banks may also offer the SICD to their clients. The SICD money would then be given to a select MFI that will deploy the capital to the safer second-cycle tier and above. Through marketing the SICD, traditional bank customers can diversify their savings and investment portfolios while assisting the poor. As MFIs loan out these new deposits to second and third cycle borrowers, they are able to free up capital that was previously used to fund secondary loans to be used toward first-cycle loans, or loans going to first-time borrowers. This funding strategy provides MFIs with more capital to drive their mission of expanding financial services to the poor and opens a gateway for commercial banks and their customers to assist the poor while hedging against risk.
O Mercado: Quem são os seus pares e concorrentes? Identificar os outros que também estão trabalhando para solucionar as mesmas necessidades que você e o que você faz de diferente em relação a eles. Quais seriam os desafios impostos por esses concorrentes que impactariam no seu sucesso ou crescimento?
Financial institutions have traditionally offered a variety of saving and investment products to its customers. The development of the SICD would create healthy competition among MFIs and traditional banks to offer their customers access to these social investment products in the form of better service, higher interest rates or additional services that would entice customers to frequent their institution over another. Due to the complexity often associated with investing, the SICD makes social investment accessible to the novice bank customer but is an attractive opportunity for even the more seasoned investor. There are several entities that promote social-investment (SI). These institutions pose a harm to SI products through unscrupulous lending practices that create overindebtedness.
Temas relacionados à inscrição
IMPACTO SOCIAL
História: Queremos saber mais sobre o momento de descoberta desta solução. Conte-nos um pouco a história sobre onde e quando o(s) fundador(res) vislumbrou(aram) o potencial desta solução para mudar o mundo:
As an aspiring social entrepreneur, I have traveled from Fiji to Ghana as a microfinance consultant. I saw an opportunity to assist in closing the gap that exists between traditional banks, MFIs and the poor in a simple and innovative way. I witnessed first-hand the strong desire and demand for individuals to participate in social development activities but simply did not know how. I found that certain solutions to eradicating poverty help facilitate the transfer of funds to the poor, which are useful and necessary, but simply slice the financial pie in more effective ways. I realized that for financial inclusion to become a reality, there needed to be an innovation that not only helped allocate resources effectively, but ultimately expanded the size of the pie. I developed a social savings and investment tool, the SICD, that allows different MFIs and banks the ability to better serve their customers and promote financially inclusive services to benefit the poor.
Descreva a meta da sua iniciativa; fale sobre o que você está tentando alcançar.
The goal is to create an innovation in the banking sector unlike anything accomplished previously that will bridge the gap between traditional banks, MFIs and the poor, in a synergistic way that aligns incentives and is focused on long-term sustainable practices. The implementation of social investment products such as the SICD has the potential to change the way individuals contribute to the success of international development and financial inclusion. The innovation is about taking something that everyone is familiar with, and creating something new, effective and simple to use. The SICD finally provides a way for citizens of all countries to take one giant step forward in a social banking revolution that engages communities and individuals to help make financial inclusion a reality.
Quais são os obstáculos da inclusão financeira que sua solução procura resolver? (Selecione todos que fizerem sentido)
Barreiras de acessibilidade física ou outros, que impedem as comunidades de usarem os serviços financeiros, A escassez de produtos financeiros acessíveis adaptados às necessidades de comunidades desfavorecidas e excluídas, Incentivos a prestadores de serviços financeiros para dinamizar o mercado.
Se você selecionou 'outro' acima, especificar quais outros obstáculos da inclusão financeira que sua solução procura resolver:
Para quais comunidades desfavorecidas ou excluídas sua solução vai oferecer acesso a serviços financeiros de forma segura, abrangente e adaptada às necessidades daquelas comunidades? Qual é a sua expectativa de impacto para os próximos 1 - 3 anos?
The program would start in Mexico through collaboration with established banking institutions such as Banco Nacional de Mexico (Banamex), Bancomer and others to use their existing infrastructure of over 3500 branches to pilot a program in a select number of branches. Through established relationships between Unitus and Credex, loan portfolios at MFIs would be created and maintained in order to greatly expand micro-loan services to the poor throughout Mexico. In the first year of implementation, the SICD pilot is projected to generate over $2.5 million towards poverty reduction in Mexico with the potential to reach $87.5 million in year two. Unitus' strong and established relationships in India would make this area a second location for a pilot program and a full-scale launch. Beyond Mexico and India, SICDs have the ability to scale quickly and at a very low cost. Services would expand to include Eurasia, Africa and the rest of the world.
A sua solução funcionaria em outras regiões? Se sim, onde?
The SICD has potential for worldwide adoption and application. The low cost of product implementation through leveraging existing infrastructure would permit the SICD program to scale quickly and effectively. After expanding throughout Latin America, the SICD can move to Eurasia and Africa. The SICD will simultaneously make traditional customers more aware of opportunities to engage in activities that assist the poor and can usher in a new generation of social responsibility and financial inclusion.
Se a sua solução for muito bem sucedida, o que será diferente em 10 anos?
In 10 years, the gap will no longer exist among the traditional banks and the poor. It will be bridged as more social investment and savings products are developed and the average client will have an opportunity to expand their investment portfolio to include social investment products that help mobilize capital to the poor through MFIs.
O que tiveram que mudar para fazer isso acontecer?
The banks need to include social investment products as a basic service they are willing to offer to their clients. The microfinance institutions must continue to expand their reach and mission to provide quality and effective services to the poor. It will be through both the banks and MFIs focusing on their strengths that will foster inclusive growth.
Qual foi o impacto da sua solução até hoje?
The solution is still in the idea phase, but has the potential to drive systemic change. This is because as a market-based approach to financial inclusion, incentives are aligned to create sustainable and long-lasting change in the financial services sector.
Qual é a sua expectativa de impacto para os próximos 5 anos?
Outreach to banking sectors and continuous product development and expansion will provide social investment tools that create financial inclusion. It is projected that millions of dollars of social investment capital will be mobilized in favour of the poor.
As inscrições vencedoras apresentam um plano sólido sobre como vão alcançar e acompanhar o crescimento do projeto. Identifique as metas de seis meses para aumentar seu impacto.
Creating strategic partnerships among a core group of banks and MFIs for the establishment of social investment products.
Identifique as três maiores atividades que você terá de completar para obter a meta estabelecida para os seis (6) meses
Atividade 1
Create partnerships with banks and MFIs interested in the development of social investment products (i.e. SICDs).
Atividade 2
Work with MFIs to create a diversified portfolio of second cycle loans to package and prepare for the traditional banks.
Atividade 3
Create a marketing and advertising campaign at participating banks to inform customers of the new social savings products.
Agora pense grande! Identifique qual seria sua meta de impacto para 12 meses
Establish social investment products at commercial banks that will provide over 10 thousand new loans to the poor.
Identifique as três maiores atividades que você terá de completar para obter a meta estabelecida para os doze (12) meses
Atividade 1
Offer social investment products (SICDs) to customers in over 1000 partner branches in Mexico.
Atividade 2
Based on projections, mobilize over US$2.5 million in capital for micro-loans and financial services to help the poor in Mexico.
Atividade 3
Gather customer and client feedback in order to make improvements and expand services to the poor throughout Latin America.
SUSTENTABILIDADE
Por favor, explique de que forma o estabelecimento de parcerias é importante para o sucesso de sua inovação
Since the year 2000, Unitus continues to lead out in pioneering sustainable and innovative market-based solutions to end global poverty. Unitus has the experience of bringing innovative solutions to scale. Unitus has continued to expand its influence and mission to end poverty through managing a variety of social impact investing companies and has a strong global network. Unitus knows what it takes to pilot a new product and take it to scale. Other key partners and interested parties include South Pacific Business Development, Help International and FINCA International.
Atualmente você planeja atender outros locais, mercados e populações específicas com sua inovação? Se sim, onde e por quê?
Sustained efforts will be targeted to assist the poor worldwide, particularly men and women, who have been excluded from the benefits of full financial inclusion. The organizations that I will be working with to implement a pilot have strong networks in Mexico, India, the South Pacific and in various countries within Africa. The pilot will be implemented in a variety of locations and cultures in order to test both the viability and feasibility of the SICD product before it is promoted and launched worldwide.
Que tipo de ambiente operacional e fatores da organização interna ajudarão o projeto a ser bem sucedido?
Unitus implements its mission through partnerships with high-quality, on-the-ground management teams, financial professionals and innovative entrepreneurs. Unitus provides and arranges critical financial capital, helps attract and secure assistance from professionals and organizations with expertise requested by our partners, and ensures that quality governance and incentives are in place. During the entire partnership, we empower our partners with the tools, freedom and flexibility to validate and scale their models in the manner that only a dedicated entrepreneur can. The innovation does not require a high level of direct investment. The SICD will scale quickly through the existing infrastructure of established partners, microfinance institutions and commercial banks.
Fale mais sobre as necessidades ou ofertas que você selecionou anteriormente e/ou sugira categorias de apoio que não foram listadas
Supporting social investment activities will provide expanded opportunities for financial inclusion among the poor. Clients of traditional lending institutions will be educated about opportunities to mobilize their capital in order to advance financial inclusion. Partnerships between MFIs and traditional banks will be strengthened as implementation of SICDs create increased collaboration.
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