The LIFT Initiative
- Adult education
- Economic development
- Financial services and markets
- Information & communication technology
- Poverty alleviation
- Microfinance
- Technology
Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.
Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?
Founding Story
Ana
Pantelic
Fundación Capital
, PA, Panamá
, BOY, Cómbita, Samacá & Sutamarchán
1‐5 years
No
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Operating for 1‐5 years
The LIFT Initiative will prove that asset building and financial inclusion for low-income populations can be brought to scale sustainably, so that poverty in Latin America need not be accepted as a part of life and that by tailoring simple tools to specific populations, financial education can provide a permanent buffer against poverty worldwide. The initiative is designed to make a permanent dent on poverty in our region and beyond, convince various stakeholders of the idea that low-income populations are in the best position to understand their needs, and that when provided with adequate support, information, and the right tools, they can lift themselves out of poverty sustainably and productively. LIFT will demonstrate concretely that ICTs will be a key factor in achieving these goals.
Physical and other accessibility obstacles that prevent communities from reaching financial services, Other (Please describe below).
Literacy challenges, rural and distance obstacles, and community engagement for financial inclusion
The LIFT Initiative targets low-income communities and individuals (specifically women) that lack access to information, technical assistance, and financial education. In the pilot phase, we are working directly with the national government of the Republic of Colombia to support their financial inclusion agenda through CCT recipients. The Initiative seeks to move beyond this specific target group to include rural youth, micro and small entrepreneurs, and displaced persons and victims of Colombia's internal conflict. In order to create access to financial services for these communities, we are working directly with both public and private financial institutions in order to improve their portfolio of microfinance products and customer service at the BoP, leveraging Fundación Capital's excellent relationship with the national government and these institutions.
The LIFT Initiative is designed specifically to be applied across communities and geographies. One of the biggest benefits of the technological platform is that it can be easily modified and adjusted to the needs and circumstances of particular communities. By analyzing educational requirements, adjusting images and language, and tailoring lessons to particular cultural and economic circumstances, the impact of the program will not be limited to an individual country or community.
The biggest impact that The LIFT Initiative will have will be on mentality, and on the ways that financial inclusion and education are approached in general. Ten years ago, this Initiative would not have been possible. Ten years from now, the tools and technology available for fighting poverty will have changed in unimaginable ways. The key is to change the way we think about confronting poverty and the way technology is applied to improving the lives of low-income families and individuals. By positioning every technological breakthrough as a potential tool for expanding and improving financial inclusion, The LIFT Initiative will serve a vital role in proving the utility of technology for reducing poverty and promoting the idea that the tools of progress in modern life can have a profound impact on all levels of the economic pyramid.
In order for The LIFT Initiative to have the greatest impact, stakeholders of all kinds will have to buy in to the idea of using technology - and in particular the most advanced ICTs in the market - to improve the lives of low-income persons. Development professionals, donors, and practitioners must recognize that technology is not only for those with means, but that it can serve as an engine of economic growth at the BoP, confronting inequality and empowering the poor to make decisions for themselves. In addition, complementary services such as mobile banking (which in Africa has already become a reality) will be necessary in the Latin American region in order to ensure that financial literacy initiatives are linked directly to actual microfinance products that serve the needs of the poor. Continuing innovation in technology will be a great advantage to The LIFT Initiative, as it decreases costs and helps achieve scale.
The LIFT Initiative is currently in its pilot phase, being implemented in ten municipalities of Colombia, with an estimated impact of 700 persons during a three month period. We have already negotiated with national government agencies in order to plan an expansion phase for the following year (whose goal is to reach 300,000 recipients of the Familias en Acción program). In addition, we have received expressed interest from financial institutions in other countries in the region, as well as from donor organizations implementing projects in other regions (specifically Africa). We are prudent about our growth and want to make sure that the pilot phase addresses all possible concerns and questions prior to growing both geographically and in scope.
We believe that The LIFT Initiative can have great impact within Latin America and the Caribbean, and are already looking to adapt the tablet-based educational content and materials to the different cultures and languages of the region. In addition, we have recognized the importance of including targeted materials for youth, micro and small entrepreneurs, and participants of other government social programs. In five years, we project that The LIFT Initiative will be present in 15 countries in the Latin American region, with complementary activities in Africa and Southeast Asia. We also project that The LIFT Initiative will become an integral part of the activities of financial institutions working with the BoP in these geographic regions.
The LIFT Initiative has reached 700 persons during its pilot phase, and has an agreement with the government to scale up.
Successful completion of the pilot phase, with detailed qualitative and quantitative result analysis presented in a final report
Presentation of final report to the Colombian government's social programs, as well as financial institutions and donors
Signing of agreements for the expansion of The LIFT Initiative with the Colombian government and other partners
The LIFT Initiative has expanded to five other countries and has reached 5,000 low-income families and individuals
Present the Colombian experience in other countries, create an expansion plan and identify potential partners
Sign agreements with those partners (other countries, financial institutions, international donors, etc.) working with the BoP
Implement an expanded LIFT Initiative in these countries in order to reach 5,000 BoP persons and evaluate implementation results
Fundación Capital has excellent relationships with national and local governments throughout the Latin American region, and has already implemented financial education initiatives on a regional scale through its Proyecto Capital. We work hand in hand with financial institutions, and use government social programs such as CCTs, to target and reach low-income and rural populations. We've worked with experts such as Microfinance Opportunities, and have written agreements with financial institutions such as Banca de las Oportunidades and numerous government bodies both in Colombia and the region.
Yes. Following the pilot phase of the project, in 2013 we are looking to broaden our activities within Colombia (reaching more women, targeting other government social programs, providing training for persons working on these projects, etc.). We are also planning to expand our geographic reach, responding to expressed interest in Peru, the Dominican Republic, and Mozambique. We are looking beyond basic financial education topics in order to include additional modules that focus on entrepreneurship, youth savings, and gender empowerement.
The staff of Fundación Capital is a highly interdisciplinary and innovative group, that takes calculated risks in order to develop lasting and scalable solutions for achieving financial inclusion. Our diverse international team brings a wealth of cultural experiences and unique ideas, which are incorporated into our organization's methodology and solution-seeking approach. We work under the leadership and guidance of our visionary President, whose expansive international development experience has taught him, and therefore us, that even the smallest ideas can make a big difference. He encourages us to take risks and dream big, following the maxim that "The greatest mistake a man can ever make is to be afraid of making one (Elbert Hubbard)."
We can offer our regional expertise and excellent relationships with various governments and national entities within the Latin America and the Caribbean region. We also offer mentorship and strategic advice to other organizations.