Catalyst Finance

Catalyst Finance

United StatesUnited States
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

MS will deliver credit at reasonable interest rates to be an affordable alternative to predatory lenders.Our loans are distributed to individuals living below the poverty line who have great business ideas but have difficulty accessing credit at reasonable rates
Each member will have equal share holding.

About Project

Problem: What problem is this project trying to address?

Many people have great ideas and wonderful dreams but these ideas usually end up in the grave with their bearers. We have to all accept the fact that idea is the most important resource required by entrepreneurs but if not backed up by a sound social bank, these idea will never ever be put to work. Many people in the developing world end up as potential intrapreneurs due to the high interest rate on borrowing charge by banks and the lack of collateral to secure loans.Moneylenders, payday institutions, and pawnshops offer high rates. These predatory lenders usually loan money at excessively high interest rates, making it extremely difficult for entrepreneurs living below the poverty line to turn their ideas into profitable businesses

Solution: What is the proposed solution? Please be specific!

My solution is to open a social bank that will act as catalyst financing to new great ideas Members need to; • Have a dream of a business o Be in need and living below the poverty line o Create or join a 7-member group of like-minded individuals who want to start or expand their own businesses o Live in a community with a Branch o Live close to your group members o Be the only member of your household applying for membership in the same Group (close relatives such as mother, sister, or in-laws are not allowed but may join another group) One of the greatest tools for helping people break the cycle of poverty is financial education. I believe that an educated borrower is a successful borrower. Ultimately, forming the habit of saving money takes time to learn. We shall institute a mandatory financial education program for our borrowers to help pave the way for financial success and self-sufficiency.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

One of the greatest tools for helping people break the cycle of poverty is financial education. We believe that an educated borrower is a successful borrower. Ultimately, forming the habit of saving money takes time to learn. We have instituted a mandatory financial education program for our borrowers to help pave the way for financial success and self-sufficiency. Borrowers meet weekly to repay their loan and continue their financial literacy training. In addition to repayments and savings deposits, weekly meetings are spent discussing financial issues brought up by the borrowers. Center Managers act as facilitators for the groups and often manage group discussions. The unique MS group model encourages group discussion and problem-solving. Center Managers have access to local resources for questions outside MS's scope of work Our primary activity is to create strategic alliances with our local communities. Each registered member of the bank will be a shall holder
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

MS delivers credit at reasonable interest rates to be an affordable alternative to moneylenders, payday institutions, and pawnshops. These predatory lenders usually loan money at excessively high interest rates, making it extremely difficult for entrepreneurs living below the poverty line to turn their ideas into profitable businesses. With the predatory lenders, you must need the following; • Current bank account • Credit history • Collateral • Guarantors But with MS you just need the following • Have a dream of a business o Be in need and living below the poverty line o Create or join a 7-member group of like-minded individuals who want to start or expand their own businesses o Live in a community with an MS Branch o Live close to your group members
Team

Founding Story

My Aha moment is when as a social intrapreneur and counselor, I organized a seminar/workshop on intraprenership and realized that financial exlusion is the major reason for the failure of most Africans. This was early 2012.So this solution will be a hub for every needed change and catalyst to boost growth
About You
About You
First Name

Manyi

Tell us about yourself/your team.

We are make up of a young and dynamic team of financial and business experts with a self motivation to succeed and to help others succeed

What makes you an intrapreneur? What are the skills, capabilities, and personality traits that make you an intrapreneur?

Approximately 100 words left (850 characters).

About Your Organization
Company Country
Primary country where this project is creating social impact
Additional countries or regions
Industry

Finance, Insurance, Real Estate

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Innovation
Select the stage that best applies to your solution

Idea (you're poised to launch)

The Solution: Why is this solution innovative for your company and industry?

This solution is innovative because
We support transparency and dedicate time to teaching borrowers about their micro-loan, interest rate, and repayment commitment. All borrowers will go through an initial 5-day Continuous Group Training (CGT) with their group of seven. The purposes of CGT are to teach basic financial literacy, to open a savings account at a local bank, and to ensure that borrowers understand the loan process as well as the terms of the loan.

Impact
What has been the impact of your solution to date?

We have organized financial modelling and consultancy training seminars for free to upcoming intrapreneurs and have trained close to 50 individuals so far.

What is your projected impact over the next 1 to 3 years?

Our impact will be to make every home self sufficient and thus development

What barriers might hinder the success of your project? How do you plan to overcome them?

Finance and capital

Sustainability
What is the benefit or value you're creating for your business?

Value adding is they key to moving forward. We are adding value on a routine daily basis with innovative financial modelling technics

How are you leveraging internal resources (funds, time, knowledge, etc.) to support this initiative?

We made contributions from our savings and have some donors funding the initiative.
We solicit the services of volunteers and to help in the training process

Expand on your answer, explaining the long-term funding and support plan.

As our membership and operations will increase, we shall have funds to be sustainable

Tell us about your partnerships across your company and externally that are key to your project's success.

Our most valuable asset are the people we have and the strategic alliance we have created with the community

What internal support have you gotten for your project? What kind of push-back have you received?

Members savings and shares

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