Fostering innovative business models for womens financial inclusion

Photo by Khnh Hmoong,

Second window:
Fostering innovative business models for
Women financial inclusion in CLMV

THE CHALLENGE

The SHIFT Challenge Fund Facility second window challenges financial

services providers and real economy actors to develop or scale-up
innovative and sustainable business models, and cross-sector
partnerships, for advancing womens financial inclusion in Cambodia, Lao
PDR, Myanmar and Viet Nam.

Some Key Principles

The bottom line for SHIFT Challenge Fund: Its all about impact. We are trying to
trigger change that either: i) increases the volume of financial services available to
Women (consumers or entrepreneurs) in CLMV; and/or ii) increases the number of
Women (consumers or entrepreneurs) that have access to formal finance products
and services;

SHIFT looking to support projects that are perceived by commercial financial

providers as too risky to be wholly or partly funded by the market. Nonetheless,
projects must have the potential for commercial sustainability

Projects must demonstrate some potential for growth and/or replication

Scale-up and growth stage projects must have additionality and promises an
exponential increase in outreach

Project must be innovative in some way: SHIFT views innovation in its broadest
sense including: i) a new approach, new idea, new product or new service that has
not been tested anywhere; ii) new to CLMV; or iii) has not been applied to the sector
in question of the proposed project

Who is eligible to apply?

o Licensed financial institutions (Banks and non-banks financial institutions,
including State-owned commercial banks or other state-owned financial
institutions)
o Registered financial services providers, companies from all sectors
and federations/associations (in consortium with businesses and/or
financial institutions)
o A minimum of three year of operations and statutory account(s);
o Applicants may be registered in CLMV or foreign, provided the project
benefits womens financial inclusion in CLMV.
Examples of eligible applicants are: Telecommunication providers, garment
factories, input/seed suppliers, equipment suppliers/distributors; dairy groups;
tourism chains; large agro-processors and exporters, large agriculture (women)
cooperatives, business incubators, energy providers, renewable energy
appliances producers, recycling plants, housing corporations, regional and
multinational companies with extensive supply chains, and alternative platforms
that connect women entrepreneurs to long-term capital, commercial banks,
leasing companies,, etc.

What is the process?

22nd February
2016

Information
phase

15 April 2016

Opening of
the 2nd
window for
EoI

Information
workshops

Continuous
support to
applicants

Closing of
the EoI
phase

May 2016

June 2016
Eligible EoI
are invited
to submit a
proposal

Notification of
wining
proposals

Information
workshop

Signing of the
grant
agreement

Continuous
support to
shortlisted
applicants

Proposal
Implementation

Closing of
the
proposals
phase

Follow-up
and disbursements

From August 2016

Evaluation
of
proposals

End of the
project

2018 at
the latest

EoI evaluation

EoI are first screened to check that they are eligible (country,
focus on women, legal status of applicants, EoI template fully
filled in etc.
Eligible EoIs are brought to our Investment committee (IC)
meeting on 28 April in BKK
The EoIs are reviewed by the IC with attention to three areas:
1. Technical merit: How good and relevant is the idea?
2. Organisational capacity: Are the applicants capable of
carrying out the idea?
3. Cost sharing: Is the applicant fully committed financially
to the success of the project?

EoI evaluationCont
Evaluation area
The idea

Does the EoI focus on womens financial inclusion?

Does it meet a need/demand in the market?
Are other organisations providing the same service/product/delivery channel already in the country/area?
How financially sustainable is the idea? Does the applicant use subsidies to lower the costs of products/services
below market rate?
How large is the expected impact for women?
Is the EoI focusing on innovation or scaling up?
Does the project have the potential to be copied/replicated by other organisations?
Are there some potentially negative consequences to the project?
Does the project meet international good practices regarding inclusive financial services?

The applicant(s)

Does the applicants/consortium demonstrate the required expertise/skills to implement the project?
Can the applicant continue to provide the service/product after the grant funding?
Did the applicant experiment with the concept already?
Did the applicant conduct preliminary research for the idea?
Is there a clear role for each applicant in a consortium?
Is there a clear exit strategy for applicants that will only participate to the development/piloting of the project?

Financial
commitment

Is the propose contribution of the applicant appropriate considering the project size?
Are the costs in the budget realistic?
Is the proportion between in-kind/cash/other funding appropriate?
Can the applicant demonstrate its capacity to provide the proposed contribution?
Is the applicant financially solid enough to carry out the project?

Mini-ERP System XYZ Project...example

Project Partners: Financial Institution Limited, Mobile Network Operator and FMCG
Project Fundamentals:

XYZ is a smartphone based mini ERP system enable MSEs to record and produce their sales and transaction
information in accessible reports through the use of smartphone.

Facilitate creation of business information of MSEs, make MSEs more attractive to banks to provide finance.

MSEs enter in sales information through the day either by scanning a barcode or by punching in a code.

XYZ will produce financial and business reports for assessment of MSEs customers, enabling banks to source
reliable MSEs data for loan decisions.
Impact:

XYZ Project will target 3,000 MSEs during the initial phase of pilot testing

Aims to identify 50,000 MSEs to participate in the project

Innovation:

Will be the first time that the Frogtek in Latin American and Kopo Kopo in Kenya business model will be introduced
to CLMV

XYZ is a innovation to access to finance, enabling MSEs to record and produce their business information to apply
for loans

XYZ is a technology Innovation that offers MSEs a customized mini ERP system to enhance business
management operations, which previously would be out of the reach of micro and small enterprises.
Capacity to Implement:

FMCG is specializing in technology and innovation, together with their partners Mobile network operator is the
third largest mobile company in CLMV and Financial Institution Limited is a SME focused bank - have the
capacity to implement this project
Estimated SHIFT Funding: US$ 250,000 (45% of total project costs)