AlphaCredit, a non-banking financial technology (fintech) firm based in Mexico City, recently raised USD 125 million from a group of investors led by the SoftBank Innovation Fund, a vehicle of the Japanese conglomerate SoftBank that focuses on Latin America. AlphaCredit provides loans to individuals in Mexico and Colombia;
Category: Technology
MICROCAPITAL BRIEF: A91 Partners Buys Equity Stake in Fintech Lender Aye Finance, Completing Accion Exit
Accion Venture Lab, the seed-stage investment initiative of US-based NGO Accion, recently sold its stake in Aye Finance, an India-based lender, to A91 Partners, an Indian venture capital fund. Accion Venture Lab bought a 15-percent stake in Aye in 2015 and
MICROFINANCE EVENT: ICT4D (Information Communications Technology for Development) Conference; January 12, 2021; Virtual – NEW DATES AND FORMAT
The event had been scheduled to take place in Abuja, Nigeria, from April 21-23, 2020.
This conference will bring together approximately 900 delegates to explore the use of digital innovations to adapt to global challenges, such as providing humanitarian relief and building infrastructure to increase access to technology for poor people. Specific topics
MICROFINANCE PAPER WRAP-UP: “China’s Long March to a Cashless Future: Regulatory Responses to DFS Innovation and the Challenges of Rural Distribution,” Published by CGAP
By Patrick Meagher, published by CGAP (Consultative Group to Assist the Poor), December 2019, 24 pages, available at: https://www.findevgateway.org/sites/default/files/publication_files/dfs_distribution_china_final_dec_2019.pdf
Over the last several years, China has experienced a large-scale migration of financial services to digital platforms. As these digital financial services (DFS) have become available in typically underserved rural areas, financial access has
MICROCAPITAL BRIEF: Fenix, MTN, UNCDF Cross-train Staff to Sell Pay-as-you-go Solar Home Power Systems, Facilitate Mobile Money Transactions in Rural Zambia
During a 10-month pilot project, Fenix International, a provider of solar home power systems that is controlled by France-based Engie; MTN, a telecom based in South Africa; and the UN Capital Development Fund collaborated to train 93 “Fenix Traders” to expand the uptake of solar home systems in Zambia. Previously, usage of the systems, which are enabled and disabled remotely based on users’ “pay-as-you-go” payments, were limited by a scarcity of mobile-money agents to accept these payments, particularly in rural areas. To address this problem, these Fenix Traders were cross-trained and equipped for both solar sales and the provision of mobile money services. Of the group, 82 operate in
MICROFINANCE EVENT: Mondato Summit Africa; Maputo, Mozambique – POSTPONED
Please note that the start of this event was rescheduled from March 31, 2020, to September 23, 2020, and then to a date to be determined in 2021.
The seventh annual Mondato Summit Africa will center on the theme “Beyond Access: Generating Value Through Digital Inclusion.” The organizer chose Mozambique as the venue due to the fast growth of the country’s financial technology sector. Participants will attend
MICROFINANCE EVENT: The Economist: Investing for Impact “2020 Vision;” New York, New York, USA; February 13, 2020
For details on this event, please refer to https://www.microcapital.org/microfinance-event-the-economist-investing-for-impact-2020-vision-new-york-new-york-usa-february-13-2020/.
MICROFINANCE EVENT: The Economist: Investing for Impact “2020 Vision;” New York, New York, USA; February 13, 2020
The fourth iteration of this event will address topics such financial technology (fintech) and “disruptive environmental
MICROFINANCE PAPER WRAP-UP: “Micro-business 2.0: A New Generation of Women “Social Commerce” Entrepreneurs in India & Indonesia,” Published by Women’s World Banking (WWB)
By Sophie Theis, published by Women’s World Banking, November 2019, 18 pages, available at https://www.womensworldbanking.org/insights-and-impact/women-social-commerce-entrepreneurs-in-india-and-indonesia/
Female entrepreneurs in India and Indonesia historically have faced a multitude of challenges such as “low access to capital, restricted mobility, limitations on property rights, time poverty and gender norms.” In both countries, women own less than
MICROCAPITAL BRIEF: CDC Group of UK Investing $2.6b in Africa Over 2 Years; $387m Announced for MSMEs, Mid-caps, Renewable Energy, Technology
The CDC Group, a development finance institution owned by the UK government’s Department for International Development, has committed to investing GBP 2 billion (USD 2.6 billion) in African businesses over the next two years. This follows its recent announcement
MICROFINANCE EVENT: Fintex Africa; February 12-13, 2020; Kigali, Rwanda
Fintex Africa will cover financial technology (fintech) innovations in Africa, with representatives from over 300 companies and more than 20 countries. Vendors will exhibit developments in
MICROCAPITAL BRIEF: MercadoLibre, PayPal Linking Mercado Pago Payment System, PayPal Merchants to Expand Online Payment Options for 348m Customers, Particularly in Brazil, Mexico
MercadoLibre, an Argentina-based platform for online sales and payments in 18 countries in Latin America and the Caribbean, recently entered into a cross-platform agreement with US-based payments firm PayPal. This will allow: (1) MercadoLibre sellers in Brazil and Mexico to accept money from 300 million PayPal customers in about 200 countries via MercadoLibre’s Mercado Pago service; (2) PayPal merchants to accept payments from 48 million Mercado Pago users in Brazil and Mexico; and
MICROFINANCE EVENT: FinovateEurope; February 11-13, 2020; Berlin, Germany
FinovateEurope is one of a series of conferences focusing on financial technology (fintech). The event includes demonstrations of technological advances and a keynote address
MICROCAPITAL BRIEF: UN’s PFIP, Catalpa Launching 6-month Pilot of Olgeta, Financial Education App for Young Women in Rural Solomon Islands
Catalpa, a development organization based in Timor-Leste, is partnering with the Pacific Financial Inclusion Program (PFIP), a UN effort based in Fiji, to pilot-test an app called Olgeta, which will provide education via mobile phones to young women in rural parts of the Solomon Islands. The service will cover topics “such as leadership, financial literacy and digital marketing,” including “how to budget, bank, and save…”. The six-month pilot will target the 120 people served by two
MICROCAPITAL BRIEF: 15 Mobile Money Firms Acquire Licenses from Central Bank of Nigeria
The governor of the Central Bank of Nigeria, Godwin Emefiele, reportedly has announced that, “We have so far provided 15 licenses to several mobile money operators who are working to increase access to finance using digital channels.” This is part of an effort to open 500,000
MICROFINANCE PAPER WRAP-UP: “A Tale of Two Sisters: Microfinance Institutions and PAYGo Solar;” by Waldron, Sotiriou, Winiecki; published by CGAP
By Daniel Waldron, Alexander Sotiriou and Jacob Winiecki; published by CGAP (the Consultative Group to Assist the Poor); November 2019; 24 pages; available at https://www.cgap.org/sites/default/files/publications/2019_11_Focus_Note_Paygo_Two_Sisters_2.pdf
In Sub-Saharan Africa, the popularity of acquiring access to solar products in pay-as-you-go (PAYGo) formats is growing. This report assesses options available to microfinance institutions (MFIs) to engage with this market, which is largely dominated by new financial technology (fintech) companies. Devices that use PAYGo technology can be enabled and disabled remotely based on the payments their users make to the financiers of the devices.
The report primarily draws on
MICROFINANCE PAPER WRAP-UP: From Nepal: “Improving Operational Efficiency of MFIs through Tablet Banking,” published by Louis Berger Group
Published by Louis Berger Group, November 2019, 9 pages, available at https://sakchyam.com.np/wp-content/uploads/2019/12/Improving-Operational-Efficiency-of-MFIs-through-Tablet-Banking.pdf
The authors argue that “tablet banking” can reduce the operational costs of microfinance institutions (MFIs) while improving the quality of customer service. Through the Sakchyam Access to Finance Program, approximately 2,300 tablets were provided to 10 MFIs in Nepal for use by staff in a total of 486 branches. Based on observations of this rollout, the authors identify three partially overlapping questions
MICROCAPITAL BRIEF: Hayman Microfinance, Ongo Launch Digital Loan Repayment Service in Myanmar
Hayman Capital (Microfinance) Company Limited, a licensed deposit-taking microfinance institution (MFI) in Myanmar, recently partnered with Ongo, a local digital payment service provider, to launch an electronic loan repayment system for its 110,000 customers, of whom 70 percent reside in rural areas and 77 percent are women. The service allows clients to repay their loans via