MICROCAPITAL BRIEF: Kaebauk Investimentu no Finansas (KIF) of Timor-Leste Designing Mobile Banking for Women, Farmers with Support from IFC, Australia’s Government

Kaebauk Investimentu no Finansas (KIF), a non-banking financial institution in Timor-Leste, is partnering with the World Bank Group’s International Finance Corporation (IFC) to develop a mobile banking system with a “special focus on women.” The goal is to reach 50,000 people, including 10,000 farmers by 2020. The effort, which has received financial support from the government of Australia, is slated to include a savings product called Kaebauk Osan, as well as other services accessible by mobile phone and via banking agents.

Launched in 2001 as Tuba Rai Metin, KIF seeks to empower women with low incomes and otherwise improve poor people’s quality of life. In addition to savings, it offers loans for “a wide range of activities such as agriculture, education, business, home improvement and vehicles.” While it doesn’t publish its loan rates, it advertises an annual savings interest rate of 3 percent as of 2018. KIF provides services door-to-door as well as at 20 branches. As of December 2017, KIF had USD 15 million in loans outstanding to 12,000 clients. As of 2016, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 17 million and USD 440,000 in deposits held for 8,000 customers.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and total assets of USD 95 billion as of September 2017.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) the International Finance Corporation (IFC); (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/vwAllDocumentsByUNID_NL/13F9A726FC8D67CD8525827200058CA1?opendocument

MIX profile on KIF
https://www.themix.org/mixmarket/profiles/kif

IFC budget for fiscal year 2018
http://www.ifc.org/wps/wcm/connect/cbd63894-c62a-453c-bfc8-92b8f8a3155f/IFC+FY18+Q1+MDA+and+FS_FINAL.pdf?MOD=AJPERES

World Bank Group
http://worldbankgroup.org/

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