Q3 2017 - Finance 2.0€¦ · Financial inclusion is a key enabler to reducing poverty and boosting prosperity. WBG President Kim has called for Universal Financial Access (UFA) by

EVEREX.io

JBJEANBAPTISTE.DECORZENT

@OUTLOOK.COM

INCLUSIVE FINANCE &STRATEGIC PARTNERSHIP

DIRECTOR

Q3 2017ZURICH

BLOCKCHAIN - INCLUSIVE FINANCE

FINANCIAL INCLUSION ⬜

FOR WOMEN & MICROSMES ⬜EVEREX INITIATIVE .

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A SOLUTION TO FINANCIAL INCLUSION?


“Financial inclusionis a key enabler

to reducing povertyand boosting prosperity”

The World Bank Group

Around 2 billion people don’t use formal financial services.

more than 50% of adults in the poorest households are unbanked.


Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs

▪ transactions, payments, savings, credit and insurance

▪ delivered in a responsible and sustainable way.

Since 2010, more than 55 countries have made commitments to financial inclusion, and more than 30 have either launched or are developing anational strategy. Our research indicates that when countries institute a national financial inclusion strategy, they increase the pace and impact ofreforms.

Digital financial technology, or “fintech,” and particularly the global spread of mobile phones, has facilitated expanding access to financial services tohard-to-reach populations and small businesses at low cost and risk:

▪ Digital IDs make it easier than ever before to open an account▪ Digitization of cash-payments is introducing more people to transaction accounts▪ Mobile-based financial services bring convenient access even to remote areas▪ Greater availability of customer data allows providers to design digital financial products that better fit the needs of unbanked individuals

As countries have accelerated efforts toward financial inclusion, it has become apparent that they face similar hurdles which impede their progress.These include:

▪ Ensure financial access and services extend to hard-to-reachpopulations, including women and the rural poor

▪ Increase citizens’ financial literacy and capability so they understanddifferent financial services and products

▪ Make sure everyone has valid identification documents, and a low-cost, accessible means for them to be authenticated

▪ Devise useful and relevant financial products, tailored to consumerneeds

▪ Establish robust financial consumer protection frameworks, and adaptrelevant regulatory and supervisory authorities, including by utilizingtechnology to improve supervision (so-called “regtech”)

▪ Globally, a lack of IDs makes it hard to open a bank account, accesscapital and credit.


BLO

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WORLD ECONOMIC FORUMIMPERAL COLLEGE LONDON

A blockchain provides an immutable record of

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EMERGENCIES ■LIVELIHOODS ■

MICROFINANCE ■FINANCIAL INCLUSION ■

INCLUSIVE FINANCE

FOR WOMEN & MSMES

INITIATIVE

WOMEN’S ECONOMIC

EMPOWERMENT

126 Mn WOMENENTREPRENEURS67 COUNTRIES IN 2012

MSMEFinancing GapUSD 2.1-2.6 tn

200-245 millionMSME

No Access to Financing

MSME are 33% of Emerging Economies

8-10 MnWomen-Owned MSMEs

Credit Gap UD$ 260-320 Bn2014

⅓of FINANCE

vs MEN

WOMEN START BUSINESSES

30-37%Women-Owned

MSMEs

Emerging Markets 2011

WOMEN AS

ECONOMIC DRIVERS

FUELLED BY FINANCE



80%of NEW SELF-EMPLOYED

Were WOMEN2008-2011

Women 20%Less Likely than Men to Access Bank Account

Developing Markets

Gender Inequality

Loss of Opportunity

Global GDP

USD 28 Tnby 2025

Women are Driving Forces for Economic Growth

60 Mn PeopleDisplaced by Conflits

2014

218 Mn PeopleDisplaced by Natural

Disasters

2014

Humanitarian AssistanceUS$ 25Bn

2014

ODA Official Development Assistance

US$ 162Bn

2014

Money LostODA

30%

Year



EMERGENCYSaving Lives

SUSTAINABILITYLivelihoods

Cash

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Pro

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Peer-

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■ INDEPENDENT FOUNDATION■■ OPEN SOURCE BLOCKCHAIN PLATFORM ■■ PRIVATE-PUBLIC MULTI-STAKEHOLDERS ■

■ MONEY TRANSFER ■■ WOMEN’S FUNDS ■

■ CROWD-DONATION ■■ CROWD-LENDING ■

Donor Public & PrivateGovernmentFoundationAssociationCorporationGeneral Public

Multilateral & Implementation AgencyUN & International OrganizationInternational & Local NGOAssociation

Financial InstitutionMicrofinanceBankMoney

Humanitarian & DevelopmentGovernmentDevelopment BankFoundation

Technology & ICTNetwork & Influencer & PRFinanceImpact Investor



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2-5 DAYS

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FINANCIAL EXCLUSIONNO ACCESS TO BASIC FINANCIAL

SERVICES

2-15 DAYSPAYMENT

5-15%ONLINE

PAYMENT

~35%INTEREST RATEMICROCREDIT

NO DATAFINANCIAL

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EVEREX.io


@OUTLOOK.COM


DIRECTOR

Additional Slides


Around 2 billion people don’t use formal financialservices and more than 50% of adults in the pooresthouseholds are unbanked.

Financial inclusion is a key enabler to reducingpoverty and boosting prosperity.

WBG President Kim has called for Universal FinancialAccess (UFA) by 2020.

Financial inclusion means that individuals andbusinesses have access to useful and affordablefinancial products and services that meet their needs– transactions, payments, savings, credit andinsurance – delivered in a responsible and sustainableway.

Access to a transaction account is a first step towardbroader financial inclusion since it allows people tostore money, and send and receive payments. Atransaction account can also serve as a gateway toother financial services, which is why ensuring thatpeople worldwide can have access to a transactionaccount is the focus of the World Bank Group’sUniversal Financial Access 2020 initiative.

Financial access facilitates day-to-day living, and helpsfamilies and businesses plan for everything fromlong-term goals to unexpected emergencies. Asaccountholders, people are more likely to use otherfinancial services, such as credit and insurance, tostart and expand businesses, invest in education orhealth, manage risk, and weather financial shocks,which can improve the overall quality of their lives.

While there has been progress toward financialinclusion, significant challenges remain:▪ An estimated 2 billion adults worldwide don’t have

a basic account.▪ Globally, 59% of adults without an account cite a

lack of enough money as a key reason, whichimplies that financial services aren’t yet affordableor designed to fit low income users. Other barriersto account-opening include distance from afinancial service provider, lack of necessarydocumentation papers, lack of trust in financialservice providers, and religion.

▪ More than 200 million formal and informal micro,small and medium-sized enterprises (MSMEs) inemerging economies lack adequate financing tothrive and grow.

▪ MSMEs cite a lack of collateral and credit history,and business informality as main reasons for nothaving an account.

▪ Some groups are more financially excluded thanothers: Women, rural poor, and other remote orhard-to-reach populations, as well as informalmicro and small firms are most affected. Forexample, the gender gap in developing countriesis estimated at 9 percentage points: 59% of menreported having an account in 2014, while only50% of women did.

▪ The forcibly displaced populations present one ofthe most pressing financial inclusion challenges asalmost 80% in adults in Fragile and Conflict-Affected States are outside the formal financialsystem.

Financial inclusion has been identified as an enablerfor 7 of the 17 Sustainable Development Goals.

http://www.un.org/sustainabledevelopment/sustainable-development-goals/

The World Bank Group considers financial inclusion a key enabler to reduce extreme poverty and boost shared prosperity, and has put forward anambitious global goal to reach Universal Financial Access (UFA) by 2020.

Since 2010, more than 55 countries have made commitments to financial inclusion, and more than 30 have either launched or are developing anational strategy. Our research indicates that when countries institute a national financial inclusion strategy, they increase the pace and impact ofreforms.

Countries that have achieved the most progress toward financial inclusion have put in place an enabling regulatory and policy environment, andhave encouraged competition allowing banks and non-banks to innovate and expand access to financial services. However, creating this innovativeand competitive space has to be accompanied by appropriate consumer protection measures and regulations to ensure responsible provision offinancial services.

Digital financial technology, or “fintech,” and particularly the global spread of mobile phones, has facilitated expanding access to financial services tohard-to-reach populations and small businesses at low cost and risk:

▪ Digital IDs make it easier than ever before to open an account▪ Digitization of cash-payments is introducing more people to transaction accounts▪ Mobile-based financial services bring convenient access even to remote areas▪ Greater availability of customer data allows providers to design digital financial products that better fit the needs of unbanked individuals

As countries have accelerated efforts toward financial inclusion, it has become apparent that they face similar hurdles which impede their progress.These include:

▪ Ensure financial access and services extend to hard-to-reach populations, including women and the rural poor▪ Increase citizens’ financial literacy and capability so they understand different financial services and products▪ Make sure everyone has valid identification documents, and a low-cost, accessible means for them to be authenticated▪ Devise useful and relevant financial products, tailored to consumer needs▪ Establish robust financial consumer protection frameworks, and adapt relevant regulatory and supervisory authorities, including by utilizing

technology to improve supervision (so-called “regtech”)▪ Globally, a lack of IDs makes it hard to open a bank account, access capital and credit.

World Bank Group

UFA2020 Overview: Universal Financial Access by 2020

▪ The UFA goal is that by 2020, adults, who currently aren't part of theformal financial system, have access to a transaction account to storemoney, send and receive payments as the basic building block tomanage their financial lives.

▪ The World Bank Group – the World Bank and IFC – has committed toenabling 1 billion people to gain access to a transaction accountthrough targeted interventions.

▪ 32 partners have pledged commitments toward achieving universalfinancial access

Financial access facilitates day-to-day living, and helps families andbusinesses plan for everything from long-term goals to unexpectedemergencies. As accountholders, people are more likely to use otherfinancial services, such as credit and insurance, start and expandbusinesses, invest in education or health, manage risk, and weatherfinancial shocks, all of which can improve the overall quality of their lives.

While there has been progress toward financial inclusion, an estimated 2billion adults worldwide don’t have a basic account.

Globally, 59% of adults without an account cite a lack of enough money asa key reason, which implies that financial services aren’t yet affordable ordesigned to fit low income users. Other barriers to account-openinginclude distance from a financial service provider, lack of necessarydocumentation papers, lack of trust in financial service providers, andreligion.

Strategy

The UFA2020 envisions that adults worldwide -- women and men alike --will be able to have access to a transaction account or an electronicinstrument to store money, send payments and receive deposits as a basicbuilding block to manage their financial lives.

At the 2015 World Bank Group-IMF Spring Meetings, the World BankGroup and public and private sector partners issued numeric commitmentsto achieve Universal Financial Access by 2020 (UFA2020) and help promotefinancial inclusion. The vision for universal financial access was firstannounced by the World Bank Group President Jim Yong Kim at the 2013World Bank Group-IMF Annual Meetings.

Through the Universal Financial Access 2020 initiative, the World BankGroup – the World Bank and IFC – has committed to enabling 1 billionpeople to gain access to a transaction account through targetedinterventions.

The World Bank has set a target to help enable 400 million adults to bereached through knowledge, technical and financial support, while IFC hasset a target to help enable 600 million adults to be reached throughinvestment and advisory services.

As of the end of December 2016, our advisory, technical assistance, andfinancing operations are projected to help reach 656 million newaccountholders by 2020 (toward our 1 billion goal).

While the UFA2020 initiative focuses on 25 priority countries where 73% of all financially excluded people live, we are working with more than 100countries to advance financial access and inclusion.India and China have the largest share of unbanked people and together they account for some 32% of them. The rest of the focus countriesinclude: Bangladesh, Brazil, Colombia, Cote d'Ivoire, DRC, Egypt, Ethiopia, Indonesia, Kenya, Mexico, Morocco, Mozambique, Myanmar, Nigeria,Pakistan, Peru, Philippines, Rwanda, South Africa, Vietnam, Tanzania, Turkey, and Zambia.

Our approach centers on:▪ introducing transaction accounts,▪ expanding access points,▪ improving financial literacy, and▪ driving scale and viability through high-volume government programs, such as social transfers, into those transaction accounts.

We also work with countries to strengthen the following key building blocks: public and private sector commitment, enabling legal and regulatoryframework, and bolstering financial and ICT infrastructure.

Globally, we engage with standard-setting bodies to set recommendationsand guidelines that will to advance access to transaction accounts:

In 2015 a financial regulator taskforce chaired by the World Bank Group andthe Committee on Payments and Market Infrastructures (CPMI) issued thePayment Aspects of Financial Inclusion (PAFI) report, which identified neededimprovements in payment systems and services to increase financial inclusion.The report outlines seven guiding principles and provides guidance toregulators and policymakers on actions countries can take to advance accessto transaction accounts.

In 2017, the G20 committed to advance financial inclusion worldwide andreaffirmed its commitment to implement the G20 High-Level Principles forDigital Financial Inclusion, which the World Bank Group helped develop underthe China G20 Presidency leadership in 2016. The eight High Level Principlesencourage governments to promote a digital approach to financial inclusion,and are being used as a reference tool by many countries.

DATA: PROGRESS TRACKER FOR UFA2020

EVEREX.io


@OUTLOOK.COM


DIRECTOR

Additional Slides

EVEREX.IO ⬜

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EVEREX.io


@OUTLOOK.COM


DIRECTOR

Additional Slides

INCLUSIVE FINANCE FOR WOMEN & MSMES ⬜INITIATIVE

.io

INCLUSIVE FINANCE

FOR WOMEN & MICROSMES

THROUGH BLOCKCHAIN AND AI

Q3 2017

EMERGENCIES ■LIVELIHOODS ■

MICROFINANCE ■FINANCIAL INCLUSION ■

Women’s economic empowerment is a multifaceted and nonlinear process of change, requiring an interaction of both

enhanced access and agency that eventually leads to a sustainable reduction in gender Inequality.

An inclusive market system engages and benefits groups that are often excluded from, or even exploited by, traditional

market systems.

According to the United Nations Development Programme, inclusive business refers to business models that include the poor

within a company’s supply chains as employees, producers, and business owners, or that develop affordable goods and

services needed by the poor. In the case of women’s economic empowerment, the term refers to the intentional inclusion of

women, a demographic group that is often excluded or underrepresented in various aspects of business and economic

activity.

INCLUSIVE FINANCE FOR WOMEN & MSMES


Women’s Economic EmpowermentProblems & Impacts

Small Credit Gap for MSMEsChallenges & Innovative Lending

Cash Transfer ProgramingProblems & Benefits

Remittances & Group SavingsCost & Impacts

Mobile MoneyValue & Trend

Blockchain EthereumDisruptive Technology

The UnifiedBlock PlatformWhy, Progress, Goals, Challenges




INCLUSIVE FINANCE FOR WOMEN &

MSMES

THROUGH BLOCKCHAIN

INITIATIVE

The initiative is to establish a multi-stakeholders nonprofit

structure that provides an Open-source Blockchain Platformfor Women’s entrepreneurship Funds, Cash-Based Transfer and

Remittance. Users: multilateral organizations, public and private donor agencies,

implementing agencies, financial institutions and targeted population. Web-based

and Mobile Application.



EMERGENCYSaving Lives

SUSTAINABILITYLivelihoods

Cash

Tra

nsf

er

Pro

gra

mm

ing

Peer-

to-p

eer

mic

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nd

ing

Seed

Fund

fo

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SM

E(m

icro

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Dig

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Identity

Rem

itta

nce

Gro

up

Savi

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s

Gro

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Cap

ital

Fund

for

MSM

E (Eq

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&Lo

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Data

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■ INDEPENDENT FOUNDATION■■ OPEN SOURCE BLOCKCHAIN PLATFORM ■■ PRIVATE-PUBLIC MULTI-STAKEHOLDERS ■

■ MONEY TRANSFER ■■ WOMEN’S FUNDS ■

■ CROWD-DONATION ■■ CROWD-LENDING ■

The initiative is to establish a multi-stakeholders nonprofit structure that provides an Open-source Blockchain Cash Transfer and

Access to Capital Platform for multilateral organizations, public and private donor agencies, implementing agencies, financial

institutions and targeted population. Web-based and Mobile Application.

Support the development of financial products and service offerings that take into account the needs and profile of women.

Crowd-in product/service/marketing development for women by using capital financing for grants, loans and credit enhancement to de-

risk and ‘prove concept’ so that others gain confidence to make investments.

GREATER PERSONAL SAFETY AND SECURITY

A growing body of research suggests that when a society uses less cash, the rate of crime goes down and the sense of personal

security goes up. Just three months after the launch of Safaricom’s M-Pesa, Vodafone reported early anecdotal evidence that

customers were storing value for personal safety and security reasons, and for emergencies. Research later confirmed this, citing

reasons for using M-Pesa as ease of use, safety, and emergencies. GSMA

Mon

ey T

rans

fer

Rem

ittan

ce

CB

T

Fun

dsfo

r W

omen

Ent

repr

eneu

rshi

p

See

d &

Gro

wth

▪ Improve Transparency

▪ Better Accountability

▪ Reduce Reporting Time

▪ Lower Cost of Transacting

▪ Reduce Clearing & Settlement

Time

▪ Payment Interoperability

▪ Financial/credit History

▪ Digital Identity

▪ 500 women entrepreneurs

▪ USD 500k Women Seed Fund

▪ 2500 Direct Beneficiaries

▪ 20 women MSMEs

▪ USD 400k Women Capital Fund


▪ 10k women entrepreneurs

▪ USD 1mn Women Seed Fund

▪ 50k Direct Beneficiaries

▪ 300 women MSMEs

▪ USD 6mn Women Capital

Fund


▪ 2000 Beneficiaries

▪ 100 Businesses

▪ 2 Donors

▪ 2 Int. Organizations

▪ 4 Local Organization

▪ 10 Financial Service Providers

▪ 5 Mobile Network Operators

▪ Reduce GBV against women

▪ Empower women entrepreneurship

▪ Facilitate women to access to financing

▪ Strengthen local economies

▪ More resilient livelihoods

▪ 100k Beneficiaries

▪ 1000 Businesses

▪ 10 Donors

▪ 6 Int. Organizations

▪ 20 Local Organization

▪ 40 Financial Service Providers

▪ 10 Mobile Network Operators

DAO - (semi) Decentralized

Autonomous OrganizationPHASE 1 PHASE 2




“Collect sex-disaggregated statistics and indicators

related to women’s financial behaviour to build a

compelling business case for women’s market inclusion.”

1.2 billion WOMENFINANCIAL EXCLUSION


~35%INTEREST RATE

MICROCREDIT



80%of NEW SELF-

EMPLOYED

Were WOMEN

2008-2011

Women 20%Less Likely than

Men to Access

Bank Account

Developing

Markets

WOMEN’S ECONOMIC

EMPOWERMENT

NO DATAFINANCIAL

Women are

Driving Forces

for Economic

Growth

Women help

to Drive Local

And National

Economies

Gender

Digital Divide


Cost of

Gender Inequality

USD 100+ bn

Sub-Saharan

Africa

Gender

Inequality

Lost of

Opportunity

Global GDP

USD 28 Tnby 2025

Women in South-East Asia are often held back from establishing businesses, climbing up a career ladder or making wise purchasing

decisions because they are bound by discriminatory social norms or legal barriers. Women’s needs and preferences for products and

services—from consumer goods to financial services—have yet to be strategically explored by markets.

Women help to drive local and national economies through their roles as entrepreneurs, employees and consumers. In particular, the

profile and market potential of women consumers remains mostly unexplored in South-East Asia, even though they represent a

significant market opportunity.

Women who are active economic agents become driving forces of economic growth through their role as producers or entrepreneurs,

employees or consumers. Often, empowering women

economically has led to better investments and improved socio-economic outcomes for households and societies. Countries with more

equal access to employment and education for

women benefit from lower rates of child mortality, as well as more thriving businesses and faster economic growth (World Bank, 2011).

The ability to access financial services has a strong potential to play a catalytic role in advancing women’s inclusion in real economy

markets. As a market on its own, greater access to and better use of finance improve women’s economic agency. Providing capital

financial services also stimulates other markets’ inclusion of women.

Financial markets are enablers for real economy markets as they provide the needed capital to fuel growth and drive innovation. In this

sense, financial markets have the potential to improve the status of women as entrepreneurs, employees and consumers.

People’s livelihood and welfare are dependent on markets, hence market systems substantially dictate people’s lives. The impact of

markets is more keenly felt where the reach of the state is limited.

126 Mn WOMENENTREPRENEURS

67 COUNTRIES IN 2012

Access Financial

services as

Catalytic role in

advancing

Women’s

inclusion

Financial

Markets are

Enablers for

Real

Economies

MSME

Financing Gap

USD 2.1-2.6 tn

200-245 million

MSME

No Access to

Financing

MSME

33% of

Emerging

Economies

Expensive due

diligence,

underwriting, loan

services

Procedures

8-10 MnWomen-Owned

MSMEsCredit Gap

UD$ 260-320 Bn

2014

⅓of FINANCE

vs MEN

WOMEN START

BUSINESSES

30-37%Women-Owned

MSMEs

Emerging Markets

2011

Discriminatory

Social Norms or

Legal Barriers

for Establishing a

BusinessSouth-East Asia

WOMEN AS ECONOMIC DRIVERS

FUELLED BY FINANCE


THE WOMEN’S BLOCKFUNDSSmall Credit Gap for MSMEsChallenges & Innovative Lending

2-15 DAYSPAYMENT

5-15%ONLINE

PAYMENT

Women-owned small- and medium-sized enterprises (SMEs) represent 30 percent to 37 percent of all in emerging markets (IFC,

2011).

8 to 10 million women owned SMEs have unmet financial needs of US$260 billion to $320 billion a year (World Bank, 2014).

The number of women in the world who still lack access to formal financial services stands at 1 billion. While this figure is going

down, the discrimination that women face compared to men, in terms of their access to and control over loans, savings and bank

account services, continue to hold women back. If we are to see this 1 billion figure drop down to zero, then private sector

organisations, governments and civil society organisations must work together to tackle the barriers slowing up progress, and invest in

solutions to target women’s equal inclusion in the formal financial arena (CARE International)

What does Digital Finance offer for women?

Digital Finance means delivering financial services through technological innovations (for example, via mobile money) and can provide

a platform for the provision of other services, such as credit, insurance, savings and even financial literacy.

Digital Finance creates an opportunity that is convenient, flexible and secure. Irrespective of end users’ roles, tasks or activities, a

wide range of digital products can be accessed anywhere and at any time and, through the PIN requirements, these products remain

secure. This is particularly pertinent for women, given that more often than not – in those communities (the majority of which are rural)

which lack access in the first place – it is women who have more restrictive movements compared to men.

It is CARE’s experience that the effect of increased uptake of digital financial products by women creates a higher percentage of end

users with an empowered sense of self-dignity, an appetite to save, and to ultimately gain more decision-making authority, both as

individuals and inside the household.

What are some of the challenges in creating Digital Finance solutions for women?

Unsurprisingly, perhaps, several barriers currently exist when it comes to rolling out larger scale Digital Finance initiatives for women. These can be

broken down across the following areas:

Supply side – It remains the norm that maximising profits and minimising costs are the two most important objectives for the private sector entities who

operate within the Digital Finance space. In creating new digital solutions for marginalised, rural population groups, these same commercial entities have to

manage the consequences of what they would term as a “higher risk” client base – given the upfront costs on research and development and product

testing – and hence they are reluctant to invest heavily in this as a core strategy.

Demand side – Many millions of women around the world are restricted by low mobility, limited access to information, and social and cultural

norms which predicate that women’s financial independence and autonomy are much lower than men’s, meaning that there are typically low levels of

digital literacy among women. In many contexts, too, stringent Know Your Customer requirements – such as identification documents – present further

hurdles for women.

Technology side – From a technology stand-point, women face more issues which prevent them from being positioned to access digital products. In rural

areas, mobile phones are owned and controlled by men and, unless a phone is under a woman’s control, she will never have influence over when to

use it for other services. Even when a woman has a say in the matter, the way digital products are designed does not favour women, as there are typically

short turn-around times for product sign-ups, which doesn’t favour literate or semi-literate customers still grappling with a “menu” mostly written in another

language to their own.

Infrastructure – Digital platforms and mobile technology are mostly accessed nearby to trading centres, in towns or by highways, and are not available in

more rural areas. This requires a woman to then travel out of her neighbourhood to access a service and, as this blog reiterates, taking into consideration

the all too prevalent imbalance in household gender roles, access to this service for women won’t be conducted on a needs basis, but as and when

convenient.

Red Cross

Philippines & UK

International Federation of Red Cross

Tina Tinde

WOMEN’S MICROENTERPRISE AFTER

TYPHOON HAIYAN IN PHILIPPINES

https://docs.google.com/presentation/d/1mmjGbLO34J9FGB3M8FR4jKA

YJbWmX064mwv0UEylxWM/edit#slide=id.p3


https://docs.google.com/presentation/d/1mmjGbLO34J9FGB3M8FR4jKAYJbWmX064mwv0UEylxWM/edit#slide=id.p3

7.5+%COST FOR

REMITTANCE

2-5 DAYSREMITTANCE



RemittancesCost & Impacts

48 %

WOMEN

Migrants

2/3

Recipients are

WOMEN

Migrant women represent 48 percent of all international migrants today and they are finding jobs in multiple sectors and disciplines or

starting their own businesses.

According to the International Organization of Migration (IOM) female migrants send approximately the same total amount of

remittances as their male counterparts, and what women send is a higher proportion of their income, even though they generally earn

less.

Increased labour mobility for women requires sound infrastructure, platforms and channels so they can connect back to the homes

they left as they integrate into their new environment, thus capitalizing on potential economic and social gains.

Both men and women primarily send remittances to women (about two-thirds of recipients are women), reinforcing the important role

these women play as financial decision makers in the household.

Remittances play a big role in the income of households and countries. Remittances are now nearly three times the size of official

development assistance and exceed the foreign exchange reserves in at least 14 developing countries. Excluding China, remittances

significantly exceeded foreign direct investment flows to developing countries in 2013 (World Bank, 2014)




In Low and

Middle-Income

Countries,

Women are

36% less

likely than

Men to Have

a Mobile

Money

Account


International Organization for Migration

Mireille Mugisha

CBT through Mobile Money

Ebola Crisis

1.Underline that in most countries in Sub-Saharan Africa, when it

comes to migrants remittances, they are looking for three things : a fast,

secure and cheap service and so far, most of the service providers are

very expensive, informal (not secure) or the transfer takes a long time

to reach beneficiaries.

2. Mobile money market is growing fast including in very poor

communities as they can use simple and cheap mobile phones

(including their siblings or friends phones, but so far only available at

domestic level and still also quite expensive.

3. Case of 53 most vulnerable Ebola survivors in Guinea that received

direct cash transfer from IOM to mitigate the impact of the outbreak at

the individual level



Blockchain EthereumDisruptive Technology

FINANCIAL INCLUSIONADDING 2 BILLION PEOPLE

INTO THE GLOBAL ECONOMY

SECURITYEVERY TRANSACTION IS SECURED

IN A DISTRIBUTED LEDGER

INSTANTALL TRANSACTIONS ARE INSTANTLY

VERIFIABLE

TRANSPARENCYEVERY TRANSACTION CAN BE VIEWED

CRYPTOCASH, E-CASH & VOUCHER

TRACEABILITYEVERY TRANSACTION CAN BE TRACED

ANYTIME, TIMESTAMP

ANTI-FRAUDNO TRANSACTION CAN OCCUR TWICE

ON BLOCKCHAIN

EVEREX.io

The gender divide in technology needs to be narrowed so that technology can help unlock women’s economic opportunities:

• Focus on technologies that can bring rapid and substantial benefits to women in developing countries.

• Put women’s needs and preferences at the centre of technology design and deployment (Bester, Saunders and Hougaard, 2015).

Women on average are 14 percent less likely to own a mobile phone than men (Santosham and Lindsey, 2015).

An average of 23 percent fewer women than men have Internet access in the developing world (Clinton Foundation and the Bill and

Melinda Gates Foundation, 2015).

Financial and other structural barriers deter women from using, renting or purchasing technologies that could help them advance

economically.

Greater access to technology helps women to improve their economic participation, digital citizenship, access to jobs and health care

and more.

When women in the developing world go online, 30 percent use the connection to earn additional income, 45 percent use it to search

for jobs and 80 percent use it to improve their education (Geier et al., 2014).

Donor Public & PrivateGovernment

Foundation

Association

Corporation

General Public

Multilateral & Implementation AgencyUN & International Organization

International & Local NGO

Association

Financial InstitutionMicrofinance

Bank

Money

Humanitarian & DevelopmentGovernment

Development Bank

Foundation

Technology & ICTNetwork & Influencer & PR

Finance

Impact Investor





Women’s Economic EmpowermentFunds

Small Credit Gap for MSMEsmicroLoans

Cash Transfer ProgramingProblems & Benefits

Remittances & Group SavingsCost & Impacts

EVEREX .io

Emergency & Sustainable Livelihood

Somalia & Ethiopia

Key Aspects of

Mobile Money

Key Aspects of

Mobile Money

Key Aspects of

Mobile Money

Key Aspects of

Mobile Money

All concerned !

Gender-Based Violence▪ GBV destroys families, shatters the very foundation of a community, is a

major driver of poverty.

▪ In Chile, domestic violence costs USD 1.56 billion/year (only the loss

of women salaries!), 2+% of the GDP.

▪ In USA, cost of violence against women = USD 5.8 billion/year.

▪ In South Africa, violence against women and girls cost 0.9% to 1.3%

of the GDP.

▪ All forms of GBV are correlated with a lower GDP.

All concerned !

Gender-Based Violence

UN

WO

ME

N

Access to Working Capital for MSMEs

The BlockchainBRIDGING THE (MSME) MICRO-SMALL-MEDIUM ENTERPRISES

CREDIT GAP

Accion Venture Lab

Micro, small, and medium enterprises (MSMEs) constitute the foundation of the

global economy - from New York to Lagos to Jakarta. According to the World

Bank, formal MSMEs contribute up to 33 percent of

national income (GDP) in emerging economies, and the numbers

are significantly higher when informal MSMEs are included. In emerging markets,

most formal jobs are with MSMEs, which create four out of five new positions.

While the range of their activities spans the spectrum of agriculture,

manufacturing, and services, all MSMEs face the same challenge in finding the

money they need to hire new employees, purchase inventory, or upgrade their

equipment in order to grow.

Banks are often reluctant to serve MSMEs given the small loan size and high

costs typical of this segment. For other lenders such as microfinance institutions

(MFIs), the capacity required to serve MSMEs, particularly in assessing business

models and risks, remains a major challenge.

These conditions leave an MSME financing gap, estimated by the

International Finance Corporation at US$ 2.1-2.6 trillion.

There are 200 to 245 million formal and informal

businesses that either do not have a loan or do have a loan but are still

constrained by their access to financing.

MSMEs have had little access to secure growth capital from traditional banks or

non-bank finance companies that rely on time-consuming and costly due

diligence, underwriting, and loan service procedures; as a result, profit margins

are too lean to be attractive to the lenders or loan interest rates are simply too

high for the MSME customer.

FUNDING

Innovative, emerging MSME lenders often suffer the same constraints in

obtaining finance that hamper their customers; funding for such

groundbreaking firms can be scarce and more expensive than for traditional

banks.

Innovative MSME lenders need to provide non-traditional investors and

funding sources with a compelling case that they can manage the higher

risks and lower loan volumes associated with small business finance.

Novel solutions to the MSME financing gap are being driven by a number of

developments, but in particular, the revolution in MSME business practices

through new technologies, shifts in government regulations that both

facilitate digitization and encourage new sources of small business

funding, and the unbundling of services that were previously the preserve of

traditional banks.

Access to Working Capital for MSMEs

The Blockchain

Accion Venture Lab

ONLINE MARKETS CONNECT LENDERS TO MSMES; ELECTRONIC

INVOICING ENRICHES DATA FOOTPRINT

The past decade has brought the rise of online marketplace businesses that

allow multiple vendors to offer products through the same platform. Within

financial services we see the advent of online marketplace

lending, an internet-based lending market that is created by connecting

borrowers with lenders or investors.

There have also been encouraging signs that government regulation is becoming

more accommodating toward these and other new financing approaches for

MSMEs, such as the Jumpstart.

The Business Startups Act in the US, which eases various securities regulations

and permits innovative forms of finance like debt and equity crowdfunding.

On May 16, 2016, Title III Crowdfunding went into effect, allowing any small

business to borrow money or sell shares for up to US$1 million a year via

crowdfunding platforms.

Previously, only accredited investors (those who earn at least US$200,000 in

annual income and have a net worth of at least US$1 million) could invest in early

stage startups.

Title III Crowdfunding was aimed to spur the growth of small businesses by

opening up the investor pool to over 300 million potential investors.

NICHE PROVIDERS EMERGING TO DELIVER UNBUNDLED, SPECIALIZED

FINANCIAL SERVICES

Given that the small business lending market is experiencing a rapid technological

shift, a large number of startups are emerging to compete with banks across the

range of financial services, relying on lean operating structure, niche market focus,

and innovative underwriting processes that give them a competitive edge in the

small customer segments.

In the past, customers had to rely on large banks to provide a range of financial

services: checking and savings accounts, mortgages, consumer loans, and

investment products.

Today, each function can instead be performed by niche providers and some have

already reached scale.

In Latin America, governments in Mexico, Chile, Brazil, Argentina, and others have

mandated electronic invoicing that requires buyers and sellers to register invoices

with the tax authorities electronically when a transaction takes place.

These initiatives around e-invoicing reflect the belief that digitization will not only

help authorities keep better track of commerce activities, but also increase business

efficiency. The digitization of invoices also creates a rich pool of transaction

information for MSMEs.

Cash Transfer Programs

The BlockchainThe nature of humanitarian crises is changing. More people are in need and for longer.

Today’s emergencies, both man-made and natural, are putting the humanitarian system

under severe strain. We urgently need to invest in new approaches to protect the lives and

dignity of those affected and to ensure aid is spent as efficiently as possible.

Giving aid directly in the form of cash is often a highly effective way to reduce suffering

and to make limited humanitarian aid budgets go further.

We urge the humanitarian community to give more aid as cash, and to make cash central to

future emergency response planning. Moving to a coordinated system of cash transfers is also

an opportunity for broader reform of the humanitarian system, so that aid providers of the

future can work in a more complementary way to maximize their impact.

We are concerned that, unless we consciously decide to do things differently, the

humanitarian system will not increase the use of cash transfers as much as it should, or take

advantage of this opportunity for reform.

We make 12 recommendations which chart the next steps for donors, governments and

humanitarian agencies. Humanitarians’ work has never been more needed. Their dedication,

professionalism and courage stand out in a world that too often shrugs and looks away. Some

countries manage natural disasters on their own, without outside help. But most depend at

least in part on the ‘humanitarian system’ – the web of humanitarian aid agencies, donor

governments and national organizations which employs over 450,000 people and spends

about $25 billion a year.

Many people assume that humanitarian work is mainly an immediate response to a quick-

onset disaster, such as a hurricane or an earthquake. But most humanitarian aid is spent in

protracted crises. Eighty-nine percent of humanitarian aid goes to places that have required

humanitarian funding for more than three years, and 66% of humanitarian aid is spent in

places that have needed it for eight years or more.

The humanitarian system is under severe stress. In 2014 there were nearly 60 million people

around the world who had been displaced by conflict.

Natural disasters affect on average 218 million people a year. Conflict in the

Central African Republic has touched more than half its population. Almost 12

million people have been forced to lee their homes in Syria. The gap between

needs and funding is widening.

The Panel finds that cash transfers can help close this gap and provide

opportunities to do humanitarian assistance better. Humanitarian organizations

have traditionally supported crisis-affected people with physical commodities:

food, shelter, water, tents, clothing and medical help. Many of us are familiar with

images of a convoy with crucial supplies snaking its way over a pass, or sacks of

food being unloaded from the back of a truck or plane. But this is gradually

changing.

Today a family may instead receive an envelope of cash, a plastic card or an

electronic money transfer to a mobile phone, with which they can buy food, pay

rent and purchase what they

need locally.

Changes in technology, growing access to financial services, greater

urbanization, and the emergence of government social safety nets are all creating

unprecedented opportunities for humanitarian support to reach people in new

ways. For example:

■ During the 2011 famine in Somalia, which killed more than a quarter of a million

people, aid agencies used remittance companies to provide cash transfers to

more than 1.5 million people, helping them to survive and recover.

■ In Lebanon, more than a million refugees now use smart card vouchers to buy

goods at local shops, or ATM cards to withdraw money instead of receiving in-

kind aid.

■ In the response to Typhoon Haiyan in the Philippines, half a million people

received cash through the extension of an existing government social protection

program.Overseas Development Institute

Scaling up Humanitarian Cash Transfer

The Blockchain

Overseas Development Institute

In the light of this evidence, the Panel concludes that greater use

of humanitarian cash transfers in the settings where they are

appropriate, without restrictions and delivered as electronic

payments wherever possible, would:

▪ align the humanitarian system better with what people need,

rather than what humanitarian organizations are mandated and

equipped to provide;

▪ increase the transparency of humanitarian aid, including by

showing how much aid actually reaches the target population;

▪ increase accountability of humanitarian aid, both to affected

populations and to the tax-paying public in donor countries;

▪ reduce the costs of delivering humanitarian aid and so make

limited budgets go further;

▪ support local markets, jobs and incomes of local producers;

▪ increase support for humanitarian aid from local populations;

▪ increase the speed and flexibility of humanitarian response;

▪ increase financial inclusion by linking people with payment

systems; and

▪ most importantly, provide affected populations with choice

and more control over their own lives.

CASH TRANSFER ARE CHEAPER TO DELIVER & MORE FLEXIBLE

Cash Transfer Opportunities

The Blockchain

TO INCREASE AND IMPROVE CASH TRANSFERS WE NEED TO SEIZE

OPPORTUNITIES TO DO CASH BETTER

▪ Benefit from the advantages of digital payments. Using digital payments

makes disbursing and receiving transfers cheaper, improves their transparency

and traceability, increases security for recipients and can give people an entry

point into other formal financial systems.

▪ Increase accountability to - and participation of - disaster-affected

populations, governments and civil society. By engaging national

governments and civil society in cash transfer assistance, humanitarians can

support a more inclusive approach to coordination, leadership and

implementation.

▪ Stretch aid budgets further. Delivering cash is often less costly than delivering

in-kind assistance.

▪ Better link the responses that humanitarians deliver with the needs that

people face. The flexibility of cash transfers means that people – rather than aid

agencies– determine what they need most.

▪ Know where the money goes. Cash transfers, and digital cash in particular, are

a vehicle for a radical improvement in transparency around how much aid

reaches recipients.

▪ Improve humanitarian coordination. However, repeated evaluations have

found that cross-sector coordination is poor.

▪ Make the most of the private sector’s comparative advantage in delivering

payments. The movement of money is a highly developed industry with a long

history of investment in skills, technology and business practices.

▪ Take advantage of and support the expansion of payment systems. More

people are connected to financial systems than ever before. Globally, 62% of

adults now have an account at a financial institution or through a mobile device,

up from 51% in 2011.

▪ Tackle long-standing humanitarian programming weaknesses. More efficient

responses through cash would mean more time and resources to do these better.

▪ Increase our options for reaching people in conflict affected settings.

▪ Better support local markets. Displaced and host populations by economically

empowering people affected by crisis to support local markets for goods and

services.

“ Evidence from

crises around the

world shows that

cash transfers can

be a better way to

help people, even in

some of the most

complicated

contexts. ”

Cash transfers can’t fix all of the problems affecting international humanitarian action.

Cash Transfer Programs up to 2016

The Blockchain

Beneficiaries

Projects

Amounts


The Blockchain

Top 10

donors

Top 10

organizations


The BlockchainSectors: Number of cash transfer projects per

sector

Modality: Number of projects per

modality

Delivery Mechanism: Number of projects per delivery

mechanismContexts: Number of projects per

context

Timeline: Evolution of the number of projects over the selected

time range

Documents

Q3 2017 - Finance 2.0€¦ · Financial inclusion is a key enabler to reducing poverty and boosting prosperity. WBG President Kim has called for Universal Financial Access (UFA) by