Fonkoze Financial Services (SFF); Earthquake Recovery, Haiti
After the earthquake in January 2010, it was clear that one of the largest challenges to delivering aid to Haiti and rebuilding the economy was the inability to move money around the country, due the lack of banking and transportation infrastructure. In response, the private sector partnered with donors to launch mobile financial services to provide a safe and convenient way for individuals and companies to conduct financial transactions.
In this new innovative financial landscape, MEDA’s long standing partner, Fonkoze, wanted to understand how they should adapt in order to best serve the needs of their clients, while managing the risks associated with new technologies. To support, MEDA is providing financial and advisory support in three key innovative projects:
First, we supported the creation of the Microinsurance Catastrophe Risk Organization (MiCRO), a scalable model for insurance for the poor. MiCRO’s policy process increases transparency to buyers and enhances rapid claim settlement after a disaster strikes through the use of parametric triggers.
Second, we are providing technical assistance on the conversion of Fonkoze branches to mobile money agents to increase agent revenue.
Third, we are acting as a strategic advisor for the creation of a variety of partnerships between NGOs partners including CARE savings groups and Food for Peace cash transfers to support the growth of a mobile money ecosystem in Haiti.
As a result, All Fonkoze branches are now operating as mobile money agents, earning 10,000 USD in additional revenue; Fonkoze is providing liquidity support to at least 3 NGOs who are utilizing the mobile money network to improve delivery of services to beneficiaries; all 55,000 loan clients have access to microinsrance in the case of flooding.
Project Quick Facts:
Goal – Support Fonkoze on adapting a new comprehensive strategy for mobile financial services
Reaching – 55,000
Funding – MasterCard Foundation; MEDA supporters
Project length –June 2011 – December 2012