Digital finance, a weapon against exclusion?

Our partner ADA is taking action with the Digital Finance Initiative (DFI), which aims to facilitate and co-finance the implementation of digital solutions by microfinance institutions in 12 sub-Saharan African countries. Covering a period of five years, from 2017 to 2021, this ambitious project will provide fast, affordable, and secure access to banking services.

Support in 3 steps

1^e step: initial priority identification workshop
The DFI workshop brings together MFI senior executives for a week. It aims to give them a comprehensive overview of the various challenges, opportunities, and constraints posed by new technologies. It provides them with the tools to analyze all possible scenarios for integrating digital technology into their strategy and to assess the expected impacts in technical, operational, financial, and regulatory terms. The goal is for participants to emerge from the workshop with clear ideas about the digital strategy they wish to adopt.

2^e step: pre-project phase: definition of a digital project
MFIs wishing to pursue the adventure first have their new project validated by their governance. Then, supported by the ADA manager in charge of the "Digital Finance Initiative" project and local consultants, they can launch their action plan. This plan includes the establishment of specifications, the publication of calls for tenders and the selection of technical service providers, the establishment of a schedule, and finally the drafting of a co-financing file that will be submitted to a selection committee, composed of members of the ADA Board of Directors, Deloitte Digital, POST Luxembourg, and LuxFLAG. The file, if approved, is co-financed by ADA (and possibly other donors) up to €70% of the investment costs, up to a ceiling of €100,000.

3^e stage: pilot phase: implementation of the digital project
Once the Committee has accepted the application, the project can begin to be implemented with a pilot project involving one or two branches. At this stage, ADA offers the MFI financial support, as well as assistance in all areas impacted by the project: redefinition of procedures, training needs for staff and clients, and risk management. Once the testing phase is complete and conclusive, the MFI rolls out the project across the entire network. This is when ADA's support ends, and the institution is then considered autonomous.

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