Digital Solutions for Sustainable Smallholder Agrifinance ... · CocoaTrace Luxembourg, 15th...
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[email protected] Digital Solutions for Sustainable Smallholder Agrifinance CocoaTrace Luxembourg, 15 th November 2018 Dirk Lebe
Transcript of Digital Solutions for Sustainable Smallholder Agrifinance ... · CocoaTrace Luxembourg, 15th...
Digital Solutions for Sustainable Smallholder Agrifinance
CocoaTrace Luxembourg, 15th November 2018
Dirk Lebe
Digital Financial Solutions for Sustainable Agrifinance
We have data and we can use that data
Productivity, poverty scores, nutrition scores, agricultural and environmental practices, demographics, GPS/polygons, financial data, etc.
1.91% of farmers have an outstanding formal loan. 5.31% have experience with formal loans
77% of bank accounts are owned by farmer. The rest by spouse(s), children, other household members
Self-reported farm sizes are overestimated by up to 45.6%
Data protection
Collaboration with Financial Institutions
Loan Officers with Access to CocoaTrace check Loan Applications
Traders as branchless banking agents, because the farmers anyway have to go to the trader to sell the produce (collectors should also work in that system), farmers know them, they are used to handle cash.
Accounts also increase transparency when premiums are paid, ensuring that the money reaches the designated farmer.
Bank accounts in Indonesia are cheap (e.g. SIMPEDES Tani for zero monthly fee and only 20,000 IDR opening balance and they get an ATM card).
With traders, the access to banks problem can be solved, because the traders are usually closer to the farmers than branches. Only limitation is the mobile network coverage needed for the EC Terminals.
The data gathered through the transactions (and the training) can be used to identify the most potential farmers for getting a loan for replanting and farm expansions
Branchless Banking Agents
Create Savings and enable Cashless Payments
You want to know more? Please contact:
