Rapò Final Aktivite Finans Aksesib

ACCESSI BLE FINANCE ACTIVITY FINAL REPORT JANUARY 30, 2017 – NOVEMBER 30, 2020 February 2021 This document was produced for review by the United States Agency for International Developmen t . It was prepared by the World Council of Credit Unions for the Accessible Finance Activity in Haiti, agreement number AID - 521 - A - 17 - 00003. The views expressed in this document do not necessarily reflect the views of the U nited S tates Agency for International Development or the Uni ted States . Gove rnment. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report i TABLE OF CONTENTS Figures ................................ ................................ ................................ ................................ ........ ii Acronyms ................................ ................................ ................................ ................................ ... iii Executive Summary ................................ ................................ ................................ ................... 1 Background ................................ ................................ ................................ ................................ 3 O bjectives, D esign and I mplementation ................................ ................................ ..................... 4 OBJECTIVE 1: Expand financial services and products to rural areas and products to rural areas through groups and digital financial services (mainly field officer banking methodology) 4 1) Field Officer Banking ................................ ................................ ................................ .... 4 2) Intermediary Agents ................................ ................................ ................................ .... 11 3) Financial Education ................................ ................................ ................................ ..... 13 4) Leveraging Mobile & Digital Te chnologies ................................ ................................ .. 17 OBJECTIVE 2: Sustainably address liquidity and capital challenges faced by MFIs and credit unions. ................................ ................................ ................................ ................................ ... 19 5) OBJECTIVE 2.1: Deposits Mobilization for C redit Unions ................................ ........... 19 6) OBJECTIVE 2.2: Investment Mobilization for MFIs ................................ ..................... 22 Prog ram Impact & Sustainability ................................ ................................ ............................... 26 7) Objective 1: Impact ................................ ................................ ................................ ..... 26 8) Objective 2: Impact ................................ ................................ ................................ ..... 31 Lessons L earned ................................ ................................ ................................ ...................... 32 Program Budget Overview ................................ ................................ ................................ ........ 33 Annex A – Performance Indicator tracking table (IPTT) A nnex B – Accessible Finance Success Stories Annex C – Reson ance ’ s Capital Rai sing Lessons Learned Annex D – Accessible Finance C loseout Presentation Annex E – Summary of Subawards * Cover page photo credits: Obje ctif Productions - u pper left and center photos ; WOCCU – lower l eft and right photos. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report ii FIGURES Figure 1: KPPP Rural Agents Inputting Information i nto Tablet a nd Issuing a Transaction Receipt Fi gure 2 : Fie ld Officer Banking Co re Principles Figure 3 : Map o f Areas Targeted b y KPPP Figure 4 : KPPP Rural Agents Serving Rural Members Figure 5 : Intermediary Agent s Point o f Service Figure 6 : Illustrative Posters f rom a Financial Education Sess ion Figure 7 : Illustration Explaining How t o Prioritize Spending Within One’s Personal Budget Figure 8: Approa ch t o Savings Mobilization Figure 9 : KPPP Results ( June 2020) Cumulative Figure 10: KPPP Financial Education Program Results a s o f October 30, 2020 Figure 11: Accessible Finance Quarterly Fi nancial Report a s o f December 31, 2020 Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report iii ACRONYMS AFI Alliance for Financial Inclusion AGIRED Appui au Groupes et Initiatives Pour le relèvement Economiqu e Durable AVEC Association Vil lageoise d’Épargne et de Crédit BRH Banque de la République d’Haïti (Central Bank) COP Chief of Party CU Credit Union D AI Development Alternatives Inc. DBA Doing Business As DCOP Deputy Chief of Party EOI Expres sion of Interest FI Financial Institution FinInc Finance Inclusive Project FY Fisc al Year HIFIVE Haiti Integrated Financing or Value Chains and Enterpris es HOME Haiti HOME Ownership and Mortgage Expansion Activity ICT Information Communication Tec hnology IA Intermediary Agent IT Information Technology IRA I nvestments Readiness Assessment KPPP Kès Pam Pi Pre’m (meaning My Credit Union Close to Me in Engli sh) MFI Microfinance Institution MUSO Mutuelle de S olidarite M&E Monitoring and Evaluation PA R Portfolio - at - Risk POS 3 rd Party Point of Service RFP Request for Proposal SIFT Sustainable Investment Facilitation Toolkit USAID United States Agency for International Development VSLA Village Savings and Loans Association WOCCU World Council of Credit Unions Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 1 EXECUTIVE SUMMARY An estimated 56 percent of Haitians are excluded from the formal financial system ( 2018 Finscope study 1 ) ; thus , they cannot access services , such as savings ac counts and loans, that could measurably improve their quality of life . C red it u nions in Haiti provide a channel to reach these unbanked Haitians a n d are often the on ly financial institu tions servicing less affluent and less densely populated areas . Leverag ing decades of international experience in financial inclusion and seven years in Haiti working with USAID’s Haiti Integrated Financing f or Value Chains and Enter prises ( HIFIVE ) , World C ouncil of Credit Unions (WOCCU) c arried out a pilot program that i mplemented innovative and scalable solutions to further financial inclusion in Haiti cal led Accessible Finance (or Finance Pour Tous ) f rom January 2017 to Nove mber 2020 . The Accessible Finance A ctivity supported USAID’s overarching Assi stance Objective in its Haiti Strategic Framework (FY 2018 - FY 2020) of creating a foundation for resilience, stability, and i nclusive growth . It also supported Haiti Central Bank’s (BRH) financial inclusion strategy that aims to assure the greatest possible access to savings, credit, and othe r financial products and services with the intent of creating a financially and economic ally more inclusive society . With two di stinct but complementary objectives , WOCCU piloted scalable solutions to expand access to safe, affordable, and a ccessible finan cial services in Haiti: • Objective 1: Expand financial services and products to rural ar eas through groups and digital financial services (mainly field officer banking methodology). • Objective 2: Sustainably address liquidity and capital challenges faced by MFIs and credit unions . These object ives were addressed using a holistic approach compr ised of three compo nents : 1) Piloting the Field Officer Banking , locally referred to as ‘Kès Pam Pi Pre’M’ – (KPPP), “My Credit Union Close to Me” in English through which R ural A gents brought access to formal financial services and financial education to und erserved rural comm unities. Rural A gents helped expand credit union membership by 4,215 members as of October 2020 (of which 62% were women ) ; increa se credit union dep osits by 25,778,199 Gourdes (USD 409 , 178 2 ) ; facilitate disbursement of 1,252 loans, worth HTG 25,211,250 (USD 400,1 7 9 ) ; and improv e financial literacy for 3,552 participants . Through the Intermediary Agents component of the Field Officer Banking methodology , the foundation was laid for members to be able to access their accounts through third - party points service (POS) located in lo cal business es , set up to further increase access to financial services . At the end of the project, t wo credit unions were in the proc ess of piloting th e 1 Finscope, Haiti 2018. https://static.globalinnovationexchange.org/s3fs - p ublic/asset/document/Haiti_English_ 21 - 05 - 2019.pdf?PaaDnXIQc MWOf2RTU7OMt1h1NfON86kk 2 Exchange rate of 63 Gourdes for 1 USD as of October 30, 2020 – exchange rate simil ar to the rate prevailing at the beginning of the project , despite significant fluct uation thr oughout the duration of the Activity. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 2 Intermediary Agents service , with an additional six credit unions within the nation wide net work of credit unions equipped and configured to launch the service . 2) Leveraging mobile and digital technologies to improve credit uni on s’ core banking system s , thereby substantially increasing credit union operational capacities . Specif ically, enabling R u ral A gents to serve members in the field using digital tools , and to set up the Intermediary Agents component to further enable access to accounts through selected third part ies . 3) A ddress ing liquidity and capital challenges faced by mic rofinance instituti ons ( MFIs ) and d eveloping client - driven deposit products and mobilization strategies for credit unions to redu ce short, medium, and lo ng - term loans’ cash flow matching constraints . raised US D 7.5 million in debt funding with support of SSG Advisors ( known as Resonance) . In coordination ) , credit unions developed s ix new options for savings product s for the network of credit unions. B a sed on t hese options, t wenty - n ine credit unions ad opted new savings products and 21 credit unions developed new marketing and communication s plans to support launch of the pro ducts. I t should be noted th at these results were achieved despite the substantial disruptions brought about by the ongoing social and political instability in Haiti , which started in mid - 2018. The unsafe conditions, fuel shortages , and the resulting negative econo mic impac ts , combin ed with the COVID - 19 pandemic in 2020, pose d substantial operation al constraints. A sum mary of results of the Accessible Finance Activity is included in Annex A, Indicator Performance Tracking Table (IPTT ) . Annex B includes the S uccess S tories produc ed during the life of the project. 3 La Fédération LE LEVIER (LE LEVIER) i s a financial institution with a cooperat ive structure. LE LEVIER is a network of 42 federated member credit unions. The network has 83 points of service, whic h provide financial services to more than 800,000 members in t he 10 regional departments of Haiti . LE LEVIER provides financial and techni cal services to its members and is supervised by BRH. Fig ure 1: KPPP Rural Agents inputting i nformation into tablet and issuing a transaction receipt. ( Photo by Obje ctif Productions ) Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 3 B ACKGROUND Access to financial services is an important tool to help reduce poverty. 4 However , 1.7 billion people around the world are still unbanked 5 . Lack of access to f inancial services can cause significant financial hardship, including savings that a re vulnerable to theft, lack of access to loans, higher cost loans, loss of interest on savings, and lack of credit history. T his is a particularly pressing problem in Hai ti where , according to the 2018 Finscope study , only 44 % of people are access ing for mal financial services (11% with banks and 33% with other regulated financial institutions) 6 . Wh ile this represents encouraging progress from the past , it still means a sub stantial majority of Haiti an s are completely excluded from the formal financial sect or or rel y on informal, unregulated financial services , especially the most vulnerable segments of the population. For example, only 25% of Haitians in rural areas are acce ssing formal financial services . Finscope lists d istance fr om financial institutions , perceived lack of documentation, lack of trust in financial institutions and transaction costs as the most cited reasons for not access ing formal financial servi ces along with lack of sufficient income. In addition to increasing access to financial acco unts and services , the re is a tangible need for increasing financial literacy in Haiti to help people better understand how to effectively use and benefit from financial se rvices . Moreover, one of the barriers to access for the vul nerable / segments of the population is the lack of financial products that are adapted to the ir specific needs and circumstances . For years, credit union s have been the only source of formal finan cial services in many parts of Haiti. 920,414 people 7 depen d on one of Haiti’s 85 cr edit unions . As member owned, not - for - profit institutions, credit unions are committed to increasing access to financial service s for all, offering democr atic decision - maki ng processes , and passing on profits to members in various ways, including lower rat es on loans, higher interest on deposits , and dividends for members. Moreover, credit union s are able to generate deep community knowledge and ties, enabling them to reach vulnerable populations traditionally excluded from the fina ncial system. As such , th ey are ideal partners to help increase financial inclusion in Haiti. The USAID - funded , Haiti Integrated Financing for Value Chain and Enterprise (HIFIVE) , implemented by t he World Council of Credit Unions (WOCCU), which ran from 2 009 to 2015 , was key to m any of the recent improvements in Haiti’s financ ial inclusiveness . Working with 32 fina ncial institution partners, including credit unions , it made substantial and measurable inroads i n to increasing financial inclusion 8 . Building on the progre ss made by HIFIVE, WOCCU’ s Accessible Finance a ctivity (known as Finance Pour Tous in French) began on January 30, 2017 and ran for more three years and ten months until November 3 0 , 2020. 4 http://www.worldbank.org/en/news/infographic/2012/04/19/who - ar e - the - unbanked 5 https://openknowledge.worldbank.org/bitstream /handle/10986/29510/211259ov.pdf 6 Finscope, Haiti 2018. https://static.globalinnovationexchange.org/s3fs - p ublic/asset/document/Haiti_English_ 21 - 05 - 2019.pdf?PaaDnXIQc MWOf2RTU7OMt1h1Nf ON86kk 7 https://www.woccu.org/documents/201 9 _Statistical_Report 8 https://pdf.usaid.gov/pdf_docs/pdacu557.pdf Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 4 During t his time , Accessible Finance successfully piloted a number of financial inclusion in itiatives despite the ongoing political and social unrest that started in mid - 2018. Dedicated staff worked through challenging and sometimes dangerous conditions to deliver services. Still, there were si gnificant disruptions to the Accessible Finance A ctiv ity and its ability to complete its planned scope of work on time. Violent protests and fuel shortages often made travel impossible. In addition, the Accessible Finance Chi ef of Party (COP) was evacuated twice in 2019, once in Febr uary and a second time in Sep tember ( in accordance with WOCCU’s evacuation plans and procedures ) , further impeding operations. T he onset of COVID - 19 in March 2020 further impacte d operational capac ity of the project and implementation. Through these diffic ult circumstances, the Ac cess ible Finance activity achieved successes in meeting its planned objectives in collaboration and with the dedication of partners and stakeholders . OBJECTIVES, DESIGN AND IMPLEMENTATION OBJECTIVE 1: Expand financial services and products to rural areas and products to rural areas through groups and digital financial services (mainly field officer banking methodology) 1) Field Officer Banking 1 .1 Overview In order to address both access to financial services for individuals in ru ral areas and the challenging economics for financial institutions to service new customers and more remote areas, WOCCU pioneered the use of Field Officer Banking in Mexico and Col ombia and then adapted it to the Haitian context. In Haiti, th e methodology is locally referred to as ‘K ès Pam Pi Pre’M’ – (KPPP), “My Credit Union Close to Me” in English. This approach is uniquely suited to the context because it: • Disrupts the traditiona l banking approach of customers com ing to financial institution s, which is mal adapted for the rural low - income population , by having financial institutions’ representatives come to the members. • “Leapfrogs” traditional banking approaches through the use o f mobile digital technologies, enabling financial products to b e safely offered and administered in rura l and remote locations. • Transforms what can often be an intimidating and confusing interaction into one that is local, community - based , and tailored to individual needs. • Supports financial institutions in adapting t heir strategies, services, and products t o include and meet the needs of more individuals and communities, particularly in rural areas. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 5 T he use of Field Officer Banking exte nd s financial services to marginalized people by: • Bringing financial services directly to unserved and underserved rural po pulations, thereby eliminating the transportation and opportunity costs of travel and long wait times at the branches. This p articularly helps the most vulnerable groups’ including women and the poor. • Making servicing the rural poo r economically viable for financial institutions by eliminating the need for dedicated brick and mortar bra nches and through the use of digital techno logies. • Offering services that are adapted to financial situations of lower income and rural people. 1 .2 Methodology In order t o ensure this approach is beneficial and sustainable for all parties across a vari ety of contexts, WOCCU has developed the following core principles: Fi gure 2 : Fie ld Officer Banking Co re Principles Challenge Principles Methodology Going to urban areas to access financial services is too costly and tim e consuming for the rural poor Field officers deliver finance locally ▪ Rural Agents make regular (at least 1x/month) visits to rural areas to offer financial services . Informal group lending methodologies (including village savings and loans associations [ VSLAs] offer limited services and const raints linked to being in a group M embers open individual accounts ▪ Members open individual accounts which increases their control over their ass ets compared to groups and allows them to start building a credit history . Locating branches in poor rural areas is unprofitable for other financial institutions Branchless banking enables financial sustainability ▪ Rural Agents provide services to groups i n order make each visit cost effective . ▪ Groups are sized between 1 0 - 30 pa rticipants ; enough that sending a field officer is financially viable, but capped to avoid lengthy wait times . ▪ High volume of transactions makes approach sustainable even with smaller than average transaction sizes . Manual record keeping is inefficient an d prone to errors and fraud Leverag ing mobile and digital technologies ▪ Customer information is input directly into an electronic device, eliminating the need to input field notes agai n in the office. ▪ Devices are linked directly to financial institutions an d encrypted so information is pres erved even in areas with low connectivity . ▪ Mobile printers issue receipts for transactions increasing transparency and trust . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 6 Financial institutions can be uncomfortable and confusing spaces to navigate Hiring field banki ng officers with strong ties to the community ▪ Transactions occur in a familiar environment and in a group setting, increasing comfort . ▪ Greater opportunity to learn about financial ser vices , especially with the financial education component . ▪ Field officers can operate more effectively in areas t hey are familiar with . Many rural populations lack access to even the simplest types of financial transactions Thir d party points of services s et up through Intermediary Agents 9 ▪ Where regulations permit, sets up conv enient points of service, usually in a local store, for day to day transactions such as deposits, withdrawals or paying bills . Many financial services are inaccessible or poorly adap ted to the needs of the rural poor or low - income populations Adapted fina ncial services for low - income clients ▪ A ccounts that can be opened with just a few dollars: low initial balances are made viable through a higher volume of accounts opened . ▪ Micro loans with less onerous and more flexible approval processes . 1 .3 Implement ation Year 1 (FY 2017 – February to Septe mber 2017) • In collaboration with WOCCU selected two credit union pilot partners from a shortlist of credit unions that had previously worked under HIFIVE. and were selected based on their financial strength, governance, operational capacities and previous experie nce working with donor - funded projects . • T he translation from Spanish to French and transfer of the Field Officer B anking methodology began with support from WOCCU’s technical team from the Colombia project (WOCCU Colombia). WOCCU Colombia 10 supported the o verall process of transferring the methodology to the Haitian context. P articular attention was paid to operation al effi ciency and regulatory compliance. Furthermore, the Accessible Finance C hief of Party (C OP ) met with the Head of the Direction de l’Inspe ction Générale des Caisses populaires (DIGCP) at the BRH to introduce th e activity and confirm compliance with ex isting regulations . • WOCC U worked with the pilot credit union s to identify the target areas and start forming KPPP groups , with a target of rea ching four zones. Selection was based primarily on areas that are remote or areas where the credit unions have no t actively recruited in the past . The map below highlights targeted areas. 9 For full description of the Intermediary Agents component see sect ion 2 ) below 10 WOCCU Colombia previ ously worked with WOCCU S ervices Group, W OCCU’s for profit subsidiary, to develop and implement the field officer banking methodology . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 7 Fig ure 3 : Areas targeted by KPPP worked in Saint - Marc, 3 rd section Goyavier and Marchand Dessalines, and 3 rd section Ogé . worked in Camp Louise and 4e secti on - Yago of Commune Saint - Raphaël. • WOCCU completed the KPPP Methodology training m aterials for rural agents and other credit union staff . These include d : o M aterial about financial inclu sion, culture of savings, rural finance, quality control, result managem ent/performance manag ement , including the ory and practical exercises o Market surveys, planning, and performance management tools o Promotional materials , such as hats, shirts, leaflets a nd a promotional video • R ural A gent training was implemented and complete d in five weeks, including an internship within the credit union s . On ce trained, Rural Agents were able to: o Organize awareness sessions on KPPP service o Form KPPP groups o Train committee elected members on their duties o Enroll new members o Perform transactions o Collect information related to loan appl ications o Perform training sessions on f inancial e ducation Fig ure 4 : KPPP Rural Agents serving rural members. Rural A gents travel up to two hours from the credit union to provide access to formal financial services to underserved rural comm unities via digital channels. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 8 • WOCCU sourced locally suited tablets and mobile receipt printers for R ural A gents to effectively deliver services in rural areas. Rural A gents were also trai ned on how to use the tablets and mobile printers on line and offline. • At the end of Year 1, WOCCU and its credit union partners carried out market surveys, using focus groups and indiv idual interviews, in the four target areas for the test period. The main findings include d the following : o High d emand for savings products in the targeted zones. o Between 55% and 75% of peo ple interviewed , depending on the area, had no savings account . Th is was mainly attributed to the absence of financial institutions collec ting savings and the distance and costs i ncurred to reach a financial institution. o Revenues generated in these areas are significant (mainly agriculture) and suggest favorable mobiliza tion of savings . o Credit unions closest to the zones are overcrowded. o Th ere are no financial institutions in the targeted zones offering savings and credit services. o Need to process loan applications faster and with more flexible requirements . o Need for low er interest rates. o Lack of information on financial services. T hese findings confirmed the pressing need for the KPPP service in the targeted areas and the untapped opportunity to build membership and mob ilize deposits . Year 2 (FY 2018) • The first months of Y ear 2 were focused on operationalizing the IT and mobile te chnologies used to connect credit union s and R ural A gents , in addition to launching promotional campaigns to raise awareness of KPPP services i n the target areas. Promotional campaigns were comprised of the followin g elements: o Meeting with local authoriti es : Credit union s contact ed community leaders, invite d them to attend a presentation of the forthcoming KPPP service , and encourage d them to as sist the credit union in the implementation and creation of a safe worki ng environment . o Meeting with communities: C redit union representativ es , including Rural Agents , organize d meeting s in target communities, which was preceeded by promot ional announceme nts through megaphones, media channels, and streamers. Promotional meeti ngs typically gather ed 50 to 200 individu als. • G roup formation: Rural Agents mad e comprehensive presentation s to those interested, describing the functionalities of the group. Members w ere registered, they sign ed the act of consitution , and elect ed a group committee composed of a President, a Trea surer , and a Secretary. • and then launched the KPPP service with their initial groups by the end of March and April 2018 of Year 2 respectively. Group formation continued on a rolling basis. The Accessi ble Finance Senior Community - Based Saving and Credit Groups Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 9 Specialist accompanied the newly trained agents in the field to supervise the early stages of implementation and ensure regu lar quality control throughout the Activity. • Next, an e xpansion phase wa s planned to reach more people in new tar get areas. The launch of the expansion phase was delaye d by almost eight months until new subawards were issued , after WOCCU received approv al for an agreement modification. However, partner CUs kept the pilots goin g using thei r own limited resources from August 2018 to May 2019 until additional funding was made available , proving their dedication to implementing the promising methodology. Year 3 (FY 2019) • In the last quarter of Year 3, selected pilot credit unions received new subawards to expand the KPPP pilot to additional zones and groups. • T he IT adjustments necessary to link the Field Officer Banking application to the credit union network o perating system, as well as assist the A ccessible F inance team in coordi nating activi ties generated over the proj ect , were completed . • N ew target areas were selected for expansion of the pilot following the initial test period . The new target areas for were Quartier Morin and Port - Margot and for , Gonaives and Lian court. The Gonaives area regroup ed a sign ificant number of existing Village Savings & Loan Associations , Associations Villageoise d’Épargne et de Crédit (AVEC) in French. These AVEC gr oups were initially formed by CARE. A s CARE was winding down its activit ies , WOCCU ensured continuity of the AVEC groups and sustainability of their activities by including them in the KPPP services and connect ing them with credit union s , thus enabling the ir access to the formal financial sector for the first time. • Despite per iods of unrest through out Year 3, KPPP se rvice continued to operate on a regular basis , until Haiti experienced a fuel shortage in September 2019 , which prevented Rural Ag ents from usi ng their motorcycles to reach the groups. T he unrest grew increasingly v iolent through November 2019 , further ham pering Rural Agents ’ ability to visit existing groups and form new ones . Artibonite was in the ‘red zone’ during the lengthy periods of ‘péyi l ock’ (blocked country); sub - zones around Marchand Dessalines were also h ard hit with violence and instability. C r edit unions worked mostly part time during this unstable period , while banks closed . Focus was directed to securing t he loan portfolio and reco ver ing as many loan payments as possible from members . • In Y ear 3, WOCCU continued to cultivate its relationship with regulatory authorities by coordinating areas of overlap between the BRH financial inclusion strategy and the Acc essible Finance activities to find areas of potential collaboration . In addition, WOCCU continued to discuss with BRH strategies to deal wi th issues of connectivity that hamper the use of digital technologies and the financial services they could bring to remote areas ; ultimately, no solutions were established; however, BRH has the opportunity to learn more about Field Officer Banking, and WO CCU was invited to participate in a worki ng group on financial education in Year 4. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 10 • In Year 3, WOCCU carried out a mid - term survey assessment p er the M&E plan to better understand participant satisfaction levels at the mid - way point of the KPPP activity. T he purpose of this assessment was to iden tify gaps in implementation and make adjustment to KPPP services as needed prior to expanding the pilo t to new zones in Year 4 . Year 4 ( FY 2020 until November 2020) • In Year 4, KPPP service was deployed by 19 employ ees in total for both credit unions. o : 6 Rural Agents, 1 Credit Officer, 1 Coordinator o : 8 Rural Agents, 2 Credit Officers, 1 Coord inator • Adaptation of WOCCU’s route costing tool for field officer bankin g to the Haitian co ntext was completed an d KPPP Coordinators were trained . • A credit analysis application was introduced at to facilitate small loans processing and secure the management of the overall portfolio. is responsible to make t he application avai lable to other credit unions . C ollection of member data can be performed in the field thanks to the tablet application . T hen , the information is stored in the centra l software designed to perform calculations, assess payment capacity, es tablish financial statements up to five y ears per member, and generate members’ scoring. This application will help standardize loan applications throughout all points of services, ens ure better monitoring , and avoid fraud. • Following a request from to expand KPPP to other credit unions, WOCCU organized a training in Port - au - Prince for Credit Union Regional Advisors on how to implement the KPPP service. The seven Advi sors are appointed to different regions of the country to cover the 42 member credit unions across ten Departments. They support credit union s in management, operations, and governance to ensure that policies and procedures are followed according to law, regulations, and the network’s internal procedures. A dvisors received a condensed training on the KPPP Rural Agents’ training program , as well as an introduction to the financial education program and the Intermedi ary Agent component of KPPP. The Advisors were introduced to both systematic and technological aspects of the methodology and discussed approaches for further expansion of the methodology into different regions and credit unions. • A ll technical supporting documentation for the c ore KPPP application, including source codes, were transferred to for further replication in the future . • After the onset of the COVID - 19 pandemic, the project team and partners were able to successf ully collaborate and adapt to the consequences of the pandemic and address to the best extent possible its effects on t he flow of project activities . • Training o f staff on the SQL s erver was completed to increase their skills in managing technical issues arising from the SAF operating system . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 11 2) Intermediary Agents 2 . 1 Overview Intermediary Agents , or Agent s Autorise s in French, are third - party point s of se rvice (POS) that act as extension s to the Field Officer Banking methodology . S etting up a POS can be an effective way to increase access to fin ancial services in rural areas through frequently visited local business es and third parties . This component of t he KPPP service, which was also successfully first developed by WOCCU Colombia, consists of a CU selecting an individual or a legal entity to p erform certain transactions on its behalf. These are usually established local businesses , as a reliable, regular physica l presence and access to the internet are required to be effective . Transactions are limited to deposits, withdrawals , and obtaining ba lance inform ation. The operator is not an employee of a credit union ; th erefore, they cannot access members’ personal infor mation n or register new members. 2 .2 Methodology To oper ate, the Intermediary Agent is provided by the credit union with : • A com puter solely dedicated to safely process ing transactions for its members and a printer . • A n agreement signed between the Intermediary A gent and the credit union , specifying the terms of collaboration . • T ra ining o n credit union ’ s sys tem s , activities , and pro ducts . • Training on how to use the equipment and transaction procedures . The relationship between credit union and Intermediary Agent is mutually beneficial because t he I ntermediary A gent collects fees for operatin g the service , increas ing customer traffic . Meanwhile, credit union s are able to increase savings mobilizations , f acilitate loan payments , and improve customer loyalty by providing convenient, reliable services . A POS will be typically set up if the volume of transact ions increases significantly d uring the course of the Field Officer Banking act ivity , leading credit u nion members to need transactions processed more than once or twice a month when R ural A gents visit their location. When the vast majority of transactions are simpl e , like withdrawal s and deposits, setting up a POS can further help credit union s by allevia ting the high volumes of people visiting their branches , free ing up R ural A g ents to handle more complex transactions , such as loans , and operate more efficiently . Fig ure 5 : Intermediary Agent point of service . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 12 2 .3 Implemen tation Y ear 1 (FY 2017 – February to September 2017) Year 1 was dedicated to pil oting the Field Officer Banking methodology. I mplementation of this program started in Y ear 2 . Year 2 (FY 2018) • The feasibility study framework and procedures related to the In termedia ry Agents were translated from WOCCU Colombia’s Spanish documents . • Unfor tunately, f urther progress to support the Intermediary Agents implementation was hindered in this period due to the aforementioned unrest and delays in receiving subaward fund ing from August 2018 to May 2019 . Year 3 (FY 2019) • In August 2019, t he A ccessibl e F inance COP and ICT Expert visited WOCCU Colombia and two credit union s there , which have a network of I ntermediary A gents to service their members. This visit helped facilitate supp o rt to the pilot credit unions in Haiti with better understanding of the commercial and operational aspects of implementation. • As of year - end, ICT developments to connect the Intermediary Agent application to the cre dit union s ’ opera ting system were comp leted. The application was fully functional and supported by operational documentation and procedures on how to operate the service. Year 4 ( FY 2020 until November 2020) • Although i mplementation was considerably delayed compared to the original timetable, as of the end of the project , the Intermediary Agent service was succes sfully tested at and and in the process of piloting . also selected six credit unions to participate in the launching of the service , which were equipped and con figured to launch the service . • All technical supporting documentation f or the core Intermediary Agents application, including source codes, were transferred to for further replication in the future . • Three members of Senior Management, including the Gener al Manager of the Federation , received training on th e implementation of Intermediary Agents methodology . • and , as well as designated Intermediary Agent staff , received training on Intermediary Agents methodology and procedu res . • Our ICT team completed some additional options to facilitate manage ment of the service by the credit union and the I ntermediary A gent . This included photo capture at the credit union counter to secure identification and an Excel application to calcula te fees gained by the Inter mediary Agent automatically on a daily basis . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 13 3) Financial Education 3.1 Overview While KPPP is focused on increasing financial inclusion, the most underserved populations often have little knowledge of how financial services fun ction . In fact , according to the 2018 Finscope study, 53% of Haitian adu lts felt they needed more information about personal finances 11 . This need is even more pronounced for less educated and affluent Haitians. In order to en sure that everyone not only has access to financial services but also makes the most productive and ben eficial use of them, WOCCU used its Financial Literacy Tool to bolster KPPP’s effectiveness . This tool was the result of WOCCU’s in - house effort and leveraging some of the standard les sons developed by CARE in the ir financial literacy programs in Haiti . WO CCU’s approach is unique ly effective because it: • Synchronizes education and financial services outreach . Offering just education without also facilitating the use of financial services is largely a theoretical exercise wi th limited impact. By offering both financial education and services, WOCCU’s approach truly enables underserved populations to understand and use financial services. • D esigned specially to suit the most vulnerable. The WOCCU pedagogical approach is center ed on creating a participative, comf ortable , and safe environment. In low literacy rates environments like rural Haiti, it makes ample use of storytelling, games , and visual supports to make the financial lessons more ac cessible and memorable. • Engages sta ff at financial institutions to susta in the program . Financial institutions stand to benefit from better understand ing the needs specific to the unbanke d and underbanked to make their financial products appealing , relevan t , and accessible . • Adaptable to d ifferent ages, socio - economic , and cul tural environ ments. The lesson plans are tailored to be appropriate for a variety of audiences , including children and more financially sophisticated populations. Benefits : • Participa nts benefit by creating new, more financially sound habits and improv ing their ability to navigate financial services, thus helping bolster their finances. • The workshops help build confidence and generate a sense of solidarity among participants by openly discussing and learning about fin ancial issues within a supportive group setting. • Financial Institutions benefit by increasing their number of clients, decreasing the number of inactive accounts , and building good will around their brand. 11 Finscope Study 2018, p.10 Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 14 • Clients served are more likely to be financially savvy, helping increase their savings and reduce their delinquency rates on loans. 3.2 Methodology In addition to linking to financial services, Rural Agents teach financial education courses. To increase efficiency and a ccommodate participants, sessions ar e designed to be 30 minutes long and ar e delivered along with the financial transaction services offered by the R ural A gents. T o increase the program ’s reach, it is not restricted to credit union KPPP members ; non - member s are welcome and encouraged to participate. T o monitor attendance, t he A ccessible F inance team developed a guidance booklet for each participant to record the sessions they attended. E ach session attended is recorded and signed by the Rural Agent. Pract ical and A dapted Curriculum WOCCU’s Haiti f inancial education curriculu m is comprised of eight progressive training sessions , which focus on teaching 3 key concepts: Budget, Savings , and Credit . Budget • Overview : This is the first and most crucial module . Here , the participants go from often having a n imprecise understanding of their financial situation to a clear one. Armed with this newfound information, participants are empowered to effectively improve their financial planning. • Process : Participants go thro ugh the simple but rigorous process of m easuring their income and expenses. For those who are running a deficit or wish to save more, expenses are ranked from most essential to least. Staff then help participants identify “leaks” in spending , less e xpensi ve ways to achieve similar outcomes , and non - essential items that could be discarded to help save money. • Outcome : This module c reates an easily understandable framework that helps participants gain clarity on their financial situation and improve it . This g ives participants concrete steps to he lp meet their financial go als and helps manage their day - to - day finances. Moreover, the module helps add rigor and clarity to an often haphazard financial planning process. Saving • Overview : This module d efines what savings are and their importance to rea ch financial goals and mana ge unforeseen expenses. It also introduces the concept of saving as a regular, planned habit. Lastly, it discusses formal vs. informal saving. It Fig ure 6: Illustrative posters from a financial education session . Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 15 explains the benefits of a forma l acco unt which makes funds available, safe , and in terest bearing . • Process : Th ese concepts are introduced via the use of stories, group discussions , and visual supports. Participants follow illustrative posters with various scenarios about financial decisi ons fa ced by a fictional local couple. Participants work through exercises and together discuss steps towards financial responsibility. • Outcome : Participants better understand the importance of savings to face unforeseen expenses and how to increase savin gs thr ough planning. They also better understand ho w financial institutions ca n help achieve this outcome. Credit • Overvie w : This module discusses key concepts around loans , including interest, credit, formal vs. informal and consumptive vs. productive l oans. P articipants acquire a better understanding o f the risks (financial, repu tational) and benefits (faster access to capital) of taking on debt. • Process : Participants study a variety of loan types and scenarios, are given a simple payment schedule examp le , and have a chance to discuss whether a loan mak es sense for them. • Outcome : Participants are better able to assess ahead of time whether it is feasible and beneficial to take on debt. This leads to better informed and more responsible borrowing decisio ns. Ped agogy WOCCU’s pedagogical approach is built around three core concepts: accessibility, inclusiveness , and applicability . • Accessibility : Because many of the participants have little experience interacting with the financial sector, there is an empha sis on conveying simple, clear but helpful concepts and adapting material to th e audience. For example, for less literate audiences, lessons rely more heavily on non - written communication , such as oral storytelling, songs, games , and visuals. These tools a lso hel p make the material more engaging and theref ore more memorable. • Inclusiv eness : Because issues surrounding finances can be associated with embarrassment, fear , and shame, WOCCU’s workshops emphasize creating a comfortable atmosphere for participants. A supp ortive group atmosphere is created through fun partner activities, encou raging sharing personal anecdotes with the group, positive reinforcement for working o n improving ones’ situation , and never shaming participants for “wrong” answers. Participants are encouraged to set group goals and discuss l essons together to create a s ense of solidarity. • Applicability: Materials and scenarios presented are designed to be immediately applicable and pertinent to the participants’ life situations. Concrete solutions ar e offered to help with goals , such as incr easing savings, paying off loa ns , and meeting longe r - term financial objectives. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 16 3.1 Implementation Year 1 (FY 2017 – February to September 2017) Financial education was to be laun che d after the testing of KPPP and once t he Rural Agents and groups wer e accu stomed to the financial t ransaction aspect of the methodology . Implementation of this program started a t the end of Year 2 . Year 2 (FY 2018) • During the second half of Y ear 2, the curriculum was put together a nd adapted to the local context and R ural A gents were trained to deliver it . • The first financial literacy classes were delivered in December of 2018. Y e ar 3 & 4 (FY 2019 to November 2020) • Financial literacy course s continued to be dispensed throughout Y ear s 3 and 4 and were expanded as KPPP was l aun ched in new areas : Quartier Morin, Port - Margot, Gonaives , and Liancourt . • The education program was mai ntained and adapted to the COVID - 19 safety measures. This activity has been consistently cited by members as o ne of the most appreciated service s provided by the credit unions . Parti cipation in the steering committee organi zed by BRH on the Haitian National Financial Education Prog ram Accessible Finance was invited to participate in the BRH financial education wo rking group to contribute to the draft ing of the 2020 - 2024 National Fina ncial Education Program . Participants Fig ure 7 : Illustrati on explaining how to prioritize spending within one ’ s personal budget. Accessible Finance Activity ( AID - 521 - A - 17 - 00003 ) Final Report 17 had the opportunity to contribute to the process of identifying actors, and developing priority objectives, strategic objectives, expected results , and performance indicator s. During Year 4 , the National Financial Edu cation Program was officially launched by Haitian authorities via video conference gathering a large audience ( COVID - 19 restrictions prevented in - person events ) . Key points discussed s urrounding the program include d : • Economic choice to improve financial kn owledge of the population; • Allow the population to use financial services properly in order to transform the informal economy to a more formalized economy; • Develop consumer protection culture; • Better inclusion of women in the economy; and • Commitment from t he Ministr y of Education to enforce financial education programs in schools and universities for both teachers and students. 4) Leveraging Mobile & Digital Technologies A strong emphasis on the use of IT and mobile technol ogies was at the core of WOCCU’s visi on and ability to implement KPPP. It is part of a broader strategy to increas e the reach of credit union to both more vulnerable and rural populations , as well as ensuring th at credit union offerings remain c ompetitive compared to banks in more affluent an d urban areas. Both of these are important in order to