projecteverest

Problem

[PROBLEM]: Microfinance Amisen - Inadequate access to Financial Resources - April 2019

by
Isabella Strapp
Isabella Strapp | 1 month ago | in ROA **TRAINING**

Lean Canvas: Problem

Context:

In April 2019, the Micro Finance team conducted interviews with community members in the rural towns of Jumtha and Vengara in order to validate the customer segment. Through conducting these interviews the team gained invaluable insights with regard to existing financial services and the emotions community members feel when dealing with these services and managing their money.

From these insights, the team were able to construct a problem centric message and call to action that encapsulated the emotions identified by community members.

PCM:

1. Do you feel frustrated about the security of your money? Access safer financial services.

2. Do you feel anxious by a lack of safe access to financial services? Learn more about financial security.

CTA: Let us know your contact details for a follow up meeting.

Results and Insights:

The results validated that community members identify with feeling frustrated by a lack of safe financial services to protect their money. A further problem identified is that they largely mistrust formal financial institutions and feel they lack the knowledge surrounding their finances and savings.

Link to Results Post:

https://projecteverest.crowdicity.com/post/1315990

Significant insights can be generated when analysing the nature of responses received from members within the rural communities.


Barriers to Financial Inclusion:

The majority of Amisenians are alienated from formal financial services, with only 7% of small business owners having acquired a loan from a formal institution. In rural Amisen, only 18% of adults have access to a bank account, and only 6% have access to formal lending. Many Amisenian’s cannot gain access to capital to open businesses. Therefore, many Amisenian’s struggle to improve their financial position and increase their income.

Savings is a major issue for Amisenians: 54% of Amisenians do not have savings. The major cause of this is a lack of disposable income after expenses. Locals, particularly in rural areas, do not have the ability to safely save their money with a formal financial service.


Pain Points:

With the majority of Amisenians alienated from financial services, the most common pain points identified in acquiring loans, are a lack of collateral, high-interest rates and a fear of indebtedness. While there are external organisations to the formal Bank of Amisen, including the Village Bank in Vengara and informal loan services in Jumtha,  it remains difficult for individuals to acquire loans and build savings with these structures.

These issues identified, lead to an evident problem: many Amisenians do not have the ability to access banks nor the knowledge to build financial security. Without the ability to access banks, Amisenians are significantly prevented in their ability to improve their financial situation, build their businesses or build savings for their future.

As a result of cultural perceptions of formal financial institutions and loan structures, many Amisenians are untrustworthy of such institutions and feel tense and even adverse to dealing micro finance institutions. This lack of trust has lead to a lack of financial literacy and understanding of the processes needed to access financial resources. There is an evident disconnect between the few financial services offered and community members. This is worsened by a complete lack of local formal financial institutions in rural Jumtha and limited financial resources in Vengara.


Conclusion:

We have effectively established that these pain points serve as an intense motivation for our customer segment to engage with our potential financial services.

Tagged users
edited on 28th April 2019, 00:04 by Isabella Strapp

Andrew Vild 1 month ago

This post will be a lot more effective if you identify the problem in the first paragraph or so. Something along the lines of:

The Microfinance Team have identified and validate the main problem around finance to be:
1. xyz,
2. yxz
3. zxy

Then context, then the broader explanation of the problem as you have done later in the post.

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Andrew Vild 1 month ago

Status label added: Problem

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