Project Everest

Work Update

Work Update - A proposition for Village Banks in Malawi

The Microfinance team in Malawi has done a bit of research in the past into village banks, and have identified a problem of theirs as access to sufficient amounts of capital in order to increase the amount they can loan out to their customers, as well as the frequency of these loans. This July, the Microfinance teams will explore this further by proceeding to offer and currency test to village banks, offering to solve this problem by allowing them access to low interest loans for more capital.

The way this will work is PEV will act as a company that can bridge village banks with financial institutions or other organisations willing to front capital, in order to provide them increased capital for their customers. PEV will do due diligence and seek to understand how risky the village bank is, by getting access to information they collect about their accounting, cash flow, and their customers. PEV will then get access to loans for the village bank, at a low interest rate.

In order to prove that village banks are interested in a system such as this, PEV will offer and currency test this in July, with the end goal from July being to gain access to village bank customer, accounting, and cash flow records. From the period of July-December, the project development teams can then observe how village banks manage cash flow over time, and begin to build out an idea of how we will determine the risk of the village bank based on this data, and look to acquiring this capital to be loaned to village banks as a case study, ideally in December.

The proposed experiments for offer and currency tests can be seen here:



Would love to hear any thoughts or questions on this :)


edited on 21st May 2019, 04:05 by Rose Martin

Rose Martin 2 months ago

Status label added: Work Update

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