Nouveaux produits de microfinance


Project objectives
To support and to help MFIs in creating and developing new microfinance products

Areas of intervention
Latin America, South-East Asia, Africa

Project manager


ADA innovating in new microfinance products


ADA develops and field tests new microfinance products and services that aim to better meet the diverse needs of clients and contribute to increasing their income. Innovation efforts are concentrated around key themes: the professional integration of young people, agricultural finance, small and medium-sized enterprises (SMEs) and microinsurance.


ADA analyses requirements and develops new products in cooperation with its field partners – the microfinance institutions. Launching these innovative products on the market guarantees a wider access to target populations. It also represents an opportunity for the microfinance institutions adopting them to offer a wider range of products and services. Diversification provides them with new sources of income and contributes to strengthening their financial viability.

Some customer groups such as young entrepreneurs or migrants have specific financial requirements. It is therefore essential to be able to offer them the suitable products and services.

ADA constantly aims to pass on its expertise and methodology to its partners so that, in the long term, they may innovate independently. Innovating in inclusive finance enables ADA to take action, in line with the needs of those who are excluded from the traditional financial system.


Credart

Professional integration of young people

Since 2007, the number of young persons who are unemployed has been increasing steadily worldwide. The young often have trouble in finding their first job or getting start-up funding for their own companies – they lack experience and guarantees. Nevertheless, young people are the future of our society.

The Young Entrepreneurs project focuses on the vocational integration of young craftspeople via microloans dedicated to start-ups. It includes personalised support and professional training for young entrepreneurs.

Discover the testimonies of the first beneficiaries of the project in Rwanda.


Finance-agricole

Agricultural finance

Agriculture is the main economic activity that meets the world population’s demand for food. According to the United Nations, this sector is the world’s main employer. It is currently the source of earnings for 40% of the world’s population, and the main source of revenue and provider of employment for poor households in rural areas.
Despite the important role agriculture plays in feeding the world, 500 million small farming enterprises that supply around 80% of the food consumed in developing countries still lack crucial financing mechanisms that are adapted to their activity.

Formal financial institutions are still considerably limited in providing financial services to households dependent on agriculture, as well as in the agribusiness sector. This leads to a rural financing gap limiting agricultural investment and significantly affecting smallholders and their organizations, as well as small and medium-sized agricultural enterprises. All three constitute the so-called "missing middle" in financial markets, and suffer from very limited access to financing.

As part of its mission, ADA has identified a strong need to support MFIs to develop products and / or services for financing agriculture.


cacao

Micro and Small Enterprises (MSEs)

ADA launched the new program "Support to Micro and Small Enterprises" in the first quarter of 2018.

It has also entered into a partnership agreement  with CTIC Dakar to support startups specialised in E-health, E-tourism and Fintech.


Microinsurance

Microfinance provides undeniable benefits but addressing vulnerable populations, the risk of incident and solidarity bonds easily impact the balance of income and assets of the borrowers, and thereby undermine their commitments to the institution.

ADA and its partner Democrance teamed up on a new project to promote access to insurance products for migrant workers, through an innovative technology solution linked to remittances.




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