Microfinance
Challenge Fund Rwanda
Challenge Fund Rwanda
Technical
Assistance for VISION FUND RWANDA
Assistance for VISION FUND RWANDA
TERMS
OF REFERENCE FOR
OF REFERENCE FOR
“Strengthening
deposit mobilisation through market positioning, branding and mobileagency
banking”
deposit mobilisation through market positioning, branding and mobileagency
banking”
Background
The
Microfinance Challenge Fund Rwanda is established in accordance with the
financing and project agreement entered into between the Government of Rwanda
(GoR) represented by the Ministry of
Microfinance Challenge Fund Rwanda is established in accordance with the
financing and project agreement entered into between the Government of Rwanda
(GoR) represented by the Ministry of
Finance and Economic Planning (MINECOFIN),
the German Development Bank KfW and Access to Finance Rwanda (AFR) as the
Project Executing Agency (PEA).
The
Challenge Fund (CF) aims at contributing to broad based and sustainable
economic growth and to create income and employment for poor households,
particularly in rural areas of Rwanda. To achieve these goals, the Challenge
Fund uses two complimentary approaches: (i) the refinancing of MFIs in the form
of loans for on-ward lending to their clients in rural areas, and (ii)
technical assistance (TA) to partner MFIs aimed at addressing the institutional
capacity challenges that may be preventing these MFIs from fulfilling their
growth ambitions and sustainably providing financial access to microfinance
clients.
Challenge Fund (CF) aims at contributing to broad based and sustainable
economic growth and to create income and employment for poor households,
particularly in rural areas of Rwanda. To achieve these goals, the Challenge
Fund uses two complimentary approaches: (i) the refinancing of MFIs in the form
of loans for on-ward lending to their clients in rural areas, and (ii)
technical assistance (TA) to partner MFIs aimed at addressing the institutional
capacity challenges that may be preventing these MFIs from fulfilling their
growth ambitions and sustainably providing financial access to microfinance
clients.
Project
Rationale
Institutional Profile: VisionFund Rwanda (VFR, formerly known as Vision
Finance Company) is a microfinance subsidiary of VisionFund International
(VFI) and was started in 1997 as a microfinance program of World Vision
Rwanda. It was licensed as a regulated deposit taking microfinance Institution
by the National Bank of Rwandan (NBR) in 2004. The MFI targets the economically
productive poor especially in the deep rural areas. VFR’s mission is “to secure
the child’s future through economic transformation” by providing financial
opportunities to their parents – especially women, who do not have access to
formal financial services. VFR has a very strong poverty focus and in September
2016, the number of active clients stood at 60, 535 with a loan portfolio of
RWF 3.18bln and deposits of RWF 0.919bln.
Rationale
Institutional Profile: VisionFund Rwanda (VFR, formerly known as Vision
Finance Company) is a microfinance subsidiary of VisionFund International
(VFI) and was started in 1997 as a microfinance program of World Vision
Rwanda. It was licensed as a regulated deposit taking microfinance Institution
by the National Bank of Rwandan (NBR) in 2004. The MFI targets the economically
productive poor especially in the deep rural areas. VFR’s mission is “to secure
the child’s future through economic transformation” by providing financial
opportunities to their parents – especially women, who do not have access to
formal financial services. VFR has a very strong poverty focus and in September
2016, the number of active clients stood at 60, 535 with a loan portfolio of
RWF 3.18bln and deposits of RWF 0.919bln.
Capacity
building needs: The
MFI, together with the CF Manager, identified some key areas, where capacity
development priorities exist in view of the institution’s growth ambitions.
Among them is the need to strengthen the MFI’s deposit mobilization activities through
marketing, branding and introduction of digital banking through agent banking.
This shall help to grow the institution’s deposit base as a means of meeting
needs and a source of funding, also special focus on especially linking Savings
groups (VSLA’s) to save with VFR. Effective marketing of existing deposit
products and channels and introduction of mobile agency banking will be very
valuable.
building needs: The
MFI, together with the CF Manager, identified some key areas, where capacity
development priorities exist in view of the institution’s growth ambitions.
Among them is the need to strengthen the MFI’s deposit mobilization activities through
marketing, branding and introduction of digital banking through agent banking.
This shall help to grow the institution’s deposit base as a means of meeting
needs and a source of funding, also special focus on especially linking Savings
groups (VSLA’s) to save with VFR. Effective marketing of existing deposit
products and channels and introduction of mobile agency banking will be very
valuable.
To
improve efficiency and customer centricity, VFR has recently introduced a new
biometric client identification system and is currently piloting mobile
banking. The ecosystem of mobile banking is complex and brings potential new
operational risks and security issues, although the overall IT system of the
institution is considered to be strong. In order to build effective controls to
mitigate these risks, capacity building will be necessary to introduce a
suitable system for identifying and appropriately managing these risks; there
is also a strong need introduce mobile agency bankingto mobilize more deposits to
be able to lend a low cost.
improve efficiency and customer centricity, VFR has recently introduced a new
biometric client identification system and is currently piloting mobile
banking. The ecosystem of mobile banking is complex and brings potential new
operational risks and security issues, although the overall IT system of the
institution is considered to be strong. In order to build effective controls to
mitigate these risks, capacity building will be necessary to introduce a
suitable system for identifying and appropriately managing these risks; there
is also a strong need introduce mobile agency bankingto mobilize more deposits to
be able to lend a low cost.
Project
Objectives and Indicators
Objectives and Indicators
AFR
under the Microfinance Challenge Fund has provided VRF with TA funds for
strengthening of deposit mobilization. This will be achieved through among
others; introduction of mobile agency banking, market re-positioning and
branding and relocation of some branches. The TA is expected to lead to a
sizeable higher growth in the deposit portfolio of VFR, which will support
meeting the MFI’s ambitious business plan targets in terms of deposit mobilization.
under the Microfinance Challenge Fund has provided VRF with TA funds for
strengthening of deposit mobilization. This will be achieved through among
others; introduction of mobile agency banking, market re-positioning and
branding and relocation of some branches. The TA is expected to lead to a
sizeable higher growth in the deposit portfolio of VFR, which will support
meeting the MFI’s ambitious business plan targets in terms of deposit mobilization.
Overall,
all these project outcomes shall contribute to the following set of indicators,
on which the MFI will have to report to the CF Manager over time.
all these project outcomes shall contribute to the following set of indicators,
on which the MFI will have to report to the CF Manager over time.
- Number
of active clients living in rural areas - The
rural loan portfolio - The
rural savings portfolio - PAR>30
that does not exceed 5%
Scope
of Work
of Work
The
TA project will have two (2) components. The specific activities that shall be
covered by the project are the following:
TA project will have two (2) components. The specific activities that shall be
covered by the project are the following:
Component
1: Market positioning and branding
1: Market positioning and branding
- Perform
a rapid assessment of the target market in order to understand existing
and potential clients’ needs and preferences. - Based
on the result of the assessment, the consultant shall suggest a set of
clearly distinguishing features in the eyes of the clients for the
different savings products. - Work
with VFR staff to elaborate an internal marketing and promotion strategy
for the different products and services and set up an internal marketing
plan, including a budget estimate. - Development
of marketing, Branding and promotion materials, a communication plan and
implementation of the marketing plan. - Suggest
deposit mobilization targets for each of the branches and integrate
savings mobilization in the current reward system.
Component
2: Strengthening deposit mobilisation through mobile agency banking
2: Strengthening deposit mobilisation through mobile agency banking
- Determine
the extent of availability and appropriateness of products promoted
through mobile agency bankingin Rwanda and determine the extent to which
the products delivered using the agent banking approach meet the needs of
the target group; - Assess
the services/products offered in the market through mobile agency banking
including the numbers and profiles of customers using mobile agency
banking. The consultant will analyze these “products” and consider the
relative efficiency and relevance of each, identifying gaps; Assess level
of penetration of agents to provide services to the clients and
non-clients of VFR and the general progress of mobile agency banking in
Rwanda; - Assess
on whether market domination exists and if so, how this impacts costs,
innovation andpenetration into the low-income market as well as potential
for market abuse but at the same time examine whether dominance has the
potential for a positive spin in terms of stability, trust, - effective
market literacy campaigns and access to customer recourse from VFR; - Assess
the viability of agent sharing in the market, what are the practical
challenges and gains with this approach; - Analyze
the opportunities and potential of mobile agency banking in Rwanda to
increaseaccess to financial services for low income individuals and assess
the benefits and drawback of agents. - Link
at least 10 existing Savings Groups Savings (VSLA’s) to M-hano using
Mobile Banking agents/MNO agents, so that the Savings groups start savings
their weekly/monthly share outs. - Evaluate
any linkages between (a) agent banking and other mobile financial services
and (b) agent banking and increased access to financial services; - Identify
and determine policy and regulatory issues (including incentives or
disincentives) that influence the effectiveoperations of agent banking and
make recommendations; - Examine
the challenges and constrains experienced by VFR, agents and clients inthe
use of agent banking and make recommendations to directly enhance use of
agent banking by VFR; - The
consultant will support VFR with agent selection and to draft a binding
contract to be signed by VFR and the agents. In addition, the consultant
will training the selected agents and provides reporting templates to be
used in monitoring the agency banking operations.
Implementation
Approach
While implementing the TA, the consultant will adopt a highly responsive
approach by closely working with VFR’s senior management team and all other relevant
staff. The institution will take strong ownership of the project and will
nominate one internal resource person who will be the first contact point for
both the consultant and the CF Manager throughout the project. This person will
be at the level of a senior manager with the capacity to influence timeliness,
quality and effectiveness of the TA measures.
Approach
While implementing the TA, the consultant will adopt a highly responsive
approach by closely working with VFR’s senior management team and all other relevant
staff. The institution will take strong ownership of the project and will
nominate one internal resource person who will be the first contact point for
both the consultant and the CF Manager throughout the project. This person will
be at the level of a senior manager with the capacity to influence timeliness,
quality and effectiveness of the TA measures.
Should
there be separate teams for the twocomponents; the teams should establish a
good internal communication mode to ensure high efficiency when interacting
with VFR.
there be separate teams for the twocomponents; the teams should establish a
good internal communication mode to ensure high efficiency when interacting
with VFR.
Deliverables
The following deliverables are expected to be elaborated or achieved by the
consultant:
The following deliverables are expected to be elaborated or achieved by the
consultant:
The
following deliverables are expected to be elaborated or achieved by the
consultant:
following deliverables are expected to be elaborated or achieved by the
consultant:
Component
1: Market positioning and branding
1: Market positioning and branding
- Market
assessment report - Marketing
strategy and internal marketing plan - Marketing
materials, a communication plan and implementation plan developed - Deposit
mobilization targets established for each branch, with strategies to
achieve them - Development
of Marketing, branding and promotional materials.
Component
2: Strengthening deposit mobilisation through mobile agency banking
2: Strengthening deposit mobilisation through mobile agency banking
- Study
report analyzing the readiness of VFR to introduce mobile agency banking
and the state of agency banking in Rwanda with clear recommendations and
road map to implement the recommendations - Agents
selected and trained - Contract
draft for agent banking partners - Reporting
templates to monitor the performance of mobile agency banking - Linkingat
least 10 VSLA’s to save using Mobile banking technology.
In
addition, the consultant will provide the Challenge FundTA project manager
with:
addition, the consultant will provide the Challenge FundTA project manager
with:
- Brief
monthly written progress reports, providing an update on the project
activities (max 2 pages) - Final
project report, outlining all activities undertaken, status on the
achievement, challenges faced, lessons learned and recommendations for
VFR. Previous project deliverables will be annexed.
To
ensure a smooth project start and end, the consultantwill be briefed by the CF
Manager prior to working with VFR and will end each on-site missions with a
de-brief meeting. Over the course of the project, the consultant will be
available for ad-hoc reporting to the CF Manager via email or telephone, on a
needs basis. Reports are to be submitted according to the work plan (to be
agreed).
ensure a smooth project start and end, the consultantwill be briefed by the CF
Manager prior to working with VFR and will end each on-site missions with a
de-brief meeting. Over the course of the project, the consultant will be
available for ad-hoc reporting to the CF Manager via email or telephone, on a
needs basis. Reports are to be submitted according to the work plan (to be
agreed).
Competencies
Required
Required
The
following key competences are required to quality for implementing this
assignment:
following key competences are required to quality for implementing this
assignment:
General
qualifications:
qualifications:
- Comprehensive
knowledge and application of Microfinance industry best practices - Track
record of at least in the provision of high quality TA to MFIs (preferably
in Africa) - Track
record of team management and project steering skills - Proven
understanding of the Rwandan financial market.
Qualifications
for component 1:
for component 1:
- High
level experience in rapid market assessment methodologies; - Proven
track record in deposit product design; - Background
and experience in branding and market positioning; - Track
record in client targeting and marketing strategy development; - Good
training and communicationskills;
Qualifications
for component 2:
for component 2:
- Good
knowledge of mobile banking, Savings groups and agency banking approaches
and corresponding risk patterns and management thereof; - High
analytical skills and knowledge of good practices in setting up mobile
banking risk management systems.
Timeline
The
project isplanned to commence in mid February 2017.The duration of the project
is foreseen to cover a period of three (3) months. The two components shall be
implemented simultaneously.
project isplanned to commence in mid February 2017.The duration of the project
is foreseen to cover a period of three (3) months. The two components shall be
implemented simultaneously.
VFR
may also have other TA projects planned. Should there be overlaps with other
projects, the consultants are asked to be mindful of the absorption capacities
of VFR and carefully coordinate and plan their activities with VFR’s top
management.
may also have other TA projects planned. Should there be overlaps with other
projects, the consultants are asked to be mindful of the absorption capacities
of VFR and carefully coordinate and plan their activities with VFR’s top
management.
Application
process and requirements.
process and requirements.
Interested
and qualified candidates/firms should submit their applications addressed to the
Chief Executive Officer the bidding document should include the following:
and qualified candidates/firms should submit their applications addressed to the
Chief Executive Officer the bidding document should include the following:
1.
References for completion of similar work.
References for completion of similar work.
2.
Detailed Curriculum Vitae (Individuals or Firms)
Detailed Curriculum Vitae (Individuals or Firms)
3.
Proposed implementing plan for the assignment
Proposed implementing plan for the assignment
4.
Technical offer
Technical offer
5.
Financial offer
Financial offer
Note
that technical offer and financial offers ought to be submitted in different
sealed envelopes.
that technical offer and financial offers ought to be submitted in different
sealed envelopes.
Please
quote “Strengthening deposit mobilization through market positioning,
branding and mobile agency banking development and implementation” on the
subject line.
quote “Strengthening deposit mobilization through market positioning,
branding and mobile agency banking development and implementation” on the
subject line.
Applications
should be sealed in 2 separate envelops; one for Technical offer and another
for Financial offer, to be deposited at VFR –Head office at
Muhima, no later than 31/ 01/2017 at 5:pm local time.For
further information e mail on recruitment@vfcrwanda.rw
or call 0788306270/0786 938 026
should be sealed in 2 separate envelops; one for Technical offer and another
for Financial offer, to be deposited at VFR –Head office at
Muhima, no later than 31/ 01/2017 at 5:pm local time.For
further information e mail on recruitment@vfcrwanda.rw
or call 0788306270/0786 938 026
Done
at Kigali on 16/01/2017
at Kigali on 16/01/2017
VFR
Management
Management
Formerly
known as Vision Finance Company
known as Vision Finance Company
