myAgro was recently featured in TechChange, a platform that provides online professional development in technology and social change.TechChange has an upcoming class: Mobile for International Development that starts on May 11.
Addressing Poverty’s “Triple Whammy” Through Mobile Savings
“The current financial model of banks cannot address what development experts call the “triple whammy” of poor peoples’ lives – they struggle with low savings, uncertainty of cash flows, and the inability to access formal financial instruments. Small farm holders in the developing world face similar struggles as they often have to purchase seeds and fertilizers in one large payment to improve their harvest. myAgro, provides an innovative alternative to farmers, eliminating the need for banks and placing financial decision-making in the hands of small farm holders.
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Why does myAgro’s model work?
MyAgro’s model gives rural farmers access to key financial services including cash-flow management and savings, through this approach:
- Reliability
Without the credit and collateral that banks require when opening a savings account, poor people have responded by forming rotating savings and credit funds (ROSCAs) within their communities. This has been replicated worldwide, helping families manage scarcities. However, this informal tool does not provide the accountability, reliability and privacy that banks would offer. MyAgro builds on the success of ROSCAs, where people save through small incremental amounts over the long-term, but with the security and reliability of a formal mobile platform. - Convenience
MyAgro clients don’t have to travel long distances to access banks, which is especially useful for rural farmers living in remote areas where bank branches do not exist. MyAgro also increases inclusion by making the system easy to use, especially for those who are illiterate. Getting the basic use out of myAgro only requires the farmer to SMS the numbers located on the card they purchased. In addition, no physical cash is involved. In mobile cash transfer platforms such as the successful M-PESA program, some local vendors run out of cash when a customer wants to conduct a transaction, myAgro only relies on digital transactions – a successful approach within cash-strapped countries. - Flexibility
By allowing farmers to choose how much to save on a given day, myAgro takes into account the variety of shocks that vulnerable populations experience, such as illness in the family or natural disasters. The mobile platform allows them to use their small-scale savings for large-scale purchases.”
Full article here:Â https://www.techchange.org/2015/04/30/addressing-poverty-through-mobile-savings-myagro/
