CGAP’s FinDev Gateway has featured Field Buzz in the latest blog post written by the Propagate Coalition.
The post is titled “How Can Financial Technology Serve Smallholder Farmers?” and discusses how to overcome the challenges and risks in providing financial services for smallholder farmers. The Field Buzz experience in delivering microfinance solutions for BRAC and for Neumann Kaffee Gruppe is explained: “Scoring models can help to overcome challenges associated with the lack of data, as well as reduce the burden of financial risk. [… Field Buzz is] developing a model which uses historical transaction data to identify relevant patterns for creditworthiness and risk, which can help automate certain decisions such as loan approvals. With the Field Buzz app, farmers are individually registered in the system and given membership cards with a unique code that is scanned to identify them through their smartphone camera. All of their transactions and activities, including loan requests, crop collections, visits to farms and training sessions, are then stored digitally to help FSPs with financial decision-making. Partnerships are another way that fintech providers are helping to solve the issue of lack of data. Field Buzz is developing three-way partnerships between FSPs, agribusinesses and technology providers. Agribusinesses have deep networks in rural areas, economic relationships with many smallholders, and a staff of agronomists or other forms of technical support for farmers. But the information they gather is typically offline and not accessible to FSPs. The technology provider remedies that by setting up a system to record data on the interactions between agribusinesses and farmers in a digital format. Over time, as these transactions start to create track records for each farmer, they can be used by the partner FSPs to assess key criteria for assessing individual farmers’ risk and economic capacity.”
You can read the full blog post here: https://www.findevgateway.org/blog/2020/06/how-can-financial-technology-serve-smallholder-farmers.
FinDev Gateway, previously known as Microfinance Gateway, is CGAP’s independent knowledge platform where the global financial inclusion community comes together to share the latest research, lessons and ideas on making financial services work for poor people. CGAP is a global partnership of more than 30 leading development organizations that works to advance the lives of poor people through financial inclusion. FinDev Gateway hosts the largest, free collection of online resources on microfinance and financial inclusion. More than 1,600 organizations publish their content on FinDev Gateway, sharing their research, news, events and jobs with the global financial inclusion community. For more information on CGAP’s FinDev Gateway please visit: https://www.findevgateway.org/about-findev
The Propagate Coalition, https://www.propagatecoalition.org/, is a coalition of financial inclusion practitioners with a deep involvement in smallholder finance. They have come together as a group to propagate the message that smallholder finance offers one of the greatest opportunities for growth and impact in financial inclusion today. Propagate comprises 7 organisations from around the world, including some of the largest and most innovative organisations working in micro and smallholder finance: BRAC, One Acre Fund, Mercy Corps, Agora Microfinance, Juhudi Kilimo, VisionFund International and Opportunity International.