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TRANSCRIPT
EQUITY BANK
SOCIAL PAYMENTS
Payments Mechanisms around Social Cash Transfer
2
How Payments fits in Social Cash
Transfer Programmes
Selection of beneficiaries by Government or Selected NGO’s
Payment made every 2mths, Monthly by
Agents overseen by Equity Bank and Driven by
Technology
List confirmed by Managing Secretariat
The Rights of beneficiaries overseen by Rights groupings
The impact of the programme monitored and evaluated by Selected M& E
Requirements of Payment
Mechanism • Cost effective - minimising transaction costs for the
funder
• Maximize functional security and integrity for funders
• Minimize costs for the recipients
• Financial accessibility
• Re-use of Technology to deliver other complimentary services
Equity Bank Innovative Payment Mechanism
Recipients Individual eligible to collect payment. Either the enrolled beneficiary or a recipient nominated by the beneficiary to collect the payment on their behalf
Payment instrument Smart card with fingerprint of correct recipient, inserted in agent’s POS device
Authentication finger print of recipient read by POS matches fingerprint on card
Distribution Points Local Shop keepers acting as agents of Equity bank carryout payment transaction
Transaction Device POS device with biometric fingerprint reader is operated by agent.
Payment Service Provider (PSP)
Challenges With Cash Transfers
• Very poor infrastructure
• Poorly educated population
• Poorly developed cash economy
• Insecurity
Agency Model - Delivery Agents
Benefits
• No transport of cash - security
• Payment made closer to recipients
• Faster service
• Service from member of the community
• Cash is used to develop local economy increase stock levels
• Less cash in duka and on roads
Challenges
• Needs sufficient cash in local businesses
• Need sufficient Agents
• Need to communicate collection time to recipients
• Recipient needs national ID
• Recipient giving cash to Beneficiary
Equity Bank Experience With Social Cash Transfers
• Hunger Safety Net Programme Funded by UKAID
The HSNP is a partnership between DFID and the Kenyan Government to provide bi-monthly cash transfers to 60,000 families in Kenya’s most arid areas using state-of-the-art biometric technology and network of points-of-sale beyond the traditional Bank Branch model. The program is focused in Northern Kenya, one of Kenya’s remotest regions.
Partnerships in Social Cash Transfer
• Index Based Livestock Insurance (IBLI) Funded by FSD, USAID & World Bank – Partnership with ILRI to collect insurance premiums
targeting 10,000 pastoralists in Marsabit location of Northern Kenya.
• World Food Programme – The Seasonal Cash For Assets (SCFA) pilot, under WFP
Kenya’s Protracted Relief and Recovery Operation (PRRO) – Partnership with WFP to effect cash payments
• Orphaned and Vulnerable Children – Cash transfer programme funded by The World Bank
through the Ministry of Gender
Partnerships
• Post-election Emergency Cash Intervention in Kenya (ECHO Funded Emergency) – ACF-USA began working in Nakuru Town in Rift Valley Province
immediately after the violence erupted, supporting the displaced population in major camps through emergency water, sanitation and hygiene, nutrition programmes and non-food distributions.
– ACF decided to develop a cashbased intervention to support the immediate and longer-term livelihood needs of IDPs and host communities in Nakuru Town
– Equity Bank was chosen because of the ease and accuracy of monitoring through the bank’s system, its transparency and accountability and the potential sustainability and longer-term impact encouraged by its micro-finance and savings policy
Other Cost Effective Technologies Being Piloted
• Mapped Equity Bank Account with Telecoms Money transfer services to Increase the reach.
– Orange Money with Orange Telkom
– Mkesho with Safaricom
– Yucash With Obopay’s Essar Telecom
– Eazy 24-7
THANK YOU