Responsible Inclusive Finance Facility in Central America and Caribbean (RIFF-CAC) Application Form

Upgrade Project to Improve Digital Financial Services

OVERVIEW OF AN UPGRADE PROJECT Background information: The Swiss Development Cooperation and the European Investment

Bank funds the Responsible Inclusive Finance Facility in Central America and Caribbean (RIFF-CAC), which launched operations in January 2018 and is working to build capacity and improve practice in social performance management (SPM) in Central America, Mexico, and the Caribbean. The Social Performance Task Force is managing RIFF-CAC, in collaboration with the Redcamif. One type of funding that RIFF-CAC offers is co-financing to financial service providers (FSPs) who would like to implement an "upgrade project to improve digital financial services or prepare the institution for digital transformation." See below for a description of this activity.

Description of an "upgrade project to improve digital financial services" : An upgrade project is a project designed and managed by a financial institution in order to improve its provision of digital financial services (DFS), done with care to integrate social performance practices into its new activities. Before an institution is ready for an upgrade project focused on DFS it must have secured both a) buy-in from Board and Governance structures for digital transformation, and b) funds for digital transformation. Ideally, the institution will also have done the following:

o Secured institutional commitment for digital transformationo Conducted strategic and tactical planning for digital transformationo Identified organizational competence needed for digital transformationo Established a change management plano Assessed its own digital transformation readiness or had an external digital readiness

evaluation done

Because the actions taken during an upgrade project vary according to the budget, needs, and priorities of the applicant, the RIFF-CAC cannot specify what activities will comprise your own project. From previous experience with the Facility in Africa, however, examples of common actions taken during upgrade projects focused on DFS often include:

o Develop and implement digital financial solutionso Design and implement agency banking strategyo Enable fintech collaboration for increased outreach o Digitize front end processes for microfinanceo Train staff members on digital financial services

Technical assistance for upgrade projects : Your institution may want to hire one or more technical assistance (TA) providers to work on this project. There are several ways to identify possible TA providers:

o Consult MicroSave to identify the most suitable TA provider/consultant with geographic and thematic knowledge

o Search for a consultant in the SPTF TA provider database (https://sptf.info/resources/find-a-ta-provider)

Page 1 of 8Updated 2018-05-20

o

o Select a TA provider already known to you. In this case, you will have to submit the person’s CV to the RIFF-CAC for approval.

Duration of upgrade project : The timeframe will depend on each project and the action plan or gaps identified. Typically, an upgrade project takes at minimum 3 and at maximum 18 months.

Sharing experience from your upgrade project : The RIFF-CAC requires all financial institutions who receive co-financing for upgrade projects to share information on their experiences, results, and lessons learned, with the Facility. Peer learning is essential to advancing practice in the microfinance sector. These deliverables will be treated as confidential. 

Eligibility : All financial service providers are welcome to apply. Language : The reporting you do to the RIFF-CAC on the results of your upgrade project must

occur in English or Spanish. Cost : The cost of an upgrade project varies by project, according to the gaps identified and

actions planned to address them. The RIFF-CAC will co-finance no more than 50% of the total cost of your upgrade project, up to a maximum grant of US$15,000. Your institution will be responsible for the remaining 50% of the cost of the upgrade project. In some cases, the RIFF-CAC will allow in-kind contribution, but at minimum 25% of external costs must be covered by the applicant, and the RIFF-CAC steering committee may require up to a maximum of 50% of external costs to be paid for by the applicant.

RIFF-CAC procedure to disburse co-financing grant : The RIFF-CAC will not disburse the co-financing grant to an institution on the date when its application is approved. Instead, it will wait until the institution begins the project and therefore also begins paying for its share of the cost. Additionally, RIFF-CAC will pay third-party vendors directly. This means that a portion, or all, of the co-financing may be paid directly to a third party instead of deposited in the account of the institution. In cases where it is not possible for the RIFF-CAC to pay third-party vendors directly, the institution must pay those vendors directly and then submit receipts to the RIFF-CAC for reimbursement.

Project start and end dates : A question in the application form below asks you for your preferred start date of the project, and also to describe any time constraints you have. The RIFF-CAC will review applications and do its best to make grants at a time that fits your schedule. You will also provide the expected end date of your project.

Deadline to submit application : None. RIFF-CAC accepts applications on a rolling basis, though the steering committee meets only quarterly to review applications.

QUESTIONS FOR THE APPLICANT1. Please provide the following information about you:

o First name: o Last name: o Email address: o Skype name (optional): o Phone number, with country code (optional): o Country of residence: o What is your preferred language to work in (please answer English, Spanish, French)?

Page 2 of 8Updated 2018-05-20

o What is your job title?

2. Please provide the following information about the institution you work for:o Name of your institution: o Country(ies) where your institution works:

3. Organizational Information . Please submit information on your institution to the RIFF-CAC in any one of the following formats:

o Has your institution filled out the SPI4? If yes, please submit your results.o Has your institution ever received a social rating? If yes, please submit your (most recent)

social rating report.o Has your organization had a digital readiness evaluation?o Please answer the questions listed below:

What is the legal structure of your organization?:

In what year was your institution founded?:

Does your institution have a social mission? If yes, please specify:

[If applicable] How many open savings accounts does your institution have?

[If applicable] How many active borrowers does your institution have? [NB: "active borrower" = borrower with at least one outstanding loan]:

4. Products and services . Please provide a summary description of the types of products and services that your institution offers:

General financial information. Please submit, along with your completed application form, a copy of your institution's income statement for the previous fiscal year. If this will not be possible, please explain why:

5. Digital assessments . Please see Annex 1 for a tool that allows you to conduct a brief self-assessment of your digital engagement. Please fill out the tool and attach it with your application. What is your total score?1:

6. Define the Upgrade Project to Improve DFS . Please answer the following questions:

1 Annex 1 presents a Grading tool that an institution may administer on its own or in collaboration with a TA provider. Please list the names and organizations of the TA provider who worked with you, as relevant.

Page 3 of 8Updated 2018-05-20

o Project description. Please describe the upgrade project to improve DFS that you would like to do:

o Project objectives. What are the expected results? How will this benefit your institution? How will it benefit your clients?

o Institutional buy-in. Please describe the level of support and engagement of the leadership of your institution (e.g., board, senior management) in this project:

7. Declaration of ability to co-finance . Explain specifically which funds or resources your institution will use to pay its share of the overall cost.

8. Start date . When would you like to being this upgrade project? Please indicate your preferred month(s) and year, and explain why this timing is preferable to you:

9. Availability . Are there any weeks or months in the upcoming year when you would NOT be available to implement your proposed upgrade project? Please explain:

10. Action plan : Along with this application form, please submit the action plan connected with this upgrade project. At minimum, this action plan should include the list of activities you plan to do and estimated timelines for starting and finishing each step. Any additional detail you wish to provide is welcome.

Page 4 of 8Updated 2018-05-20

11. External vendors . List any external vendor, other than TA providers, that your institution plans to purchase something from, or work with, to complete the project. Provide contact information for each vendor, along with a brief description of this vendor's business. If you have worked with them before, please summarize your work history with them

12. Budget . Please create and submit, along with this application form, an itemized budget for your upgrade project that includes an estimated level of effort (LOE) for everyone within your institution who will be working on the upgrade project.

o See below for a budget template you may like to use (optional).o For the TA provider(s) you propose to use (see pages 1-2 of this document for

suggestions on how to find TA providers), please submit letters or emails from these providers that state the amount of days they will be involved, their daily rate, and their estimated expenses that you will pay for (e.g., lodging, travel).

o If you propose to purchase items from an external vendor, please submit a quote from the vendor stating the cost of the item(s) you will be purchasing.

Summary of CostsCost Component COST (USD)

Remuneration XXReimbursable Expenses XXTax @ XX% XX

TOTAL XXXX

Breakdown of RemunerationS.No. Names Position Number of Days Daily

Fees (USD)

Amount (USD)

1 Consultant 1 Title 1 XX XX XXX2 Consultant 2 Title 2 XX XX XXX3 Consultant 3 Title 3 XX XX XXX4 Consultant 4 Title 4 XX XX XXX

Total Remuneration XX XXX

Breakdown of Reimbursable CostsS.No. Description Quantity Unit Unit Price (USD) Amount (USD)

1. International travela. Airfare including Airport Transfers  XXX XX Per Round Trip XX XXX  XXX XX Per Round Trip XX XXX  XXX XX Per Round Trip XX XXX  XXX XX Per Round Trip XX XXX  Sub Total International travel XX

b. Visa Fee  XXX XX Per Trip XX XXX  XXX XX Per Trip XX XXX  XXX XX Per Trip XX XXX  XXX XX Per Trip XX XXX  Sub Total Visa Fee XX

2. Daily Subsistence Allowance  XXX XX Per Day XX XXX  XXX XX Per Day XX XXX

Page 5 of 8Updated 2018-05-20

  XXX XX

Per Day

XX XXX

  XXX XX Per Day XX XXX  Sub Total DSA XX

3. In-country and Local Travela. Air Travel          XXX XX Per Day XX XXX  XXX XX Per Day XX XXX

b. Local Taxi Cost (within project city)

XX Per Day XX XXX

c. Inter-city travel by Rail or Road

XX Per Day XX XXX

d. Taxi cost for field areas (for research etc.)

XX Per Day XX XXX

  Sub Total In-country and Travel X4. Other Direct Expenses a. Mobile Phone and

Internet Communication Cost

XX Per Day XX XXX

b. Miscellaneous (pls. indicate details)

XX XXX XX XX

Total Re-imbursable Costs XXX

13. Monitoring implementation . To assist the RIFF-CAC in monitoring your progress in implementing this upgrade project, please list at least one specific achievement that will occur in each phase of your project:

14. Project outcome indicators . Describe any plans you have to measure results/outcomes of the project over time, and if possible list the specific indicators you will use to monitor progress.

15. Learning from peers is a valuable tool to help the microfinance sector advance practice throughout the world. For this reason, the RIFF-CAC requires any financial service provider that receives co-financing for an upgrade project to commit to giving feedback to the RIFF-CAC on their experience. The feedback mechanism will include both speaking to RIFF-CAC staff about your experiences at minimum at the project end, as well as submitting written responses to a project evaluation form. Please write your initials at the end of the following statement, to confirm you understand this rule and agree to it.

o I agree to provide feedback to the RIFF-CAC on my institution's experiences implementing an upgrade project co-financed by the RIFF-CAC. I understand that I am required to provide feedback through two channels: a) conversations with RIFF-CAC staff, and b) written responses to a project evaluation form. I understand that RIFF-CAC will not share this information publicly without my consent. [Your initials]:

Page 6 of 8Updated 2018-05-20

16. Instructions for submitting the application:o Please type (preferred) or write neatly answers to all questions

in this application.o Once you have completed the application, please email the following documents to

ffricac@sptfnetwork.org and put "Application to RIFF-CAC " as your subject line: your application form, filled out your institution's income statement for the previous year (if applicable) the evaluation reports described in question 3 an action plan for this project a budget for this project CV(s) of the TA provider(s) you propose to hire letter or email from the TA provider(s) you propose to hire, stating his/her/their

fees, dates of availability, and interest in doing the project (if applicable) letter the external vendor you will purchase goods or services from,

specifying costs of those goods or services

_______________

Please note that RIFF-CAC will reply to you upon receipt of your application, to confirm that we have received it. The RIFF-CAC steering committee meets quarterly to review applications. Therefore, you will receive notice of whether your application was approved no later than three months after the date when you submitted it. Thank you for your interest.

Page 7 of 8Updated 2018-05-20

Annex 1: Grading ToolAttribute Aspects

Response (Yes/No)Score (Yes =1; No=0)

Strategy A digitisation strategy Yes 1Governance commitment to digitisation Yes 1Management commitment to digitisation Yes 1Funds allocated to digitization Yes 1Staff buy-in for digitization Yes 1Business plan is aligned to digitisation strategy Yes 1

Products Digital products designed Yes 1Digital products tested Yes 1Digital products implemented No 0

Processes Digital onboarding of customers Yes 1Digital field applications No 0Digital flow of documentations Yes 1Automated credit scoring Yes 1Digital monitoring No 0Digital repayments Yes 1

Technology A technology team exists Yes 1Systems needs identified Yes 1Connect with APIs Yes 1Mobile money interface Yes 1Agent banking interface Yes 1Cloud computing Yes 1Data warehousing Yes 1

Analytics Data mining and analytics in place Yes 1GIS monitoring of staff and clients No 0Data analytics tools for agents Yes 1Data analytics used for clients and staff management Yes 1

Marketing Automated SMS for information Yes 1USSD Yes 1App Yes 1Social media Yes 1

Channels ATMs Yes 1POS Yes 1Apps Yes 1Agents Yes 1USSD Yes 1

Collaborations Fintechs Yes 1CRBs Yes 1Technology Companies Yes 1Remittance providers Yes 1Insurance providers Yes 1

Risk management

Enterprise Risk Management Solution in place Yes 1A risk team in place Yes 1Risk and fraud testing conducted Yes 1Risk and fraud mitigation strategies in place Yes 1

TOTAL SCORE 40GRADE Intermediate <10 = Beginner

10-40 = Intermediate>40 = Expert

Page 8 of 8Updated 2018-05-20