Blog

Impact of the COVID-19 pandemic on CICO agents- Kenya report

Posted on by MSC

Although CICO agents have been at the forefront of the social cash transfer program of the government during the COVID-19 pandemic which provided agents with some additional income. However, the commissions of CICO agents took a hit, which in turn affected the viability of the agency business. This was mainly due to the extension of fee waivers on bank-to-bank and bank-to-mobile wallet transactions and fee waivers on mobile wallet transactions up to KES 1,000 (~USD 100), along with low customer footfall. Liquidity remains a top concern for many agents as they lack adequate resources. Agents, therefore, need access to concessionary loans or stimulus packages from the government to revive their businesses as the economy gradually reboots. Our new report captures the challenges in agency operations and the coping strategies of CICO agents. It also provides recommendations for policymakers, financial institutions, and donor organizations to support the recovery of CICO agents.

 

 

Impact of the COVID-19 pandemic on micro, small, and medium enterprises (MSMEs)- Kenya report

Posted on by MSC

As the economy gradually re-opened in Kenya, micro, small, and medium enterprises continued to feel the effects of the COVID-19 pandemic and earn less than they used to. The relaxation of restrictions restored transportation routes and enabled the easier flow of goods across locations, which improved supply chains. However, the adverse economic impact of the pandemic has reduced the purchasing power of customers significantly and forced them to spend more cautiously. This presents a challenge for entrepreneurs, who have been dealing with depressed demand for goods and services and low revenues on one hand and struggling to meet the rising expenses of their business and household on the other. This report unravels the impact of the pandemic on micro and small enterprises and highlights their coping strategies. It also provides recommendations for policymakers, financial institutions, and donor organizations to help these enterprises build resilience and recover.

 

 

Response to COVID-19 in Bangladesh

Posted on by MSC

This report is based on MSC’s second round of research on the recovery of low- and middle-income (LMI) segments in Bangladesh from the COVID-19 pandemic. The report of the first round of the study is available here. Based on the survey of 97 low- and moderate-income households in Bangladesh, this report examines the effects of the pandemic on their lives and seeks to understand their perspective. It also contains case studies, recommendations, challenges, concerns, and opportunities for the LMI community in these trying times.

 

 

 

 

KYC practices in Indonesia and opportunity for implementing e-KYC for accelerating financial inclusion

Posted on by MSC

Across various developing countries, e-KYC provides multiple benefits over traditional paper-based KYC. Our study in Indonesia shows that the implementation of e-KYC could save the FinTech sector USD 3.9-4.2 billion (IDR 57-61 trillion) and the banking sector close to USD 157-212 million (IDR 2,357–3,123 billion) in the next 10 years. To accelerate financial inclusion and support the needs of a booming digital economy, a low-cost and robust digital infrastructure to verify the identity of an individual is a necessity. This policy brief provides recommendations to accelerate the implementation of e-KYC in Indonesia.

Cash-In Cash-Out Cross-Country Analysis: Indonesia

Posted on by MSC

Agent networks are essential to deliver financial services and enable cash-in and cash-out (CICO) transactions at the last mile. This report maps the uptake and usage of DFS in Indonesia. It explores the agent landscape of the country, the business models adopted by service providers and agents, and the current practices in agent network management. The report further highlights lessons from Indonesia and provides recommendations for financial service providers, regulators, and policymakers to boost rural CICO networks.

Access the cross country analysis Indonesia report here