UNCDF’s MicroLead programme team is proud to introduce its sixth digital financial services (DFS) toolkit: Become a Digital Provider. This guide, from UNCDF/MicroLead and Mastercard Foundation and with support from PHB Development, is available in both French and English here.

This toolkit describes different paths for a financial service provider (FSP) to become a provider of mobile banking services that clients can access from their mobile phones. In this model, the ultimate objective is to digitize all operations, from collection of client data and credit applications to disbursement and repayment of loans and collection of savings.

Financial institutions (FIs) that deploy this model have the shared characteristic of holding a provider license—whether it be a banking license, which can benefit a mobile network operator (MNO) for mobile savings and loans (MS&L), a license to be a mobile virtual network operator (MVNO) to provide mobile services, or an e-money issuer license that can benefit other FIs. In this sixth digital finance model, the FI becomes a distributor of digital financial services (DFS) and its clients (other FIs, MNOs, etc.) form partnerships with the FI to leverage its provider license.

You can download all six of these step-by-step digital finance guides and their associated case studies free here: https://www.uncdf.org/microlead/download-the-dfs-toolkits-from-microlead

MicroLead’s other DFS toolkits include:

Toolkit 1 – Use Mobile Devices: An FI can use mobile devices to provide existing services at a lower cost or to offer new services through a mobile channel. Transactions are performed by an FI’s representative using mobile devices. Clients do not initiate the transactions.

Toolkit 2 – Be an Agent: Becoming an agent is one of the simpler methods FIs can utilize. In this model, the FI acts as an agent for a digital financial service provider (often an MNO) and offers the provider’s products and services through the FI’s own branch network.

Toolkit 3 – Leverage an Existing Agent Network: In this third model, the FI forms a partnership with a digital financial service provider (DFI), and the FI provides its own products and services using the DFI’s network. It’s a form of agency banking, where customers can deposit and withdraw money from their account with the FI to their mobile money account and/or make over-the-counter transactions.

Toolkit 4 – Create Your Own Agent Network: For an FI, developing its own proprietary agent network is a tantalizing option, presenting both potential and perils. In this fourth DFS model, a financial institution identifies, recruits, trains, brands and manages its own network of third-party agents, which distributes its financial products and services.

Toolkit 5 – Create Your Mobile Banking Channel: Here, an FI invests in a mobile banking platform to enable its clients to perform a range of transactions from their mobile phones. The FI’s own agents are used as cash-in/cash-out points. Transactions impact the core banking system (CBS) in real time and require an integration between the CBS and the mobile banking platform.

For more information on the MicroLead programme, please visit www.uncdf.org/microlead. Follow UNCDF MicroLead at @UNCDFMicroLead.