Challenges

IFAD funds this product through the project: “Access-To-Markets (ATMP),” in Kyrgyzstan

The proposed online platform seeks to respond to following challenges:
- Access to loans and provision of payment to remote locations of the country. The company uses its retail agents equipped with digital application to provide lending services to remotely located smallholders, and to create a network of off-site services (supply /demand analysis, cost/benefit and debt solvency capabilities of clients, market trends) to better serve their clients.
- Hassle-free payment and cost-effectiveness of borrowing. Mobile application is used to process payment, which are intended to reach beneficiaries within instants and at minimal costs. The payment system is approved by the National Bank of the Kyrgyz Republic.
- Networking. This innovative product puts in relation buyers and retails, i.e., smallholder farmers and milk collectors.

Primary target

Which group does your product/service primarily target?

Description of Innovation

Digital mobile payment with secured transaction and connecting buyers to sellers (benefitting 920 women & 575 youth)
This digital solution uses a mobile application integrated with the company's database and meets the requirements of the National Bank of the Kyrgyz Republic. The application works as follow:
 The Agent, represented by the milk collector, draws up the Borrower's application, uploads the Borrower's data to the Company's database (passport data, photo documents, income data, etc.)
 The company analyzes the Borrower's data, calculates the client's score and sends the application to the Credit Committee for review
 The Credit Committee reviews the application and gives an answer on the issuance/refusal of a loan. The whole procedure from the moment the data is loaded into the database takes no more than 30 minutes.
 The Agent receives a response from the Company, after which the Borrower can receive a loan at the Company's office
 This shortened loan application process can be applied to any value-chain activities undertaken by famers regardless of their locations (producers, processors, honey, meat, dairy, cotton, etc.).
The proposed solutions aims at increasing smallholder farmers access to credit

Results

There are no impact yet since this are still at inception stage

Lessons Learnt

Given the project currently being at its inception phase, it is too premature to extrapolate lessons learnt

Market development The platform will potentially give farmers access to markets to sell their products and purchase their needs without any hassle. The availability of market information will strengthen business ties among partners and facilitate decision-making, as production will be guided ultimately by demand.
Secured transactions Farmers and users will be able to rely on the platform for the security of their transactions.
Better livelihoods It is expected that the development of the markets and reliability of transactions will end up by creating more jobs, increasing people’s incomes and securing livelihoods.
Impact created (or potential impact) – (Please mention facts, numbers in terms of how many people were served especially women and youth entrepreneurs, how much saving, job creation etc. )