Rural reach: Streamlining micro-credit payments
Enabling individuals in cash-intensive, rural communities to conveniently make their monthly micro-credit payments through a Proximity Agents network.
UX/UI Design
0 → 1
Growth
FinTech
Stakeholders
Prosperus
Prosperus is a technology provider specializing in the tokenization of assets using blockchain technology. They operate in Fin-tech and their end-to-end transactional solution has been used by CBDC, banks, and large multi-national corporations.
The value proposition is to foster financial inclusion and efficiency gains from Central Banks to the people on the streets.
ENDA Tamweel
Enda Tamweel is a Tunisian micro-finance institution created by the NGO ENDA. Its mission is to contribute to the economic and social development of the country by providing services such as microcredit loans, guidance and training for low-income individuals.
The problem and pain-points
In rural, cash-based societies, paying credit and invoices is inconvenient for the general population due to the long distances they must travel to reach agencies. Approximately half (44%) of ENDA's clients are in rural areas. This situation has led to several inefficiencies, issues, and pain points.
Payment collection method 1: Client travels to ENDA agency
Client pain-points:
Time, money, and energy wasted on travel.
Challenges in finding coverage for their business operations.
Increased risk of missed or late payments.
Frustration and stress from long waiting lines at the agency.
ENDA pain-points:
Risk of reduced cash flow due to missed payments.
Challenges in managing the influx of clients at month-end.
Payment collection method 2: ENDA dispatches trucks to rural areas
Client pain-points:
Unpredictable truck schedules with no guarantee of arrival.
Clients confined to a specific location while waiting for the collection truck.
Cash must be on hand when the truck arrives.
ENDA pain-points:
High operational costs for trucks and employees.
Challenges in optimizing routes and achieving desired results.
Reconciliation discrepancies due to cash handling.
Our Goal
Given the pain points experienced by both clients and ENDA, we aimed to develop a solution with the following objectives in mind:
Enhance client convenience and accessibility.
Improve cash flow and increase timely payments.
Minimize risks associated with cash handling (reconciliation and loss).
Ideation Output
After conducting a series of brainstorming sessions and client interviews, we identified a promising opportunity: introducing independent third-party players called Proximity Agents (PAs) to process payment collections on behalf of ENDA.
These PAs wouldn't be ENDA employees, but rather small business owners—such as convenience store operators—situated in remote areas close to the clients.
To achieve the goals outlined above, we decided to develop an application for the Proximity Agent's phone. This app would utilize the Prosperus platform to connect with ENDA's banking solution (T24).
How Would This Work?
Step 1: Wallet top-up
When the PA purchases debt from ENDA, digital assets—called EDC (ENDA Coin)—are issued and credited to the PA's main digital wallet.
Step 2: Payment Processing
When clients visit the PA to make a payment, the PA receives cash and an equivalent amount of EDC is deducted from their wallet. The client also pays a small fee to the PA.
Step 3: Invoicing System Update
Once the transaction is complete, the two parties receive confirmation by sms and/or email and ENDA’s banking system T24 is automatically updated to reflect receipt of the payment.
Benefits for Each Stakeholder
Client
Convenience.
Saves time, money and energy.
Less late/missed payments
ENDA
Elimination of truck operating costs.
Reduced workload on agencies.
Increase in cash flow.
Dematerialization of the chain of cash and eliminating the cash handling.
Elimination of reconciliation discrepancies.
Proximity Agent
Generate additional income through fees by providing payment collection services.
Increase foot traffic in the store, potentially boosting sales of other merchandise.
Home Screen
The home screen displays the balance and transaction history. Users can view the main wallet and commission wallet (if applicable) by swiping left and right.
Top-up Flow (Credit Card)
Proximity Agents (PAs) have 2 ways to top up their main wallet, which means buying assets (EDC): using a credit card or paying cash at an ENDA agency.
Collecting Payments Flow
The PA enters the loan and client information, confirms the amount and fee with the client, accepts the cash payment, and initiates the transaction.
Cash-out Flow
PAs can withdraw funds from any of their wallets, converting their digital assets into cash deposited directly into their bank accounts.
After we run a 1st pilot for a duration of about 3 weeks with a PA.
97% transaction success rate. 2 bugs were found and resolved within 24h
No support requests received regarding app usage
0 reconciliation discrepancy for loan monthly payment transactions with ENDA's T24 system
After the successful pilot, ENDA began recruiting more Proximity Agents. Moreover, Prosperus secured 2 new projects with telecommunication and internet providers, adapting this concept to their operations.
My time at Prosperus involved working on other projects for web such as asset creation and management module, analytics module, affiliate management module.
For a deeper dive on this project or any other one, you are welcome to reach out at mfessi.connect@gmail.com