Omidyar Network Grants $4.5 Million to Opportunity International to Scale Technology-based Microfinance Services in Africa
announced it has received a
Opportunity will use the grant to design, create and implement new electronic
and mobile banking technologies that will reduce transaction costs and make
microfinance services available to more people in Sub-Saharan Africa.
Omidyar Network, a philanthropic investment firm started by eBay founder
Pierre Omidyar and his wife Pam, has committed more than
microfinance programs since 2004. Omidyar Network provided the
grant to Opportunity International because of the organization’s leadership in
developing and implementing innovative technologies that deliver financial
services to the poor.
Opportunity International will use the grant to launch an “electronic
wallet” strategy in
already, including banks and financial institutions. The strategy aims to
develop the optimum mix of electronic banking technologies needed in each of
these countries.
“Omidyar Network is pleased to be working with Opportunity International
on this innovative microfinance initiative,” said
partner, Omidyar Network. “Opportunity International has made significant
progress in modernizing microfinance delivery channels and openly shares its
knowledge to help advance the entire industry. This collaborative spirit,
along with a scalable, technology-based model, makes Opportunity International
a natural fit for Omidyar Network.”
Optimizing Technology Differs in Each Country
The first step of the effort is to establish new telecommunications
solutions in each of the eight African countries mentioned previously.
Opportunity will test and implement satellite and broadband Internet
connectivity that enables faster, more reliable service connections to branch
banks and provides the needed banking infrastructure to lower costs of
servicing small loans and savings accounts for the poor.
In
now in extensive use in
developing national payment system. This capability will improve the
availability of financial services, timeliness of transaction reporting and
security of client banking, as well as reduce the cost of banking
transactions.
“In countries where national payment systems exist, like
Philippines
services to the poor,” explained
Opportunity International. “Our clients can now make deposits at the end of
the business day via ATM and retail point-of-sale outlets instead of having to
carry cash home with them, which greatly increases their safety and security,
not to mention their efficiency.”
Cellular phone technology is an alternate method for performing banking
transactions in countries that lack a national payment system. Opportunity
International is developing mobile phone banking solutions to support the
electronic transfer of deposits and withdrawals for its clients. Through its
work, the organization expects to enable more than 250,000 clients to conduct
36 million transactions across five countries. In addition, loan officers
will be able to carry mobile phone devices to collect bill payments and
provide receipts and other services to its clients in rural
“Omidyar Network’s expertise and partnership for determining the
appropriate mix of microfinance delivery channels and technologies needed in
the region is invaluable,” Crane said. “Their grant will enable us to help
more of the working poor across
- out of poverty, faster.”
Sharing Knowledge with the Microfinance Industry
The Omidyar Network grant also will enable Opportunity International to
share best practices with the entire microfinance industry. The organization
will host technology symposia with microfinance leaders, develop white papers
and conduct speaking engagements to document the lessons learned and provide
demonstrations of its work.
About Omidyar Network
Omidyar Network is a philanthropic investment firm committed to creating
opportunity for people. Established by Pierre Omidyar, the founder of eBay,
and his wife Pam, Omidyar Network supports nonprofit and for-profit efforts
that enable people around the world to improve their lives and make powerful
contributions to their communities. Since 2004, Omidyar Network has funded a
number of organizations in areas such as microfinance, social media and
government transparency. To learn more about Omidyar Network, please visit
http://www.omidyar.net.
About Opportunity International
Opportunity International is committed to solving global poverty. Serving
approximately 1.1 million poor entrepreneurs in 27 developing countries,
Opportunity International is a pioneer in offering small business loans,
savings, insurance and training in basic business practices to women and men
living in chronic poverty. Founded in 1971 as one of the first microcredit
lenders, the organization provides small loans and other services that allow
poor entrepreneurs to start or expand a business, develop a steady income,
provide for their families and create jobs for their neighbors. OptINnow(TM),
a new initiative from Opportunity International, connects people who want to
make a difference with the working poor around the world. At
http://www.optinnow.org, people can “opt in” — for as little as
fund a designated entrepreneur. As the loans are repaid, the money is loaned
again and again to help other entrepreneurs. Opportunity International
maintains a network of offices across the globe, with U.S. offices in
Brook, Ill.
http://www.opportunity.org.
SOURCE Opportunity International