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Presented by (name) on (date)

THE STRENGTHENING OF A MICROFINANCE INSTITUTION THE RISE OF ITS CLIENTS. Presented by (name) on (date). Member. Member. Member. Riverbank. Member. Member. Member. Member. Our History.

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Presented by (name) on (date)

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  1. THE STRENGTHENING OF A MICROFINANCE INSTITUTION THE RISE OF ITS CLIENTS Presented by (name) on (date)

  2. Member Member Member Riverbank Member Member Member Member Our History We began as Riverbank Crescent Self-Help Group, a gathering of 7 women who owned small businesses in Njiru Quarry. Because they were not qualified for traditional banks, but still wished for financial intermediation to develop their businesses, the self-help group was formed to address their needs. When one of the members needed funds to buy more stock, for example, the money would be borrowed from other members and paid back according to their terms.

  3. Our History • Later the lending functions of Riverbank were separated from the social functions, and Riverbank Savings andwas officially formed. • Early on, the organization was small and faced many challenges. At times, credit officers were forced to track down clients throughout Nairobi everyday and ask for payments. • In February 2009, Riverbank was officially registered as a Savings and Credit Co-Operative (SACCO). RIVERBANK SAVINGS AND CREDIT

  4. Vision: to create an economic environment where the ability of the poor to do business is not determined by wealth inherited but by the individual’s commitment to capture business opportunities and make the best use of such opportunities Mission: to be the leading provider of microfinance services in Africa through deep understanding of financial needs by the economically disadvantaged and use information technology to support innovation of solutions to meet such needs Our Vision and Mission

  5. Our Approach – The 5 C’s ■Traditional banks regard collateral as the most important feature of a client. ■ Riverbank, however, respects theCHARACTER of our customers most of all. ■We also emphasizeCASH FLOW andCONDITIONSof the business, such as competition, trends, and opportunities. ■ Finally, we consider theCAPITAL andCOLLATERALof the business woman or man. ■ Thus, if a client has little to no inherited or current wealth, but a promising and feasible business plan, we can help them achieve their goals when other financial institutions cannot.

  6. Our Approach This outlook allows us to uphold our vision of creating an economic environment where the ability of the poor to do business is not determined by wealth inherited but by the individual’s commitment to capture business opportunities “ ”

  7. Our Services - Products • Riverbank again separates itself from traditional banks with our unique products, which are customized and revised to specially suit our clients’ needs.

  8. Instant Loan Amka Twende Our Services - Products • The Instant Loan (Amka Twende)is intended for clients seeking a small loan of Ksh 2000/- quickly and conveniently. • The member must save in a Riverbank account for 7 days, and the loan is to be disbursed on the tenth day. • An interest rate of 3% is collected daily over a repayment period of 2 weeks. • Savings must equal at least 30% of loan size and a guarantor is needed. our most popular product

  9. Instant Loan Amka Twende Carpenters use the funds to purchase timber and tools. Shoe makers use the funds to purchase raw materials. Food vendors use the funds to buy more fruits and vegetables, fish, or meat. Merchants use the funds to buy more clothes for their shops. Our Services - Products • Most clients use the loan to grow their small businesses. For example:

  10. Our Services - Products • The Group Loan (Imarisha Kazi)is available to up to two members of a group of five individuals. • Members must save in a Riverbank account for 4 weeks. • A loan may be requested for an amount that does exceed 2 times the individual’s savings and the total savings of the group. • An interest rate of 1.5% is collected daily. • After 75% of the loan is repaid, non-lending members of the group become eligible for a loan. • All members of the group serve as the guarantors. Group Loan Imarisha Kazi

  11. Our Services - Products Micro-Housing Loan Hatua

  12. Our Services - Products Micro-Housing Loan • Hatua plot loans are designed to finance the purchase of a vacant residential lot or land. The member’s savings must equal at least 40% of the plot deposit and the repayment period can extend up to 5 years. • Hatua jenga loans are designed to finance the construction of a home. The member must submit a plan and estimated budget for approval, and savings must equal at least 60% of budget. The repayment period can extend up to 15 years. • Hatua purchase loans are designed to finance the purchase of a house. An interest rate of 9% monthly is collected over a repayment period of up to 5 years. Savings must equal at least 40% of loan size. Hatua • The Micro-Housing Loans (Hatua)are a set of loans to finance the purchase and construction of housing.

  13. Our Services - Products Kadogo • The Kadogo Loanis a loan with a very small interest rate for groups of 5 people selling a product together. • The members must have a minimum savings of Kshs 200/- in a Riverbank account. • The interest rate of Kshs 5/- for every 500/- given is repaid daily over a period of 7 to 14 days. Loan

  14. Our Services - Products • The Motorbike Loanis specially designed for members seeking to purchase a motorbike to start a transport business. • The member must have a minimum savings in a Riverbank account of 40% of the estimated cost of the bike. • The flat interest rate is 15% monthly. Motorbike Loan

  15. Our Services - Products • Business loans (Biashara Uwezo) are designed for fully developed business set ups. • Emergency loans are available to all members who have active accounts for at least 6 months. These loans can be given simultaneously with other loans. • Education loans (Masoma) are available for the payment of school fees from nursery to secondary school. • Salary loans are advances on a member’s salary, available to those who have saved with Riverbank for at least one month. • Insurance premium finance loans are designed to enable members to access various low cost insurance products for medical cover, fire and burglary and education endowment.

  16. Our Services - Insurance • Problem: We soon realized that a prime cause of defaults on loans was the overbearing cost of emergency medical expenses. Because we understood that no family should have to choose between the health of their loved ones and repaying a loan, we developed an insurance service to protect our clients and their accounts. • Solution: In partnership with the Co-operative Insurance Company of Kenya and NHIF, we now offer discounted insurance along with insurance premium financing to our members. Since this service was introduced, we have found that a number of members have joined Riverbank simply to gain access to this valuable coverage.

  17. Our Services - Insurance • Insurance coverage is mandatory for all members with loans of 100,000/- and above. • Riverbank offers insurance premium financing loans, so that interested members are not turned down due to insufficient savings.

  18. Our Services – Savings and Investment • The investment plan attracts interest at 0.75% per month for deposits with minimum of Kshs 5,000/-. • Accounts can also be set for Kshs 20,000/-, Kshs 50,000/-, Kshs 100,000/-, and Kshs 1,000,000/-. • Member savings are made into a long term deposit, which can not be withdrawn for a period of 3, 6, 9, or 12 months. Investment Lenga Kikapu • Investment products (Lenga Kikapu) are designed to enable members to accumulate wealth through long term savings.

  19. Our Marketing Strategies • Most of our clients learn about Riverbank from credit officers, who are in the field visiting clients everyday. We have also hosted a number of local rallies to register many new members at once, sometimes 60-70 in one day.

  20. Our Marketing Strategies • In addition, we have created a number of fliers and brochures to promote the many services we offer and clearly explain the details of our products.

  21. Our Network

  22. Our Network - Growth • In the future we intend to expand our reach and open offices around the country and eventually around the continent. We are planning the opening of branches in …

  23. Client Stories

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