Enabling Youth, Developing Independence
Key learnings:
- There's a certain economic scale needed for this social investment "wheel" to start rolling. The minimum investment for one cluster is USD500,000.
- This funds will perpetually cover and benefit the economy of 2100 families through micro-loans and at all times, 720 underprivileged kids or school dropouts can continue their education and gain vocational skills.
- The operation to make it work has to be managed well with the highest standard of discipline which comprises:
- one team for micro-loan operation (1 area manager overseeing 7 field officers, 1 financial officer and 2 admin staff) and,|
- one education team (1 principal, 7 teachers, 1 field officer and 5 admin staff). - Keeping the default rate as low as possible not more than 5%. Our operation to date shows 99% repayment rate.
- Never fail to educate the micro-loan clients on financial literacy in a very simple way e.g with a color coded envelope.
- Micro-loan in isolation of other development program will not work. This brings us to innovate a micro-loan plus. Our micro-loan is a "conditional" micro loan that links the access to funds and the education of the children at the bottom of the pyramid. With 4000 active clients, every year they bring 200-300 kids to our learning centers.
Key process elements:
On innovation:
What does the model look like?
On the model:
Would the model on paper works as planned? Would the milestones hit the target in time?
On clients:
Would our clients increase their welfare in short-medium term thru this economic empowerment and in a long run, thru the education of their children?
Public perception:
How do the market/investor perceive this product?
Would people be excited to have an option to invest to do good than the classic way of giving?
Success looks like:
- Serving 50,000 active clients
- Clients to bring in 5000 drop-outs to our learning centers
- Impacting the lives of a quarter million: measurement on whether their welfare increases over time and on whether the education of their children helps improve family welfare.
Help needed:
- We need investors. One cluster is half a million dollar. To reach the target, we need $12.5mio
- Resources: trained field officers and teachers certified by our partner university
- Digital transaction: to minimise operation risks
- With that, we need to work with a telco company and a bank. Due to heavy regulations in both industry, we need new innovation!
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Education
Jakarta, Jakarta, Indonesia
Moderated by Veronica Colondam 1
Project leader:
Veronica Colondam
Organization:
YCAB Foundation
Big idea:
The use of social investment as the wheel to create perpetual funding and sustainable program
