Innovation Grant Application Form

2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng INNOVATION GRANT APPLICATION FORM EFINA INNOVATION GRANT ROUND 7 - WINDOW ONE MICRO SAVINGS, MICROLOANS AND MICROINSURANCE PRODUCTS FOR LOW INCOME WOMEN NATIONWIDE AND/OR PEOPLE IN NORTHERN NIGERIA

EFInA is pleased to announce its seventh request for proposals (RFP 7) for the Innovation Grant. RFP 7 has two windows. Window One will only consider proposals that seek to increase the uptake and usage of micro savings, micro loans and microinsurance, products, preferably utilising electronic payment channels, among low income women nationwide and/or people in northern Nigeria.

To apply, please fully complete sections 1 to 13 and submit to [email protected] by 6:00 pm on Monday, September 12, 2016

 Section 1: Company Details  Section 2: Project Summary Details  Section 3: Executive Summary  Section 4: Organisational Assessment  Section 5: Customer Value Proposition  Section 6: Agents Value Proposition (as applicable)  Section 7: Delivery Mechanisms & Supporting Technology  Section 8: Innovation  Section 9: Developmental Impact  Section 10: Risks and Assumptions  Section 11: Work Plan Schedule  Section 12: Project Budget  Section 13: Mandatory Documents

Please note: all information contained in this application will be treated with the highest level of confidentiality.

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng Section 1: Company Details Company Name Contact Name Contact Job Title Contact Email Address Alternate Email Address Address Town, State Telephone Number Mobile Phone Number Alternate Phone Number CEO’s Name CEO’s Contact

Section 2: Project Summary Details Project Title Project Focus Product Area (microinsurance, micro savings, and/or micro loans) Project Product Segment (Women and/or Northern Nigeria) Amount Requested (USD) Company Matching Funds (USD) Total Project Budget (USD) Project Start Date Project End Date

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng Section 3: Executive Summary Should be no more than two pages

Section 4: Organisational Assessment 4.1 Describe the problem the project seeks to solve

4.2 Has the project been piloted and tested prior to applying for the Innovation Grant? If Yes, kindly state number of customers and agents acquired, as applicable

4.3 Describe the organisation’s lessons from the pilot. What areas of the pilot were unexpected, i.e., exceeded expectations or fell short of expectations

4.4 How will the products/services be modified, if relevant, before roll-out or scale-up?

4.5 Describe the long term profitability of the products/services being proposed

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng

4.6 Provide the cost structure for delivering the products, including the CAPEX and OPEX requirements

4.7 List all the sources of revenue for the products/services that the company will gain in delivering the products/services

4.8 Provide the implementing team structure – who will be involved in implementing this project, what are their titles and roles? Include past achievements of each team member (attach the CVs)

4.9 Highlight the risks (internal and external factors) that could influence the success of the products roll-out (e.g., regulatory environment, infrastructure conditions, socio-economic conditions, market maturity, etc.)

4.10 Provide an assessment of the strengths and capabilities of your organisation that will ensure a successful roll-out or scale up of the products/services

4.11 If partners are involved in the roll-out or scale-up of the products/services, in the table below, provide a partnership assessment that describes, the strengths, weaknesses, risks

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng and roles of each partner

Partner Name Partner’s Role Risk of Partner Strengths of Weaknesses of Involvement Partner Partner 1. 2. 3.

Section 5: Customer Value Proposition 5.1 Using evidence and data, describe your customers’ pain points and the current existing or traditional alternatives to solving these pain points

5.2 Describe the problem that will be solved by offering the products/services

5.3 Describe your customer journey and touch points with your business and any partners, from awareness to utilisation

5.4 Briefly define the products/services’ use case for the customer Use case is defined as the value the products/services offer the customer and encourage the customer to subscribe to the organisation’s offering. For a strong use case, value is perceived and identified by the customer not only the organisation offering the products/services

5.5 How many additional customers will the products/services serve in the next 24 months?

5.6 What is your strategy for reaching the unbanked and under-banked population from awareness to activation? What channels will be used to reach these customers?

5.7 Describe your plans to provide customer service. How can customers register their complaints about the products/services. Include the redress mechanisms

5.8 Explain the plan for educating customers on the benefits of the products/services offered

5.9 What incentives, if any, will be provided to ensure that the customers take up the financial products/services and remain active?

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng Section 6: Agents Value Proposition (as applicable) 6.1 Do you need agents as part of your end-to-end offering? If so, describe the ideal agent

6.2 Please describe the role agents will play, what is expected of them. Please describe the type of agents that will be utilised e.g., direct sales agents or small businesses

6.3 Describe your agent network management strategy

6.4 What is the agent’s value proposition

6.5 How will your organisation identify potential new agents? What is your agent recruitment strategy?

6.6 Demonstrate the organisation’s plan to provide customer service to the agents

6.7 Provide the organisation’s plan to train and re-train agents? How will the organisation demonstrate evidence that agents have retained the training?

6.8 Which incentives, if any, will be provided to ensure that agents remain active?

6.9 Provide a breakdown of the agent’s expected commission in the first 6 months, first year and by the end of the second year. Kindly highlight all your assumptions

6.10 Describe the plan for agents’ liquidity management. How will that plan change in different geographies, if applicable

6.11 What proportion of agents will be women? What is the plan to acquire and retain female agents?

6.12 What proportion of agents will be from Northern Nigeria, if applicable

Section 7: Delivery Mechanisms & Supporting Technology 7.1 Describe your organisation’s product/service distribution strategy

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng 7.2 What states will be targeted in the next 24 months? How many Local Government Areas (LGAs) in each proposed state will be covered? Please provide details on the rural/urban focus of the project

7.3 Describe the digital components of the products/services, where applicable

7.4 Provide a price list of all products/services as well as terms and conditions that will be offered to the customers

7.5 What elements of the product offerings can be replicated across the country?

7.6 What technology will be employed to extend the reach of the products/services and potentially reduce the cost for customers?

7.7 Is the technology required to implement this project already in place or will the current technology require change as part of this project?

7.8 How will the organisation ensure that the technology platform utilised is secure and consumer data is protected?

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng Section 8: Innovation 8.1 Describe the innovative elements of the products/services

8.2 Provide justification for requesting donor funding for these products/services. Why does the organisation require EFInA funding?

8.3 How will the innovation enhance financial inclusion and improve the lives of the customers and/or agents

Section 9: Developmental Impact 9 9.1 Describe how these products/services will further the financial inclusion agenda in Nigeria?

9.2 What is the development impact of the products on women, where applicable?

9.3 What is the development impact for potential customers in Northern Nigeria, where applicable?

Section 10: Risks and Assumptions

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng 10.1 Describe the key assumptions that the organisation is making in undertaking this project. Include the assumptions the organisation has made about the business, legal, and social environment in which this project will be implemented

10.2 Provide a list of the risks that could affect the project, the potential impact on the project, the probability of occurring and the mitigation strategies. Fill out the table below Risk Impact Organisation’s Area of Mitigation Strategies (Low, Medium, High) Vulnerability

10.3 List the critical success factors for the project

10.4 List critical milestones for the project

10.5 What enablers/obstacles exist in the regulatory environment? Consider the regulatory environment in which you operate and whether this will enable your organisation to successfully implement the project. Please specify any potential obstacles, how they will affect the project, and how the impact will be managed

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng Section 11: Work Plan Schedule Please complete the Financial and Work plan template.

Section 12: Project Budget Please complete Financial and Work plan template.

Section 13: Mandatory Documents The following documents must be submitted with a completed Innovation Grant Application Form.

1. EFInA financial & work plan template (available from the EFInA Website) a) Sheet 1: Work Plan b) Sheet 2: Milestones c) Sheet 3: Project Budget (Expenditure) d) Sheet 4: Project P&L (Statement)

2. Capacity Documents a) Copies of relevant licenses/regulatory approvals to provide the products/services from relevant regulators, e.g. Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Nigerian Communication Commission (NCC) license(s) and any other regulator. b) Letter of approval from CBN to operate agent banking services (for super agents), including approval from CBN permitting the financial institution to operate agent banking services in Nigeria (for non-Mobile Money Operators) c) Copy of one-time Approval from the Central Bank of Nigeria, to offer agent banking services (for Deposit Money Banks, Microfinance Banks Primary Mortgage Banks, etc.) d) Evidence of compliance with the CBN’s Mobile Money Operators monthly data reporting requirements, for Mobile Money Operators only e) Curriculum Vitae (CV) of the members of the proposed project team

3. Copies of the following documents: a) Certificate of Incorporation b) Memorandum and Articles of Association c) Most recent Corporate Affairs Commission (CAC) 7 (Particulars of the Directors) d) Most recent Corporate Affairs Commission (CAC) 2 (Statement of share capital and retur n of allotment of shares)

of 14 2nd Floor, Southgate House Udi Street Osborne Foreshore Estate Ikoyi, Lagos Nigeria Tel: +234 1 270 2028, 1 632 0825 Website: www.efina.org.ng e) Form Corporate Affairs Commission (CAC) 10 (Form of Annual Returns) filed for the year preceding the year of the Grant f) Audited accounts statements for the last 2 years preceding the year of the Grant (however, new entities or joint ventures may present the audited statements of their main sponsor or shareholders) g) Signed Memorandum of Understanding (MOU) with all implementation partners h) Letter from the organisation’s Board approving the EFInA Grant application and stating their commitment to the proposed project i) Where applicable, applicants with intellectual property that is protected by laws in Niger ia must demonstrate proof that they have obtained permission to use such intellectual p roperty prior to commencing a project funded by the EFInA Innovation Grant

All completed Innovation Grant Application Forms together with supporting documentation should be submitted online to the EFInA Grants Team at [email protected] by 6:00 pm o n Monday, September 12, 2016.

All information submitted will be treated with the highest level of confidentiality