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DIGITIZING TRANSACTIONS BETWEEN MICRO-RETAILERS AND DISTRIBUTORS FOR MANAGING PURCHASES, STOCKS, PAYMENTS, AND ABOUT BUSINESS INNOVATION MODEL LEVERAGING TRANSACTIONAL DATA TO ACCESS CREDIT WORTHINESS Merchants Development Driving Rural Markets (MDDRM) Project is an EU funded initiative. UNCDF's Shaping Inclusive Finance Transformations (SHIFT) programme in South Asian Association for Regional Cooperation (SAARC) - SHIFT SAARC is a regional market-facilitation initiative aiming to improve livelihoods and reduce poverty in SAARC countries. MDDRM seeks to stimulate the expansion of digital technologies for Micro-merchant segments by encouraging innovation and linkages between retail and nancial services industries. MDDRM primarily focuses its interventions in Sirajganj, Tangail, Jamalpur, and Sherpur districts targeting 10,000 retail Micro-merchants. SHIFT MDDRM is facilitating 6 pilot innovation models utilizing micro-merchants networks reaching rural low income consumers through retail level value chains. The retail value chains will leverage the creative ideas and commercial instincts of FMCG and DFS providers by stimulating them to test innovative cross-sector business model and end-customer requisition strategies. Field Buzz supported by UNCDF, is digitizing transactions between micro-retailers (mudir dokan) and distributors for managing purchases, stocks, payments, and leveraging transactional data to access credit worthiness. Transactions done by these “mudir dokans” have already started to demonstrate the potential to fuel growth and provide citizens with access to nancial services; merchant engage in over 100 million nancial transactions per day. The ndings of a survey conducted by UNCDF revealed that 60-80% of all products in a store are FMCG and ordering process from the supplier is currently mostly manual (in person) and in cash but almost all retail micro-merchant have a mobile phone (and approximately 30% have a smart phone) and could use them for digitized stock ordering. Field Buzz will leverage its existing software-as-a-service software “Field Buzz Sales” for this project to be used by FMCG organizations/distributors and retail micro-merchants. Field Buzz Sales is specically designed for eld data collection and workow management in “low-resource” eld environments especially targeted for tracking secondary sales (here secondary sales refers to products movement either directly from FMCGs/non-FMCGs or distributors/dealers to the retailers). Additionally, using Retailer app the retailers will be able to record their own sales (tertiary transactions) and manage their inventory. Disclaimer: “This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Field Buzz & UNCDF and can in no way Field Buzz Sales has been successfully deployed by various partners including FMCG be taken to reect the views of the European Union.” in rural and urban areas of Bangladesh since 2018. Supported by Piloted by Implemented by Supported by Piloted by Implemented by BUSINESS MODEL BENEFITS FOR STAKEHOLDERS Timely & efcient Improved customer Digitally available FMCG Order from distributor inventory management retention transaction data to 1 Supplier/ Distributor build credit proles Manufacturer 2 Micro-merchant Faster & veried order Data analytics point to Reduced transaction 3 4 Delivery (Primary sales) Order collection from retailers growth opportunities cost sales) Delivery Improved business Delivery (Tertiary sales) (Secondary 5 Supplier operation Consumer Micro merchant (Mudir dokan) Introduction of new Reduction in cost of Improved ability to credit products to the lending to micro- assess credit risks by 7 7 retail sector merchants using digitally available Financial Service Payment transactional history Providers Payment MFS 6 Field Buzz system KEY OUTPUTS 2 100 active Field Buzz Credit prole of PROJECT KEY Suppliers micro-merchants Retailer App micro-merchants LOCATIONS FEATURES EXPECTED OUTCOMES Digitally tracking of Panchagarh product order & Lalmonirhat Thakurgaon Nilphamari delivery between Digitization of Increased use of Market-t credit Kurigram Dinajpur Rangpur suppliers & transactions worth digital wallet for product(s) available micro-retailers millions which were more convenient & for the retail sector Gaibandha manual in the past secured transaction Joypurhat Sherpur Naogaon Jamalpur Sunamganj Bogra Netrokona Sylhet C Mymensingh Efcient inventory Rajshahi Maulvibazar management of Natore Kishoreganj Habiganj Sirajganj Tangail suppliers & FUTURE STRATEGY Pabna Gazipur Narsingdi Kushtia Brahmanbaria micro-merchants Manikganj Dhaka Meherpur Rajbari Narayanganj Chuadanga Comilla Jhenaidah Faridpur Munshiganj To continue this implementation To onboard more FMCG partners Magura Shariatpur Cashless payment & Madaripur Chandpur in adjacent areas to cover as much micro-merchants Narail Khagrachhari Jessore Gopalganj digital payment Feni Lakshmipur Barisal Rangamati information Noakhali Jhalokati Pirojpur Khulna Chittagong Satkhira Bagerhat Bhola Patuakhali To develop credit algorithm based To partner up with MFs for designing Barguna Data analytics & on market insights & demand credit product(s) for the retail sector Bandarban market insights on Cox's zar micro-merchants Sherpur, Jamalpur, Tangail & Sirajganj (4 districts) FIELD BUZZ PRESENCE 3 33 3,777 IN TARGETED DISTRICTS FMCG Distributors Micro-merchants.