Akaboxi
Akaboxi
Financial Inclusion for Rural Communities & Digitalization of Saving Groups
Location: Uganda
Host: Save the Children
Developer: Akaboxi Ltd.
Funding Secured: $35,000 USD invested by RIL & Akaboxi (in cash and in-kind support)
Funding Needed: $77,000 for the second testing phase and consolidation of evidence; $150,000 for piloting in new communities
Website: www.akaboxi.com
The Akaboxi system replaces the unsafe process of keeping money in boxes in homes with a more secure, reliable, and easy to monitor savings and transactions program that connects to financial services.
The Challenge
Refugees and rural communities face barriers to accessing formal financial services due to several factors:
The distance to Financial Service Providers (FSPs)
Stringent eligibility criteria
Lack of financial literacy, particularly in mobile and digital platforms.
NGOs work with Village Savings and Loans Associations (VSLAs) as the first step towards financial inclusion by providing financial literacy and business development support. The community-based model reaches some of the most vulnerable populations. However, this system uses paper-based ledgers and saving boxes holding cash, many times in the homes of the VSLA members, which leads to faulty record-keeping. As a result, a low number of groups and individuals access the formal financial services, no interest is earned, and high risks of accident or theft endanger the group savings.
The Solution
Akaboxi is a Ugandan start-up with an innovative digital financial inclusion system that enables VSLAs in a community (including refugee and host communities) to manage and monitor their savings together. Akaboxi provides a handheld device (POS-type) to be collectively owned by a VSLA and an app developed specifically to record all financial transactions thus providing individual and group-level money transfers. The system limits the need for cash to be held physically and encourages opening accounts where savings are safer, can earn interest, and eventually where small savings associations can transform themselves into community collectives. Akaboxi intends to generate income streams that will ensure long-term use of the solution by VSLAs beyond any NGO-support. Financial Service Providers will access a breadth of new information about VSLAs that will allow them to better tailor financial products and reassess the eligibility of last-mile customers. Inclusivity in digital banking is crucial, focusing on integrating women and youth into financial literacy training.
The Impact
HIGHLIGHTS OF THE 6-MONTH PILOT:
● 15 groups now use the system for weekly saving meetings
● 395 active members; 70% are women and1,800 indirect beneficiaries
● 8 out of the 15 VSLAs opened bank accounts through Akaboxi
● Early evidence indicates app usage encourages 2x more community savings than without the app
THE NEXT STAGE: PILOT II
Anecdotal responses to the usage of Akaboxi have all been positive. Users report feeling safer by not having to keep the VSLA cash box in their home, being able to link with financial institutions and being able to demonstrate a digital historical record of their savings. This pilot, supported by RIL Uganda, has helped Akaboxi to connect to the broader humanitarian community and additional INGOs interested in potentially adopting the technology for VSLA communities inside or near refugee settlements.
Other Akaboxi Resources
>> Articles: Digitizing Rural Savings, Save The Children
>> Social Media Accounts: Twitter, Facebook, Youtube
Contact Us
To learn more about this innovation, please email us.