On June 27 the world celebrates Micro, Small, and Medium-sized Enterprises Day, and pays attention to the large role that the smallest businesses play in creating jobs, providing services, and supplying products. June is also the month we celebrate the accomplishments of VisionFund International, World Vision’s microfinance arm, which exists to help microbusinesses flourish.
Since its creation in October 2003, VisionFund has made over 18 million loans valued at an EXTRAORDINARY $10 billion. $10,000,000,000! VisionFund remains an important player in helping the poor move out of poverty.
VisionFund is not resting on its laurels but is pushing into the “final frontier” of sustainably providing financial services to people living in extreme poverty. This is through Finance Accelerating Savings Group Transformation (FAST). FAST is an integral component of World Vision’s new Economic Empowerment Business Plan. With FAST, we fully expect that everyone everywhere we work will have access to the tools they need to lift themselves out of extreme poverty – for good!
Christopher Shore, Chief Development Officer, Economic Empowerment
Finance Accelerating Savings Group Transformation
Finance Accelerating Savings Group Transformation (FAST) is one of the most exciting developments in financial services. Aimed at people who are members of savings groups, it is a new loan product with enormous importance for ending extreme poverty, particularly for women.
In Malawi, a survey conducted by 60 Decibels found that 72% of FAST clients live in extreme poverty, which is defined as income of less than $1.90/day/person. The average FAST loan client is a 39-year-old woman who supports four children. She travels mostly on foot, as the nearest paved road is around 40 minutes away. Her main source of income comes from farming activities. This client profile requires an innovative product. With World Vision’s encouragement, she joins a Savings for Transformation Group, where she saves small amounts regularly and borrows for business and family needs. At the end of every year the group closes the books and “shares out” to each member their savings plus the interest the group has charged itself for loans.
FAST is designed to accelerate economic growth for the savings group members – 80% of whom are women and overwhelmingly rural. VisionFund lends to the group - not to the individuals – and the result is startling. With more money available because of the loan, the group lends the funds to its members. Our methodology allows group members to improve an existing business or try something new with a loan as small as $10 – enough, for example, to purchase flour to bake cakes or doughnuts for local consumers. More people expanding or creating new businesses means more income, which means more and better food for children, school fees paid, medical expenses taken care of, and household well-being improved. This is one way to break the cycle of intergenerational poverty.
There are four unique components of FAST that make it a successful product:
1) Loans are only made to mature groups that have been saving together and lending to each other for at least two years. This provides groups with experience repaying loans and saving money for business and household needs and emergencies, while building their financial confidence and entrepreneurship skillset.
2) A new dedicated position has been created to serve FAST clients. This role is called a Field Officer. Field Officers are hired from the communities they serve, and many are former World Vision volunteers. VisionFund wants Field Officers to resemble their client-base, so VisionFund has put in place specific hiring practices that encourage the employment of women Field Officers.
3) FAST uses digital tools designed to be used with smart phone apps like mobile money and recording group loan requests into digital applications. They allow us to get money to the group quickly and safely, and gets rid of the need for groups to visit a brick-and-mortar branch office. Since the average FAST client lives 40 minutes from the nearest paved road, digital tools save everyone time.
4) Field Officers share Embedded Education curriculum on a monthly basis with the savings groups they serve. Embedded Education reinforces foundational World Vision trainings and programs and addresses: traditional financial literacy, child and maternal health, child protection, women’s economic empowerment, and Biblical Empowered Worldview.
Since FY21, FAST has been launched in DR Congo, Ghana, Malawi, Rwanda, Tanzania, Uganda and Zambia providing loans to 3,583 savings groups impacting 85,889 members. While FAST clients already account for 20% of VisionFund's total client mix, VisionFund is committed to expanding this program.
Gladys: A Day in the Life of a Field Officer
Gladys Backiel is a Field Officer who serves 42 savings groups in Malawi. Join Gladys as she travels by motorbike to visit her clients, and learn how she uses digital tools to support her clients by watching this short video.
FAST Starter Kit
You can support Field Officers like Gladys by donating $25,000 for a FAST Starter Kit.
A FAST Starter Kit donation allows us to hire a female field officer from the community she serves, equip her with transportation to reach her rural clients, training, and the loan capital needed to lend to 15 savings groups.
For each FAST Starter Kit investment of $25,000, a report of what you made possible will be provided including photos of the field officer, savings group members, the GPS coordinates of where the groups meet, and a client story from one of the groups. We will typically be able to provide the report within 12 months of the gift receipt.
To invest in a FAST Starter Kit, please contact your World Vision representative, or Christopher Shore at cshore@worldvision.org.
Upcoming Events
World Vision is excited to invite you to participate in our upcoming MADE to THRIVE virtual event where we will unveil our new Economic Empowerment Business Plan. We will explore the reasons that World Vision is so optimistic that ending extreme poverty is something that - together with you - we can accomplish in our lifetimes. We have the experience. We have the tools. We have the results to prove we can do it! Our new 8-year business plan will work to equip everyone everywhere we work in 10 countries – over 10 million people! – with the tools they need to lift themselves out of extreme poverty. We want and need you to join us.
Invite your friends, churches, club members, and neighbors. Consider hosting a viewing party! Be part of the exciting movement to end extreme poverty – for good!
Thursday July 21st | 4pm-5pm PT / 7pm-8pm ET (Virtual Event)
- Praisefor the strong support we have already received for our Economic Empowerment Business Plan. It is ready and will be revealed at the MADE to THRIVEevent on July 21.
- Praisefor the continuing strong work of VisionFund International
PRAYER
- Prayfor the Economic Empowerment teams in 10 countries as they work on the detailed plans for our Economic Empowerment Business Plan.
- Prayfor both greatly needed rain and World Vision’s emergency response in the Horn of Africa. The drought has lasted now through 4 rainy seasons, which has resulted in famine which is badly affecting smallholder farmer families, communities, and entire regions. 32.3 million people are acutely food insecure and 9.5 million people are experiencing emergency levels of food insecurity. Responding has become more difficult with food prices rising rapidly as a result of the war in Ukraine.
