A healthy balance must be sought in the selection of a card/payment network. Incentives provided by potential payment network partners (that may decrease the cost of program deployment and increase overall profitability) must be weighed against each network’s penetration in the market, as the cards distributed to cardholders must be useful in daily life in order for the program to remain sustainable.
Making an Impact
Es Solo’s Savings Cooperative and Credit Union Programs:
Programs support various national financial inclusion strategies
Programs have the potential for Es Solo partner banks to turn apex-level credit union bodies and NGOs into integrated national networks of non-bank financial institutions (NBFIs), dramatically improving access to financial services and helping local governments meet their goals for financial access
Programs can greatly facilitate the disbursement of funds over broad and varied geographic areas, reducing or eliminating geographic barriers that currently exist
The confluence of positive factors involved in these programs makes them unique opportunities for all the members of the program value chain. The programs offer a host of benefits, from profitability to a significant impact on improving the lives of the citizens of Es Solo’s target markets. Es Solo is extremely excited to have the opportunity to design and participate in programs where all parties—program participants, government and the community—are in perfect alignment.
Creating the Value Chain
Sponsor Banks and FIs
By partnering with a Sponsor Bank or FI as the card issuer, the program automatically benefits from the financial security, ease of deployment and strong reputation that comes from a partnership with one of each market’s premier FIs. The Sponsor Bank or FI will issue cards to the cardholders in the program and will hold all deposits on behalf of the cardholders.
Es Solo’s unique strategy for entering markets will considerably shorten the program’s ramp-up period. Further, because program clients are established corporations, NGOs, governments, banks and other FIs, the programs can benefit from a long-term foundation of trust that is already extant. Since the partnership between Es Solo and its clients is based on a revenue-sharing model, the program is able to derive benefit from Es Solo partners’ legitimacy while ensuring the partners’ ongoing dedication to and benefit from the initiative.
Es Solo’s Large-Scale Program Target Verticals
• Banks and Other Financial Institutions:
Around the world, banks and other FIs struggle to balance desire to reach as many customers as possible with the financial constraints of the present reality, where reaching customers comes at a significant cost of establishing a new physical location. Using Es Solo’s “capital light” FinTech tools, banks and FIs no longer need to be constrained by the need for a brick and mortar branch through which to serve customers. When deployed by a bank or FI, clients’ customers can use Es Solo’s richly-engineered mobile and web-based financial tools to access their finances and accounts. Banks and FIs can even utilize Es Solo’s tools to launch an agency banking network, should they desire.
• Savings and Credit Cooperative Organizations (SACCOs)
In general, SACCOs in emerging markets have a loyal customer base to whom they provide financial services. However, due to the cost of infrastructure and technology investments and inexperience with current technologies they find it difficult to offer the same level of financial services as local banks. Es Solo provides these SACCOs the ability to provide modern financial services with minimal capital investments.
• Corporate Clients
Despite advancements in global financial services it remains difficult for corporations to transmit payments to employees and contractors who are geographically disbursed across multiple countries. Es Solo’s platform makes B2C payments efficient and easy to manage regardless of the location of the payee.
• Non-Governmental Organizations (NGOs)
NGOs have recurring needs to distribute low-value payments to payees who may be spread across a large geographic area and track the flow of funds from donors to the recipients and 6 subsequently collect repayments. Our services provide a digital solution that provides efficient payments, a complete end-to-end audit trail, and access to user behavior data that is unavailable in existing cash-based solutions.
• Humanitarian Organizations
Humanitarian organizations require the ability to issue payments to large groups of people in a rapid manner in environments that may be harsh and sometimes corrupt. The Es Solo platform overcomes these challenges by relying only on digital distribution and tracking of funds; integrated KYC functionality; and instant card issuance capabilities.