Maalipension Services

Problem :

1. 80% of the small holder farmers and traders  within Uganda do not have pension services or any formal of secured insurance for their life in case of accident or event that put them out of active production. 
2.  Limited access to appropriate technologies  that can be used by the communities to support micro learning into saving for the future or making reserves for the future.
3. Service providers that have pension schemes, use traditional way of collecting saving, based on salaries yet the farmers and traders earning are irregular .

Solutions ;

Using the Maalicard,  the FIT Insights is proposing connecting the informal Sector to financial services  using technologies  that enable linkage to value added services. 

Maalipension will allow card holders  to save a percentage of their earning on sale of produce to offtakers; by blocking  access to the funds for a period ranging from 2, 5 to  10 yrs

Small holder farmers and traders normally within the informal sectors are faced with limited or no channels for saving for future. Pension services are normally for formally organised user groups like formerly employed  or individuals with clear earning. 

80% of individuals in  the informal  sector  do not have access to digitalised saving channels.  With a focus  agribusiness sector  more than  75%  of the Uganda are employed by this sector yet no formal  pension services have been organised.  Maalipension is a voluntary model of service to target this group of individuals. 

 Uganda has a population of 45 people,  with about  65% of the productive individuals  being  employed by the agriculture sector. This sector has irregular earning and normally  their earning are seasonal  that means that their depends on two to one season after harvest to earn a good income. It is important that individual prepare or save for time when the ground or body can be productive  to earn a living.

Maalicard, platform is designed as a low-cost global interchange for the development of ethical financial inclusive value added services ( e.g. Maalipension, Maaligroup Save and Maalisave). It has been launched with some of the basic transaction services allowing users to pay, sent , transfer, withdraw and  save. It targets individuals that earn less that a 2 dollars a day yet have direct source of income from commodity off takers. FIT Insights has worked with a number of value chains  and cooperative to establish linkages to markets. Despite the  trading that is enabled the majority of the participants in the value chain (normally) at the bottom are not in position to active gain from their sales. These individuals are living hand to mouth, not aware of saving options or future pension in case their render inactive due to natural causes. 

Maalicard, would like to add new services  called  "Maalipension" to that will address the progressive need for saving for the informal , unbanked and yet organised farmers and trader groups. These will be trained to take  a percentage of their earning electronically and have it blocked for a period of two years, to 10 years needing on the future saving objectives.  

The spread of internet, radio and mobile services in Uganda creates a opportunity for new innovation that can address community challenges. MAALICARD technology  utilises both the internet, telecommunication technologies and  mobile technologies to reach out target audiences. This infrastructure needs to be natured to its useful gain to the population by adding value added service that make it more relevant to the people.

For communities to adopt  modern technologies ,it is important that  the technology  have bearing to the needs of the community, it should address some aspects of their survival or well being. Maali enables access to services.

Maalicard technology , allow the users to adopt an number of user cases , making the technology more relevant to the target audience.  With only one application , the end users can access multiple  financial solutions and services. 

By adding on the MaaliCard -voluntary pension services, the makes the ecosystem of maali richer in solutions and also allow user to monitor their finances within  a given area. 

The solution allow also third services providers to become providers on the channels in form of business alliances. Thus creating a channel for service termination and delivery.

The maalicard was launched in 2017, as payment solution and it is interlinked with Interswitch,  has a escrow account with Housing Financial Bank in Uganda,  the card can be used to withdraw from at least 400 ATM with about 15 partner banks. Currently we have  over 400 cards in the market and over 2500 people using the maalipot ( wallet) for saving and other domestic transaction. 

The desire for the project is to add other value added services like Maalipension to make the service more relevant and a solution to the informal sector. 

MaaliCard offers a flexible and interactive neobanking platform working with mobile and pre-paid debit cards. the services offer Safe, Faster, Smarter, Traceable, Seamless, Convenient, Savings with Interest, and Optional services plugins like Pension, Micro Health Insurance and year the services 50% cheaper than other operators in the market.

To roll out Infotrade Maalicard as an Inclusive financial services to increase trade and marketable value exchange while improving financial management of the target segments; as we working in partnership with third-party service providers.

The sub business objectives of the are:

a)     Undertake a drive to recruit over 2.7million Card Users through off traders, contractors and employers over a period of seven years

b)     Build a network of 5400 Maalipay agents across the country each pay agent covering at least 500 users within their catchment areas.

c)     Enable service connection with third service providers to all access to other financial with at least 4 valued added services (e.g. Micro health Insurance, Personnel Accident insurance, Motor Insurance and Micro Rescue loan and Maalipension  services 

d)     Enroll 500 Saving and Investment clubs on the Maalicard service over the next five years.

eChange in the economy and society :-

Reduced use of Paper Cash Money: the adopt of cashless payment using the maalipot float and virtual recognized payment increases the chances for ecosystem to support the saving on the paper  printing costs associated with conventional cash.

National saving in transport: Currently the individuals travel over 50kms to by BODABODA to pick cash and also to make payment. With the adaptation of Maalicard as payment option, this will save the current over 1.2 Bn Mile of transportation a year.

Traceability and Economic Monitoring: Increase in the utilization of digital payment allows national government to enable it ability to monitor individual growth, transaction and movement of cash within the country.

Employment and Business Opportunity for youth: Maalipay Agency system bring in place an opportunity for the business for multiple youth in the country to start and own a financial agency as franchise or agent within a town or piggyback business within an existing business. 

The Maalipension is a service the is piggybacked on the MAALICARD which is a payment platform that is on its a solution for financial inclusion.   By virtue of the nature of the services, the key requirement for the service is develop  KYC ( Know your client)   this principles is directly linked to Identification systems. All users of the services are required to provide some personal data mainly ( National ID,  Photo ID,  Address for residency  and telephone ) this  give record of the marginalised and vulnerable groups and also support the further profiling to give credit history and  scoring of the users of the services. this will support tailored services delivery and growth of the individuals.

MaaliCard is the unique branded International prepaid debit card, provided as a new way to carry cash in a safe and secure way .The MaaliCard services as an inbuilt  personal identification service that can be enable  within the programme and the modules; available in different user formats:-

It is also available for use in a number of other formats:

·       Bank sponsored debit card (Private)

·       Bank sponsored debit card (Business)

·        Corporate card

·       Company Expense card

·       Multi-currency card

·       Micro-finance loan card

·       Store card/Gift Card

·       Loyalty incentive card

·       Medical card

·       Identity card

·       A family/student/dependent card

Due to the unique design of the MaaliCard chip, multiple applications can be processed in a single chip. Each application is guarded securely and individually through a process of either on-card biometric, or Chip & PIN authorisation by the cardholder.

This gives the advantage that the card is fully flexible and one card can be put to multiple uses therefore generating multiple revenue streams

Maali recognizes the need for an extensive acquiring network globally by way of ATM’s and POS terminals to facilitate the use of MaaliCards and is deploying its resources to this so that Maali acceptance is rapidly established. In addition to the Merchant network that Maali is building relational interfaces are being established with existing banking networks, telecoms ( MTN AND AIRTEL )  wherever possible and already has several services  in place.

Maali has designed its own terminal and Mobile App  software so the multi-functionality and unique authentification processes of the MaaliCards can be fully made available to the card users and institutions.

·       The Maali technology is hosted by Interswitch as the  payment gateway 

The Host Switch interfaces  with the Maalipay Switch to offer interoperability for Maali cards issued by the MAALIPOT  and registered BIN on the  mobile  network of terminals to card to card transfer of funds and remittances or Card via POS agents or ATMs.

Maali’s end to end solution for transaction switching, hosting and management of card holder accounts, settlement and reconciliation will include is now interlinked using the  both maali and the Interswitch and other tecleocm using  stand open protocols. 

Maali works with Housing Finance Bank  that serves as the backend ledger settlement bank. The MAALIPOT  pushes all transaction after checking on the availability of the funds. The  MAALIPOT (wallet) that is linked to the escrow account and reconcilised  on a real-basis. 

The system is designed to be user -friendly, it needs the presence of internet or a telecommunication services.  The fact is that is dependents on  mobile and internet. Therefore the users need to have either one or the options.  But we have also offered the face to face interaction using the colloborating banks like Housing Finance Bank and Banking Agents the are now spreading out in the countryside. 

With the presence of  human face in some of the transaction , this support the low literacy individuals to cope with the technology and  later  learn from the process and adopt for personal led transactions. 

The target customer for the Maalicard is informal and unbanked individuals in the society where the majority of the people are at the lower end of pyramid. These individuals have been regarded as unbankable. The financial sector considers them unviable or an unprofitable market segment representing a golden opportunity for Maalicard. It has been proven that these people save money in a number of traditional ways. In Africa at large the majority save in physical “POT” or in the groups called SACCO or VSLAs. Due to the lack of access to banking facilities this money is normally not presented in the main stream banking.

The technology is ready to go, we completed the proof of concept in December 2017 with controlled group of 1500 card users.  Currently the “ Infotrade Maalicard” has recruited : a) 5 –Saving Groups that are using the platform to collect group saving and also it will be enabling payment. b) Signed up 2 Investment clubs that are collection monthly fees to accumulate investments. c) Has a total of 300 individual card holders using the Maalicard d) 2500 maalipot ( wallet ) users that using the platforms other services like payment of utility bills , TV and internal payment.

We are looking to introduce Maalipension  as a value added service.  This service does not have any client , it completely  new  and an add on. 

Within the next five  year company would like to have growth of about 50,000 card users  to breakeven. 

1.    Short term of objectives (1 year)- 2021          
2.   car rd Users: Recruit at least 2 % of the target population in the first year, having a total of 54,000 card users generating average of at the lower end of 5,616,000 transactions a year with an average two (2) transactions a week with gross income of 3,369,600,000 per annum

3.      Merchant Enrollment: Recruit at least 50 merchants (i.e. that is merchants in payment category like employers, off takers and contractors) within the first year of operation.

4.   Services Connection: Enable 4 service plugins on the maalipot for insurance for motor vehicle, personal accident, and rescue loans in the first years.

5.     Register “Maali Financial Services” as subsidiary company of FIT Insights by 1st Oct  2020 enable direct regulation with bank of Uganda for foreign and local money remittance license and to attract new funding

6. Long term objectives

7.   Introduce International forex money remittance enabling across border payment cash collection and payments using the maali ecosystem within the second year of operation, establish one physical forex and multiple users’ card on the platform.

8.     Increase card transaction both payout and collection 4 times a week, in order to generate 21.3 transaction a year, with target of 6.4 bn per annum.

9. d)      Expand to three other cities in Kabale, Homia and Fort portal. 
10.         Start issuing microloan to available of 2 bn per quarter in the second year
11.     Roll out the Maalipension in the second year 2021, with at 50% of the subscribed users. 
    

The company is currently stretch with funds to roll out additional value added services.   We need to invest more capital in awarenesss of services, education and publicity;  invest in regulation and standardation of the systems to enable more third party inolvement ; preparing the company for new  ditigal service models by obtaining appropriate licensing for example : Mico lending and Forex Bureaux and foreign money remittence licenisng.

The main hinderance is lack of capital, for expansion and education and modification of the technology accommodate maali pension services. 

Additional support will be needed to  support patenting  of the system to enable protection and give confidence to the end users and the other third parties that are interested in using the service as channel for termination of financials. 

USSD can be used for registration of the users but has not yet been implemented. 

1. Awareness and publicity of the services: We need an estimate of about 30,000 dollars in publicity.

2. Regulation and Standard and licensing;  we  will be investing progressively about 35,ooo dollars in licensing and  international standards.

3. Modification of platform to enable third party channels  and also Maalipension: purchase of technical expertise to support internal capacity in designing of the services that resident term lacks appropriate skills. 

4. Working Capital investment: working capital is need to cover the business in the next 8 months, so that all operations management smoothly. Secondly , we would like to invest at least 50,000 dollars in the micro loans and to boost saving, borrowing and utilisation of the service.

FIT Insights is the lead promoter of the service " Infotrade MaaliCard"  it is on the maalicard platform that we would like to add a other service of " Maalipension" as a voluntary pension fund for the informal and small holder traders 

Currently the service is operating a business center within the company.  When the development of the Maalipension is completed we shall be  enabling FIT Humanity to manage the service of Maalipension services while FIT Insights  cover the technology as a services  to the no  profit wing of the business.

Currently, we have a total of  Nine people,  4 full time employees  and  3 part time staff and 2 on flexible contractors. 

The ratio of male to female is 40: 60 

Mr. M.J. Robert Kintu is the CEO/ Principal Consultant of FIT. Founder of FIT Insights, normally reference to as an idea Motivator in the Industry. At FIT Insights’ Group he is charged with management the vision and strategic formulation of the country. Provides technical input in (Data Management, business development services, while support innovations in agribusiness for both business and financial linkages.

He specializes in research and development of concepts and models for business service development. He has rich background in project management, implementation and monitoring, strategic business planning. With over 23 years of work experience, Robert has developed services and supported the growth of many businesses and concepts in agribusiness sector, Information technology, Media Industry and Financial sector. 

He has a reputable education; holding a MBA (Dundee), Certificate in Financial Analysis in Oil and Gas (Dundee) and Master of Science in International Marketing (MSc) (Strathclyde) all from United Kingdom.

Gilbert Ssekamanya - Database engineer : He will lead the system architecting, and software engineering aspects of the project. Gilbert has 7 years of experience analyzing and implementing small- and large-scale software systems for private and public industries and business. He is an avid researcher in the domain of applied data science in the local region and is actively working on some novel data acquisition and analysis technologies as part of his core duties he develops and management large database mainly with Oracle. He has is past experience in teaching and school management with a A+ performance in Mathematics and Physics

Telecoms: Currently, we have integrated with both MTN and AIRTEL for e- Bulk payment Services agreements and Bulk payment collection. The Infotrade Maalicard is in position to collect and make payments to and from the two operators. MAALICARD is doing a second level integration with AIRTEL and MTN that will enable feature phone users to complete transaction using USSD via the MENU under Financial Services Menu. This will allow more people in the low end of pyramid to access our services. 

Housing finance banks: FIT is working with HFB as the escrow account partner to allow for MAALIPOT to  make seamless settlements to merchants on the platform.

Interswitch EA:Is the host switch that holds a standing agreement with FIT to  promote  payouts via the ATMs of 15 partner banks and 4000 banking agents countrywide.

Africa's Talking  : the partnership is enabling SMS TEXT messages notification to give  users confirmation of payments or withdraws 

NEXMO:  this used partnership as a services to enable email notification and also the e- enrollment of maalipot users and self registration on the users for the cards.

Other planned partnership  : ICEA for personal Accident insurance  and motor accident policy, ICEA for  Micro health  and FIT Humanity for  Maalipension services. 

The MAALI programme for financial transactions essentially targets the 3.5 billion adults worldwide who are currently ‘unbanked’ and therefore have no payment cards. The Maalicard programme does away with this need for a cardholder to have a separate bank account, opens the market to all, and so is truly inclusive. MAALI’s technology enables low-cost transactions and is designed to make Maalicard affordable for all.

Once they have a Maalicard, they can use it for:

o   Microfinance Collections and saving

o   Micro-savings

o   Receipt of Salaries

o   Bill payments and other banking transactions

o   Purchase of goods and services

1. Commodity purchase card
2.    Medical card
3. Company Expense Management card
4.  Multi-currency 
5.  Micro-finance loan
6.  Management of Loyalty incentive
7.  School Pocket

All Maalicard customers have the opportunity to access a secure website with a members’ area, where they may register for an online account.

Maalicard users are able to

•   check account balance,
•    make online currency transfers
•    Pay for bills 
•      Internal Transfers e.t.c.

Fully managed, end-to-end pre-paid solutions providing a low risk, cost effective programme for issuing and managing pre-paid cards covering:

o   Can be used Uniquely Multi-Currency

o   Card design and manufacture

   Real time transaction processing

o   Authorised and regulated in the Ugandan Market

o   Full KYC (know your customer) / anti money laundering process

o   IIN sponsorship for Maalicard Interchange and also part of the VERVE Network.

o   Card issuing (batch management, activation, delivery and billing)

o   Card to card, Account to Card, Card to Account transfers

o   Call centre, IVR, Online Accounts

o   Back and front office management tools.

o   Full Marketing support for Maalipay Agents

To sustain the business , the main source of funding will be transaction income. It is therefore critical for us to have more people enrolled for the services so that utilisation of the is good, the more frequency the service is utilised the better for the us. 

We have low operating costs therefore we need more people to use the service.

Income generated from the Escrow Account as cash back can be a good boost for the services as users get to received some of the cash back.

FIT Insights will match the funding in a number of venues:

 a) Mobilization of private Funds using the " Maalibrick - Private investment memorandum. With this model directors are talking to individuals that are willing to investment at least $20,000 by buying 8 Maalibricks at 2500 USD per brick to take the opportunity and earn interest of about 8% . The funds are held for a period of 24 months. So far three private investors are onboard.

 b) In Kind : This will be mainly through the technical skills from the senior staff in the programming and technology development at a rate of 400 dollars per day for services offered in the development of the technology or update system to integrate third party services.

 c) Shared Resources ; Use of office, payment for the project support staff, payment leasing and technology hosting for the website and system in the cloud

d) Sale of Pre-debit card  the cards are sold at $8 dollars per card, to cover the cost of purchase and also with a operating markup of 1.5% dollars

e) Transaction income : the business modeling is based on ongoing transaction income for every transaction , either on POS or ATM  FIT has negotiated a revenue arrangement with the different services providers .

f) the second year of operation , the user will be expected to pay monthly user fees of about 1.5 dollars.

The company need at total capital injection cover :

The total amount  of capital ( funds) required is about 145, 000 dollars.    The funding will be used following manner:)

a). Maalipension modeling and technology updates $ 30,000

b) . Technology mobilization and  professional fees $  15,000

c)  Public awareness and education and training: $ 8000

D) Advertising and branding and product Positioning  $25,000

E) Certification and Standardization : $ 25,000

F) Microloans   $29,500

G) Working Capital : $ 12500

Rent =  800*12 =  $9600  

Cloud Storage : 850*12=  $10,200

Hosting Charges : $ 5400

Office Operations :  $ 2,948 

Licensing : $1800

Salaries and Wages $ 30,810 

Insurance $ 1600

Market Development : $22,500

Business Development : $18,500

Total $ 103,358 which a + or - depending of growth.

If my solution is select, i will be in position to standardise and modify the MAALI platform to deliver a unique solution to the informal in form of a voluntary person scheme. 

Partnership goals are centered on three components

a) Technical development ( Business modeling) and enchaning the revenues to boost business growth 

b) Business positioning  so that we have unique placement in the market that allows for penetration

c) Fund rising to enable rapid expansion and growth in the region.

1. Housing Finance Bank - we need to sign a custodian MOU for the management of Pensions.
2. FIT Humanity : to support the mobilisation and training of the communities.
3.  the Uganda pension regulatory authority to support the design and formalization of the digital services