Kawallet

According to the 2015 Annual Schools Census, Uganda had 2695 secondary schools with a total number of 1,284,008 students. This number increased to 3070 secondary schools with a total of 1,457,277 students (Ministry of Education and Sports; Education and Sports Fact sheet 2002 - 2016) and all these students face three major challenges; lack of clear channels of accessing more pocket money from home; inefficient means of securely storing money; and lack of convenient access to basic needs during emergencies which negatively affects their rapt attention in class. All this is happening because it is highly restricted for students in boarding schools in many African countries to possess mobile phones when at school and that is why students are not in position to access mobile money services which would have however offered a perfect solution to these financial challenges. To receive money, students must talk to their teachers to convince them so that their parents can send money to their (teachers’) phones or parents having to incur transport costs to deliver money to the students at school. This is inconveniencing to the students, parents, and teachers. “You keep your money with a teacher, and he drinks alcohol in it, even when you borrow from a friend, you cannot sleep because you’re worried the money is going to be stolen. It’s like the pain of the suffering is like eating at you. You can’t really do your work,” says Joan, a 13-year-old student at Our Lady of Africa SS Namilyango.

We are building a robust financial inclusion system which is already enabling thousands of parents in Uganda to conveniently send money to their children and remotely manage their wellbeing. The top-notch system is introducing mobile money without a phone for students and thousands of boarding school students in Uganda now have reliable access to more money whenever in need, secure saving scheme, inclusive cashless environment, and guaranteed safety of their pocket money. 

The service is a replication of mobile money, and it enables students save, receive, carryout cashless payments, deposit and withdraw money safely with the aid of a key holder and a smart phone (this will be owned by the school canteen operator, bursar, patron & matron who register as our agents). We sell the keyholders each at USD 1.04 to schools which in turn sell and register students on our system. The students buy Kawallet key holders at USD 1.44 which have QR codes inside them and each QR code has a number which was used to generate it. This is the account number of the student to which the parents or guardians can deposit money to. This provides safety for the student’s money while at school and provides parents with a convenient way in which they can send money to their children while at school. The Kawallet application has two interfaces: the parent interface and the agent interface. Parents after installing the application, can register and obtain an account to which they sign in to access the parent interface. The parent interface enables parents recharge their Kawallet accounts from their MTN mobile money, Airtel money and Safaricom accounts. They are then able to send money to their children’s Kawallet accounts conveniently. The agent interface enables the agent register students and aid them in carrying out the mobile money transactions securely and conveniently after inputting their secret pins and facial recognition (2-factor authentication). The Kawallet agents are school canteen operators or patrons or matrons who must have a Kawallet application installed on their smart phones and a daily cash float. All the agents to use this application must be registered with our company and each agent must be given a pin to enable them login into the application to access the agent interface. They must change their PIN immediately after accessing their user interface.

Kawallet is built after a clear and elaborate understanding of both the students’ and parents’ financial needs, challenges, and frustrations particularly ones that we can mitigate and offer solution. Therefore, the features and functionalities on the platform are those that the students and their parents will utilize to increase their convenience while carrying on financial transactions. Product demo may be accessed here: 

Kawallet is a financial inclusion solution that aims to directly and meaningfully improve the lives of secondary school students in Africa, specifically those who are currently underserved in terms of financial services.

The target population for Kawallet includes secondary school students who are often prohibited from possessing mobile phones at school, making it difficult for them to safely store and access more money from their parents and guardians. Without secure means of storage and access, students often face financial challenges, such as losing money or not having access to funds when needed. Additionally, many students come from low-income families and may not have access to traditional banking services, further limiting their ability to manage their finances.

Kawallet addresses the needs of these underserved students by providing them with a trusted and reliable financial inclusion solution that enables them to safely store and access their money, even without mobile phones coming along with the benefits of a cashless environment. Kawallet offers qr-code keyholders with unique account numbers, which students can use to store their money safely with two-factor authentication for each transaction. In addition, Kawallet provides financial literacy training for both students and teachers, helping to build a culture of financial responsibility and empowerment.

Through its services, Kawallet helps to bridge the gap in financial access and education for underserved secondary school students, empowering them to better manage their finances and ultimately improve their lives. By providing a secure and convenient way to store and access their money, Kawallet is helping to alleviate financial stress for these students and providing them with the tools they need to succeed. Additionally, Kawallet's focus on financial literacy and education is helping to build a foundation for long-term financial stability and success.

By addressing the specific needs of this population, Kawallet is helping to build a more inclusive and empowered future for the next generation of African leaders.

Kawallet has a dedicated team of resilient young leaders with the team lead having more than five years experience developing ICT solutions with schools. We are penetrating a market which is part of our team and our close relationship helped the team quickly identify gaps for which we are co-creating solutions with the target population. We embraced the design thinking methodology to build a solution which will work for our users and in turn happily pay for the products and services. Our entry has been phased and we began by extending the solution to students in boarding schools before hatching one for parents after significant time with them through PTA meetings, school visitations and community outreaches during our financial literacy workshops.

18,394 students

8712 parents

Kawallet is a startup company on the growing streak and we have identified our challenges as we grow some of which we are doing our best to overcome at organizational capacity and some of them is why I have applied to become part of the program. Using our lens, we have identified challenges that could limit Kawallet's ability to scale and reach its full potential. Kawallet can be guided to overcome some of these barriers through a range of support mechanisms.

Financial barriers: kawallet can benefit by connecting with investors or donors who are interested in supporting financial inclusion solutions and provide funding to support kawallet's expansion into new markets. Additionally, the program can offer fundraising support and connect kawallet with experts in financial management to help optimize our financial strategies.

Technical barriers: Kawallet can through the program access technical expertise and resources to improve the scalability, reliability, and security of Kawallet platform. This can include connections to expert software developers, data analysts, and cybersecurity experts who can provide technical advice and guidance on how to improve kawallet's platform.

Legal barriers: kawallet can be helped to navigate legal barriers that may limit its ability to operate in certain markets. This can include connecting kawallet with legal experts who can advise on local regulations and provide guidance on how to establish partnerships with financial institutions and other stakeholders.

Market barriers: The program can help kawallet navigate market barriers, such as competition from established financial institutions or limited access to distribution channels. This can include connecting kawallet with experts in market research and strategy who can help identify new markets and develop effective marketing and distribution strategies to reach new customers. Additionally, Kawallet can get the chance of networking opportunities through the diverse alumni community and exposure to potential partners and investors to help kawallet expand its reach and impact.

Kawallet's solution to financial inclusion in African schools approaches the problem in a significantly improved way by introducing a cashless environment in schools, making it easier for students to store and access their money with the aid of just a keyholder. Kawallet addresses a key challenge faced by students who are not allowed to possess mobile phones in school, which means they have no secure means of storing and accessing money.

Kawallet provides a solution by introducing qr-code keyholders with unique account numbers to safely store their money and conveniently access more money when in need. This is a significant improvement compared to the traditional methods of storing money in physical wallets or with school administrators, which can be unsafe and inconvenient. Additionally, Kawallet provides a platform for parents to seamlessly send money to their children's accounts electronically, which is a faster and more reliable method than traditional ways of sending money such as cash or bank transfers through teachers.

Kawallet's solution has the potential to catalyze broader positive impacts from others in this space by promoting financial literacy among students and parents, as well as providing a platform for schools to introduce financial education into their curricula. This can have a significant impact on the financial habits and behaviors of students and parents, leading to a more financially responsible society.

In addition, Kawallet's solution has the potential to change the market by introducing a new and innovative way of promoting financial inclusion in schools. This can lead to increased competition and innovation in the market, as other financial institutions and organizations may seek to adopt similar solutions to stay competitive.

Kawallet's solution is a new and significantly improved way of addressing financial inclusion in African schools, and has the potential to catalyze positive impacts in the broader financial inclusion space and change the market.

Kawallet's impact goals include;

• Increased number of schools by one hundred more schools in Uganda over the next year and over twelve thousand schools in East Africa over the next five years. This will be achieved through targeted marketing and outreach efforts, as well as partnerships with schools and other strategic organizations.
• More than fifty thousand more students over the next twelve months in Uganda have access to financial inclusion services they need to thrive and  one million students in East Africa enjoying benefits of kawallet over the next five years. This will be achieved through targeted marketing and outreach efforts, as well as partnerships with schools and other strategic organizations.
• Sixty percent cashless environment around more than one hundred partner schools in Uganda in the next twelve months and eighty percent complete cashless environment around partner schools in East Africa over the next five years.  This will be achieved through targeted marketing and outreach efforts, as well as partnerships with schools and other strategic organizations.
• Increased the number of parents using kawallet to send money to their children's accounts by sixty percent within the next one year, and by ninety eight percent over the next five years. This will be achieved through targeted marketing and outreach efforts, as well as partnerships with financial institutions and mobile money providers.
• Improved financial literacy and money management skills among students who use kawallet, as evidenced by pre- and post-workshop surveys and assessments conducted and made available to partners upon request. This will be achieved through partnerships with financial education organizations and tailored educational content within the kawallet app and flyers/brochures.
• Reduced percentage of unbanked or underbanked students and parents in the regions where kawallet operates. This will be achieved through targeted outreach efforts to marginalized communities and partnerships with financial institutions to provide additional services beyond basic payment and transfer functionality.
• Developed a sustainable business model that allows kawallet to continue to operate and grow over the long term, while maintaining affordability and accessibility for its target users. This will be achieved through partnerships with organizations, investors, financial institutions, and other stakeholders, as well as ongoing assessment and refinement of the business model based on user feedback and market trends.

1. Percentage of failed or erroneous transactions recorded per month due to technical or user issues, indicating the level of platform reliability and user-friendliness.
2. Increased customer satisfaction evidenced through percentage increase in cumulative transactions by parents and students.
3. Percentage increase in the number of schools using Kawallet
4. Percentage increase in the number of new customers or users enrolled on the platform.
5. Number of individuals and MSMEs using kawallet to access financial services and make transactions.
6. Reduction in transaction costs and increase in financial inclusion among underserved communities.
7. Percentage increase in the number of MSMEs that can access credit due to improved credit scoring algorithms used by kawallet.
8. Percentage of users reporting increased savings due to easier access to investment opportunities provided by kawallet.
9. Reduction in financial fraud and cybercrime cases in the areas where kawallet operates especially within boarding secondary schools.
10. Reduction in carbon footprint and increase in environmental sustainability through the use of digital financial services, reducing the need for paper-based transactions.

Kawallet's theory of change is based on the belief that by providing an accessible, secure and affordable digital financial platform, it can improve the financial inclusion of underserved communities in Uganda. By reducing barriers to accessing financial services, individuals and MSMEs can improve their financial well-being and participate more fully in the economy, ultimately reducing poverty and increasing economic growth.

Kawallet's activities are focused on developing and promoting the use of its digital platform. Its immediate outputs are increased access to financial services, reduced transaction costs, and increased financial literacy. These outputs are expected to lead to longer-term outcomes, including improved financial stability, increased business growth, and overall economic development in underserved communities.

To support the existence and strength of the links between activities, outputs, and outcomes, Kawallet has conducted market research and pilot testing to better understand the needs and challenges faced by its target population. Kawallet also collaborates with key stakeholders, such as local governments, financial institutions, and development partners, to increase awareness and support for its solution and to promote an enabling policy and regulatory environment.

Kawallet is a digital financial inclusion solution that utilizes a range of technologies to provide access to financial services for school communities in Africa. The core technology that powers Kawallet is a mobile app, which is available for Android and iOS devices. The app provides a platform for parents, guardians, and other community members to make digital payments for school fees, uniforms, books, and send pocket money to their children electronically.

Kawallet's mobile app uses a variety of technologies to provide a seamless and secure user experience. It uses encryption technology to protect users' personal and financial information, and it integrates with popular mobile payment services such as MTN Mobile Money, Airtel Money, and Tigo Cash. Kawallet uses quick code (qr-code) technology on students' keyholders to allow quick access to their accounts on the kawallet platform. 

In addition to the mobile app, Kawallet also uses other technologies to support its financial inclusion solution. It utilizes SMS technology to send payment reminders and notifications to parents and guardians, and it uses cloud-based technology to store and process financial data. Kawallet also partners with local schools and financial institutions to ensure that its technology is integrated with existing infrastructure and systems.

In order to achieve diversity, equity, and inclusivity, kawallet is core team is dominated by five ladies, 3 gentleman all coming from different cultural backgrounds and we reflect diversity, equity, and inclusivity in our core values and in our operations internally and with our stakeholders.

Kawallet is striving to expand the pool of talented candidates for internship openings by partnering with organizations that serve underrepresented communities and focusing our financial literacy outreaches to communities with students from diverse backgrounds.

kawallet provides training to its workforce to help identify and address implicit biases that may affect decision-making or perpetuate inequitable practices. Kawallet also has its work ethics guidelines for prospective interns available publicly(www.kawalletug.com/ethics.html) to make it easy for new interns to assimilate in our diverse work community.

kawallet fosters a culture that values and celebrates diversity by promoting awareness of different cultures, religions, and backgrounds, and encouraging open communication and dialogue even while engaging with stakeholders outside Uganda.

In addition, kawallet business’s get-to-market strategies designed and tested to date focus on gender-focused service delivery & employment opportunity. As a 60% female dominated company with evidence of ever improving performance and efficiency, we value the relevance of all gender especially women in maximizing our competitive edge and we reflect gender inclusion at organization capacity and in our service delivery to the community. Our products are codeveloped with potential customers using a diversity and gender intelligence lens to community challenges in consideration of all crosscutting issues including gender equality and disability issues.

We sell keyholders to partner schools each at a cost of USD 1.08 who resale and register their students to the platform at USD 1.48. To store their money safely, a student visits any school agent available at school who scans the quick code on the student's keyholder to identify his/her account, receives cash from the student and deposits the equivalent electronic money to the student's account. To purchase commodities at the canteen, a student conveniently submits an order at available automated POS machines around the school then visits the canteen operator who scans student's account, identifies his order number and hands the student the ordered package upon inputting his PIN & facial recognition to authenticate the transaction.

Key Partners:

• Mobile Network Operators for providing the network infrastructure for the service
• Banks for managing the financial transactions
• Schools for allowing the service to be offered to their students
• Suppliers for manufacturing the keyholders and POS devices

Key Activities:

• Developing the Kawallet platform and associated software
• Manufacturing and distributing keyholders, bracelets, POS devices
• Conducting training workshops for school staff and students on how to use the Kawallet platform
• Organizing market activation days and attending local events to promote the service to parents and students
• Running social media brand promotion campaigns to inform more than 1 million people about Kawallet financial inclusion services for secondary school students and how to use

Key Resources:

• Skilled software developers and designers
• Quality control and assurance teams
• Marketing and advertising teams
• Access to network infrastructure provided by Mobile Network Operators
• Access to financial institutions for handling transactions
• Suppliers for manufacturing the qr-code keyholders and POS devices

Value Proposition:

• Secure, easy and convenient way for parents to send money to their children in boarding schools
• Cashless environment in schools to promote financial literacy and inclusion among students
• Qr-code enabled keyholders, bracelets, and POS devices which enable children to access their financial accounts safely and conveniently

Customer Segments:

• Secondary school students who are prohibited from possessing mobile phones at school
• Parents who would like to send money to their children in boarding schools

Channels:

• Social media brand promotion campaigns
• Market activation days and local events
• Training workshops for school staff and students
• Direct sales by kawallet support team to schools

Customer Relationships:

• Personalized support and assistance through call center, email or chat services
• Regular updates and feedback mechanisms to enhance customer satisfaction
• Continuous training and education on financial literacy

Revenue Streams:

• Commission on transactions made through the Kawallet platform
• Fees for manufacturing and distributing the qr-code keyholders and POS devices

Cost Structure:

• Salaries and wages for employees
• Cost of developing and maintaining the Kawallet platform
• Manufacturing and distribution costs for qr-code keyholders and POS devices
• Marketing and advertising costs
• Network and transaction fees to Mobile Network Operators and financial institutions

Key Metrics:

• Number of schools and students registered on the Kawallet platform
• Transaction volume and revenue generated from commissions and fees
• Number of parents and students attending training workshops and events
• Social media engagement metrics (likes, shares, comments)

Kawallet's plan for becoming financially sustainable involves several strategies, including:

1. Generating revenue from sale of keyholders to schools, transaction commission received whenever children make cashless payments or withdraw cash.

2. Diversifying revenue streams: Kawallet plans to offer additional products and services beyond its core financial inclusion solution, such as microloans and insurance, to generate additional revenue streams.

3. Developing strategic partnerships: The company plans to partner with financial institutions and other organizations to expand its customer base and increase its revenue.

4. Increasing customer retention: Kawallet will focus on improving its customer experience and providing high-quality customer service to increase customer retention and loyalty.

5. Cost optimization: The company will optimize its operating costs by implementing efficient business processes and utilizing technology to reduce overhead costs.

6. Fundraising through grants, sale of equity, and gifts from friends and family.

7. Scaling up: Kawallet plans to expand its operations into new markets and increase its customer base to achieve economies of scale and reduce costs.

By implementing these strategies, Kawallet aims to become financially sustainable and continue to provide valuable financial inclusion solutions to its customers.

Examples of how kawallet's plan to achieve financial sustainability has been successful include;

1. Fee-based services: Kawallet has been able to generate significant profits of USD 0.54 from the sale of each keyholder to the schools. However, the bigger chunk of revenue generated by Kawallet is from convenience charges paid by students on each cashless payment and cash withdraw from agents. 

2. Grant funding and donations: To date, Kawallet has received funding from USAID through Resilient Africa Network, Ministry of ICT & National Guidance of Uganda, Makerere University, Dunin-Deshpande Queen's Innovation Centre of Queen's University, and family donations.