McCobidy Finance

McCobidy is addressing the lack of financial inclusivity, which is severely limiting economic participation and development opportunities for people and businesses in the communities within Malawi and other regions whose countries are still developing. McCobidy intends to directly and indirectly facilitate job creation by providing access to financial services through our mobile app and enabling extremely convenient financial transactions with technologies such as contactless payments, audiovisual interaction using local dialects i.e. Chichewa, indigenous to the communities we are targeting.

In the communities we are working in, i.e Likoma Island, as well as on a global scale, millions of individuals lack access to basic financial services such as banking, loans, and digital payment systems. This exclusion from the formal financial sector restricts economic growth and perpetuates poverty cycles. To put it into perspective, the district in which our app is currently being tested, Likoma Island in Malawi, only had its first Bank opened in March 2024, yet Malawi has had banks for over 100 years.

In such communities, as well as globally, the number of people affected by this lack of financial inclusivity is vast. In Likoma District Council, for example, a significant portion of the population do not not have access to traditional banking services as their only bank is less than 3 months old. This limits their ability to engage in economic activities and improve their socia-economic wellbeing.

Below are some of the factors that contribute to the problem of financial exclusion:

• Up until March 2024 there was not a single bank on the Island.
• High costs associated with traditional banking and financial transactions as there is not competition at all coupled with the poor banking policies in Malawi.
• Financial illiteracy or lack understanding of financial products and services.
• Insufficient infrastructure to support digital financial solutions in most regions in Malawi and southern Africa.

McCobidy addresses these factors by providing an easy-to-use digital ecosystem for financial transactions. We aim to overcome barriers such as geographical distance, high costs, and limited infrastructure, making financial services more accessible to a wider and underserved population.

Local and global statistics further highlight the severity of the problem:

• Globally, according to the World Bank, around 1.7 billion adults remain unbanked, lacking access to basic financial services.
• In developing countries, the majority of the population may be excluded from the formal financial sector, with limited access to banking services.
• In Likoma District Council specifically, data from local surveys or government reports indicate that up to 90% of the population has no  access to banking services or engaging in informal financial transactions.
• Only 60% of the Malawian population has bank accounts and a lot less of those are active users

McCobidy is addressing this lack of financial inclusivity, our desire is to contribute to broader efforts to reduce poverty, stimulate economic growth by encouraging trade through our internal marketplace, and empower individuals and communities to achieve financial stability and prosperity.

Our solution is McCobidy, this actually spelt ‘Makobidi’ and is a Chewa word for ‘Money’. McCobidy is a digital financial platform for paperless, convenient and accessible application designed to revolutionize financial transactions in the Likoma Island District Council and beyond. McCobidy provides a user-friendly mobile application that serves as a one-stop solution for various financial activities, including fee payments, tax collection, and more.

Here's what it offers:

Comprehensive Services: The platform includes financial transactions such as council payments, tax collection, a marketplace for goods and services to promote local trade, this provides a unified solution for individuals, businesses and local councils.

Digital Ecosystem: McCobidy integrates seamlessly with local transportation services, hospitality services, public events, and government transactions, making it a convenient tool for daily financial activities. In 2023, it was estimated that over MWK60 Billion was transacted in physical cash for government services in Malawi, mostly due to the inefficient banking system in malawi.

Security: The app is tightly secure as it ensures privacy and safety through end-to-end encryption, real-time fraud prevention, and secure bank payment integration.

User-Friendly Interface: McCobidy offers an intuitive and easy-to-navigate interface for users of all technical levels in English and local dialects.

Mobile Money Integration: McCobidy seamlessly integrates with popular mobile money services such as TNM Mpamba and Airtel Money, allowing users to link their accounts for quick and easy transactions.

McCobidy employs technologies that are underutilized and grossly overlooked in Malawi such tap-to-pay, bank payment integration, biometrics, user Identification and verification, to enhance transparency, accessibility, and efficiency in financial transactions, ultimately driving Likoma Island District Council towards a digital future.

McCobidy is currently serving the residents and businesses of Likoma District Council, and we intend to expand to surrounding regions in Malawi and beyond. This includes individuals who do not have traditional access to banking services, which is up to 90% of the islanders, as well as small and medium-sized enterprises (SMEs) seeking efficient financial solutions for example, we have partnered with a local Inn called Sunrise Inn, they are now able to transact with the district by paying their city rates remotely, they are also able to accept payments using contactless technology thus removing the need for cash.

Below is how McCobidy will further impact their lives: 

Residents: We empower residents by providing access to a secure and convenient platform for financial transactions. Those who previously struggled with accessing banking services or conducting paper-based transactions now have an intuitive app in their phones.

SMEs: Small and medium-sized businesses on the Island had to often sale all the way to Nkhata bay to access affordable and reliable banking services, this was both time consuming and cost ineffecient. McCobidy addresses this by offering a mobile banking experience specifically tailored to their unique needs, including streamlined payment processes, secure transactions, and access to real-time financial data.

Overall, McCobidy aims to improve financial inclusion, transparency, and efficiency in Likoma District Council and surrounding areas, ultimately enhancing the livelihoods of residents and supporting the growth of local businesses.

Our team is deeply rooted in the very community we aim to serve, composed of young individuals from Malawi who have firsthand experience of the challenges posed by the current financial ecosystem. This personal connection not only drives our commitment but also enriches our understanding of the nuances of local financial exclusion.

 Community Representation and Engagement:

• Personal Experience: Each member of our team has encountered the limitations of the traditional banking system in Malawi, which disproportionately affects young people. Our shared experiences of being financially sidelined have fueled our motivation to innovate and provide solutions that address these gaps.
• Community-Based Insights: We are not only developers of a solution but also part of the demographic that faces these challenges daily. This dual perspective ensures that our approach is genuinely empathetic and tailored to the real needs of our users.
• Direct Involvement: Our design and development process has been heavily influenced by continuous interactions with the community. We have engaged in dialogues with senior council workers who understand the bureaucratic hurdles, local business owners who are directly impacted by the lack of efficient transaction systems, and consumers who struggle with access to simple, secure, and swift financial services.

Feedback and Adaptation:

• Surveys and Observations: Through methodical surveys and keen observations, we have gathered substantial data on the specific financial behaviors and needs of our community. This data informs every aspect of our application’s design, ensuring that it is not only functional but also user-friendly for those it seeks to serve.
• Ongoing Dialogue: Our commitment to incorporating community input does not end with the initial design phase. We maintain an open line of communication with our users to continually refine and adapt our solution. This ongoing feedback loop ensures that McCobidy evolves in response to real-time needs and preferences.

By leveraging our unique insights as natives and active members of the community, coupled with a systematic approach to incorporating extensive local feedback, our team is exceptionally well-positioned to deliver McCobidy. This solution is not only a product of technology but a manifestation of the community’s voice and a tool tailored to transform their financial landscape effectively.

We have built a working prototype mobile application for the people of Likoma Island. This Island has had its first and only bank opened in March 2024. The McCobidy app is currently in use by a local Inn and they are using it to make payments to the district council, to accept payments from their guests, to make purchases and sales on the digital marketplace within the platform.

We have seen Solve’s track record, how it has served other social entrepreneurs like ourselves and how it has provided them with the expertise that enhanced their work and scaled their reach. We have the earnest hope that it will do the same and even more for McCobidy. It will most certainly corroborate our advances, and expand our innovation. Below are some of the aspects of our endeavor that we need assistance with:

• Access to Funding: While funding is not our sole motivation, we recognize its importance in scaling our solution effectively. A guaranteed $10’000 will go a long way especially in Malawi to help expand our reach, add premium feature to the app without taxing extra to our users. Solve's prize pool of up to $1 Million and investment partners can provide financial support to help us expand McCobidy's reach, enhance its features, and sustain its operations over the long term.
• Technical Expertise: Solve can give us access to technical experts and mentors within MIT and beyond. This expertise can offer insights and guidance on optimizing McCobidy's technology stack, enhancing its security features, and ensuring its scalability and interoperability with existing financial systems. Additionally, The MIT Campus Visit will also give us access to MIT infrastructure and a network of like-minded individual, this will further inspire us, broaden our perspective and sharpen our understanding.
• Legal and Regulatory Support: Navigating legal and regulatory frameworks has been extremely challenging, especially in the context of financial technology in Malawi with many of the fiscal policies being oppressive to the same people they are meant to serve and protect. Solve’s credibility can help us facilitate partnerships with legal experts and regulatory authorities who can provide guidance on compliance, licensing, and risk management.
• Market Insights: Solve can assist with us to access market researchers and professionals who can provide valuable insights into user behavior, preferences, and adoption patterns, enabling us to tailor McCobidy to the specific needs of those we would like to serve

2 full-time 

2 Part-time

1 Year