2024 UNCDF Malawi Fintech Challenge For Young Malawians.

The UNCDF Malawi Fintech Challenge presents

A unique opportunity for innovative minds to contribute to the advancement of financial inclusion in Malawi. Spearheaded by the United Nations Capital Development Fund (UNCDF) in conjunction with the Reserve Bank of Malawi (RBM), and bolstered by support from the European Union (EU) and the Organization of African, Caribbean, and Pacific States (OACPS), this initiative seeks to harness the power of fintech to propel economic growth and enhance livelihoods across the nation.

More than just a competition, the Malawi Fintech Challenge serves as a collaborative platform, inviting a diverse array of stakeholders from the financial sector to join forces in fostering innovation, inclusivity, and prosperity. By bringing together fintechs, technology companies, payment service providers, and financial technology service providers, both local and international, the challenge aims to catalyze transformative solutions that address the pressing needs identified by pre-selected implementing partners in Malawi.

The Request for Application

Outlines specific criteria for participation targeting entities with market-ready solutions tailored to tackle the identified problem statements. Whether it’s pioneering mobile banking solutions, innovative payment platforms, or novel financial inclusion strategies, applicants are encouraged to propose cutting-edge initiatives that have the potential to make a tangible difference in the lives of Malawians.

Participating in the Malawi Fintech Challenge offers numerous benefits beyond the prospect of recognition and rewards. Successful applicants will gain access to invaluable resources, mentorship opportunities, and networking avenues that can facilitate the development and scaling of their solutions. Moreover, by aligning with the overarching goal of advancing financial inclusion, participants can contribute to the broader socio-economic development agenda of Malawi, thereby leaving a lasting impact on the nation’s future.

Furthermore, the collaborative nature of the challenge encourages knowledge exchange, synergy-building, and collective problem-solving among participants and stakeholders. By leveraging the diverse expertise and perspectives brought forth by different actors within the fintech ecosystem, the challenge fosters an environment conducive to innovation and collaboration, ultimately enhancing the effectiveness and sustainability of the solutions proposed.

In addition to fostering innovation, the Malawi Fintech Challenge serves as a catalyst for institutional strengthening and capacity building within the local fintech ecosystem. By nurturing homegrown talent and fostering partnerships between local and international players, the challenge seeks to empower Malawian entrepreneurs and institutions to drive meaningful change from within, thereby building resilience and self-sufficiency in the face of evolving economic challenges.

As applications open for the UNCDF Malawi Fintech Challenge, it is imperative for interested parties to seize this opportunity to showcase their ingenuity and commitment to advancing financial inclusion. By joining forces with like-minded individuals and organizations, participants can play a pivotal role in shaping the future of finance in Malawi, unlocking new opportunities for prosperity and progress for generations to come.

Solutions for Financial Inclusion

A crucial step towards financial inclusion involves providing avenues for uncollateralized loans, especially for Micro, Small, and Medium Enterprises (MSMEs) along with smallholder farmers. Introducing a Loan Management Solution tailored for this purpose can be transformative. This solution not only facilitates the disbursement of uncollateralized loans but also serves as a platform for these entities to establish and enhance their credit history gradually.Harnessing the power of digital innovation, an integrated solution built on Financial Access Data Collection’s (FADC) critical data points can significantly optimize service delivery.

By leveraging these data insights, financial institutions can broaden their reach and enhance accessibility to a wider range of financial services, thereby fostering inclusivity.

Additionally, the utilization of a digital scorecard and scoring engine platform is proposed. This platform capitalizes on existing Village Savings and Loan Associations (VSLAs) data to bolster TNM’s (presumably a financial institution) offerings, particularly in the realm of credit accessibility.

By leveraging the data from VSLAs, this platform streamlines the credit evaluation process, making it more efficient and inclusive.The benefits of these solutions are manifold. Successful applicants stand to gain access to grant funding, which is instrumental in piloting and implementing these innovative financial inclusion solutions.

Furthermore, technical assistance is provided to refine and test these solutions, ensuring their effectiveness in real-world scenarios.

Mentorship and incubation support from industry experts further enrich the journey, guiding applicants towards sustainable and impactful outcomes. Lastly, forging market linkages with strategic partners and stakeholders ensures a conducive environment for scaling these solutions and maximizing their societal impact.