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    « An Offering of Light | Main | Where a project lives and breathes »
    Thursday
    Jul312014

    Credit, Technology, and the Rural Myanmar Dream

    "There's no denying that access to credit can improve people's lives, and yet too much credit, or the wrong kind of credit, can put families in an unending cycle of debt." Renowned designer Jan Chipchase spoke these words Tuesday night during a presentation at Yangon gallery, TS1, where Proximity Designs, Studio D, and Visa unveiled the results of an 8-week project to design a culturally specific loan for rural Myanmar households. 

    We knew going into the project that the challenge we’d chosen was rich in complexity. Indeed, developing mechanisms to help families break from the burden of debt cycles is by no means straightforward.

    We started off by spending two months conducting over 200 interviews to gain an understanding of financial conditions in rural Myanmar, which has experienced five decades of near complete isolation and exclusion from formal banking services. We learned that a range of inventive, informal systems fill this void. Some, such as monastery lending groups, are convenient, culturally relevant, and help unite communities, but too often informal loans charge interests upwards of 10% a month. In the agriculture based rural economy, families often need money outside of harvest time, and the only way they can get it is by agreeing to these harsh interest rates (for the full report, download "Afford Two, Eat One").

    Proximity Designs, Studio D, and Visa presented the rural loan Proximity will begin testing early 2015

    This past Tuesday, more than 100 people packed into TS1 to engage in a conversation about rural finance in Myanmar. Jan Chipchase from Studio D and Su Mon from Proximity walked guests through our process and end product: a prototype loan that supports families where one or more members travel seasonally in search of work, because there are no jobs available locally in the villages. Helping alleviate rural debt by offering people a loan isn’t the most intuitive solution, but in contrast to high-interest informal loans, Proximity will offer affordable credit. The loan will also alleviate the stress on both the family members who stay behind and await remittances, and on the family members who must cover travel costs and living expenses while they search for work.

    The space was opened for a conversation with fellow social enterprises, financial organizations, and the broader community on the feasibility of mobile money in Myanmar, how to build trust with rural customers, along with the potential for technology to bridge the infrastructural setbacks that rural households face. It was the kind of evening that sparks innovative ideas and that inspires us to continue thinking of new ways to financially empower our rural customers. 

    If you attended the event, here is a condensed version of Tuesday night's slides.

     

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    Reader Comments (1)

    hi here

    September 6, 2016 | Unregistered Commentermccat

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