Over the past fifty years, many governments, development agencies, and civil society organisations have introduced financial inclusion initiatives to help alleviate poverty. Some initiatives have succeeded in achieving their long-term microfinance/financial inclusion visions, but the majority have failed.
The common scenario is that the initiatives appear beneficial and very promising while the financial support from the government, the donor, or the CSO is still active. However, once the support is phased out, the microfinance and financial inclusion establishment starts to weaken, and sometimes, grinds to a complete halt. The major reason for this failure is loan default.
StrategyHouse.dk works with governments, donor agencies, rural development partners, the private sector and civil society organisations to reduce loan default among the borrowers of microfinance institutions. In this way, it ensures financial sustainability and growth. StrategyHouse.dk realises that microfinance and financial inclusion initiatives are a means to an end – that end being poverty reduction. As such, StrategyHouse.dk focuses on helping you to develop innovative strategies that help your beneficiaries acquire the necessary skills to be able to invest their loans into productive enterprises, which will enable them to make a profit and repay their loans. StrategyHouse.dk helps you work, using a research-tested lending model that guarantees high to full loan repayment. The model also creates a win-win situation for all the stakeholders, but above all, it economically empowers the poor so they may realise their vision of climbing out of poverty.
While in keeping with the local conditions and historic loans perspectives, StrategyHouse.dk will help you develop strategies that will:
- Set the appropriate selection criteria for the loans beneficiaries.
- Help you develop appropriate loan amounts according to loan cycles in order to motivate increased investment and subsequent loan repayment.
- Facilitate your understanding that giving out loans is not for everybody who has funds to give. Rather consideration is needed to form appropriate symbiotic partnerships with different stakeholders to be able to get the most out of the initiative, with every partner playing their most appropriate role.
- Prioritise building the capacity of the intended beneficiaries so they become the primary active participants and contributors to their own desired futures. You will play the role of a facilitator that, among other roles, provides awareness about possible available alternatives for them to choose and work towards.