BACKGROUND

Currently, as is the case in many markets globally, the Haitian mobile money ecosphere lacks a sufficient number of agents in rural and semi-rural areas that have steady liquidity and the proper business registration to operate as a reliable agent network. This is important because a lack of rural coverage makes it difficult for clients to use the service in areas where the need and opportunity are greatest while also reducing the efficacy of mobile money as a domestic person-to-person (P2P) service, the primary use case which spurred early adoption with M-Pesa in Kenya. One key solution to addressing this problem is better engaging small and medium-size Haitian financial institutions with footprints in these areas (such as microfinance institutions [MFIs] and credit unions). Significant investments have been made to support the expansion of financial institutions into rural areas. Outreach in rural areas through Haiti Integrated Finance for Value Chains and Enterprises (HIFIVE) financial partners has increased from 181,379 rural clients to 525,362 in just five years (1.3 million total clients served) and points of service (POS) have increased from 205 to 411. Capitalizing on this expansion, World Council of Credit Unions is carrying out research to first identify barriers faced by financial institutions in offering mobile financial service solutions and then to identify solutions for how they can become engaged.

This consulting assignment, focused on “Analyzing alternative network business models for financial institutions to reduce costs related to ICT integrations” is part of a broader research agenda through the Haiti Mobile Money Initiative (HMMI) which focuses on four key components.

1. Carrying out an in-depth review of potential ICT barriers to entry for financial institutions;
2. Creating business plan templates for financial institutions based on localized costs and market conditions;
3. Analyzing alternative network business models for financial institutions to reduce costs related to ICT integrations; and
4. Identifying and vetting additional use cases for mobile financial service solutions from the supply side perspective.

HMMI and HIFIVE have been successful in developing the framework for mobile money in Haiti. The combined result of this complementary research will lay the foundation for expanding the distribution network of mobile money in Haiti, making the case for interoperability and expanding possible use cases to support mobile financial intermediation through financial institutions.

SCOPE OF WORK

Based on experience in a variety of countries, World Council has found that networking financial institutions is a way to reduce high upfront costs associated with technology infrastructure investments. Pooling resources to invest in ICT infrastructure is an effective way to spread upfront costs and operational costs to enable small institutions to capitalize on the long-term benefits that mobile technology presents. World Council is seeking a consultant to research and analyze potential networking models that could be applied to the Haitian context.

Specific objectives of the consultancy include:
• Review of financial network business models that have been successful in Haiti and internationally. These include:
o WOCCU Services Group (WSG) financial network business models that have been implemented in other countries. WSG follows an aggregated model where financial institutions maintain their existing Core Banking Systems but use middleware software to make their systems interoperable.
o Software as a Service (Saas) or Cloud models. In this model, financial institutions subscribe to a similar Core Banking System that is hosted in a third party location (outside of their institution). All data is stored remotely. This model is especially interesting for small financial instutions with little to no computerization or that don’t want to maintain the necessary IT staff to service and maintain a Core Banking System that is hosted locally.
o Other models identified that may be present in the market that are separate from the two mentioned above.
• Document the pros and cons of each model including a full cost analysis of each option.
• Document the initial costs and on going investment required for a single financial institution to gain access to the mobile money ecosystem if they were to take the necessary steps on their own (without joining a joint network with others). Compare and contrast this cost with the initial costs and on going investment of a joint network, whether it be an interoperable network or cloud based network.
• Identify potential software providers that financial institutions in Haiti could partner with to form a joint network. Be sure to identify providers that could help establish an interoperable network as well as a cloud based network. Be sure to include the costs of each provider along with their terms and conditions.

The results of the research will be presented to donors and financial institutions in Haiti. It will be especially valuable to second-tier or Apex Haitian financial institutions and others that work with the MFI and credit union sectors.

REQUIREMENTS
• Strong knowledge of global technology industry and demonstrated experience managing technology products and services. Direct experience in applying and scaling technology payment systems in a sustainable way in developing world settings with a focus on benefiting the poor.
• Expert understanding of mobile banking and alternative channels in the developing world.
• Strong experience and track record of building partnerships and joint ventures with technology companies and other entities.
• Strong finance background, expert knowledge of banking a plus.
• Strong written and oral skills.
• Fluency in oral and written English, knowledge of French or Spanish a plus.
• Bachelor’s Degree required, advanced degree preferred in business administration, international development, finance, MIS or a related field .

TIMING

The consultancy will take place between November 2014 and January 2015. The anticipated work will include:
• 10 days of preparation
• 15 days in Haiti
• 10 days post trip to writing and presenting the report
• 5 days in Haiti to present on findings of the research (March 2015 timeframe if available)

Please submit a copy of your CV, biodata and a cover letter outlining how you will do the work