Pi Slice - web based social platform - a new channel of funding for Micro Finance Institutions
Pi Slice is a web based social platform which represents a new channel of funding for Micro Finance Institutions. Its framework is a unique, connecting system that links individuals and companies – who wish to invest - with MENA based MFIs - which in turn use the funds to provide micro-credit to their customers. Through this web based platform, motivated individuals and companies can help MFIs in the MENA region to build a sustainable future for micro-entrepreneurs, as well as a favourable ecosystem for development at the macro level.
The MENA region is home to approximately 370 million inhabitants of which at least 26 percent are estimated to be living on less than USD $2 / day. Half of the region’s population have to make ends meet with an income which barely covers their basic needs. To manage their unpredictable situation, they need access to funds and financial tools that traditional banks aren’t willing to provide, especially considering the fact that the supply of microfinance services in the region is modest, at best. It is estimated that there are approx. 6 million households eligible for a microfinance loan and that there is a gap of approx. 3 million potential microfinance customers for a total of nearly $3.5 billion in GLP.
When you think about making a difference in developing the MENA region, you might consider donating to a charity of your choice or to a NGO, as most people do. What if you could instead direct a portion of your investment portfolio towards financing microfinance institutions? Not only would get a return on your investment and diversify your portfolio, but you would as well participate responsibly in the social development from the base of the pyramid.
WHY PI SLICE
Investors have no access to projects that align with social strategic goals
Investors have limited variety when choosing social investment/charity causes
Investors have no transparency into performance of MFIs
Investors seldom receive a return for money given for charitable causes
MFIs have limited ability to source funds from individuals and corporations and are often lacking in liquidity
MFIs have no accountability since they rely mostly on donations & grants which raises scepticism
MF industry is not consolidated and still has a long way on regulations
Borrowers have insufficient access to funds to develop their own projects
Borrowers don't benefit from all the array of Micro Finance products
And this is exactly what Pi Slice will resolve by providing transparency, accountability, access, choice, etc.
Investors will have the ability to research various social platforms for investments and make a choice that aligns with personal or organizational objectives
Investors can benefit from profiled and recommended MFIs with the insurance that their money is properly invested to end borrowers,
Investors can get a transparent record of their investment's performance
Investors can have access to a unique CSR channel
Investors will be contributing to a more consolidated Microfinance Industry leading to products development, regulation, etc..
MFIs will have access to CSR budgets from Corporations and to individual investors
MFIs will show more accountability to remain part of the Pi Slice network
MFIs will get the opportunity to be part of a more consolidated industry, leading to an improvement of the regulation
Borrowers will have access to a larger source of cash
Borrowers will get access to new products to cover their needs
In conclusion, Pi Slice can bring the following advantages to the MENA region:
Pi Slice operates in MENA, a market that is under-penetrated and under-funded for the Micro Finance industry that still lacks on regulations and transparency
Pi Slice is an innovative business model in MENA supported by tier one strategic partners and a highly motivated and qualified team
Pi Slice lists MFIs according to strict Selection Criteria ensuring transparency, investment and social performance, low risk, sustainability, outreach, etc...
Pi Slice ensures the money is properly invested to MFIs that in turn lend to their customers
Pi Slice has its own technology system that allows users to easily navigate the site, and allows Pi Slice to monitor transactions, traffic, and control fraud
Pi Slice creates a new sustainable and profitable CSR channel for corporations and institutions, and therefore new sources of funding for MFIs through CSR programs and individual investors
Pi slice introduces a new social online community which allows people and Corporations to meet, and participate into social development
Several challenges exist in the current microfinance industry in MENA....
Reduce unemployment in MENA and support MENA micro-entrepreneurs in the development of their businesses through micro-credit.
Create a MENA online community of lenders.
HOW PI SLICE WORKS
Microfinance borrowers are typically unable to directly raise investment capital from investors. However, Micro Finance Institutions (MFIs) have this capability to use your investments to finance microfinance borrowers and their projects.Like banks, MFIs closely evaluate and monitor the ability of their microfinance borrowers to repay their loans. And they usually manage and follow up on a portfolio of microfinance loans to diversify risk. MFIs also make sure that the projects developed by their borrowers, operate ethically.
And this is how Pi Slice works:
On Pi Slice, investors can choose to purchase investments offered by different MFIs. The MFI then directs the investment in the form of a loan to microfinance borrowers in their portfolio. These microfinance borrowers eventually pay back their loans which have an average 12 to18 months 2Tenor, and the MFI is able to pay the investor back with some interest.