The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

Financial Literacy Training Intervention Strategy

Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by somrep, 2022-07-13 04:51:47

Financial Literacy Training Intervention Strategy

Financial Literacy Training Intervention Strategy

SOMREP FINANCIAL LITERACY TRAINING INTERVENTION STRATEGY

Financial literacy training will aim to educate Somrep program cohort on money management
and generally financial services, both formal and informal. In Somali/Somaliland land the context
is exhibited by low level of financial awareness and inclusion, lack of sufficient availability of FLT
service providers to train farmers, MSMEs and traditional cultural and social belief around
financial services among the Somali people both at rural and urban level. Somrep program aims
to implement financial literacy increase financial awareness to make farmers and MSMEs make
informed financial decisions to access, choose and use financial services they need and adapt
good financial behaviors.

Objectives:

1. Raise financial awareness
2. Provide knowledge and skills to make informed financial decisions in day-to-day financial

activities and accessing financial services
3. Change financial behaviors of participants to better manage their financial matters

Expected Market System Change:

● Increased awareness, financial decision making, and money management capacity of
individuals creating an increased demand for products and services

● Increased financial transactions (increased savings, loan uptake, and better repayment)
creating credit history and trust between formal financial service providers and the
farmers/MSMEs

Strategic Approach:

Financial literacy training will help the participants improve their financial awareness and
management skills both at household level and in their businesses. This will also be a start
point and yardstick to financial inclusion for the unbanked/banked. The training will be
integrated within Somrep with activities such as VSLAs, TVET, Livestock groups, Farmer groups
etc. Initially Somrep beneficiaries were trained on business skills with very few integrated FLT
modules, hence lacking key financial literacy components. To ensure financial inclusion
programming is implemented technically as expected, Somrep has designed a comprehensive
financial literacy curriculum. The training curriculum is a reference guide for facilitators and other
users. The contents, messages and tools to deliver training to participants can be customized and
contextualized as per needs.

Delivery in the ongoing Hybrid FLT/BST: Somrep staff and consultants are involved in delivery
of the training in the ongoing business skills training integrated with limited FLT. However, direct
delivery of the training is not a sustainable approach and Somrep will change from the direct
delivery approach to the community-based approach (CBA) of financial literacy training delivery.

Consultants may be used if they are based and operate from the local markets where program is
being implemented or where we do not have a strong CBA.

Community-based approach (CBA): Somrep intends to transfer the FLT knowledge and skills to
the local community by establishing a community-based mechanism for the training delivery. This
would involve using existing filed agents, PSPs or selection, hiring and training of community
facilitators from the community where FLT will be implemented. They will have to undergo a 3-day
ToT training on FLT. The trained community facilitators will be used to deliver financial literacy
training to community groups engaged in Somrep economic development related activities. The
aim of building local capacities is to make the trained resources available in the communities during
and even after the end of the Somrep program. The role of officers within Somrep agencies will be
to support and supervise the trainings. We shall explore embedding FLT in partner institutions like
MFIs, Banks, TVET institutions within our program area. This will also ensure the approach is
adopted by the market players too.

Initially most economic development trainings like FLT, BST, Good hygiene and nutritional
practices etc. used to be done in-class for a period of between 2-5 days. With a recent
assessment conducted on past VSLAs and business skills trainees, most preferred longer
training period for better understanding of training content. Secondly the allocated days in the
latter delivery model cannot not sufficiently to cover the entire FLT curriculum as it’s a
foundational training and everything in it is key for targeted recipients.

We anticipate to use a community model by staggering roll out and implementation of FLT which
will increase both efficiency and effectiveness. This model will allow the program beneficiaries
have ample time for training while Somrep through agencies will also save on training cost
related expenses like lunch, hall hire etc. by adopting a staggered training, which will be longer,
more participative/encourage feedback, encourage practicability and cover everything without
doing quick piece meal trainings.

The staggered model will be designed in such a way that groups like VSLAs,
Livestock/Agriculture groups etc. are trained during their normal meetings for 3-4hrs once a week
until the FLT session plans developed are completed. This means FLT training will take 7 weeks
to complete. The staggered model training will also allow trainees have time to understand
training content better as well as having ample time to concentrate on their IGAs like
agribusiness, livestock and other MSEs hence avoiding spending 3-5 full days in the training
which distracts their income streams/work.

The overall strategy of the community model is to ensure the same community facilitators are also
trained as PSPs for VSLAs and community facilitators (CF) for business skills training too to ensure
we have all round skilled facilitators. They CF would then be encouraged to form companies,
register business names so that they become Integrated PSPs who can provide services to the
community hired by any entity e.g. other NGOs, Private companies, community etc.

NB: In the absence of the community model agency staffs can still do direct training to beneficiaries
as they recruit community facilitators, field agents or PSPs who will undergo a FLT ToT training
and be responsible for conducting trainings going forward as agency staffs give technical
supervision and support.

Delivery Modules: Somrep financial literacy curriculum includes seven modules:

● Financial literacy and financial inclusion

● Savings, making my money grow
● Loan/Debt management
● Insurance services
● Remittances/Transfer
● Personal financial management
● Investments

These seven modules will be delivered in a staggered approach of 7-week program. In exemptional
cases especially when training local partners for adoption of SomRep FLT curricula in-class
training package will be done for 3 days.

Integration of FLT with other Interventions

FLT training will be undertaken like a MANDATORY basic training to all program beneficiaries
in VSLAs, TVET trainees and other economic development individuals and groups like
livestock, agriculture groups etc. Based on need and interest, selected FLT participants will
be undertaken through other training such as Business skills training, Life skills training etc.
This will ensure they are able to have all round skills hence ability to run their IGA well.

FLT stakeholders

The stakeholders in the FLT approach will include

External stakeholders

1. Farmers/MSMEs/VSLAs/Livestock/Fisheries
2. Relevant local authorities/govtment
3. Community, religious, Youth, Women leaders
4. Other NGOs, Private sector e.g. Financial Institutions e.g. banks-This will provide

linkages to access bigger loans either individually or as a group.

Internal stakeholders

1. Somrep consortium members and staff.

Sustainability and Exit plan

The participants of FLT will apply the skills and knowledge gained through the financial literacy
training in their day-to-day financial matters, accessing financial services, adapting good financial
behavior’s and making informed financial decisions which will also flow down to the families and
communities. The acquired knowledge, skills and good financial behaviors will not end with the
end of programs.

The strategic plan to end direct implementation by our team members and start using community
facilitators and adopt using community-based consultants will create a road map to sustainability
and an exit plan. They CF would then be encouraged to form companies, register business names
so that they become Integrated PSPs who can provide services to the community hired by any
entity e.g. other NGOs, Private companies, community etc.

The program will also consider training some VSLA members, Associations and group members
(e.g. Agriculture, livestock, FFS etc.) as Lead community FLT trainers so that the knowledge is

left in the community where people can train others and even get engaged by other entities to
support them in FLT roll out for similar programs.

Lastly Somrep will liaise with partners in the financial services space so that they can adopt FLT
training for their customers. Somrep plans to capacity build these partners through a ToT training
and give them the manuals and tools for use in their organization. This will spur market system
development and result to market system changes if well implemented and ensure sustained
resilience too.

RISK MATRIX

Potential Risks in Financial literacy training implementation

Intervention Risk Likelihood Potential Mitigation
Impact Plan/Actions
Financial literacy Low business acumen Medium Inadequate FLT skills Somrep will Integrate FLT with
training and literacy levels by potential business skill training i.e. farmers
among participants i.e. participants i.e. farmers and MSMEs. Use participatory
farmers & MSMEs and MSMEs. approaches in training will be
used better understanding
Lack of utilization of FLT Medium Skills learnt not put into Program will facilitate FLT
skills learnt practice due to lack of participants to formal and informal
access to finance for financing mechanism so that they
Sustainability Low business start-up or access an array of financial
expansion services e.g. loans and savings.
The participants may The FLT facilitators will be trained
not get required as PSP providers so that’s they
additional FLT skill can continue to provide FLT
gaps when gap training at a small fee. We shall
emerges also train MFI and bank staffs we
have partnered with so that they
can continue offering these
trainings to their customers as a
pre or post loan package. With
community resource persons any
NGO coming in the community
can still engage them for services.


Click to View FlipBook Version