Project Description

Cloneshouse Nigeria was engaged by EFInA to conduct a comprehensive independent evaluation of the Fintech Challenge Fund project, which aimed to enhance financial inclusion among Nigeria’s low-income population by leveraging innovative digital solutions across seven states – Lagos, Kogi, Benue, Nasarawa, Kano, Kaduna, and FCT.

Specific Work Undertaken:

  1. Design and Development of the Monitoring and Evaluation Framework:
    • Developed a detailed framework to monitor and evaluate the performance of six grantees (Capricorn Digital, CredPal, Extramile Africa, Riby Finance, SmartTeller, and Social Lender).
    • Reviewed grantees’ project documents, including proposals, agreed KPIs, and deliverables.
  2. Data Collection and Validation:
    • Conducted announced and unannounced site visits to grantees’ headquarters and their beneficiaries across seven states (Lagos, Kogi, Benue, Nasarawa, Kano, Kaduna, and FCT).
    • Designed data validation and collection tools such as observation checklists and unstructured interview guides.
    • Verified grantees’ reported data by randomly calling 200 agents and 150 customers, ensuring accuracy in their performance reports.
  3. Stakeholder Engagement and Interviews:
    • Conducted two on-site visits to grantee agents and three visits to grantees’ headquarters.
    • Interviewed six grantee project managers and twelve beneficiaries to document activities, challenges, lessons learned, and immediate project outcomes.
  4. Financial Health Assessment:
    • Developed a financial health self-assessment tool to evaluate the financial management practices of the grantees.
    • Conducted unscheduled reviews of financial documents, identifying low-risk financial management practices in Capricorn Digital, CredPal, Riby Finance, and Social Lender. Medium- and high-risk levels were noted for SmartTeller and Extramile Africa, respectively, due to gaps in internal controls and accounting systems.
  5. Performance Assessment and Reporting:
    • Validated customer and agent data collected between April 2019 and June 2020.
    • Confirmed that all grantees met agent onboarding targets, while only CredPal and SmartTeller met customer acquisition targets.
    • Identified challenges faced by grantees, including irregular data collection, technology adoption barriers, fraud risks, and the impact of COVID-19 restrictions.
  6. Recommendations:
    • Proposed technical support for responsible data management processes to address irregular reporting and mitigate fraudulent schemes.
    • Recommended tailoring financial services to local languages and cultures, particularly in underbanked regions such as Northern Nigeria, to improve uptake of fintech solutions.

Impact:
Cloneshouse’s work ensured a transparent evaluation process, providing EFInA with actionable insights into the strengths, challenges, and areas for improvement in the Fintech Challenge Fund. This evaluation supported better decision-making for future initiatives to drive financial inclusion in Nigeria.

 

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