USAID LIFE RFA #10

Palladium is seeking applications from qualified MFIs-Financial Institutions to implement - as recipients - for the Microcredit Component under USAID “Livelihoods and Inclusive Finance Expansion” (LIFE) Project.

Palladium is implementing USAID LIFE Project under contract with USAID Contract Number: AID-268-C-16-00002

Successful applicants will be responsible for ensuring achievement of the program objectives. Please refer to the Program Description section of this RFA for a complete statement of goals and expected results.

Subject to availability of funds, Palladium intends to provide up to $750,000 in total funding for activities to be implemented no later than January 2021 with awards in the range of $50,000 - $250,000. Palladium reserves the right to fund any or none of the applications submitted.

Applicants must provide all required information in their application, including the requirements found in any attachments to this RFA. Applications that are submitted late, incomplete or are non-responsive will not be considered. Awards will be made to the responsible applicants whose application best meet the requirements of this RFA and the evaluation criteria contained herein.

Funding Opportunity Statement

For the purpose of this RFA, the project will use grants to support achievement of LIFE results under Component 2- Microcredit.

LIFE will use grants to stimulate investment in Fintech solutions, as significant a driver of inclusion, and support financial institutions in implementing Fintech solutions to improve and automate the delivery and use of financial and non-financial services to the unbanked population at competitive costs. Further it will promote awareness through financial literacy program of how the application of Fintech can improve the prospects of future integration of the unbanked population in Lebanon financial eco-system.

In the last three years, the BDL “Banque Du Liban” has been accentuating the role of financial inclusion to promote economic growth and socio-economic development. The regulator is calling for comprehensive financial and non- financial services for the unbanked that promote responsible finance in respect of lending, saving and financial literacy. The BDL is encouraging financial entities, to use the financial technology in order to increase the depth of outreach to the unbanked living in remote and peri-urban areas of Lebanon.

LIFE-USAID program’s focus is in line with the BDL strategy towards providing comprehensive financial products and services and achieve an expended outreach to the unbanked population. 

The new technologies will facilitate decision-making, foster the disbursement of loans and serve more unbanked clients in less time. FIs will spread the e-culture through potential partnerships with Fintech providers and promote awareness of financial literacy to unbanked population in Lebanon.  

Fintech will help FIs in Lebanon to comply and meet Central Bank’s new requirements in terms of financial reporting and loan disbursement. They have a variety of services that they could create and upgrade using the new technology.

In addition, FinTech solutions could support the internal operations of MFIs and financial institutions: reduce the costs of transactions and enhance the client’s experience, as well as increasing operational performance.

Solutions include digitizing workflows “Digital Field Applications”, MFIs delivery channels, credit scoring solutions, customer mobile applications among others.

LIFE will encourage partnerships between Financial institutions and digital financial services providers that would lead to the provision of financial services through innovative technologies. LIFE expects these investments to increase the outreach to the poor, improve and build management capacity, competitive edge, efficiency and effectiveness.

In order to increase financial inclusion in Lebanon through technology, within the umbrella of the regulations and policies set by BDL, LIFE is looking for Financial and Microfinance Institutions willing to use the transformative technology, smart-phones and financial technology in addressing the unbanked Lebanese population.

LIFE intends to award grants to Financial institutions, Micro finance Institutions,  NGOs and Fintech Solution Providers which have the best access to unbanked population, have prior experience making similar grants, and can clearly demonstrate their role in the expansion of financial inclusion and coordination with other community stakeholders to achieve a positive and sustainable socio-economic developmental impact in their areas of implementation.  These actors will leverage their existing footprints and expertise to deliver their services to beneficiaries.  

Award Information

• LIFE anticipates granting performance-based awards according to the proposed activities aligned with LIFE-USAID RFA’s objective and applicants’ eligibility assessment and capabilities.
• Grants period starts with a base period limited to 9 months.
• Grants outputs include but are not limited to a measurable expansion of the outreach for unbanked clients, improvement of workflow performance and long-term reductions in transaction costs.
• Grant amount will depend on the digital or Fintech solution proposed, anticipated results and its impact on operations, outreach and sustainability.

However, no grant shall be issued for an amount exceeding $250,000.

Eligibility Requirements 

• Grants may be provided to Micro Finance Institutions, Financial Institutions, Commercial Banks, NGOs and Fintech Solution Providers that are legally registered and recognized under the laws of Lebanon and meet the criteria established by ADS 219 and LIFE project.
• MFIs/FIs must include in their applications, a clear strategy and implementation plan in response to the Fintech revolution
• Must have shown initial investments in Fintech solutions or apply digital finance technology to reduce the transaction costs, workflows, increase and improve the delivery of their financial and non-financial services
• Must be registered as a financial institution or MFI meeting the above criteria and actively providing Access to Finance services to Lebanese in underrepresented areas. Special consideration should be given to women and other disadvantaged demographics
• Must demonstrate sustainability, management performance and strategic planning,
• Are willing and able to complete the process of issuing a DUNS number (required by USAID). For more details about DUNS numbers: http://www.dnb.com

The Chief of Party may waive a requirement if a response to the RFA presents a valid justification, assuming approval from USAID.

For more information please do not hesitate to contact us: 

 [email protected]