THE STRENGTHENING OF A

MICROFINANCE INSTITUTION
THE RISE OF ITS CLIENTS

Presented by (name) on (date)

 Our History
We began as Riverbank Crescent Self-
Help Group, a gathering of 7 women Member

who owned small businesses in Njiru

Quarry. Because they were not qualified Member Member

for traditional banks, but still wished for

financial intermediation to develop their
businesses, the self-help group was Riverbank
formed to address their needs. When Member Member
one of the members needed funds to
buy more stock, for example, the money
would be borrowed from other members
and paid back according to their terms. Member Member
Our History
• Later the lending functions of
Riverbank were separated from
the social functions, and
Riverbank Savings
and was officially formed.
• Early on, the organization was
small and faced many challenges.
At times, credit officers were
forced to track down clients
throughout Nairobi everyday and
ask for payments.
• In February 2009, Riverbank was
officially registered as a Savings
and Credit Co-Operative
(SACCO).
Our Vision and Mission
• Vision: to create an • Mission: to be the
economic environment leading provider of
where the ability of the microfinance services
poor to do business is in Africa through deep
not determined by understanding of
wealth inherited but by financial needs by the
the individual’s economically
commitment to capture disadvantaged and use
business opportunities information technology
and make the best use to support innovation of
of such opportunities solutions to meet such
needs
Our Approach – The 5 C’s
■ Traditional banks regard collateral as the most
important feature of a client.
■ Riverbank, however, respects the CHARACTER
of our customers most of all.
■ We also emphasize CASH FLOW
and CONDITIONS of the business,
such as competition, trends, and
opportunities.
■ Finally, we consider the CAPITAL
and COLLATERAL of the business
woman or man.
■ Thus, if a client has little to no inherited or
current wealth, but a promising and feasible business
plan, we can help them achieve their goals when
other financial institutions cannot.
Our Approach
This outlook allows us to uphold our vision of
“
creating an economic environment where the
ability of the poor to do business is not
determined by wealth inherited but by the
individual’s commitment to capture business
opportunities ”
 Our Services - Products
• Riverbank again separates itself from traditional
banks with our unique
products, which are
customized and
revised to specially
suit our clients’
needs.
Our Services - Products

our most popular

product

• The Instant Loan (Amka Twende) is intended for clients seeking a small loan of
Ksh 2000/- quickly and conveniently.
• The member must save in a Riverbank account for 7 days, and the loan is to be
disbursed on the tenth day.
• An interest rate of 3% is collected daily over a repayment period of 2 weeks.
• Savings must equal at least 30% of loan size and a guarantor is needed.
Our Services - Products

• Most clients use the loan to grow their small businesses. For example:

Carpenters use the

Shoe makers use funds to purchase
the funds to timber and tools.
purchase raw
Food vendors use the materials.
funds to buy more fruits
and vegetables, fish, or
meat. Merchants use the funds to
buy more clothes for their
shops.
Our Services - Products

• The Group Loan (Imarisha Kazi) is available to up to two members of a group

of five individuals.
• Members must save in a Riverbank account for 4 weeks.
• A loan may be requested for an amount that does exceed 2 times the individual’s
savings and the total savings of the group.
• An interest rate of 1.5% is collected daily.
• After 75% of the loan is repaid, non-lending members of the group become eligible
for a loan.
• All members of the group serve as the guarantors.
Our Services - Products
Our Services - Insurance
• Problem: We soon realized that a prime
cause of defaults on loans was the
overbearing cost of emergency medical
expenses. Because we understood that
no family should have to choose
between the health of their loved ones
and repaying a loan, we developed an
insurance service to protect our clients
and their accounts.• Solution: In partnership with the Co-
operative Insurance Company of Kenya and
NHIF, we now offer discounted insurance
along with insurance premium financing to
our members. Since this service was
introduced, we have found that a number of
members have joined Riverbank simply to
gain access to this valuable coverage.
Type of Coverage Amount (Kenyan Shillings)
Our Services - Insurance
Death and disability cover
100,000/- (less the existing loans)

Loss of income compensation 2000/- weekly for a maximum of 25

weeks

Payment of medical and accommodation bills Full

Funeral cover 30,000/- (per member subject to

payment)
Permanent disability compensation 100,000/-

Accidental death cover 100,000/-

• Insurance coverage is mandatory for all members with loans of 100,000/- and above.
• Riverbank offers insurance premium financing loans, so that interested members are
not turned down due to insufficient savings.
Our Services – Savings and
Investment

• Investment products (Lenga Kikapu) are designed to enable

members to accumulate wealth through long term savings.

• The investment plan attracts interest at 0.75% per month for deposits with
minimum of Kshs 5,000/-.
• Accounts can also be set for Kshs 20,000/-, Kshs 50,000/-, Kshs 100,000/-,
and Kshs 1,000,000/-.
• Member savings are made into a long term deposit, which can not be
withdrawn for a period of 3, 6, 9, or 12 months.
Our Marketing Strategies

• Most of our clients learn about

Riverbank from credit officers,
who are in the field visiting clients
everyday. We have also hosted a
number of local rallies to register
many new members at once,
sometimes 60-70 in one day.
Our Marketing Strategies

• In addition, we have
created a number of
fliers and brochures
to promote the many
services we offer and
clearly explain the
details of our
products.
Our Network
Head Office
Nacico Plaza
Central Nairobi Mombasa
National Library Building
,MSA

Branch Office:
Branch Office:
Hawkers Market, Mathare:
Kayole
Kibera At Area 4

Serving Toi Market, Serving Kayole, Njiru

Makina Market, and Quarry, Umoja and
entire Kibera region part of Dandora
Our Network - Growth

• In the future we intend to expand our reach and open offices

around the country and eventually around the continent