“It’s a handy application. It helps me update my records on the go. I don’t need to sit down on a table at the farm when I do [record] any transaction.”- FINBIT user in Zambia
“The FINBIT Business analytics report is very useful and I think you should continue with it.”- FINBIT user in Zambia
L-IFT offers micro and small businesses a simple and user-friendly bookkeeping app called FINBIT, which gives these businesses a better grip on their finances and helps them to make informed business decisions. With FINBIT, businesses can build a detailed data track over time that the entrepreneur can use for her or his own information including seeing ways to improve the business. The business can also use the data to enable banks to assess them for loans or other financial services. FINBIT also offers a loan platform, enabling FINBIT users to apply for loans digitally through the app and then the platform matches them with the financial service providers whose criteria they meet. Since 2014, L-IFT has worked with more than 15,000 diaries participants across 20 different countries.
This project is in partnership with the USAID Enterprise Development and Growth Enhanced (EDGE) Activity whose overall goal is to help businesses (SMEs) to grow, make more profit, and access finance. The selected SMEs are using FINBIT for their digital financial management (bookkeeping, record keeping), and they benefit from the records through a better understanding of their businesses and to access finance using their data. This project is enhancing the work of 300 SMEs spread across 3 provinces in Zambia and has employed 8 local FINBIT coaches.
FINBIT coaches assist the SMEs to use FINBIT over a period of thirteen visits. They guide businesses in registering, setting up, and using all features of FINBIT. Within three months practically all businesses can independently operate all parts of the app. The benefits from the app’s analysis, statements, and business reports from our data and insights team already take effect within three months.
Organizations see multiple benefits
Organizations that partner with us are looking for a secure digital financial record-keeping tool for the individuals and groups they support in their programs. At the same time, the organizations get data and track their progress. FINBIT enables them to monitor, and evaluate their program and learn from the FINBIT data and feedback from users how to improve their program. These organizations also appreciate that FINBIT brings practical financial literacy to participants. The top benefit from FINBIT is that business management improves and this leads to increased profits.
Before FINBIT, SMEs typically have written records in an exercise book or no tracking system at all. Transitioning from paper-based to digital recording is a big step. It makes the business transparent and builds the data needed to access financial services.
What do the Zambian agricultural SMEs experience with FINBIT?
Engaging with users and monitoring their data helps us understand their app adoption and use.
“The client is able to post transactions of income and expenses, he was only failing to post credit transactions, we went through together, he is now able to post credit transactions. He was also appreciative of how the application is so helpful. He will get to know more with frequent visits…. We also checked on insights for him to know how he is doing in terms of income and expenses” – Reported by a FINBIT Coach
“The SME is up to date with all records and are keeping track of how the app is compiling the data and are so far impressed at how user friendly it is. They enquired if they could request for a statement just so they see how data will be appearing on the statement.” – Reported by FINBIT Coach
In Zambia, during the fourth week of FINBIT coaching, over 50% of users found the application easy to use with our step-by-step method that helps in avoiding overwhelming new users. As people start using the app and see their financial statements and business analytics reports after the first month of data entry, most users develop a high interest in their data as they value seeing the stories that their data tells.
The businesses mentioned how shocked they were by their improved record organization and by the app’s enhanced storytelling capabilities. Unlike paper-based systems, the app allows users to see their business history through graphs and charts telling a visual story of how the business develops.
“They said the app is keeping them in check because they can easily go back to all their records with less effort. All expenses for their chickens are being recorded correctly” – Reported by a FINBIT Coach in the fourth week of FINBIT use
“One of the SMEs who is getting familiar quickly with the App, he can post transactions on his own, he also said that the app is very friendly. We managed to extract a financial report together, this was so interesting for him to know.” – Reported by a FINBIT Coach in the third week of FINBIT use
The large majority (87%) of the SMEs who started using FINBIT are actively using it six months later, with most of them becoming increasingly enthusiastic as they experience the benefits.
FINBIT is continuously improving
Our team focuses on continuous improvement by using feedback from users to enhance the app. This feedback helps us simplify, or enhance features, and make the app more user-friendly. Features that are not relevant for some users, can be switched off. Gradually new features will become available, including goal setting. Our focus is on uncompromised reliability, and capacity to function offline for users in remote locations with minimal internet access.
“The SME is becoming very confident on how to use the app, he was also asking if the App can be technically merged with a point of sale machine or be made in such a way that after making orders all the stock is recorded and follows the same pattern when selling for easy transactions posting.” – Reported by a FINBIT Coach
“All went well… the SME also asked if some other fields can be added, more especially on the statutory obligations just to be a reminder to them, but I encouraged the SME to continue recording them as expenses and on options, in the Description box indicate as Statutory Obligation (e.g Napsa, Tax, Insurance etc)” – Reported by a FINBIT Coach
The feedback from users is crucial. We continuously learn and keep perfecting the user experience. The most important thing is what FINBIT users need and we want to create a system that they can learn quickly, use easily, and enjoy while doing it. In Zambia, the next step is activating the FINBIT loan platform for those SMEs who have used FINBIT for at least six months and now have substantial records. Stay tuned to hear more about it in our next blogs.