Why Financial Literacy?
Financial inclusion is essential to economic empowerment and breaking the deep-rooted poverty cycle, and yet 80% of those in developing economies are excluded from financial products and services (UN, 2016). With access to financial and social assets critical to promoting entrepreneurship, sustainable livelihoods, and economic independence, widespread financial illiteracy can result in debt cycles, seeing customers spending more on transaction fees, running up bigger debts and incurring higher interest rates on loans.
In Fiji alone, low levels of financial literacy, a lack of financial documentation – including credit history and payslips -, seasonality of income, and minimal assets mean that every month hundreds of individuals and small business owners applying for loans get turned away from financial institutions. Without the opportunity to grow local businesses, owners are unable to enhance their standard of living, and face significant barriers to breaking the cycle of poverty.
*Financial literacy is defined as understanding 3 out of 4 of the following key financial concepts: risk diversification, inflation, numeracy and compound interest
Globally, only 33% of adults are financially literate* (World Bank, 2016)
Across major emerging economies, ⅔ of adults with a credit card or loan are not financially literate (World Bank, 2016).
In Fiji only 3% of small to medium business (SME) owners surveyed knew exactly what documentation they need to get a loan (PEV, 2020)
Low income households in Fiji have the lowest financial competencies in managing cost of money, household budgeting, requests for financial assistance and borrowings (Pacific Financial Inclusion Programme, 2012)
What we are doing
Our solution, the iLavo Log, puts economic independence, growth opportunities and financial control into the hands of small business owners in Fiji, overcoming barriers to loans and supporting the local economy from the inside out.
The iLavo Log is a vital financial tracker, aimed at enabling access to comprehensive financial education and tools that business owners need to access loans, manage repayments, and sustainably grow their business. Whilst still in early-stage testing and development, the iLavo Log compiles business cash flow statements, inventory log, and financial forecasting that business owners can use as financial documentation to get a bank loan and begin the breakdown of the poverty cycle for good.
What it Addresses
The United Nations Sustainable Development Goals
Goal 8: Decent Work and Economic Growth
8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all
“If it was not of you I would not have achieved what I was aiming for in my business”
Veronica, local business owner, Fiji
“Before coming to Fiji, I had no idea what I got myself into and I had doubts as to whether social businesses actually work. However, my perception immediately flipped on its head as soon as I started working on the social consulting project.
During the month, I was able to build meaningful relationships with the foundations of trust and transparency; I was able to witness the impact our team made first-hand, meeting our clientele who were both warm and receptive to our product as well as our vision. I discovered how the social impacts associated with PEV still resonated with our projects and my own personal values”
How to Get involved
Connecting young change-makers and technology partners you will be testing social enterprise solutions in real-world contexts at the very early stages. This is an opportunity to deeply understand our community members and work with them to develop a meaningful social impact.
Virtual Impact Program4 weeks
January 2021 | January 4 – 29, 2021
- February 2021 | February 1 – 26, 2021
- May 2021 | May 10 – June 4, 2021
- June 2021 | June 7 – July 2, 2021
- July 2021 | June 28 – July 23, 2021
Global Impact Program4 Weeks
Rural Impact Program2 Weeks
- December 2020 | December 7 – 18 2020
- January 2021 | January 4 – 15 2021 & January 18 – 29 2021
- February 2021 | February 1 – 12 2021