As part of our new application process, we have improved our due diligence, to ensure greater protection of your funds. Using benchmarks in microfinance programme performance, Deki assesses a partner’s financial stability and their capacity to grow sustainably. We then evaluate their entire beneficiary support process, from identification, business training and social support to loan disbursement, repayment collection and completion of each loan. Deki maps out how their risk register, policies and processes are applied, to safeguard the communities they work with and Deki’s lenders’ funds. This due diligence process shows how a Deki partnership will support the intended communities, what risks will be present and how they will be reduced and managed.
When a new partner successfully completes all three stages of the application process, and before we send new loans, we visit our new partner to see their operation in action and take partners through how to use the Deki monitoring processes. These first few weeks of the partnership help build a trusting relationship, with a foundation based on our common goal of providing opportunity to marginalised communities. We also check that Deki entrepreneurs are given the right information, and the right support from the very beginning of their loan with Deki.
All Deki partners’ performance is monitored and measured, which helps us check that the right risk management processes are in place, and to assess what support partners need. partners will have a probation period, allowing time to get systems in place to meet our seven performance measures: .
- 1. Timely collection of due repayments and current arrears levels
- 2. Monthly audit checks on loan records, in particular checking loan disbursal and repayment collection receipts
- 3. Collection of impact data, at four stages in the Deki entrepreneur’s loan cycle
- 4. Quarterly meetings via Skype and producing partnership reports, detailing the support provided for Deki entrepreneurs and also training provided to field officers, to help them do their job
- 5. Repayment of funds collected on behalf of Deki, and repaid to Deki within one calendar month
- 6. Responding to all Deki communications within 4 working days
- 7. Ensuring that all Deki entrepreneurs put forward for Deki loans meet our beneficiary criteria – those who are financially excluded; those who are most marginalised, including people with disabilities, orphans, women, etc.
Micro-finance is risky by nature. But if we have a strong relationship with our field partners, good monitoring processes, and due diligence, we can provide them with the right support to deliver loans, support and training to our entrepreneurs and their community. So together we can work towards a world full of opportunity, not poverty.
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