Leaf Global Fintech

Leaf is bringing the financially excluded into the formal economy by creating a virtual bank for refugees and migrants. Migrants rely on remittances but lack a safe and affordable way to receive them, while refugees in flight often face high risk of violence and theft associated with carrying their life’s savings in cash. 

Blockchain backed and accessible from a mobile device, Leaf offers secure storage and transport of assets across borders—no smartphone required.  Friends and family around the world can also send and receive for free on Leaf. By allowing customers to retain more value and by increasing accessible funds through remittances, Leaf gives users a better start with financial security and lessens their dependence on aid. Leaf ultimately creates an economic identity that customers can use to establish themselves anywhere in the world.

In 2019, the UN designated 79.5 million people around the world as forcibly displaced — 1% of the world’s population — and among them are nearly 26 million refugees. This number is the highest on record according to available data, and is expected to continue to rise as the effects of climate change further contribute to the displacement of people, both internally and across international borders. 

Those who are on the move do not have easy access to formal financial services. For refugees, migrants, and cross-border traders, this is particularly challenging.  Because they cannot access local solutions (i.e., banks) and mobile money does not cross borders, often their only option is to forfeit value or carry cash across borders. This is not only inconvenient and expensive — due to fees and bad exchange rates — but also dangerous, as it makes them easy targets for theft. 

Mobile banking and app-based solutions do not work for these groups because of the reliance upon internet access and smartphones, though 2.4 billion people around the world still use feature phones (non-smartphones). Leaf meets these needs by offering affordable, convenient, digital financial services accessible from a mobile device—no smartphone required.

With Leaf’s cross-border, digital wallet, users can store savings in one or more currencies, send and receive money domestically and abroad, enjoy free Leaf-to-Leaf transfers, make payments (regardless of whether the merchant has a Leaf account), and automatically exchange currencies during transactions. 

Leaf is the first to deploy a blockchain-powered financial application that can work over basic phones. Leaf has a smartphone app (Leaf Wallet) for iOS and Android, and a USSD application, which is accessible by dialing a shortcode. The use of blockchain makes Leaf secure and transparent, while USSD and SMS allow the service to be used on mobile phones without advanced functions, ensuring scalability.

Customers cash in and out of Leaf using mobile money, the dominant local payments system run by telcos across Sub-Saharan Africa. There are over 1.4 million physical agent locations that serve as cash in/out points but mobile money does not easily cross borders or networks, with domestic fees as high as 6% for peer-to-peer payments. Leaf is integrated with major mobile money providers in East Africa and serves as a bridge between them, solving their cross-border and network interoperability problems as well as cost issues along the way.

Leaf serves primarily refugees, migrants, and cross-border traders in East Africa. Leaf’s initial target market is the border regions of Rwanda, Uganda, Kenya, and the Democratic Republic of Congo (DRC), comprised of almost one million refugees in Rwanda/Uganda with access to mobile money, 22,000 small traders on the border of Rwanda and the DRC, and 42,000+ Congolese and Rwandese refugees that have resettled in the United States. These are all people that need to store and send money across borders but are generally excluded from the formal system (banks, money transfer solutions, smartphone-based digital wallets) because of cost or systemic constraints like policies against serving refugees.

Leaf was initially designed for refugees through surveying refugees in each stage of the resettlement journey and interviewing potential customers on five continents to create an appropriate solution for an underserved market. Prior to launching, Leaf conducted 350+ customer interviews. Resettled refugees pay up to 20% in fees to send money home, making them eager for convenient, affordable money transfer solutions. Currently, this population has no safe and reliable way to move funds across international borders and often their only option is to forfeit value or carry cash across borders. The Leaf team quickly discovered that other customer segments have similar cross-border financial needs. There are over 500 million small cross-border traders in East Africa that experience many of the same challenges as refugees, such as being forced to carry cash and pay bribes if carrying physical cash. Border guards also take advantage of traders. Unlike refugees, traders cross the border frequently and are generally more financially literate. Post-COVID, even more people have a need for digital payments and the digital, affordable, convenient money storage solutions.

Since launching in September 2020, the team conducts monthly win/loss interviews with customers to gain feedback and improve the user experience. The Leaf Wallet was designed with accessibility at the forefront: the interface is multilingual, refugee IDs are accepted for registration, and there is no smartphone required to use Leaf after registering. The product mimics mobile money, meeting users in their technological context. We adjust the wallet to accommodate users based on a constant feedback loop built into the product (examples: additional language options, alternative KYC requirements). With Leaf, refugees, migrants, and cross-border traders are now able to digitize and protect their assets for the first time.

Leaf’s mission is to empower those in underserved areas in developing countries. Leaf is tailored to serve those who are financially marginalized from the formal banking system. 

Leaf is designed with accessibility at the forefront; low KYC hurdles, there is no need for internet connection or a smartphone, is available in multiple languages, and is low cost.

 Leaf addresses this inequality experienced among refugees by providing a clear record of refugees’ assets through a Leaf account that is secured on a public distributed ledger. By re-connecting refugees to the global economy, Leaf empowers a historically excluded group.  

The Leaf Wallet has been live since September 2020 in Rwanda, Uganda, and Kenya for smartphones (iPhone and Android) and basic phones. Currently, most of our customers are refugees in Rwanda (40%). In addition to Leaf users reporting feeling safe crossing the border for the first time and being able to access digital financial services, in our first seven months of operations we:

Registered 5,831 customers

Completed 96,866 transactions on the blockchain worth $367,071

Directly helped 500 refugees during COVID by providing financial assistance

We have laid the groundwork to begin operations in Chile, France, and the UK. We have begun testing in these countries as well as adding additional onramps/offramps such as Visa/Mastercard globally. We have also completed initial testing of a Leaf Lite version, enabling those without proper identification to utilize the wallets functionality with volume limits (adhering to global KYC/AML regulations).

Leaf is a digitally native company that has brought financial services to underrepresented groups by allowing them to manage their money from a mobile device—no smartphone required. Leaf adds value by bringing together disparate technologies in a new and innovative way. The novelty of Leaf's USSD application is that it is powered by a high tech back-end and integration with SMS. The use of blockchain and a cloud computing technology stack secure and power the application, while USSD and SMS allow the service to be used on mobile phones without internet access. The use of basic technologies also ensures that Leaf’s model is scalable—any GSM-compliant phone can run USSD applications simply by dialing a three-digit short code.

Even for those with bank accounts, mobile banking is not widespread in Leaf’s target markets. Being able to digitally manage money across borders strikes customers as revolutionary. Building an economic identity through the use of Leaf’s technology allows customers access to the formal economy in a previously-unimaginable way.

Leaf uses blockchain technology for transaction storage and to facilitate cross-border asset transfer. Blockchain dramatically reduces transaction costs, improves security, facilitates instantaneous transactions, and enhances transparency as a back-end system. Digital representations of value (tokens) live in each individual consumer wallet, while the fiat money to back the value is held in regional bank accounts. Leaf utilizes the benefits of blockchain but does not expose users to volatile cryptocurrencies. Digitizing the process and operating at the token layer drastically reduces exchange and remittance fees.

Leaf currently serves 5,831 users in East Africa.

In one year, Leaf anticipates to serve 28,617 customers

In five years, Leaf will be serving 354,584 customers  and1,419,116 additional family members as beneficiaries

Over the next three to five years, Leaf will complete the integration with a major financial institution with operations across 33 countries in Africa, expand our services throughout South America,  the UK, and Europe, offer new microlending services, and roll out in-app financial literacy training. As we expand to new countries and regions, we are also adding additional onramps and offramps, such as banks, cards, and physical cash with partner agents. 

The novel services offered by Leaf are leveraging mobile technology infrastructure and extend its reach far beyond what has been possible, thus enabling underserved populations to access the formal economy for the first time. Our cross-border financial services are 1) increasing refugees’ access to funds; 2) enabling refugees to establish an economic and biometric identity; 3) reducing refugee’s dependence on government assistance programs in host countries; 4) reducing the expense associated with international remittances, preserving capital for personal savings and the local economy; and 5) supporting better levels of financial inclusion and literacy among refugees.

Leaf’s services are increasing refugees, migrants, and especially cross-border trader’s security through digitizing assets. Women, who make up 80% of the cross border population face harassment at the border often being forced to pay bribes. Though a difficult metric to quantify, the piece of mind that comes with the increased security cannot be overstated.

Leaf is tracking its impact through standard and custom metrics. Leaf’s primary impact metric is the ratio of previously accessible funds to accessible funds with Leaf. This tracks the increase in personal wealth retained (access) and the increase in wealth contributed into a customer’s account by others (amount). Secondary metrics include client households provided new access (IRIS PI2845), total deposits (IRIS FP9083), and decreased dependence upon host state (metric in number of days that compares increased accessible funds to daily assistance from UNHCR/WFP). Leaf will use CFPB’s financial well-being scale to qualitatively capture lives positively affected through Leaf’s services.

Full-time: 5

Part-time: 5

Leaf is equipped to lead this project because of its market expertise, experienced founders, and proven solution. The team has spent over 2 years laying the groundwork for its solution by building a tech product from scratch to meet refugees’ needs, working to obtain a letter of no objection from the Rwanda Central Bank, and relocating to East Africa. 

Leaf’s founders are passionate about this underserved population and have spent years getting to know its unique needs. Both are comfortable in East Africa and speak Swahili. Nat is the former CEO and founder of Juhudi Kilimo, which provides micro-asset financing to rural smallholder farmers in Kenya. In 5 years, Nat raised $22M+ in debt and equity, expanded to 20 field offices, and contributed to $30M+ in life-changing loans for 50K+ people. Juhudi Kilimo was recognized in 2011 at the World Economic Forum with the Social Entrepreneur of the Year Award, CIO Magazine's CIO 100 list, and was Africa's first certified B-Corporation. Nat previously worked for Accenture and has a JD/MBA from Vanderbilt University.

Tori has a background in technology and 15 years of personal experience working with refugees. Tori was a Data Architect at HCA Healthcare for 6 years, where she designed and developed on some of the largest datasets in the world. She holds a patent-pending in claims-based longitudinal care summarization through Health Information Exchange. She has an MBA from Vanderbilt University and is currently based in Kigali.

Leaf’s team reflects equality and inclusion. Tori Samples, the co-founder and CTO of Leaf is a woman who has contributed immensely to the traditionally male-dominated fintech space. We have also prioritized diversity during the hiring process: the broader Leaf team is 60% women, 70% BIPOC, and 20% are refugees. Because we are currently working in East Africa, we want our team to be mostly East Africans. Leaf’s expansion model is centered around hiring locally as we expand and creating opportunities for employment in underserved markets. This policy will apply as we expand into other markets in the Global South, and we will continue to prioritize women, people of color, and other underrepresented groups during the hiring process.

Leaf is applying to Solve to utilize its cross-sector community. Solve’s principles of an open innovation platform studying how people and computers can be connected is directly in line with Leaf’s ultimate goal: to use innovative technology to increase the quality of life for the underprivileged and underserved.

Funding will enable Leaf to continue technical development (adapting to the wallet to customer feedback and adding additional functionality), increase our on-ground marketing strategy and customer support, integrate with partners to offer Leaf services globally, and improve ourand transaction monitoring mechanism. From the MIT/Solve networks, Leaf will benefit from technical expertise regarding blockchain and support ensuring we measure and communicate Leaf’s impact properly.

From a regulatory perspective, Leaf’s needs are unique to each country and consist of banking, money transfer, anti-money laundering, and data privacy. Having licensed partners or professionals with compliance experience is important to helping Leaf navigate these risks. Leaf is also exploring the idea of offering tokenized rewards.

It is crucial for Leaf to properly track impact through empirical metrics. Collecting, storing, and analyzing are key in this effort. 

With the novel distributed technology ecosystem constantly evolving, Leaf will benefit from technical advice enabling us to capitalize on new functionalities, regulations, and updates. The limit to blockchain technology is unknown, so we must remain flexible and aware of new features.

We have identified two Solve Members that would be interesting and mutually beneficial partnerships. The first is Lynk, which matches informal workers to employers in Kenya. In Kenya, there are more migrant workers than refugees, roughly 1.1 million. As these workers generate income in a foreign currency and are often unable to open a bank account to store their income, they can benefit from Leaf to exchange funds and send them back home through the wallet. Migrant workers can exchange currencies during the transaction of sending money back home, receiving a better forex rate and completing the process from their mobile phone. The second potential partner is TruTrade in Uganda. Through their digital platform, it ensures farmers receive top dollar for their crops. Leaf can offer cross border capabilities, digitizing the exchange between countries. Leaf can also provide these smallholder farmers with a safe method of saving funds and receiving payment.

Refugees in flight often face high risk of violence and theft associated with carrying their life’s savings in cash. Accessible from a mobile device, Leaf offers secure storage and transport of assets across borders—no smartphone required. The refugee can travel without cash and rest assured that their money will be safe and accessible no matter where they go. Friends and family around the world can also deposit into the refugee’s account. By allowing customers to retain more value and increasing accessible funds through remittances, Leaf gives users a better start with financial security and lessens their dependence on host countries. 

To date, 30% of our 5,831 users have registered with a UNHCR refugee ID. Our potential target markets will continue to grow at unprecedented levels. At the end of 2019, the UNHCR reports that 79.5 million were displaced, a 14% increase from 2017. 

The prize will allow us to expand our physical presence in refugee camps. We have seen success with a semi-formal model of agents (many are refugees) registering users and receiving payment for each new user. We know that a high tech solution with low (physical) touch is difficult, and we would like to employ refugees and serve them as customers. Additionally, the prize will allow us to expand to native countries through partnerships so refugees are able to send/receive money back home

The Leaf Wallet was designed with accessibility at the forefront: the interface is multilingual, refugee IDs are accepted for registration, and there is no smartphone required to use Leaf (after registration). The product mimics mobile money, meeting users in their technological context. 

Leaf’s mission is extending economic opportunity to the financially marginalized. Leaf’s value proposition is to 1) reduce the risk of carrying cash by digitizing cash-based transactions; 2) provide a digital method of storing value to people typically unbanked; 3) make money transfer affordable and accessible, even to people without smartphones; 4) create an economic identity for customers that can be used to access formal financial services. 

Opportunity will also come in the form of credit. We will offer nano loans, microloans, and asset financing; a model that, if properly executed, can lift borrowers out of poverty and break that cycle. We have access to more transaction data through our Leaf Wallet that will allow us to generate more robust credit scores and better screen customers. We are also developing a financial literacy program alongside a partner in Rwanda that will also help us to identify high-potential borrowers while improving financial literacy among the Leaf user base.