M-ShapeTech

The lack of access to affordable and reliable financial services is a significant barrier to economic growth and development, particularly in developing countries. MSMEs, in particular, face challenges in accessing capital, managing debt, and protecting their assets from predatory lenders. Additionally, individuals often lack the necessary financial literacy to make informed decisions about their finances, resulting in high levels of debt and financial vulnerability. Furthermore, the COVID-19 pandemic has highlighted the need for digital financial services as lockdowns and social distancing measures limit in-person transactions. Specifically, we are solving the access to affordable digital payment platforms and financial illiteracy through offering financial education and advisory services.

The scale of the problem of accessing affordable digital platforms and financial illiteracy globally is significant. According to the World Bank's Global Findex Database, as of 2017, around 1.7 billion adults worldwide were unbanked, meaning they did not have access to formal financial services. Moreover, many people who are formally banked still lack basic financial literacy skills, such as how to manage a budget or how to save for the future.

This lack of financial inclusion can have significant economic consequences, as it can limit people's ability to start businesses, invest in their education, and save for emergencies or retirement. It can also make people more vulnerable to financial shocks, such as job loss or unexpected medical expenses.

It's worth noting that the problem of financial exclusion and illiteracy is not evenly distributed across the globe, with certain regions and populations facing greater challenges than others. For example, women are more likely than men to be unbanked, and people living in rural areas are more likely to lack access to formal financial services than those living in urban areas.

SOLUTION:

It will make transactions easier, protect against predatory debt, and increase the ability to take risks and build wealth. The technology-based solution can function as 2 in 1 such that it can be a digital payment system/platform and financial education and advisory services at the same time:

• Digital Payment Systems: The use of this digital payment system can reduce transaction costs, increase the speed of transactions, and improve security. This system can also help increase financial inclusion by providing access to banking services to unbanked individuals and MSMEs.
• Financial Education and Advisory Services: By providing financial education and advisory services, individuals and MSMEs can improve their financial literacy and make informed financial decisions now and in future.

KEY FEATURES OF PROPOSED SOLUTION:

• Accessibility: The solution will be accessible to individuals and MSMEs, regardless of their location or financial status.
• Security: The solution will provide a high level of security to protect against fraud and cybercrime.
• Affordability: The solution will be affordable especially ensuring that it’s low cost that will mostly go towards maintenance of the digital payment system/platform.

The solution serves to solve the issue of easy access to affordable digital payment platforms and financial literacy which can have a tremendous impact on people's lives globally. Here are some ways in which it can help:

• Increased Financial Inclusion: Digital payment platforms can provide access to financial services, such as banking, loans, and insurance, to people who may not have had access to these services previously. This increased access can promote financial inclusion, allowing people to participate more fully in the economy.
• Improved Financial Management: Financial literacy can help individuals better understand their financial situation, budgeting, saving, and investing. This knowledge can help people make better financial decisions and avoid financial mistakes that can lead to debt and financial stress.
• Convenience: Digital payment platforms make it easy for people to make payments and manage their finances from anywhere, at any time. This convenience can save time and effort for people who might have had to travel long distances to access traditional banking services.
• Increased Security: Digital payment platforms can offer secure ways to make transactions and store money. This increased security can help to prevent fraud and theft, which can be a significant concern in areas where traditional banking services are not secure.
• Economic Growth: Increased financial inclusion and improved financial management can lead to economic growth, as more people have access to financial resources to start businesses or invest in their education or personal development.

Overall, access to affordable digital payment platforms and financial literacy can have a significant impact on people's lives globally, promoting financial inclusion, economic growth, and personal empowerment.

At the moment SHAPE does not have a team that delivers solutions for access to affordable digital payment platforms and financial literacy. However, with the help of MIT Solve we can get competent creators and developers who can form a team of experts who work on developing and improving the proposed digital payment and financial literacy services platform to help promote financial literacy and digital payments.

In addition, SHAPE is committed to promoting transparency and ethical use of the digital payment platform, ensuring that our solutions are fair, trustworthy, and unbiased. As such, we are well-positioned to deliver innovative solutions for financial literacy and digital payments that can benefit individuals and businesses worldwide. 

We understand the scale of the problem of accessing affordable digital platforms and financial illiteracy globally is significant. According to the World Bank's Global Findex Database, as of 2017, around 1.7 billion adults worldwide were unbanked, meaning they did not have access to formal financial services. Moreover, many people who are formally banked still lack basic financial literacy skills, such as how to manage a budget or how to save for the future and hope to solve this problem.

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The solution serves to solve the issue of easy access to affordable digital payment platforms and financial literacy which can have a tremendous impact on people's lives globally. Here are some ways in which it can help:

• Increased Financial Inclusion: Digital payment platforms can provide access to financial services, such as banking, loans, and insurance, to people who may not have had access to these services previously. This increased access can promote financial inclusion, allowing people to participate more fully in the economy.
• Improved Financial Management: Financial literacy can help individuals better understand their financial situation, budgeting, saving, and investing. This knowledge can help people make better financial decisions and avoid financial mistakes that can lead to debt and financial stress.
• Convenience: Digital payment platforms make it easy for people to make payments and manage their finances from anywhere, at any time. This convenience can save time and effort for people who might have had to travel long distances to access traditional banking services.
• Increased Security: Digital payment platforms can offer secure ways to make transactions and store money. This increased security can help to prevent fraud and theft, which can be a significant concern in areas where traditional banking services are not secure.
• Economic Growth: Increased financial inclusion and improved financial management can lead to economic growth, as more people have access to financial resources to start businesses or invest in their education or personal development.

Overall, access to affordable digital payment platforms and financial literacy can have a significant impact on people's lives globally, promoting financial inclusion, economic growth, and personal empowerment.

The solution of providing access to affordable digital payment platforms and financial literacy is innovative for several reasons:

• It is scalable: Digital payment platforms and financial literacy programs can be scaled quickly and efficiently to reach large populations, making it a cost-effective solution for promoting financial inclusion and literacy.
• It promotes innovation and competition: Digital payment platforms are often built on open technology platforms, which encourage innovation and competition. As a result, more financial institutions and technology companies are developing innovative financial products and services, which benefits consumers.
• It promotes financial inclusion: Digital payment platforms and financial literacy programs can help underserved communities access financial services and become financially empowered. By providing affordable and accessible digital payment platforms and financial literacy resources, individuals and businesses can better manage their finances, reduce financial stress, and increase their financial stability.
• It leverages technology: Digital payment platforms and financial literacy programs leverage technology to increase access to financial services and information. With the rise of smartphones and internet connectivity, individuals and businesses can access financial services and information from anywhere at any time, which was not possible with traditional financial services.
• It can lead to economic growth: Providing access to affordable digital payment platforms and financial literacy can lead to increased financial inclusion, improved financial management, and increased economic growth. This can benefit individuals and businesses, as well as the broader economy.

Impact Goals for next year:

• Increase awareness and adoption of digital payment platforms and financial literacy programs among underserved communities. This can be achieved through targeted marketing campaigns and community outreach programs.
• Expand partnerships with financial institutions, governments, and technology companies to develop and implement digital payment platforms and financial literacy programs. This can be achieved through ongoing collaboration and partnership building efforts.
• Develop new and innovative financial products and services to meet the evolving needs of individuals and businesses. This can be achieved through ongoing research and development efforts and collaboration with partners.

Impact Goals for the next five years:

• Increase financial inclusion and literacy levels among underserved communities by providing access to affordable digital payment platforms and financial literacy resources. This can be achieved through ongoing efforts to develop and implement programs and services that meet the needs of these communities.
• Drive economic growth and reduce poverty and inequality by empowering individuals and businesses to take control of their financial futures. This can be achieved by continuing to develop and promote digital payment platforms and financial literacy resources that support economic growth.
• Expand access to affordable digital payment platforms and financial literacy resources to new markets and geographies. This can be achieved by building strategic partnerships and expanding the reach of existing programs and services.

To achieve these impact goals, our team might consider implementing the following strategies:

• Develop and implement targeted marketing campaigns and community outreach programs to raise awareness of digital payment platforms and financial literacy resources.
• Build strategic partnerships with financial institutions, governments, and technology companies to develop and implement new programs and services.
• Conduct ongoing research and development efforts to identify new opportunities and develop innovative financial products and services.
• Expand the reach of existing programs and services to new markets and geographies through strategic partnerships and targeted outreach efforts.
• Monitor and evaluate the impact of our programs and services to identify areas for improvement and ensure we are achieving our impact goals.

To measure progress towards impact goals for providing affordable digital payment and financial literacy platforms, we can use the following metrics:

• Cost-effectiveness: This measures the cost-effectiveness of our programs and services. We can track the cost per user and the cost per transaction to assess the efficiency of our programs and services.
• Financial literacy level: This measures the level of financial knowledge and understanding of individuals and businesses. We can use surveys and assessments to measure financial literacy levels before and after participation in financial literacy programs.
• Adoption rate: This measures the number of individuals and businesses that have adopted digital payment platforms and financial literacy programs. We can track the number of new users over time, as well as the percentage of the population that has access to these services.
• Usage rate: This measures the frequency and volume of transactions made through digital payment platforms. We can track the number of transactions and the total value of transactions processed over time.
• Customer satisfaction: This measures the level of satisfaction among users of digital payment platforms and financial literacy programs. We can use surveys and feedback mechanisms to gather feedback from users and make improvements to our programs and services based on this feedback.

By tracking these metrics, we can assess our progress towards our impact goals, identify areas for improvement, and make data-driven decisions to optimize our programs and services.

• Inputs: Includes financial resources, technology, and human capital. These resources are necessary to develop and implement digital payment platforms and financial literacy programs.
• Activities: Includes developing and implementing digital payment platforms and financial literacy programs. These activities would involve partnerships with financial institutions, governments, and technology companies.
• Outputs: Includes the development of digital payment platforms and financial literacy programs. These outputs would be in the form of mobile applications, websites, or other digital platforms that provide access to financial services and information.
• Short-Term Outcomes: Includes increased access to digital payment platforms and financial information for individuals and businesses. This would lead to improved financial management, increased financial inclusion, and better economic outcomes for individuals and communities.
• Intermediate Outcomes: Includes increased adoption of digital payment platforms and increased financial literacy levels among individuals and businesses. This would lead to improved financial decision-making, increased financial security, and better economic outcomes at the community and national levels.
• Long-Term Outcomes: Includes improved financial stability, increased economic growth, and reduced poverty and inequality. Access to affordable digital payment platforms and financial literacy would promote financial inclusion and empower individuals and communities to take control of their financial futures.

Theory of Change Summary:

Inputs:

• Financial resources
• Technology
• Human capital

Activities:

• Develop and implement digital payment platforms
• Develop and implement financial literacy programs
• Partner with financial institutions, governments, and technology companies

Outputs:

• Mobile applications
• Websites
• Other digital platforms

Intermediate Outcomes:

• Increased adoption of digital payment platforms
• Increased financial literacy levels
• Improved financial decision-making
• Increased financial security
• Better economic outcomes at the community and national levels

Long-Term Outcomes:

• Improved financial stability
• Increased economic growth
• Reduced poverty and inequality

The core technology that powers the solution to providing affordable digital payment and financial literacy platforms involves a combination of hardware and software systems.

On the hardware side, digital payment platforms rely on devices such as smartphones, point-of-sale (POS) terminals, and payment cards to facilitate transactions. These devices are typically equipped with communication technologies such as Wi-Fi, Bluetooth, or NFC (near-field communication) to enable secure and convenient transmission of payment data.

On the software side, digital payment platforms rely on a range of technologies to ensure the security, reliability, and interoperability of payment transactions. These technologies include:

• Encryption and tokenization: This involves converting payment data into a secure code to protect it from unauthorized access. This helps ensure that payment transactions are secure and private.
• Payment gateways: These are software systems that act as a bridge between payment processors and merchants, facilitating payment transactions and ensuring that payment data is processed securely and efficiently.
• Mobile apps and web portals: These are the interfaces that allow users to access digital payment platforms and financial literacy resources. These interfaces should be intuitive, easy to use, and accessible across a range of devices and platforms.
• Artificial intelligence (AI) and machine learning (ML): These are technologies that can be used to analyze payment data, detect fraud, and provide personalized financial advice and recommendations to users.

Overall, the core technology that powers the solution to providing affordable digital payment and financial literacy platforms must be reliable, secure, and easy to use. It should leverage a range of hardware and software systems to provide a seamless and intuitive user experience, while also ensuring the security and privacy of payment data.

Incorporating diversity, equity, and inclusivity into our work is a core value of our organization. We believe that everyone deserves equal access to financial services and resources, regardless of their background, identity, or socioeconomic status. Here are some of the ways we approach diversity, equity, and inclusivity in our work:

• Conducting outreach to underserved communities: We actively seek out partnerships and collaborations with organizations that serve underserved communities, including communities of color, low-income communities, and rural communities. We work to ensure that our programs and services are accessible and relevant to these communities.
• Recruiting and retaining diverse staff and leadership: We believe that diversity is strength, and we strive to ensure that our staff and leadership reflect the diversity of the communities we serve. We provide ongoing training and support to ensure that our team is equipped to work effectively with diverse communities.
• Engaging in ongoing evaluation and improvement: We recognize that diversity, equity, and inclusivity are ongoing processes, and we continually evaluate and improve our programs and services to ensure that they are meeting the needs of diverse communities.

By incorporating diversity, equity, and inclusivity into our work in these ways, we are able to ensure that our programs and services are accessible, relevant, and effective for all members of the communities we serve.

One potential model we could adopt is a commission-based model, where the platform charges a small fee for every transaction made on the platform. This model would be similar to the way payment processing companies such as PayPal and Stripe operate. This model would work best for a platform that has a large number of users and a high transaction volume.

Another potential model is to offer the platform for free to users but monetize the platform by charging businesses for access to the user base. This model could work well for a platform that has a large user base and a lot of valuable data about their spending habits and financial needs.

Ultimately, the best business model of the two will depend on factors such as the target market, the competition, and the unique features of the platform. It may also require a combination of different models to be sustainable and profitable in the long run.

1. By defining our target market: Identifying our target market and tailor our platform's features to meet our users’ needs. Determining which customer segments are most likely to use our platform and what their financial literacy needs are.
2. Developing a pricing strategy: Choosing a pricing strategy that is affordable for our target market and sustainable for our organization.
3. Developing a marketing plan: Developing a marketing plan to reach our target market. Using social media, email marketing, and other digital marketing tactics to promote our platform and its features. Considering partnering with organizations that serve our target market to reach a wider audience.
4. Providing exceptional customer service: Providing excellent customer service can help retain customers and attract new ones. Ensuring that our customer service team is knowledgeable about our platform's features and can answer questions about financial literacy. Encouraging customers to provide feedback and use that feedback to improve our platform.
5. Investing in technology and infrastructure: Investing in technology and infrastructure can help streamline our platform's operations and improve its performance. Ensuring that our platform is user-friendly, secure, and accessible across multiple devices.
6. Developing strategic partnerships: Developing strategic partnerships with organizations that complement our platform. For example, partnering with financial institutions can provide additional resources and credibility to our platform.
7. Measuring and optimizing our performance: Measuring our platform's performance and optimizing it to improve customer acquisition, retention, and revenue growth. Using data analytics to track user engagement, conversion rates, and customer satisfaction.

Since this is at concept stage we are still trying to get donor support or investors to help us with the whole process of prototype, development and launching in the market when its complete, secure and ready for use.