12 Sep DEEPEN builds capacity of banks to lend to low-fee schools
Through DEEPEN’s access to credit intervention 10 financial institutions benefited from a workshop to increase their capacity to lend to low-fee schools in Lagos.
Following DEEPEN’s 2017 annual finance forum on 4th May, DEEPEN organized a capacity building workshop on school financing in collaboration with CapPlus. The event was titled “View for Bankers: Delivering Profitable Services to Affordable Schools” and aimed to provide participants the opportunity to learn about the large opportunity available in education as a growth sector and gain insight into the techniques and resources available to profitably enter or expand into the low fee schools market.
In particular the workshop focused on how financial institutions can:
- build a profitable business line with low-fee schools
- address low-fee school loan characteristics and challenges
- improve risk management
- craft successful tailored strategies
- capture new sales opportunities and cross-sell products and services.
The event was attended by representatives from 10 different financial institutions in Lagos and stimulated insightful discussions around how to work with low-fee private schools. Key issues discussed were the benefits of ensuring repayments are linked to school revenue cycles and the need to look at actual rather than projected school revenue due to high fee default rates.
DEEPEN will continue to work with the financial institutions as they commence their low-fee school lending initiatives and looks forward to the expansion of product offerings of current partners.
N.B. CapPlus is a not-for-profit organisation that builds capacity in both microfinance banks and commercial to service small and medium-sized enterprises, and now has on offering focused on building their capacity to lend to low-cost schools.