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On June 5, 2020, FinDev Gateway, an independent knowledge platform by CGAP that connects the global financial inclusion community, featured Flow Global in their blog. The article highlighted Flow's innovative liquidity solutions and its transformative impact on small businesses and mobile money agents during the pandemic.
Flow specializes in addressing one of the most significant challenges faced by mobile money agents and shopkeepers: liquidity constraints. These independent business owners must balance limited capital between pre-funding e-money stock and stocking goods like groceries, hardware, or electronics. This balancing act often limits their growth potential.
To tackle this, Flow offers instant e-money liquidity advances tailored to the needs of these businesses. Using the Flow Liquidity Engine, agents can request an e-money advance, receive eligibility assessments, and gain access to working capital within seconds. These advances not only allow agents to maintain business continuity but also drive growth, with many customers reporting a 40% average increase in income and monthly transaction volumes exceeding $8,000.
The coronavirus pandemic posed unique challenges for Flow’s customers. Around half of the agents were unable to operate due to transport restrictions or market closures, while others experienced increased demand as governments promoted digital payments and service providers reduced transaction fees. However, these agents often lacked the liquidity needed to meet the surge in demand.
Flow rose to the occasion by implementing the following measures:
-> Portfolio Segmentation: Flow classified agents into three categories—those continuing operations, those forced to close, and those facing uncertain futures.
-> Customer Support Initiatives: For agents who closed their shops, Flow waived late repayment penalties and rescheduled due dates. For those still operating, Flow introduced reduced fees and additional risk mitigation measures.
->Brand Loyalty: Customers like Naziiwa Ruth Luzigge expressed gratitude, highlighting how Flow's support during difficult times enabled them to sustain their families.
Flow’s robust data analytics, enriched with geo data, ensured accurate predictions of business volumes, even during a global crisis. This confidence allowed Flow to continue supporting its customers without compromising on risk management. As the shift toward digital finance accelerates, Flow is well-positioned to scale its impact and provide sustainable financial solutions for mobile money agents and shopkeepers.
Flow’s mission to enable small businesses to thrive in the digital economy resonates deeply, as evidenced by the trust and loyalty of its customers. By offering liquidity solutions that safeguard livelihoods and promote financial inclusion, Flow is driving resilience and growth across developing markets.
This recognition from Findev Gateway underscores Flow’s pivotal role in empowering small businesses, especially during times of crisis.