One Acre Fund cut payment losses and collection costs by over 80 percent, boosting farmers’ satisfaction and economic opportunity
One Acre Fund, supported by Citi, enabled farmers to easily make loan repayments via mobile money instead of cash, reducing the uncertainty, inefficiency, insecurity and high costs previously caused by cash transactions.
One Acre Fund can now reach more farmers with greater reliability, and staff can spend almost half as much time collecting payments in cash, using that extra time to help farmers increase their incomes through training and educational programs. With One Acre Fund’s package of services, including training and inputs like seed and fertilizer, the average farmer participating in the program earned nearly 50 percent more than peer farmers who do not participate.
Study findings include:
*Increased participant satisfaction due to transparency and convenience.
*Eighty-five percent decreased instances of repayment fraud.
*Reduced processing time for each repayment from 12-16 days to 2-4 days; farmers now know immediately when their payment is received, eliminating the worry about whether it arrived.
*Eighty percent decrease in repayment processing costs.
*Forty-six percent of time reduced for staff working on collections, allowing for more time …read more