We offer consulting services to help clients implement our new innovative product, FRHIMF.
Our Fintech Rich Hybrid Islamic Microfinance (FRHIMF) is a specialized and comprehensive microfinance program which includes financial services, such as micro-credit, micro-Takaful and micro-savings. It is also blended with non-financial support in the form of on-credit purchase of grocery and household items as well as training and awareness camps for health and education. It targets skills enhancement, financial literacy, computing literacy and increasing the business acumen of clients. The financial services using Qard-e-Hasan, Murabaha and Ijarah provide finance for working capital needs and income generating assets acquisition.
The aim of our FRHIMF program is to achieve 3 goals: scale, sustainability and outreach in innovative ways. The key feature of the program is the use of Fintech in both supply side and demand side operations and processes. This ensures transparency, effective monitoring and reducing transaction costs and helps towards achieving scale, sustainability and outreach more efficiently than in a brick and mortar model. The incentive structure in different services encourages participation of clients in the program for the long term.
The contributions are sought from the public using an E-Crowdfunding platform with a minimum contribution amount set at AED 10 only. FRHIMF also engages micro-volunteers from among the professionals, academicians and college and university students. A network platform ensures matching so that efficient and flexible scheduling is achieved and is spread throughout the year.
Clients spend money using primarily their E-Wallet which is usable across accredited retail store chains, hospitals and educational institutions. E-Wallet enables the purchase of groceries and household items through E-Wallet from designated stores with a 7-day grace period for some selected raw food items, such as flour and rice below 5 kg purchase for a single time in a month. The E-Wallet has silver, gold and platinum grading. The clients can convert silver into gold and gold into platinum after surpassing a spending limit of AED 1,000 and AED 5,000 respectively. The silver card offers 2% discount, the gold card offers 4% discount and the platinum card offers 7% discount. These discounts are only offered to the clients who purchase/spend through E-wallet at designated retail outlets.
Clients repay their financial dues on Murabaha and Ijarah through their E-wallet account. Each repayment will earn them 1 point per AED 100 worth of repayment amount on-time. This 1% mark-up rate subsidy provides an incentive for on-time repayment. When 10 points are earned, AED 10 is credited to the E-wallet account through which clients can make purchases to avail further retail discounts and future subsidies on financing services.
The asset purchase from the designated stores is facilitated through a software application which does electronic scanning of the asset, offer and acceptance and transfer of funds from bank to the vendor. Once the client engraves thumb impression signifying the offer and acceptance to enter into a Murabaha transaction for the specified asset, the funds are electronically transferred from the bank to the vendor. This ensures efficient processing and utilization of the credit amount only for the agreed purpose of purchasing the asset. Clients E-wallet account will be automatically debited after a grace period of 7 days following the due date. Until the grace period is over, the client can pay the instalment due and avail reward points.
Overall, our FRHIMF is a comprehensive microfinance scheme which fulfils both financial and social intermediation towards the improvement of economic, social and quality of life indicators of customers.
For arranging an appointment with our expert consultants to customize this product for your needs, please contact us by filling the APPOINTMENT REQUEST form on this website.