WIZZIT: Productive Lending Project

Project Title

WIZZIT Productive Lending Project

Project Partners

N/A

Location

Head office: Sandton, Gauteng

Funding

Business Trust:  R800,000

Wizzit:  R1,910,000  

Project challenge

It is well-documented that cash carries enormous risks and costs to employer and employee alike, as well as to recipients of social grants. Having a bank account reduces these costs and risks dramatically.  Moreover, the psychological empowerment that having a bank account brings makes economic citizens of those previously excluded.  Further, in tough economic conditions the increase in crime makes it even more dangerous to carry cash or ? as is the case with many South Africans - have it hidden under the mattress in the house. Thus, there is an urgent need amongst low-income earners for an affordable and safe place to keep their money and to which they have 24/7 access.

WIZZITs project makes use of its WIZZkid model to develop loan officers.  For enterprises, the attraction will be WIZZITs low costs of banking; the added income streams (earning commissions on opening individual bank accounts and sharing in commissions on the sale of airtime); the ability to receive payments in a form other than cash (through an affordable point of sale device that can accept payments by debit cards); and the removal of some or all of the risks associated with cash.

Expected Project Impact

• About 50 people directly employed in the longer term
• Significant increases in income to all employees (as WIZZIT only employs unemployed people
• Access (for previously excluded communities) to fully functional bank accounts, loans, funeral cover and potentially savings and investment products and other financial services. 
• Transfer of important business skills and knowledge to WIZZkids and loan officers
• Increase in financial literacy (for customers and non-customers)
• Renewed interest by big banks in the lower end of the market