INDIVIDUAL & SME LENDING MARKET RESEARCH AND CAPACITY
BUILDING – TERMS OF REFERENCE
1. INTRODUCTION
VisionFund Tanzania Microfinance Bank Limited is a Microfinance subsidiary of World Vision which believes in brighter futures for Children, empowering communities to create incomes and jobs and unlocks economic potential for communities to THRIVE. Licensed under the Banking and Financial Institution Act 2006 VisionFund Tanzania operates in 20 Regions across the country with 52 sites. VisionFund Tanzania seeks the services of an SME/Individual lending expert to handhold the bank in the refining of products and building institutional capacity to effectively serve its customers.
2. OBJECTIVE
The objective of the consultation will include but not limited to:
- Undertake market review and Competitor analysis with a view of establishing VFT competitive advantage and weakness that need to be addressed.
- Review the current VFT products in line with market needs and competition trends and recommend changes to the existing product.
- Review VFT structure and processes for delivering Individual and SME loans in order to developing cutting edge service delivery.
- Uncovering new product niche within the target market that VFT can target.
- Develop training curriculum and deliver training to appropriate staff in order to build capacity to effectively sale and manage the product. Building internal capacity through a TOT for the bank to continue with the training post the consultancy.
- Monitoring delivery and outcome of the Training and recommend changes as needed for a period not less than 6 months.
3. DETAILED TASK
Activity Description Time scope
- MARKET ASSESMENT
Undertake Market Assessment of Microfinance operation in Tanzania- Target markets, consumer behavior patterns etc. by interviewing a minimum of 50 SME potential customers and profiling: who is the customer (annual sales, registration, # employees), and what do they need (price, product, service).
Undertake Competitor analysis-that reflect the following:
Size of the competitions {Competitor recent performance comparison}.
Products issued by competitor including Product target market, Product pricing and product structure.
Credit Operation structure
One Months-June/July 2022
- PRODUCT REVIEW
Review VFT Existing individual loan products against market need and competition.
Recommend changes to the existing product.
Recommend new product that VFT Can introduce to the Market.
Overlapping with previous One Months-June/July 2022
- MARKETING & TRAINING
Recommend the right organizational structure for effective delivery of the Individual/ SME product.
Recommend marketing strategies for different categories of VFT target market.
Prepare a Marketing, credit underwriting & Customer service training TOT guide for VFT Frontline staff, taking into account the existing Loan Appraisal form and procedure.
Prepare and recommend the training structure/Program for individual lending that will reflect content, frequency and who is responsible for the training.
Undertake training to VFT TOT and Deliver Training to target staff alongside the trainers.
Preparation of Training materials including training guides (Work Book) that will be used by ToT to deliver training to staff.
Two Months-July & August 2022
- MONITORING:
Train the VFT Risk Manager and support them in monitoring the risks in the emerging SME Portfolio.
Monitoring trends in new client acquisition, portfolio growth and portfolio quality and recommending to management adjustments.
Monitor the effectiveness of the new process developed in delivering a cutting-edge customer service to the customers.
Monitor implementation and delivery of the training as per the agreed training program.
One year- June-May 2023
4. CONSULTANT PROFILE
The consultant who shall undertake this role must have
Minimum of a Master’s in Business administration, accounting, finance, economic or related fields.
A minimum of ten years of professional working experience in Banking and/or Microfinance, 5 of which must be in active role in Individual Lending and SME Lending and at least three years as a consultant.
Good writing and analytical skills, interpersonal communication and presentation skills (adult education skills), ability and desire to teach in both classroom and field settings.
Experience working in Tanzania and/or the region is preferred.
Sufficiently physically fit, with appropriate medical clearance.
Writing Skills: reporting requires good computer skills including, but not limited to, working and generating reports with MS Word. Experience with PowerPoint presentations is desirable.
5. DELIVERABLES
The following will be the key deliverables of the consultancy:
Inception report.
A comprehensive Market research and competitor analysis report that shows Individual/SME market segments, unreached groups for VFT target client (target groups, Sales volumes, # of employees, Registration status, Available collateral, and positioning) and further competitive position of VFT in the Microfinance market including pricing, product adjustments, services required.
A comprehensive VFT individual lending product & process review report and Proposed Product & Process changes including pricing, product adjustments and services required based on competitor analysis and market trends. This includes also loan forms review as necessary.
Training material guide (Work books) for Individual/SME lending for different category of staff to be used for training, incorporating and reworking if necessary the existing loan appraisal training to match loan form.
Training programs relating to credit underwriting to be undertaken by staff categories and timelines.
Proposed training schedule for VFT staff across the branch network.
Performance monitoring tools which combine growth in portfolio and clients and improvements in quality of the loan book.
Coaching of key staff for high performance in a period not less than six months.
6. REQUIREMENT
Vision Fund Tanzania is calling for proposals form qualified consultants. The proposal should include
Technical approach to be used to undertake the assignment including the scope, timelines and expected output.
Financial proposal that indicate the cost to undertake the assignment.
Timelines for the assignment and expected date of delivery.
The proposal should reach the undersigned not later than 5 July 2022.
Mode of Application:
Interested and suitably qualified firm/consultant should forward its proposal to: [email protected]
OR; through the postal address below:
The Chief Executive Officer,
Vision Fund Tanzania Microfinance Bank Limited, P. O. Box 1546, Arusha TANZANIA.
