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ACCION USA
Scale-up Strategy:
| Expand and improve ACCION's use of strategic partnerships as a means of leveraging its now established capacity for Internet-based lending. Implementation of the strategy involved a two-step process: |
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Conducting market research to identify and better understand the needs and perspectives of various types of referral partners, and to build a database of qualified “leads” that are interested in partnering with AUSA.
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Based on this research, create improved criteria for partner selection, and various models for different types or levels of partnerships.
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Progress Update as of May 2008:
ACCION USA moved forward with its scale strategy of strengthening partnerships in order to expand Internet lending.
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- Concluded market research and developed a database of qualified and interested partner organizations.
- Contrary to expectations, determined that best partners will be financial providers, as opposed to nonprofit service providers.
- Due to the subprime lending crisis, increased resources devoted to collections and maintaining portfolio quality, and therefore disbursed fewer loans.
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Background:
Entered market in 1991 with creation of affiliates; began direct lending as AUSA in 2000. Loan products now available nationwide through its on-line loan application. |
| Core Microenterprise Services: |
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Microenterprise loans between $500 and $25,000 |
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On-line business planning and management tools |
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On-line financial education tutorials. |
| Highlights: |
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On-line loan application launched in 2006.
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Internet lending platform is supported through AUSA’s (which provides a centralized back office) and its empirical credit-scoring model.
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Creation of co-branded strategic partnerships to expand outreach in new locations.
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| Current Scale: |
Scale Projections: |
| FY2005: 546 clients and loans |
FY2008: 928 loans |
| FY2006: 915 clients and loans |
FY2009: 1,350 loans |
| FY2007: 1,458 clients and 1,086 loans |
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Learning Questions:
Partnership development: How are other organizations using partnerships to expand scale? What are their reactions to AUSA's market research tools and findings? What have others learned about what makes for successful partnerships?
Scaling up technical assistance products and programs: What are other grantees learning about how to scale-up technical assistance products? What is their experience with on-line services?
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