1) GENERAL BACKGROUND
UNCDF is the UN’s capital investment agency for the world’s least developed countries. It creates new opportunities for poor people and their communities by increasing access to microfinance and investment capital. UNCDF focuses on Africa and the poorest countries of Asia and the Pacific, with a special commitment to countries emerging from conflict or crisis. It provides seed capital – grants and loans – and technical support to help microfinance institutions reach more poor households and small businesses, and local governments finance the capital investments – water systems, feeder roads, schools, irrigation schemes – that will improve poor peoples’ lives.
Recently, UNCDF formulated its strategy ‘Leaving no one behind in the digital era’ based on over a decade of experience in digital finance in Africa, Asia and the Pacific. UNCDF recognizes that reaching the full potential of digital financial inclusion in support of the Sustainable Development Goals aligns with the vision of promoting digital economies that leave no one behind. The vision of UNCDF is to empower millions of people by 2024 to use services daily that leverage innovation and technology and contribute to the Sustainable Development Goals. For further detail on UNCDF strategy, refer to; https://www.uncdf.org/article/4931/global-strategy-leaving-no-one-behind-in-the-digital-era
UNCDF in Myanmar
UNCDF has been operating in Myanmar since 2012 with a capital mandate to expand savings-led financial inclusion and use localized investments to drive poverty reduction and sustainable development. The country program seeks to improve financial service access and usage to achieve equitable, sustainable, and inclusive growth within the UN’s Sustainable Development Goals (SDGs) and the Myanmar Sustainable Development Plan (MSDP), which includes the use of innovate solutions to bring formal services for people at the bottom of the pyramid.
UNCDF Myanmar, by way of the Myanmar Microfinance Digitization Project (MMD), proposes to accelerate inclusive digital finance, particularly for women, by focusing on three use cases: (i) MFI loan re-payments, (ii) MFI loan disbursements, and (ii) electronic cash transfers (bulk transfers).
Building on the existing Mojaloop lab work with the microfinance industry on digital microfinance loan repayments, UNCDF has moved the interoperability lab from “testing” to “production go-live” with a focus on the payments that matter most for vulnerable populations. The project has synthesized in a payment scheme, called WynePay.
WynePay is a participant-managed and participant-owned payment scheme, using the open source Mojaloop settlement and connector platforms. About 30 financial institutions (primarily MFIs and Wallets) have joined the Scheme. UNCDF has been working with the Scheme participants in getting the technology and business partnerships ready while the regulatory approval is received. A Myanmar-based technology company, Thitsaworks, operates the Scheme under the guidance of WynePay Scheme Council, which is represented by eight of the 30 leading financial institutions in Myanmar.
One of the requirements to going live is develop rules covering the WynePay Scheme and its products, namely the use cases. The Rules are divided into two categories: Scheme Rules and Business Rules for Use Cases.
- Scheme Rules (SR): governing the overarching rules, settlements, participations, risk, reporting, governance etc. that apply across all WynePay’s activities
- Business Rules (BR): use-case specific rules, operational decisions, mechanisms, and frameworks specific to the use cases and their variants (e.g., repayment via agents)
The general Scheme-level rules have already been agreed by the Participant and a draft version is available. Likewise, several operational and business decisions for use cases have also been discussed and agreed with the participants and the operator.
UNCDF is looking for an expert to collate, organize, and finalize the Rules book. The work would include working with the scheme operator in finalizing the operational and business decisions for the use cases.
2) OBJECTIVES OF THE ASSIGNMENT
The objective is two-fold, namely:
- To finalize and complete the WynePay Scheme General Rules which are currently in a draft form, and
- Develop WynePay Scheme Business Rules for each of the use-cases noted below:
- MFI Loan Repayment (Account to Account)
- MFI Loan Repayment (Agent OTC to Account)
- MFI Loan Disbursement (Account to Account)
- MFI Loan Disbursement (Account to Agent OTC)
- ECT/G2P/Bulk Transfer (Account to Account)
Under the supervision of the UNCDF Myanmar Country Technical Lead, the consultant will deliver the completed WynePay GRs and specific BRs for use cases noted above (A to E).
3) SCOPE OF WORK
- To finalize and complete the WynePay Scheme GRs, using the existing draft.
- Analyze and reflect feedback to finalize WynePay Scheme GRs
- Participate in WynePay Scheme Rules presentation workshop (to be jointly delivered with the project team)
- Develop the standard scheme rules structure and fulfill the gap components in the existing draft scheme document.
- Ensure WynePay Scheme rules are aligned with the consideration of local regulatory guidelines and requirements
- Align General Scheme rules and specific business scheme rules
- Develop the WynePay Scheme BRs for use case A to E (note – operational details for account-to-account transactions are already agreed).
- Develop the standard specific business rules for each use case
- Hold bilateral or group discussions with the WynePay scheme participants, scheme operators, and the project team in gathering missing information
- Ensure alignment with local regulatory requirements
4) Expected Outputs and Deliverables.
Payment in % of total contract price
To finalize and complete the WynePay Scheme GRs, using the existing draft.
Finalized WynePay General Rules document, including technical advisory notes about their implementation reviewed and approved by UNCDF
Nov. 15, 2022
Develop the WynePay Scheme BRs for use case A to E (note – operational details for account-to-account transactions are already agreed).
Completed set document containing specific business rules for the use cases (A to E) with Microsoft Word File reviewed, verified and approved by UNCDF.
Jan. 10, 2023
5) Institutional Arrangement
- The Consultant will closely work with the MMD project team and follow the overall guidance of the UNCDF Myanmar Country Technical Lead.
- The UNCDF Myanmar Country Technical Lead will approve the consultant’s payment based on the deliverables listed in these TORs.
- The consultant will join calls as required by the project to update on progress and on his deliverables.
- The Consultant is responsible for providing his/her own laptop during his/her engagement with UNCDF.
- Reimbursable Cost: Refreshment costs associated with the event for financial service providers will be borne by UNCDF.
- No travel is anticipated. Any travel, if required, need to be approved by the Country Lead and will be subject to UNCDF’s travel policy. Reimbursable costs incurred with permission will be borne by UNCDF.
6) DURATION OF ASSIGNMENT
Contract period: 15 October 2022 to 15 February 2023 (4 months)
7) DUTY STATION AND TRAVEL
Duty station: Home based (no travel)
Places of Travel: No travel required.
8) PROVISION OF MONITORING AND PROGRESS CONTROLS
The Consultant will closely work with the MMD project team and follow the overall guidance of the UNCDF Myanmar Country Technical Lead. The UNCDF Myanmar Country Technical Lead will approve the consultant’s payment based on the deliverables listed in these TORs.
The Consultant is responsible for providing his/her own laptop during his/her engagement with UNCDF.
The following supporting documents will serve as conditions for payments to an Individual Contractor(s):
- Submission of Certificate of Payment (COP)
- Submission of invoice
- Submission of all deliverables / workplan / progress report with the relevant supporting documentation
- Review, approval and written acceptance of each deliverable by the UNCDF Myanmar Country Technical Lead.
For full information regarding this consultancy please refer to the attached Terms of Reference and the link application available here: UNCDF Jobs - 109372- INTEROPERABLE PAYMENT PLATFORM RULES – TECHNICAL W (undp.org)