26th April 2007

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26 April 2007

Device « PARCOURS CONFIANCE » *

(Course for trust)

experience of microfinance in France

Parcours Confiance « An Innovant and Unique Solution in France »

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Project launched in 2006 :

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Goal :

In the line with its society commitments, Caisse d’Epargne created Parcours Confiance(non profit organisation) in order to prevent financial exclusion.  Fight against financial exclusion by helping fragile population to find a financial and social well being.

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Beneficiaries :

 Individuals  

Ideas :

Micro entrepreneurs  Parcours Confiance forges deep relationships with its beneficiaries and spend on individualized service and coaching.

26th April 2007

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Parcours Confiance Services for individuals

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A comprehensive support package : Private banking solution for « fragile people » : personalised and tailored services to meet the needs of each beneficiary

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Providing affordable banking services, loans (€ 500 to 3 000) at low rates (2.75 to 5%), savings account

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Cross services with Social workers and Charitable organisations for :

  Housing Job search  Psychological help 26th April 2007

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Services in the comprehensive support for individuals (1/2)

  Family budget diagnosis done by a dedicated Caisse d’Epargne account manager Level of former debts has to be analysed and discussed    Recovery plan discussed but decided by the beneficiary…what spends could you stop or regulate ? Account felllow-up done by a Caisse d’Epargne account manager…what happen for the last 2 weeks ?

Means of payments adapted : a bank card which does not offer overdraft  Lower pricing of banking services to encourage the best efforts for the first steps of the recovery plan 26th April 2007

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Services in the comprehensive support for individuals (2/2)

 Social microcredit, if there is a project for financing basic needs (House, Transport, Education, access to employment…).  Offering training and education with « Finances & Pédagogie » that enable people to inderstand and control family budget. 2 or 3 Saturday mornings are proposed for a best attendance. 26th April 2007

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Parcours Confiance Individuals segmentation

All people that have a temporary job contract Unemployed people that need to Finance a project in order to find a jobmore easily ( car, mopped,…) Life accident (divorce, separation, unemployment…) Disabled people with low wages No access to loans / Financial difficulties exposing to excessive debt Young people under 25 years without financial guaranty 7

Results

Number of people Nb of Social microcredit Parcours Confiance offices 491 123 8 2006 To date 767 200 20 8

Parcours Confiance Services for micro entrepreneurs

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Dedicated bank specialists for micro-entrepreneurs

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Assistance from a accompanying network such as France Active,ADIE, les Boutiques de gestion, France Initiative, Réseau Entreprendre.

 Accompanying before starting and during development 

Access to conventional loans (€ 1 000 to 90 000) at market rate, services (professionnal account) average amount € 15 000

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Parcours Confiance microentrepreneurs segmentation

Unemployed people Beneficiaries of social help (Rmistes) Inactive people Young people under 25 years No access to loans / Financial difficulties exposing to excessive debt 10

Results

New companies New companies fellow up by Parcours Confiance Parcours Confiance offices with entrepreneur expertises 600 129 4 2006 To date 163 9 11

Implementation in progress, France covered at the of 2008

Key : Parcours Confiance contact Parcours Confiance recruitment in progress 26th April 2007

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Experience learned with 18 mounths practise

Project management  A project team :  An “access to finance committee”   National and Local project managers A project manager network to share experience  New process implementation  New loan process (IT, back office, risk, regulation)  Structuration of Parcours Confiance organisation  Partnerships to shape  Action plan and budget  3 months before opening  Education to promote access to finance  Minimum loocal budget : €100 000 up to €1,5 M 26th April 2007

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Experience learned with 18 mounths practise

A big bang  Inside Caisse d’Epargne :  A new activty   A lot of spontaneous help from employees Retired employees want to help  For social institutions and social workers  A loan instead of a help   Founding new cross services Proof of our promise  It takes time to build bridges :  After the first sight operational work start slowly   Same level of communication needs to be established Confidence needs be established 26th April 2007

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Experience learned with 18 mounths practise

Think local

 Local team  Need of a local project manager in each Caisse d’epargne for process implementation  Local partnerships  Because confidence is personal, one to one relationship needs to be established   Each territory is specific Local network is absolutly necessary for implementation  Location  Easy access to offices for beneficiaries / clearly indentified   Offices near beneficiaries and local partners Main city of the territory for local or regional coverage 26th April 2007

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