This is the fundamental level of FinComEco’s involvement that sets up a virtuous circle, which helps the farmer to increase his business:
- Via FinComEco, the farmer receives current price updates on his mobile phone
- Any surplus of crop is taken to a local FinComEco warehouse
- Through FinComEco’s mobile banking tool the farmer is paid immediately on his mobile phone
- He then uses the money for more land, seed, fertiliser, etc.
- Thus he can provide more surplus food next harvest.
As a result of the FinComEco model the farmer is given access to a wider market for their crops as it works to bring small dealers into the Ecosystem. The technology behind the initiative is able to identify and track the farmer and his crop. As part of their involvement in the program, FinComEco will arrange for the farmer to be given free banking up to a certain number of transactions per year. Gradually, farmers can be offered low-cost loans for fertiliser, seed, tractors, land, etc. as an alternative to the clutches of local moneylenders and small-scale dealers in crops. FinComEco will supply the mobile banking used by the farmer and also give access to market-price details of crops on his phone. Eventually, after experience and education, the farmer can sell his crop forward or hedge his prices with futures.