Bangladesh Red Crescent Society
National Headquarters
684-686, Red Crescent Sarak, Bara Mogh Bazar, Dhaka-1217

Terms of Reference (ToR)
On
Financial Service Providers (FSPs) Mapping and Analysis

Background and Rationale:

The Bangladesh Red Crescent Society (BDRCS) has been at the forefront in humanitarian response in aiding communities in various parts of the country who are affected by yearly occurrences of natural disasters of cyclones, floods and landslides as well as man-made disasters. Since Cyclone SIDR in 2007, the BDRCS has been providing cash grants to affected communities as part of Cash Based Intervention (CBI) schemes in relief and early recovery interventions. The most common and relevant response and recovery modalities of BDRCS are – in-kind distribution of emergency food and Non-Food Items (NFIs), and Cash and Voucher Assistance (CVA) for supporting vulnerable people effectively and timely. Based on the situation, especially market functionality, security risk, capacity of local branches, crisis affected people’s requirements, BDRCS takes a decision for which modality the organization will choose accordingly.

Last five years BDRCS has increased their CVA modality for response operation in 2017 for Cyclone Mora and flood operation where cash modality was 48% in 2018 for river erosion displacement cash was 82%, in 2019 for cyclone Bulbul and flood cash was 72%, in 2020 for cyclone Amphan and flood cash was 49% and in 2021 till now cash is 39%. The trends show that the modality of CVA has been increasing for effective response, recovery and long-term programming. In 2020, BDRCS delivered cash to 82,603 households and 2021 till September 34,707 households through Bangladesh Post Office (BPO), Mobile money transfer, cash in envelop and Bank in response, recovery and long-term programming. Significant steps have been made in response readiness throughout the years at the central levels of BDRCS with support from IFRC and its membership.

In Bangladesh, the cash transfer programming has become increasingly prominent in the early actions, humanitarian responses, recovery, and development programs. Like other development organizations, Bangladesh Red Crescent Society also finds a more comprehensive understanding of the most suitable methods for delivering cash-based interventions, both in terms of the capacity of financial service providers and the feasibility of different cash transfer mechanisms in rural and urban contexts. Thus, a country wide assessment is needed focusing FSPs’ coverage, capacities and experiences, cost of delivering cash assistances covering associated risk with mitigations, community preference and access to financial services including BDRCS’ policy, capacities, and experiences in the field of cash transfer programming.

Objective

The main purpose of the assessment is to identify the most appropriate FSP for Cash and voucher assistance/ Cash Based Interventions programme considering local context and need of the intervention.

Specific objectives

  • Analyse and document BDRCS’s existing Cash-Based Programming (CBP) Financial Service Providers (FSPs) set up;
  • Review FSP options currently in use by humanitarian actors in Bangladesh and experience of/learning from other humanitarian actors (including other FSP assessments conducted);
  • Conduct/collate mapping of FSPs – services available at national level as well as their reach and accessibility across the country;
  • Begin engagement with FSPs to allow for initial comparison of some of the available services and costs;
  • Present the data collected and analysis produced to BDRCS, with recommendations on options to be most efficient and effective and what would/would not be advisable based on the available information.

Scope of the consultancy

  • Needs analysis of the BDRCS and in-country RCRC partners
  • Identify potential FSPs (coverage capacity, economy, access/presence in the locality, level of acceptance)
  • Context specific delivery mechanism along with advantages and disadvantages
  • Risk analysis of the identified FSPs  

Expected Outputs and Deliverables

The selected consultant/firm will be responsible for conducting a detailed mapping of the financial service providers offering services in Bangladesh. It is expected that the consultant/firm will conduct a detail analysis includes interviews with key stakeholders from GOs, I/NGOs & national cash working group, representatives from BDRCS and Focus Group Discussion with community people. The three main deliverables of this contract are-

  • PROPOSAL- The consultant will share a detailed proposal outlining objective questions and source of information to be validated. The proposal should include a list of shareholders to be interviewed and consulted, methodology with data collection tools and techniques including checklists and survey questions.
  • DRAFT REPORT WITH PRIMARY FINDINGS- The consultant is expected to share a draft report with preliminary findings of the assessment through PowerPoint presentation for discussing the results and welcoming necessary comments and feedbacks from concerned persons.
  • FINAL ASSESMENT REPORT- The consultant/firm will submit a final report to the concerned authority/person, specifying the key findings and recommendations. The report will include Identification of potential FSPs (coverage capacity, economy, access/presence in the locality, level of acceptance) and will highlight region wise summery of cash delivery mechanism, score matrix showcasing strengths and weaknesses of FSPs. Besides, cost of delivering cash assistances covering associated risk with mitigations, community preference and access to financial services and BDRCS’ policy, capacities, and experiences in transferring cash grants will also be incorporated in the report. The report will not be more than 30 pages without annexures.   

Consultant’s Profile

This assignment is to be conducted by a consultant with the following competences and experiences-

  • Post graduate degree, from a recognized institution
  • The consultant / firm should have at least 5 years of experience in analysis of financial service providers and mapping
  • Prior experience of work with international as well as national organizations on CVA/CBI/CBA/CTP
  • Experience of working in the humanitarian sector, NGOs and INGOs would be an advantage.

Selection Process

  • Based on quality of technical and financial proposal BDRCS will prepare a short list for next steps
  • Short listed proposal will call for Interview
  • Based on interview a consultant/firm will be selected for the above task

Application Instruction

Interested Consultancy agency or independent consultants should submit their separate technical and financial proposals in hard copies to “The Secretary General, Bangladesh Red Crescent Society, 684-686, Bara Mogh Bazar, Dhaka-1217, Bangladesh” or via email to mahmudur.rahman@bdrcs.org with the subject title “Request for Proposal- FSP” latest by 15 December, 2021 at 12.00 hours. Incomplete application will not be considered.

Only short-listed candidates will be notified.