In today’s rapidly changing world, there are many challenges facing organizations that help reconstruct communities after disasters. One major challenge is providing adequate financing options to survivors that are timely and appropriate. Such financing empowers survivors to rebuild their own homes, businesses and lives.
Unfortunately, gaps remain between the financing needs of individuals and businesses after disasters and the availability of funding during recovery. And financing is often too slow or insufficiently scaled to support the most critical needs of individuals and businesses in the wake of disasters.
The private and public sector both have an opportunity to contribute to short- and long-term reconstruction efforts by providing financial products and services that are adapted to the needs of those affected by disasters.
However, offering such products requires a paradigm shift in the way that companies design and offer financial products that can adapt to customer needs - as well as an understanding of the specific challenges presented by disaster recovery.
Changing conditions demand flexibility. Most product-development processes for individuals and small businesses create fixed products. For example, a mortgage is a product which a client can buy with generally set terms. However, if a client wants to change the fixed terms of their contract, they generally have to refinance.
In contrast, adaptive financing offers flexible products that can adapt to changes in customer situations. This adaptability depends on flexible underlying processes that allow finance providers to make ongoing adjustments to products in response to changing client needs. This requires a redesigned product-development process. It also necessitates the management of a financial product as a service instead of a commodity.
This report documents the major challenges associated with designing adaptive products - and creating solutions that can reduce such barriers. It serves as a launch point for any organization beginning to think about creative financing solutions to disaster reconstruction. We hope it will inform and inspire such organizations to craft solutions that close the funding gap.
Acclimatise - "Adaptive Financing for Increased Disaster Resilience – An Opportunity for the Private Sector" - December 2017
weAdapt.org - "The New Frontier of Adaptive Finance for Disaster Recovery" - December 2017
GreenBiz - "The case for linking disaster response to community resilience" - November 2017
Business Wire - "Rethinking the Private Sector's Role in Disaster Relief" - October 2017
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