Microfinance Podcast: Recent Episodes
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Microfinance training videos, short documentaries and interviews with microfinance leaders and experts.
Credit unions play a pivotal role in providing access to financial services to the base of the pyramid. The credit union movement is based on savings mobilization as the foundation of microfinance. In this series, we look at lessons from one of the most successful credit union systems of the world, namely the credit unions of the Central American country of Guatemala. Managers, staff and clients of UPA tell us what is so special about their cooperative.
Credit unions play a pivotal role in providing access to financial services to the base of the pyramid. The credit union movement is based on savings mobilization as the foundation of microfinance. In this series, we look at lessons from one of the most successful credit union systems of the world, namely the credit unions of the Central American country of Guatemala. Managers, staff and clients of UPA tell us what is so special about their cooperative.
Credit unions play a pivotal role in providing access to financial services to the base of the pyramid. The credit union movement is based on savings mobilization as the foundation of microfinance. In this series, we look at lessons from one of the most successful credit union systems of the world, namely the credit unions of the Central American country of Guatemala. Managers, staff and clients of UPA tell us what is so special about their cooperative.
Resumiendo los resultados del estudio el Sr. Silva da recomendaciones que podrían ser útiles para los operadores de las IFM así como también para los de los inversionistas y financiadores. Alex hace énfasis en la importancia de reconocer a las microfinanzas como una especialidad dentro de la intermediación financiera en general así como la importancia de que las IMFs cuenten con los sistemas apropiados de gestión de riesgos y un buen gobierno corporativo.
Summarizing the details of a study of MFI failures, Alex Silva gives important recommendations for MFI sponsors, managers, and funders: Recognize microfinance as financial intermediation, focus on risk management systems, and create good corporate governance.
Sin duda, los profesionales en microfinanzas de todo el mundo se beneficiarán de este estudio seminal sobre las IMFs de América Latina y de las correspondientes lecciones aprendidas
Alex Silva provides more details of the major reasons for the failure of microfinance institutions – an important topic that - so far- has not been talked about. Without doubt, practitioners from around the world stand to benefit from this seminal study of Latin American MFIs.
¿Qué podemos aprender de los fracasos en las microfinanzas?
Las historias de éxito de las instituciones de microfinanzas (IMFs) han sido ampliamente estudiados. Ello, a fin de ayudar en la comprensión de las razones que las llevaron a alcanzar dicho éxito y determinar, para el beneficio del resto de la industria, las “buenas prácticas”. Sin embargo, las instituciones que podrían ser considerados como experiencias fallidas han recibido hasta la fecha muy poca atención.
En al conversación con Alex Silva, un pionero de las microfinanzas, se exponen los resultados de un estudio reciente sobre las instituciones de microfinanzas que han fracasado. Alex Silva, lista seis razones principales para la caída de las IMF y proporciona detalles de cada una de los casos de experiencias fallidas que forman parte del estudio en cuestión. expandiendo la frontera del conocimiento práctico en microfinanzas.
What can we learn from failures in microfinance? Successful microfinance institutions (MFIs) have been widely studied to understand the reasons that drove them into the market and to extract good practices that are useful for the rest of the industry. However, the institutions that could be considered failed experiences have received very little attention. Alex Silva, a microfinance pioneer, outlines the results of a recent study on failed microfinance institutions. He outlines six major reasons for the downfall of MFIs.
How does a crisis help microfinance institutions and their clients? Pancho Otero, one of the global industry pioneers, explains how this is the case. And he gives his perspective on the importance of the enabling environment and good regulations to help produce mature microfinance institutions.
Why is successful microfinance based on savings? The microfinance industry has produced a fair share of pioneers and visionaries, and Pancho Otero is one of them! As the founding CEO of the Prodem Foundation, the nucleus of BancoSol, Pancho helped create one of the most successful microfinance institutions in the world. Pancho gives his insights on the success of microfinance in Bolivia and how Prodem became a bank and a leader in savings mobilization.
How did BancoSol become a global leader in deposit mobilization? Kurt Koenigsfest, CEO of BancoSol, describes four key success factors that are critically important for any MFI that wants to engage in savings mobilization. He talks about BancoSol’s experience with introducing a savings-based organizational culture and how appropriate incentives are helping staff to focus on savings.
In the third episode on BancoSol, Latin America’s and the world’s first bank fully dedicated to microfinance, we meet the CEO. Kurt Koenigsfest talks about the unique positioning of the bank, and how it evolved throughout its history to become a role model for the industry. We hear about the challenges of transformation and how BancoSol became a leader in deposit mobilization. Management puts a relentless focus on the design of new and adequate products for BancoSol’s customers.
We continue our coverage of BancoSol, Latin America’s first microfinance bank. In this episode, Jaime Zegarra talks about the bank’s strategic focus: loan portfolio growth, portfolio quality, and expanding BancoSol’s client base.
BancoSol is a true microfinance pioneer. As Latin America’s first commercial microfinance bank it has been much copied but never surpassed. We begin our coverage of BancoSol by focusing on its operations in El Alto, a sprawling city on the “Altiplano” above La Paz, one of the highest cities in the world. Jaime Zegarra, regional manager of BancoSol, talks about the ways in which the bank forms part of the community and connects with its clients.
The ProCredit Group is one of the global microfinance leaders. With operations on three continents, the group is the largest international network player in terms of assets. The Bolivian branch was one of the pioneers of the network. ; Roberto Zegada, Regional Manager El Alto, Banco Los Andes ProCredit talks about the growth of operations and the competitive situation in one of the world's best-served microfinance markets.
The ProCredit Group is one of the global microfinance leaders. With operations on three continents, the group is the largest international network player in terms of assets. The Bolivian branch was one of the pioneers of the network. Roberto Zegada, Regional Manager El Alto, Banco Los Andes ProCredit talks about the growth of operations and the competitive situation in one of the world’s best-served microfinance markets.
Peru is one of the most dynamic microfinance markets in the world. In a very competitive market, Financiera CREAR has been a rising star. Marcos Corrales, manager of CREAR's Lima regional branch, talks about the success factors that contributed to the strong growth and performance of their lending activities.
Peru is one of the most dynamic microfinance markets in the world. In a very competitive market, Financiera CREAR has been a rising star. Marcos Corrales, manager of CREAR's Lima regional branch, talks about the success factors that contributed to the strong growth and performance of their lending activities.
Michael McCaffrey, Financial Inclusion Technical Specialist, Pacific Financial Inclusion Program (PFIP), talks about the design of a suite of products such as remittances, savings, and microinsurance. He explains how different programs and operators attempt to reach scale and sustainability. Through participation in international training programs such as the Boulder MFT, microfinance practitioners and policy makers from the Pacific Islands get access to the latest developments and share their own unique experience.
Michael McCaffrey, Financial Inclusion Technical Specialist, Pacific Financial Inclusion Program (PFIP), talks about the specific challenges of improving financial inclusion in remote island states. He shares the PFIP experience with mobile banking and explains how commercial banks can help improve the financial infrastructure.
Bob Christen, Director, Bill & Melinda Gates Foundation. talks about the strategic focus on savings. The successful mobilization of small-scale savings requires dramatic reductions of transaction costs. Mobile banking and electronic payment platforms play a central role in this process.
The foundation also fosters the development of additional products such as microinsurance.
Evelyn Stark, Senior Program Officer, Bill & Melinda Gates Foundation talks about the importance of marketing in successful mobile-money deployments.
Microfinance Podcast wishes you success in all your micro, small and large projects in 2011!
Clara Veniard, Associate Program Officer, Bill & Melinda Gates Foundation, talks about a bank-led agent model where the customer proposition and the channel are controlled by the bank.
Clara Veniard, Associate Program Officer, Bill & Melinda Gates Foundation, talks about a bank-led agent model where the customer proposition and the channel are controlled by the bank.
Ignacio Mas, Deputy Director, Bill & Melinda Gates Foundation, talks about stores acting as cash merchants and their basic need to periodically rebalance their cash and e-money holdings. He explains the basic options for doing so, including going to a bank branch.
Daniel Radcliffe, Program Officer, Bill & Melinda Gates Foundation, describes how retail payment systems can reach a critical mass of customers.
Daniel Radcliffe, Program Officer, Bill & Melinda Gates Foundation, talks about the fundamental factors that affect the growth and success if retail payment systems.
Amolo Ng’weno talks about M-PESA which is reaching over 12 million people at 19 million outlets. This provides amazing transaction rails for other services.
Tamara Cook talks about one of the partners of the Bill & Melinda Gates Foundation, Opportunity International Bank of Malawi, as an example of how banks have moved beyond branches to try to solve the problems that they faced of reducing costs and reaching people where they lived.
“Today we have a historic opportunity to use mobile phones to solve two major problems that bankers faced for generations: how do you get the cost of serving clients down, and how do you reach people who leave far from the branch.” Tamara Cook, Program Officer, Bill & Melinda Gates Foundation.
Increasing competition amongst financial institutions in Bangladesh has given clients many options to choose from. But competition has brought with itself distortions in delivery systems, stress, and over indebtedness among clients. Preparing for managing delinquency has thus been the priority for many service providers.
Stuart Rutherford is the founder of SafeSave, a microfinance institution in Bangladesh and author of the books The Poor And Their Money and Portfolios Of The Poor. Rutherford talks about the competition in Bangladesh, delinquency management, and key challenges in addressing it.
Listening to clients is at the heart of providing financial services in a market-led approach. Financial service providers should always keep their eyes and ears open for what their clients are saying in terms of the design and delivery of the product.
Stuart Rutherford is the founder of SafeSave, a microfinance institution in Bangladesh and author of the books The Poor And Their Money and Portfolios Of The Poor. Rutherford talks about the importance of listening to clients, how best MFIs can learn from them, and his experience in conducting such research.
Roger Voorhies, Founder and Former CEO, OIBM talks about the bank’s institution building, the bank’s experience with technology - cards, m-banking, ATMs, and whether the OIBM experience can be replicated in other regions.
Roger Voorhies talks about the biggest challenges and natural advantages of doing microfinance in Africa. He also introduces the history of OIBM, one of the leading microfinance banks on the continent.
Mark Schreiner, Director, Microfinance Risk Management talks about the future of poverty scoring and gives examples of how MFIs use this powerful tool.
Mark Schreiner, Director, Microfinance Risk Management explains where a score card comes from, what are the challenges of implementing the system, and how one trains analysts.
Mark Schreiner, Director, Microfinance Risk Management talks about the poverty scoring as a way for microlenders to measure how poor their clients are in a quantitative way and why funders could be interested in poverty scoring.
Michael McCord, President, MicroInsurance Centre, LLC talks about the factors that push the growth of microinsurance, the evolution of products and the biggest challenge in microinsurance.
Michael McCord, President, MicroInsurance Centre, LLC talks about the best potential delivery channels for michroinsurance.
Since its inception as an initiative of MicroSave, The MicroInsurance Centre, LLC has worked on several levels to promote responsible microinsurance. The MicroInsurance Centre is the only independent institution that is entirely focused on actively promoting the partnership model of microinsurance. In this model, appropriate institutions are linked with regulated insurance companies to provide professional insurance products to the low-income market. This method has proven to provide important risk management tools to low-income people, provide an addition to the product lines of intermediary institutions, and allow insurers to enter this market efficiently and profitably.
Michael McCord, President, MicroInsurance Centre, LLC gives a definition of microinsurance and talks about the mechanisms of implementing microinsurance successfully.
Since its inception as an initiative of MicroSave, The MicroInsurance Centre, LLC has worked on several levels to promote responsible microinsurance. The MicroInsurance Centre is the only independent institution that is entirely focused on actively promoting the partnership model of microinsurance. In this model, appropriate institutions are linked with regulated insurance companies to provide professional insurance products to the low-income market. This method has proven to provide important risk management tools to low-income people, provide an addition to the product lines of intermediary institutions, and allow insurers to enter this market efficiently and profitably.
Daryl Collins, co-author of "Portfolios of the Poor" and Senior Associate, Bankable Frontier Associates talks about implementing lessons from Portfolios of the Poor in South Africa. Daryl's principal area of research is estimating the impact of microfinance programs on the financial management of poor households. From 2003 to 2006, she was the principal investigator for a longitudinal study called the Financial Diaries project funded by the Ford Foundation and DFID in South Africa. This study became the basis of a book, Portfolios of the Poor.
Daryl Collins, co-author of "Portfolios of the Poor" and Senior Associate at Bankable Frontier Associates talks about implementing lessons from Portfolios of the Poor in South Africa.
Daryl's principal area of research is estimating the impact of microfinance programs on the financial management of poor households. From 2003 to 2006, she was the principal investigator for a longitudinal study called the Financial Diaries project funded by the Ford Foundation and DFID in South Africa. This study became the basis of a book, Portfolios of the Poor.
Sukhwinder Singh Arora, co-author of two books ‘Small Customer, Big Market: Commercial Banks in Microfinance’ (with Malcolm Harper) and ‘The Poor and their Money’ (with Stuart Rutherford) talks about how the lessons from Portfolios of the Poor help providers design better products.
Over the past 25 years, Sukhwinder Arora has worked for a range of development organisations at micro, meso and macro level. Sukhwinder’s core work has been on policies and programmes designed to enable poor people to participate in and benefit from financial and other markets.
Richard Rosenberg, consultant to CGAP, talks about the value proposition of microfinance and how this relates to the price for financial services. Richard has been with CGAP since its founding in 1995. He has written or contributed to numerous CGAP publications. His current areas of focus include interest rate issues, over-indebtedness, and regulation of microfinance. He is a core faculty member of the Microfinance Training Program at The Boulder Institute.
Richard Rosenberg, consultant to CGAP, talks about the value proposition of microfinance and how this relates to the price for financial services.
Richard has been with CGAP since its founding in 1995. He has written or contributed to numerous CGAP publications. His current areas of focus include interest rate issues, over-indebtedness, and regulation of microfinance. He is a core faculty member of the Microfinance Training Program at The Boulder Institute.
MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
Richard Rosenberg, consultant to CGAP, highlights the biggest findings of “Portfolios of the Poor”. Richard has been with CGAP since its founding in 1995. He has written or contributed to numerous CGAP publications. His current areas of focus include interest rate issues, over-indebtedness, and regulation of microfinance. He is a core faculty member of the Microfinance Training Program at The Boulder Institute.
MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
Yaw Nyarko, Professor of Economics at New York University and Director of NYU Africa House, talks about the particulars of the research for Portfolios of the Poor and how it will influence the development of new research trends. Yaw Nyarko is a theoretical economist whose current work focuses on two main areas: (1) models where the economic actors engage in active learning about their environments and (2) human capital models of economic growth and development.
MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
Jonathan Morduch, co-author of "Portfolios of the Poor" shares his opinion on what the book tells us about reimagining microfinance. Jonathan Morduch is Professor of Public Policy and Economics at the NYU Wagner Graduate School of Public Service, and Managing Director of the Financial Access Initiative, a consortium of researchers focused on financial inclusion.
Jonathan Morduch, co-author of "Portfolios of the Poor" shares his opinion on what the book tells us about reimagining microfinance. Jonathan Morduch is Professor of Public Policy and Economics at the NYU Wagner Graduate School of Public Service, and Managing Director of the Financial Access Initiative, a consortium of researchers focused on financial inclusion. Morduch has taught on the Economics faculty at Harvard University, and has held visiting positions at Stanford, Princeton, and the University of Tokyo. He has worked with the United Nations and World Bank, and advises global NGOs. He is Associate Editor of the Journal of Economic Perspectives and on the board of the Journal of Globalization and Development.
MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
William Easterly explains how Portfolios of the Poor gives us a more realistic look at the life of poor people and how it changes the perspective on the “consumption smoothing” concept. William Easterly is an American economist, specializing in economic growth and foreign aid. He is a Professor of Economics at New York University, joint with Africa House, and Co-Director of NYU’s Development Research Institute. He is also a visiting Fellow at the Brookings Institution and a non-resident Fellow of the Center for Global Development in Washington DC. Easterly is an associate editor of the Quarterly Journal of Economics, the Journal of Economic Growth, and of the Journal of Development Economics.
Stuart Rutherford, co-author of "Portfolios of the Poor" talks about Grameen-2, SafeSave and Buro in Bangladesh. He also gives his opinion on the potential of e-banking and m-banking for the microfinance industry.
MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
Stuart Rutherford, co-author of "Portfolios of the Poor" talks about the financial products that poor people need from MFIs. MicroSave and the Financial Access Initiative invite you to join the authors of Portfolios of the Poor for a two-day virtual conference. This event will be moderated by co-authors Daryl Collins, Jonathan Morduch, Stuart Rutherford and Orlanda Ruthven, and MicroSave’s Graham Wright. Dates: June 8-9, 2010 For more information and free registration, please visit www.MicroSave.org
Stuart Rutherford, co-author of "Portfolios of the Poor" and Graham Wright, Program Director, MicroSave, talk about the key lessons of the book in terms of poor people's financial behavior.
Stuart is the founder of SafeSave Bangladesh, an organization that provides reliable basic banking services, profitably, to poor men, women, and children in Dhaka. He became interested in how poor people manage their lives and their money as a result of working in developing countries as an architect and then for NGOs. From this perspective he became involved in microfinance as a practitioner (in Bangladesh), teacher, consultant, and writer. He is the author of The Poor and Their Money (Oxford University Press, 2000) and is an Honorary Senior Fellow at the Brooks World Poverty Institute at the University of Manchester, UK. He lives in Japan.
Stuart Rutherford, co-author of “Portfolios of the Poor”, talks about the inspiration for the research on financial diaries that was the foundation of the book. Stuart is the founder of SafeSave Bangladesh, an organization that provides reliable basic banking services, profitably, to poor men, women, and children in Dhaka. He became interested in how poor people manage their lives and their money as a result of working in developing countries as an architect and then for NGOs. From this perspective he became involved in microfinance as a practitioner (in Bangladesh), teacher, consultant, and writer. He is the author of The Poor and Their Money (Oxford University Press, 2000) and is an Honorary Senior Fellow at the Brooks World Poverty Institute at the University of Manchester, UK. He lives in Japan.
Bob Christen, director of the Financial Services for the Poor initiative at Bill & Melinda Gates Foundation, introduces the groundbreaking book, Portfolios of the Poor: How the World’s Poor Live on $2 a Day. The authors of the book recorded and analyzed the financial diaries of a group of households in Bangladesh, India and South Africa.
Richard Rosenberg, consultant to CGAP, discusses how the Compartamos IPO affected investors and competitors, and whether the experience was a singular event or is likely to be repeated.
Carlos Danel, Co-CEO and founder of Compartamos, speaks about the necessary stepping stones for mobilizing savings and shares his views on the lessons from the IPO of Compartamos.
Carlos Danel, Co-CEO and founder of Compartamos, speaks about the ways in which the bank managed to weather the crisis and continue its strong growth.
Carlos Danel, founder and Co-CEO of Compartamos, speaks about the link between the growth story and the issue of pricing or the interest rate policy.
Carlos Danel, Founder and Co-CEO of Compartamos, speaks about the factors that enabled the MFI to become the regional industry leader and to provide financial services to more than one million poor women in the rural areas of Mexico.
Richard Rosenberg, consultant to CGAP, speaks about the spectacular success and controversy around the IPO of Compartamos, one of the leading MFIs in Latin America.
Richard Rosenberg, consultant to CGAP, speaks about the spectacular success and controversy around the IPO of Compartamos, one of the leading MFIs in Latin America.
Provided by MicroSave
The role of technology in financial inclusion and in making financial transactions secured has been well proven. MicroSave is working with M-Banking promoting MFIs, to pilot test electronic options, which are totally market-led solutions for financial services. The focus has been to understand the client's priorities in terms of client interface with the electronic option and the value proposition that clients look for in these alternative channels of delivery.
These videos are from Eko, an Action Research Partners (ARPs) of MicroSave where Abhishek Sinha, CEO Eko shares his experiences and challenges Eko is facing while testing the use of electronic and mobile banking technology. The video also captures MicroSave’s perspective on m-banking while focusing on the importance of this alternative channel of financial services delivery.
Richard Rosenberg, consultant to CGAP, speaks about the spectacular success and controversy around the IPO of Compartamos, one of the leading MFIs in Latin America.
Renee Chao-Beroff, Director, Microfinance Department, CIDR; General Manager, Pamiga gives an overview of the ways in which rural markets are segmented and how financial intermediaries can develop appropriate products and delivery mechanisms to navigate the risks of agricultural and rural lending.
Renee Chao-Beroff, Director, Microfinance Department, CIDR; General Manager, Pamiga explains how agricultural microfinance has developed despite the challenges that it faces. New actors, new opportunities and new behavious in the rural areas have a profound impact on poor people's access to finance.
Richard L. Meyer is Professor Emeritus at The Ohio State University with experience in microfinance, rural financial markets and rural nonfarm and microenterprises in developing countries. He has worked extensively on international projects, including long-term residence in Brazil and Thailand, where he served as Chief of Party for USAID projects. Richard Meyer speaks about challenges and implementation practices of agricultural finance.
Richard L. Meyer is Professor Emeritus at The Ohio State University with experience in microfinance, rural financial markets and rural nonfarm and microenterprises in developing countries. He has worked extensively on international projects, including long-term residence in Brazil and Thailand, where he served as Chief of Party for USAID projects. Richard Meyer speaks about challenges and implementation practices of agricultural finance.
Roshaneh Zafar, Managing Director of Kashf Foundation, Pakistan speaks about the economic and regulatory framework for microfinance in Pakistan. She also shares her views on the impact of the financial sector and food crises on microfinance clients in Pakistan.
Roshaneh Zafar, Managing Director of Kashf Foundation, Pakistan speaks about the implementation of the deposit mobilization strategy that Kashf has put into place. She explains the role of the technology in microfinance and how Kashf has employed technological innovations for the benefit of their clients.
Roshaneh Zafar, Managing Director of Kashf Foundation and the founder of Kashf Bank, one of the leaders of microfinance in Pakistan, speaks about the challenges of reaching female borrowers in one of the largest and most challenging markets in the world. She shares her views on the importance of mobilizing deposits from microfinance customers.
India Focus Note #13
Author: Madhurantika Moulick
This focus note explains the importance of savings services for the clients in the north east region of India and brings forth the finding that poor do save, and loose their savings in the absence of any formal source. It mulls over on savings mechanisms adopted by the poor some of which are—formal—not as per people’s needs, semi formal such as through SHGs and MFIs and then informal mechanisms such as savings at home, with NBFCs, ROSCAs, and ASCAs. It suggests four products based on various attributes—security, accessibility, returns and preferences of low income people—general savings, short term recurring, long term recurring and monthly/annual income fixed deposit accounts.
India Focus Note # 21. Authors: Abhijit Sharma, Brett Hudson Mathews
Villagers in Lower Assam are pioneers on the frontiers of informal finance, according to the results of recent field work conducted by the Indian Institute of Bank Management. This note provides an overview of the village financial systems in Northeast India, highlighting the flexibility and the multiple needs met by these Accumulating Savings and Credit Associations (ASCA).
Authors: Nthenya Mule, Susan Johnson, Robert Hickson & Wambui Mwangi
Examines the managed ASCAs operating in Central Province of Kenya. These ASCAs run on the basis of their own members’ savings as capital and pay a fee for management services provided by an MFI. The study examines the strengths and weaknesses of this alternative approach to supporting financial services for the poor.
Hugh Allen, Founder of VSL Associates, Ltd., talks about emerging issues in community managed microfinance, about the regions, where this methodology works the best, and about the risks we face as community managed microfinance moves forward.
Hugh Allen, Founder of VSL Associates, Ltd., talks about a typical community managed microfinance institution, and the common arguments against these kind of programs.
Michael Tarazi, Senior Policy Specialist, CGAP speaks about successful
branchless banking projects, the major obstacles for branchless banking, the role of regulators in rolling out branchless banking solutions, and the CGAP contribution in the area of branchless banking.
MFP is grateful to the Boulder Institute of Microfinance and the International Training Center of the ILO, (Turin, Italy) for providing logistical support and the location for this interview.
Marguerite Robinson, a long-term adviser to BRI, talks about one of the most successful microfinance providers in the world.
Author: Gerhard Coetzee, Kamau Kabbucho, Andrew Mnjama
This study report starts with Equity Bank’s market and how that translates into a product range and delivery system. It also addresses the issues related to the ownership and governance of the organisation. It further surges ahead in various aspects of management, as the governance level directs and focuses the institution while the management level is needed for implementation. It also measures the management and institutional performance of the bank. This report also relates to human resource issues and how these can contribute to success.
Author: Gerhard Coetzee, Kamau Kabbucho, Andrew Njema
Equity serves some customers that live and work in remote rural areas, through a network of rural branches and through a system of mobile banks. In addition to providing services the mobile banking units are used for public relations and marketing purposes. Whilst banks such as Barclays and Kenya Commercial Bank closed their mobile services, Equity is rapidly expanding its mobile services. This paper explains the structure of each of the mobile units and their further evolution. Lessons from the mobile banking project are considered, and the performance of the units is explained. Client perspectives are aired.
Author: Graham A.N. Wright, David Cracknell
Today Equity Bank is a remarkable institution. But in 1993, the Central Bank of Kenya confirmed that, as Equity Building Society, it was technically insolvent and had poor board supervision and inadequate management. Non-performing loans were 54% of the portfolio, and accumulated losses totalled KSh.33 million against a paid-up capital of KSh.3 million. Equity’s liquidity ratio stood at 5.8%, far below the required 20%.This paper documents the history of this remarkable institution and assesses some of the lessons that can be learned by others seeking to follow its path.Equity’s progression from what was effectively a small family firm to a high potential organisation on to a high performing and now listed institution was not without challenges and struggles. While the paper provides the details of Equity Bank’s Strategic and Operational History, it mainly focuses on key lessons for those aspiring to follow Equity’s extraordinary trajectory.
Marguerite Robinson, a frequent adviser to Equity Bank, gives her views of the Equity Bank success story. She describes the roles of staff and management and explores the contribution of MicroSave.
Interview with Marguerite Robinson on the role of savings in microfinance.
Dr. Robinson has worked extensively in Asia, in rural and tribal areas and among the urban poor. She served for many years as adviser to the Indonesian Ministry of Finance and to Bank Rakyat Indonesia (BRI) on the development of BRI's microbanking system-now the largest financially self-sufficient microfinance system in the world. She also works in other countries in Asia, Africa, and Latin America, advising governments, banks, donors, and others, and is the author of many papers and books on development and microfinance. Her most recent books are the first two volumes of a multi-volume book, The Microfinance Revolution, published by the World Bank and Open Society Institute; two additional volumes are in progress. These volumes explore and analyze the demand for microfinance and the history, theories, controversies, practices, and future of the emerging commercial microfinance industry in countries and institutions around the world.
Author: David Cracknell, Graham A.N. Wright
Today Equity Bank is a remarkable institution. It has become the most highly capitalised bank in Kenya with total shareholders funds of more than $250 million as of March 2008, serving more than 2 million customers, through 76 branches and more than 350 ATMs. But in 1993, the Central Bank of Kenya confirmed that, as Equity Building Society, it was technically insolvent, had poor board supervision and inadequate management. This note outlines the success factors underlying this remarkable change.
Interview with james Mwangi, CEO, Equity Bank, Kenya, on client protection, youth programs, and the future of Equity Bank.
Interview with Dr. James Mwangi, CEO, Equity Bank, Kenya, on financial crisis and the role of savings.
Interview with Dr. James Mwangi, CEO, Equity Bank, Kenya, Dr James Mwangi talks about the main drivers and challenges of rapid growth, the role that MicroSave played in the development of the bank, and the mistakes made and lessons learned over the past 16 years.
Interview with Elizabeth Littlefield, CEO, CGAP on financial crisis impact om MFIs and their clients.
Elizabeth Littlefield, CGAP, Director of the World Bank and the Chief Executive Officer of CGAP – Financial Crisis and the Microfinance Industry.
Microfinance Podcast is on the Road collecting new interesting footage. Please stay tuned for new episodes. We will back in August.
Interview with Nick Hughes, Head of International Mobile Payment Solutions, Vodafone Group on mobile payment service M-PESA in Kenya. Photos courtesy of CGAP.
Interview with Kate McKee, Senior Advisor, CGAP. Responsible Finance - Why It Is Timely Now.
"Process Mapping In Practice" by Henry Sempangi, David Cracknell, Madhurantika Moulick and Hermann Messan.
Process Mapping - Interview with Pamela Champagne, Consultant, ShoreBank International.
Internal Audit and Risk Management - Interview with Pamela Champagne, Consultant, ShoreBank International.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty"; at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty" at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty" at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty"at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty" at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
Dr. Muhammad Yunus speaks about his latest book, "Creating a World Without Poverty" at the George Washington University in Washington, D.C. DR. YUNUS is a native of Bangladesh, and was educated at Dhaka University where he was awarded a Fulbright scholarship to study economics at Vanderbilt University. In 1972 he became head of the economics department at Chittagong University. He is the founder and managing director of Grameen Bank, a pioneer of microcredit, an economic movement that has helped lift millions of families around the world out of poverty. Yunus and Grameen Bank are winners of the 2006 Nobel Peace Prize.
1500 people packed the hall on Feb. 4 when the Nobel Peace Prize Winner Dr. Muhammad Yunus spoke at the Lisner Auditorium on the campus of the George Washington University in Washington, D.C. He inspired everyone with his impressive thoughts on the importance of microfinance and ideas from his book, “Creating a World Without Poverty” (Appeared on the New York Times Best Seller List). Watch the whole event in the coming series of episodes.
Interview with Samuel G. Kamiti, General Manager, Alternative Business Channels, Equity Bank, Kenya.
Interview with Ali Abbas Sikander, Group Executive Director, TAMEER, Micro Finance Bank Limited, Pakistan.
Interview with Rizza Maniego-Eala, President, G-Xchange, Inc. - Globe Telecom, Philippines.
Interview with Brian Richardson, Managing Director, WIZZIT, South Africa. Photos courtesy of WIZZIT.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
The main lending technology used by MFIs in India is the Joint Liability Group model. Using one of the largest Indian MFIs as an example, MicroSave explains how this model works and why Indian MFIs have been so successful with it.
Author: Jenny Hoffmann
This note examines some of the key strategic issues for financial institutions considering implementing mobile banking. It suggests the aspiring MFIs to assess the market potential and devise entry strategies according to the vision of the organisation. The note also mentions that mobile banking can be a supplement or substitute to the existing product or services, depending upon the goals of operators either for reducing transaction costs or attracting new customers or for revenue. The note also suggests forging strategic operational alliances, if need be (and in between telecom and finance companies). It further advises the MFIs wishing to enter into this market to develop compatible hardware and appropriate software in addition to financial modelling for providing these kinds of services.
Author: Graham A.N. Wright, David Cracknell, Nick Hughes, Brian Richardson
The need for a branch infrastructure and managing high volumes of low value transactions are the barriers related to serving the low-income market. While outlining the features of mobile banking, the note warns that the failure of such initiatives is often due to its inappropriateness to address the customers’ needs rather than because of technological problems. The note also highlights the reasons as to why should low income segment prefer technology—if it is secure, convenient, low cost, accessible/liquid and easy to transfer. It also compiles the barriers and challenges in using technology like availability of machine, lack of training, lack of sufficient funds with agents, illiteracy among clients, lack of willingness from suppliers and other resource constraints. It also highlights the significant role played by cash and its functionality.
Author: Richard Ketley, Ben Duminy
The conventional banks rarely provide banking services to the low income segment due to high costs associated with it. However, technology has resulted in lowering down the costs per transaction, and thus impacted the banks to consider the options of servicing the low income segment. This note talks about the gains from various technologies such as ATMs, plastic cards, mobile phones, used by the present banking system to serve the people belonging to lower income strata.The conventional banks rarely provide banking services to the low income segment due to high costs associated with it. However, technology has resulted in lowering down the costs per transaction, and thus impacted the banks to consider the options of servicing the low income segment. This note talks about the gains from various technologies such as ATMs, plastic cards, mobile phones, used by the present banking system to serve the people belonging to lower income strata.
Interview with Martin Holtmann, Head of the Microfinance Unit in the IFC’s Global Financial Markets Department.
Interview with Mark Schreiner, Director, Microfinance Risk Management. Cost and future of scoring in microfinance.
Interview with Mark Schreiner, Director, Microfinance Risk Management. In rich countries, lenders often rely on credit scoring—formulae to predict risk based on the performance of past loans with characteristics similar to current loans—to inform decisions. Can credit scoring do the same for microfinance lenders in poor countries? Does scoring have a place in microfinance?
Interview with Mark Schreiner, Director, Microfinance Risk Management. In rich countries, lenders often rely on credit scoring—formulae to predict risk based on the performance of past loans with characteristics similar to current loans—to inform decisions. Can credit scoring do the same for microfinance lenders in poor countries? Does scoring have a place in microfinance?
Donna Nails, former Deputy Director, Risk Management Department, ShoreBank Corporation is talking about the key components of credit risk management.
Gautam Ivatury, Microfinance Specialist, Manager - Technology Programme, CGAP, talks about the importance and implementation of Management Information System in MFI. CGAP is housed at the World Bank, but operates as an independent entity. It has its own governance structure, designed with an agile board that includes microfinance practitioners and leaders from outside the funder community while preserving member representation.
Martin Holtmann, Head of the Microfinance Unit in the IFC’s Global Financial Markets Department is talking about the staff incentive schemes typically used in MFIs.
Fazle Abed, the founder and chairman of BRAC is talking about the BRAC approach to microfinance and their recent expansion to Africa.
This Forum organized by ShoreCap Exchange addresses strategies and tools for attracting and retaining talent, enhancing the alignment of human resource practices with primary business goals and using human capital to build institutional strengths. ShoreCap Exchange is a ShoreBank capacity building company that helps banks working to serve small business and microfinance markets overcome the substantial operational challenges they face in dealing with clients not reached by traditional financial markets.
Syed Hashemi, a senior microfinance specialist of CGAP, introduces anew pathway for the poor rest to graduate out of poverty: linking two aspects of development, safty nets and the world of microfinance.
Syed Hashemi, a senior microfinance specialist of CGAP, introduces anew pathway for the poor rest to graduate out of poverty: linking two aspects of development, safty nets and the world of microfinance.
Loan officers discuss who they consider to be a good client, Biashara Imara clients give their feedback on the product, and we conclude the discussion of the Biashara Imara Lending Cycle.
Equity bank credit managers and loan officers identify the personal and professional qualities of a successful loan officer.
Dick Turner, former Chief Credit Officer, ShoreBank, shares his observations of psychological aspects of managing problem loans and treating them as a learning experience.
Dick Turner, former Chief Credit Officer, ShoreBank, shares his observations of psychological aspects of managing problem loans and treating them as a learning experience.
From making a warning phone call to starting a repossession process – in this episode we discuss the typical steps of managing a delinquent loan.
Dick Turner shares his experience on how to prepare and manage an effective monitoring visit. Dick Turner, former Chief Credit Officer, ShoreBank, has been involved in making loans and training credit staff for well over 30 years.
Dick Turner shares his experience on how to prepare and manage an effective monitoring visit. Dick Turner, former Chief Credit Officer, ShoreBank, has been involved in making loans and training credit staff for well over 30 years.
Watch the examples of various ways to monitor a loan. Listen to Equity bank loan officers and credit administrators talk about their most effective practices of monitoring loans.
Proper processing of documents is another important step in the Lending Cycle. In this episode we discuss the practices that MFIs use to ensure that all the documents are properly prepared.
Equity Bank in Kenya, shares its experience on processing and approving larger loans. Dick Turner concludes the topic of loan approval practices.
Join a typical Credit Committee and see with your own eyes how it works and how the loan proposals are getting approved and rejected.
Dick Turner, former Chief Credit Officer, ShoreBank, shares his general observations about underwriting loans. Dick Turner has been involved in making loans and training credit staff for well over 30 years. Much of that experience was spent in the United States but also in a number of other countries, primarily in Eastern Europe.
Management and Mathematics. Dick Turner, former Chief Credit Officer, ShoreBank, talks about the importance of analyzing management capacity when making lending decisions. Also, he provides his thoughts on making alternative projections before writing loans up for approval.
Former Chief Credit Officer at ShoreBank Dick Turner shares his “tricks of the trade" in loan analysis. Dick Turner has been involved in making loans and training credit staff for well over 30 years. Much of that experience was spent in the United States but also in a number of foreign countries, primarily in Eastern Europe.
Through its Action Research Programme, MicroSave learns and disseminates lessons relating to market-led microfinance. This Briefing Note highlights key lessons from the experience of its partner Equity bank, in designing, testing and rolling out a cash flow based individual business loan product.
For many newcomers to microfinance, the Home Visit is probably the most unconventional part of the loan appraisal in MFIs. What does a credit officer look at when he or she visits the client’s home? What questions does he ask? Which family members does he want to meet? Please, join our camera on an Example of a Home Visit.
The Loan Appraisal process is something that requires a considerable amount of skill and knowledge from the loan officer. In this episode we will discuss the Loan Application as well as a site visit to the business premises of a client.
The concept of the Lending Cycle is an excellent training tool for new loan officers and other staff engaged in lending operations. Using the individual loan product of Equity Bank as an illustrative example, we move through the first steps of the Lending Cycle, namely New Customer Introduction and Filter. We asked Martin Holtmann, who is Head of Microfinance at International Finance Corporation (IFC), to be our guide
Biashara Imara product development, product features and marketing Biashara Imara, these are the topics of this episode.
Biashara Imara is the individual loan product developed by Equity Bank in Kenya. Biashara Imara means "strong, solid business." What are the distinctive characteristics of the product and who are the clients – these are the topics of this episode.
The Equity Bank business model has attracted both local and international recognition. On many occasions the Bank has been invited to various international forums and bodies to share on its successes. Equity has also become a hub of other institutions worldwide keen on learning and exchanging insights on the Equity model of extending financial services to the low income segment and the un-banked population.
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BRAC. A senior microfinance specialist of CGAP, Syed Hashemi is introducing a big microfinance program in Bangladesh, namely BRAC. BRAC is an amazing example of how one combines microfinance with other development efforts. Syed Hashemi looks both at similarities and differences between Grameen Bank and BRAC multi-sector approach.
Grameen Bank. In this episode a senior microfinance specialist of CGAP, Syed Hashemi is sharing his thoughts on why microfinance is such a great success in Bangladesh, and the role that Grameen Bank played in establishing microfinance as an industry.