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MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Launches Spanish Language “Microfinance in Latin America” Blog

Rohan Trivedi — Wed, 31 Aug 2011 05:03:56 +0000

The Inter-American Development Bank (IDB), a US-based multilateral financial institution, has launched the Spanish language “Microfinance in Latin America” blog in an effort to explore the role of microfinance in financial inclusion in Latin America and the Caribbean. Specialists from IDB and the Multilateral Investment Fund, which is housed at IDB, plan to use the blog as a forum for sharing “perspectives on development challenges and opportunities [for] microfinance and other initiatives.” IDB also offers blogs that cover topics related to climate change, education, poverty alleviation and technology.

The “Microfinance in Latin America” blog can be accessed at http://blogs.iadb.org/microfinanzas/

About the Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution established in 1959 that operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. In the year ending December 31, 2010, IDB approved loans and guarantees worth USD 12.1 billion and reported total assets of USD 87.2 billion.

Sources and Additional Resources:

[1] Press Release submitted by IDB to MicroCapital.org, August 2011

MicroCapital.org story, May 16, 2011: “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Establishes ‘Flexible Financing Facility’ for Countries in Latin America, Caribbean”, http://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-establishes-flexible-financing-facility-for-countries-in-latin-america-caribbean/

MicroCapital Universe Profile: Inter-American Development Bank (IDB), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse

MICROCAPITAL BRIEF: Articles Published by The Guardian, The Wall Street Journal Question Impact of Microfinance, Role of Commercialization

Rohan Trivedi — Fri, 08 Jul 2011 17:32:19 +0000

In recent articles published on the websites of newspapers The Guardian of the UK and The Wall Street Journal of the US, journalists, academics and practitioners express concerns about various topics in the microfinance sector including social performance measurement, commercialization and changing methodologies. The analysis is driven in part by a recent report published by the UK’s governmental All-Party Parliamentary Group (APPG) on Microfinance, titled “Helping or Hurting: What role for microfinance in the fight against poverty?”

A post on The Guardian’s Poverty Matters Blog analyzes the report from APPG and concludes that there is a pressing need for impact evaluations of different microfinance schemes, along with the measurement of social parameters over time to understand the successes and shortcomings of the schemes. In addition to studying credit products, there is also a need for monitoring savings, microinsurance and remittances in order to compare and contrast the intended benefit with the actual results. The authors of the APPG report describe the sector as “unbalanced,” in referring to an over-reliance on credit as a tool for poverty alleviation. According to The Guardian blog post, regulation and accreditation are focal points of the APPG report, as commercialization becomes more common. A final but major point involves commercialization in the sector in tandem with regulation and accreditation of institutions [1]. Although the recommendations of the authors are quite diverse, the overall objective is to “cut through the hype and take a reasoned approach to how the UK government and other stakeholders should support the sector.” This would involve an understanding “firstly, that credit services can cause harm as well as good because they induce debt; and secondly that the sector is now so diverse that we have to assess individual microfinance interventions on their own merits…” [2]

The Wall Street Journal article looks more closely at the trend of commercialization in the microfinance sector and its impact on women. Proponents of for-profit microfinance cite fiscal discipline and access to capital as the main justifications for commercial transformation, while their opponents believe such changes lead to the dilution of social motives and to profit-seeking at the expense of poor people. Mary Ellen Iskenderian, President and CEO of US-based microfinance network Women’s World Banking (WWB), cites a 2008 study that found that commercial microlenders tend to reduce lending to women in favour of financing men’s business activities. This is largely because for-profit institutions tend to be interested in larger loans that are cheaper to administer, which in turn tend to be sought by male-operated businesses. Ms Iskenderian says that the group-lending model, which has historically focused on women, is also declining in popularity as commercial operators look to make more profitable and often riskier investments in individuals. Ms Iskenderian believes that individual lending can still benefit women, but that microfinance institutions (MFIs) should also focus on “cross-selling ancillary services” like savings, microinsurance and pensions, which can also benefit both female customers and their families [3].

By Rohan Trivedi, Research Associate

Sources and Additional Resources:

[1] The Guardian: Poverty Matters Blog: “Can microfinance be a friend to the poor?”, http://www.guardian.co.uk/global-development/poverty-matters/2011/jun/10/microfinance-friend-or-foe

[2] The All-Party Parliamentary Group on Microfinance: “Helping or Hurting: What role for microfinance in the fight against poverty?”, http://www.appg-microfinance.org/files/APPG%20on%20Microfinance%20inquiry%20report%202011%20-%20low%20res(1).pdf

[3] The Wall Street Journal: “Does Microfinance for Profit Hurt Women?”, http://blogs.wsj.com/indiarealtime/2011/06/17/does-microfinance-for-profit-hurt-women/

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Brief “Measuring Changes in Client Lives Through Microfinance: Contributions of Different Approaches” Finds Existing RCTs Insufficient to Prove Success of MicroCredit

Alex Pattee — Tue, 31 May 2011 05:03:52 +0000

A recent brief published by CGAP (Consultative Group to Assist the Poor) examines different approaches to measuring changes in client lives that may be attributed to microfinance.

The authors of the brief, Mayada El-Zoghbi, senior microfinance specialist at CGAP, and Meritxell Martinez, a microfinance analyst with CGAP’s Transparency and Market Intelligence Team, review three impact evaluations of microcredit programs that have been released in the last three years [1]. The evaluations, which were conducted in India, the Philippines and Morocco, used randomized controlled trials (RCTs), “an evaluation methodology that randomly assigns an intervention to a treatment group and withholds it from a control group,” to assess microfinance programs [1] [2]. The brief examines RCTs and other social performance monitoring and assessment tools in microfinance to determine whether these assessments can justify MFIs in claiming that their programs improve client welfare [2].

The authors conclude that with only three completed RCTs examining the impact of microcredit, more evidence is needed before conclusions can be drawn on whether microfinance is beneficial to customers [2].

The brief can be accessed at: http://www.cgap.org/gm/document-1.9.50966/MeasuringBenefits_Brief.pdf

By: Alexandra Pattee, Research Associate

About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources and Resources:

[1] CGAP Press Release, “Measuring Changes in Client Lives through Microfinance: Contributions of Different Approaches”, http://www.cgap.org/p/site/c/template.rc/1.9.50966/

[2] CGAP Brief, “Measuring Changes in Client Lives through Microfinance”, http://www.cgap.org/gm/document-1.9.50966/MeasuringBenefits_Brief.pdf

MicroCapital’s Microfinance Universe: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Microfinance Blog Argues Importance of “Matching Types of Accounts to Types of Needs”

Alex Pattee — Tue, 17 May 2011 05:03:04 +0000

The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by President Bindu Ananth of IFMR Trust, an affiliate of India’s nonprofit Institute for Financial Management and Research (IFMR), that argues the importance of “matching types of accounts to types of needs” based on several examples from India[1].

Ms Ananth argues that the financial challenges facing low-income households “boil down to one issue: lack of convenient access to “accounts” where one can receive, store and withdraw flexible amounts of value in a safe and remunerative way” [1].

Ms Ananth explores various account types that can meet various financial needs such as short-term consumption smoothing, medium-term building of lump sums and long-term retirement savings. Examining delivery options, risk, regulation and the question of financial viability of the service provider, Ms Ananth highlights the role that technology can play in reducing the cost and other challenges associated with identifying client banking needs. She also argues that government must play “an important role in supplying public infrastructure that helps improve the viability of opening and operating the accounts” [1]. Finally, looking at the role of savings accounts, Ms Ananth concludes that “a savings account by itself is no silver bullet for alleviating poverty but it allows low-income households to manage small and irregular flows in a manner that every-day and long-term goals can be managed better which is a worthy objective in itself” [1].

Ms Ananth’s article can be found at http://microfinance.cgap.org/2011/05/05/matching-types-of-accounts-to-types-of-needs-lessons-from-india/

By: Alexandra Pattee, Research Associate

About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources and Resources:

[1] CGAP Microfinance Blog, “Matching Types of Accounts to Types of Needs: Lessons from India”, http://microfinance.cgap.org/2011/05/05/matching-types-of-accounts-to-types-of-needs-lessons-from-india/

MicroCapital.org Article, May 10, 2011, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Discusses Role of Mobile Phones in Integrating Savings, Payments, Budgeting Services”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-discusses-role-of-mobile-phones-in-integrating-savings-payments-budgeting-services/

MicroCapital.org Article, May 3, 2011. “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Examines Role of Transparency in Strengthening the Microfinance Sector”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-examines-role-of-transparency-in-strengthening-the-microfinance-sector/

MicroCapital.org Article, MicroCapital.org Article, April 25, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Savings On Microfinance Blog”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-savings-on-microfinance-blog/

MicroCapital.org Article, April 26, 2011, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Explores Effects of Arab Upheaval on Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-explores-effects-of-arab-upheaval-on-microfinance-institutions-mfis/

MicroCapital.org Article, MicroCapital.org Article, February 15, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Over-Indebtedness in Microfinance Through New Blog Series”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-over-indebtedness-in-microfinance-through-new-blog-series/

MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Microfinance Blog Explores Impact of Tunisian Revolution on Microfinance Regulation

Alex Pattee — Mon, 16 May 2011 05:03:40 +0000

The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Mohammed Khaled, CGAP representative for the Middle East-North Africa Region, that explores the impact of the recent leadership change in Tunisia on microfinance regulation in the country.

Microcredit law was first put into place in Tunisia in 1999 and included a 5 percent ceiling on annual interest rates, which did not allow “any of the Tunisia’s 280+ microcredit associations which were established by the Governmental Tunisian Bank of Solidarity (BTS) to become sustainable” according to Mr Khaled [1]. Mr Khaled argues that new microfinance regulation is needed to establish the following: the removal of the interest rate cap; permission for the provision of financial services beyond credit such as savings, insurance and money transfers; legalization of different institutional types such as associations, nonprofits, for-profit companies, microfinance banks and commercial banks; respect and implementation of client protection principles by all providers; a credit bureau with mandatory participation for all new clients; and the appointment of the central bank as the regulator of the microfinance sector.

Mr Khaled’s article can be found at: http://microfinance.cgap.org/2011/04/29/microfinance-regulation-in-post-revolution-tunisia/

By: Alexandra Pattee, Research Associate

About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources and Resources:

[1] CGAP Microfinance Blog, “Microfinance Regulation in Post Revolution Tunisia”, http://microfinance.cgap.org/2011/04/29/microfinance-regulation-in-post-revolution-tunisia/

MicroCapital.org Article, April 25, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Savings On Microfinance Blog”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-savings-on-microfinance-blog/

MicroCapital.org Article, April 26, 2011, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Explores Effects of Arab Upheaval on Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-explores-effects-of-arab-upheaval-on-microfinance-institutions-mfis/

MicroCapital.org Article, February 15, 2011, “CGAP (Consultative Group to Assist the Poor) Explores Over-Indebtedness in Microfinance Through New Blog Series”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-over-indebtedness-in-microfinance-through-new-blog-series/

MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Technology Blog Analyzes Developments in Mexico’s Microfinance and Banking Sectors, Publishes Summary Note Covering Mexico’s Branchless Banking Industry

Rohan Trivedi — Wed, 11 May 2011 13:05:24 +0000

As part of a series on branchless banking around the world, a post was recently published on the CGAP Technology Blog, a website operated by US-based think tank CGAP (Consultative Group to Assist the Poor), covering regulatory developments in the Mexican microfinance sector. The Mexican government has passed regulations permitting the use of non-bank correspondents (or banking agents), facilitating penetration by financial institutions and promoting cooperation between commercial banks and retailers in cultivating new customers, new methods of delivery and reducing the costs of financial services.

The authors warn that although cost reduction is beneficial to existing customers, 35 percent of the economically active population are still unable to utilize formal financial systems. While they applaud the work of large banks like Compartamos and Banco Azteca, the authors express the need for innovation from competing sources that directly target excluded, low-income populations. Financial service providers can partner with retailers like Telecom, the state-owned telecommunications network, to launch credit and savings services using existing infrastructure.

Many banks remain cautious about new opportunities, as credit portfolios remain volatile and the new regulation is untested. But as commercial banks, microfinance institutions and retail chains begin to evaluate the possibilities, the authors are hopeful that “innovative and promising approaches [will] begin emerging soon” [1].

By Rohan Trivedi, Research Associate

About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Sources and Additional Resources:

[1] CGAP Technology Blog: “Mexico: Promising moves towards new banking models” by Xavier Faz and Paul Breloff, April 27, 2011, http://technology.cgap.org/2011/04/27/mexico-promising-moves-towards-new-banking-models/

CGAP Summary Note: “Technology Program – Country Note: Mexico”, http://www.cgap.org/gm/document-1.9.50836/CGAP_Technology_Program_Country_Note_Mexico_Public.pdf

MicroCapital.org story, May 3, 2011: “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Technology Blog Reviews Lessons Learned from Branchless Banking in Brazil”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-technology-blog-reviews-lessons-learned-from-branchless-banking-in-brazil/

MicroCapital.org story, March 1, 2011: “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Launches Online Branchless Banking Database”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-launches-online-branchless-banking-database/

MicroCapital Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Microfinance Blog Discusses Role of Mobile Phones in Integrating Savings, Payments, Budgeting Services

Medha Ravi — Tue, 10 May 2011 05:03:50 +0000

The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Ignacio Mas of the US-based Bill & Melinda Gates Foundation that examines the role that mobile phones can play in facilitating broader financial inclusion by delivering savings, payment and budgeting services.

The author argues that while providers of mobile money services have prioritized payments, budgeting tools represent a missing link. He further states that phones offer an unparalleled level of immediacy and interactivity with customers by acting as a passbook, a calculator and as a channel for alerts and reminders. According to Mr Mas, “Mobile money is not just a cost reduction story; it ought to be a service creation and integration story as well. Mobile phones offer the possibility for banks to maintain a constant presence in their customers’ lives, helping them budget for today and plan for tomorrow” [1].

By Medha Ravi, Research Associate

About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Source and Resources:

CGAP (Consultative Group to Assist the Poor) Microfinance Blog, “Delivering on the Savings Promise of Mobile Money”, http://microfinance.cgap.org/2011/04/26/delivering-on-the-savings-promise-of-mobile-money/

MicroCapital.org story, February 15, 2011, “MICRPCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Explores Over-Indebtedness in Microfinance Through New Blog Series”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-over-indebtedness-in-microfinance-through-new-blog-series/

MicroCapital.org story, April 25, 2011, “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Explores Savings On Microfinance Blog”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-savings-on-microfinance-blog/

MicroCapital Microfinance Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: “Enterprise Development and Microfinance” Journal Issues Call for Articles for December 2011 Issue “Investing in Microfinance Institutions”

Alex Pattee — Tue, 10 May 2011 05:03:25 +0000

Enterprise Development and Microfinance (EDM), a journal published by UK-based NGO Practical Action, has issued a call for articles for its December 2011 issue, “Investing in Microfinance Institutions”, which is slated to “explore key issues in microfinance investing” [1].

EDM is seeking articles covering a range of topics including “insights into how microfinance programmes might be run better…or what changes in policy are needed…analysis of how poor people manage their finances or their businesses…[and]…particular projects in a given country” [2].

Launched in 1990 as Small Enterprise Development, EDM is “aimed at practitioners and policymakers in the field of microfinance and enterprise development. Themes include microfinance institutions and their sustainability, poverty, impact on clients and producers, business development services, value chain development, and the business environment” [2].

The deadline for submissions is July 1, 2011. For more information or to submit articles you may contact EDM Editor, Clare Tawney, by email at: publishinginfo@practicalaction.org.uk.
By: Alexandra Pattee, Research Associate

Sources and Resources:
[1] Enterprise Development and Microfinance Journal, Direct communications with MicroCapital

[2] Enterprise Development and Microfinance Journal, “Instructions for Authors”, Submitted directly to MicroCapital

Enterprise Development and Microfinance Journal website, http://www.practicalaction.org.uk/enterprise-development-microfinance-2

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Microfinance Blog Examines Role of Transparency in Strengthening the Microfinance Sector

Medha Ravi — Tue, 03 May 2011 05:03:46 +0000

A recent article on the CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), examines the outcome of a discussion on information initiatives in strengthening the microfinance industry that was recently held by CGAP and the Microfinance Information Exchange (MIX), a US-based nonprofit. At the event, which was held in Nepal, representatives of microfinance organizations from India, Pakistan, Sri Lanka, Afghanistan, Bangladesh and Nepal discussed the following efforts: 1)Annual state of the sector reports such as the Pakistan Microfinance Network’s (PMN’s) Pakistan Microfinance Review, ACCESS Development’s India: A State of the Sector Report, and rating agency M-CRIL’s Microfinance Analytics Report ; 2)Access mapping such as Microfinance Investment Support Facility for Afghanistan’s (MISFA’s) monthly performance reports, PMN’s Micro WATCH in Pakistan and Sa-Dhan’s Microfinance Map of India; and 3)Interest rate transparency such as the report on India from US-based nonprofit MFTransparency.

The discussions led to the following conclusions: data that facilitates better understanding of clients and their needs should be prioritized; reliable data and transparency are essential in facilitating policy dialogue; a credible agency in each country, such as the central bank, should be responsible for driving data and policy; data and information should be presented so that it caters to the country-specific agenda of poverty alleviation or financial inclusion; and that the unique political environment of each country is crucial in understanding microfinance landscapes.

By Medha Ravi, Research Associate

About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

About Microfinance Information Exchange (MIX):
Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with headquarters in Washington, DC, and regional offices in Peru, Senegal, India and Indonesia. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators, donor organizations and investors in microfinance. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.

Source and Resources:

CGAP (Consultative Group to Assist the Poor) Microfinance Blog, “Can Industry Data and Transparency Strengthen Microfinance?”, http://microfinance.cgap.org/2011/04/25/can-industry-data-and-transparency-strengthen-microfinance/

MicroCapital Microfinance Universe Profile: Microfinance Information Exchange (MIX), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Technology Blog Reviews Lessons Learned from Branchless Banking in Brazil

Medha Ravi — Tue, 03 May 2011 05:03:27 +0000

The CGAP Technology Blog, operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Kabir Kumar and Yanina Seltzer that reviews branchless banking in Brazil, whereby agents such as retailers and post offices serve as links between banks and customers. The article is the first of a planned series that examines the state of branchless banking in different countries.

The authors voice concern over the unclear trajectory of Brazil’s agent business in the light of new agent regulations and because: “Bank unions want agents to be considered bank employees and get paid accordingly. Courts have already ruled in their favor and it is possible the results of those rulings will unfold in the coming year” [1]. The authors also comment on the rapid growth of Brazil’s cell-phone market and indicates the possibility of growth in partnerships between banks and mobile operators to offer cell-phone-based financial services. The authors argue that there will be a need for increased regulation to keep pace with the developments in mobile banking.

The authors conclude by saying that the evolution of financial inclusion in Brazil will provide significant insights that could be useful to donors and others working to increase financial inclusion in Africa and South Asia.

By Medha Ravi, Research Associate

About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.

Source and Resources:

[1] CGAP (Consultative Group to Assist the Poor) Technology Blog, “Meanwhile in Brazil…are we there yet?”, http://technology.cgap.org/2011/04/21/meanwhile-in-brazil-are-we-there-yet/

MicroCapital.org story, March 1, 2011, “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Launches Online Branchless Banking Database”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-launches-online-branchless-banking-database/

MicroCapital.org Article, December 14, 2009, “Branchless and Mobile Banking Could Become Top Microfinance Channel by 2020 Says CGAP Focus Note”, http://www.microcapital.org/microcapital-brief-branchless-and-mobile-banking-could-become-top-microfinance-channel-by-2020-says-cgap-focus-note/

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/