Category: Trends/Challenges

MICROCAPITAL BRIEF: Borrowing in Cambodia from Microfinance, Commercial Banks Forecast to Increase by 147% to $14b by 2020

The latest outlook published by the Credit Bureau of Cambodia (CBC), a provider of credit information to organizations and consumers in Cambodia, forecasts that the total number of customers of microfinance institutions (MFIs) and commercial banks will increase from 1.9 million to 3.3 million individuals by 2020 and that these customers will borrow a total of USD 14 billion by that time, up from USD 5.7 billion [1]. Continue reading

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MICROCAPITAL BRIEF: FirstRand Bank Downscaling into Microfinance in Suburban Mumbai, India

Under a pilot project named “Easy Banking,” FirstRand Bank, a commercial bank based in South Africa, is providing financial services to shops and other small businesses in areas of suburban Mumbai, such as Bandra and Lokhandwala, based on the rationale that competition is too fierce in areas with higher population densities. Continue reading

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MICROFINANCE PAPER WRAP-UP: “Integrated Health and Microfinance in India, Volume II: The Way Forward;” by Somen Saha, D.S.K. Rao; published by Microcredit Summit Campaign, Freedom from Hunger

“Integrated Health and Microfinance in India, Volume II: The Way Forward;” by Somen Saha and D.S.K. Rao; published by the Microcredit Summit Campaign and Freedom from Hunger; 2014; 36 pages; available at http://microcreditsummit.org/uploads/resource/document/ffh_indiareport_2014_web_58274.pdf

This paper builds on a report entitled “Integrated Health and Microfinance in India: Harnessing the Strengths of Two Sectors to Improve Health and Alleviate Poverty”, which was written in 2012 by a group of authors that includes those who wrote “Volume Two.” Continue reading

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MICROFINANCE PUBLICATION ROUND-UP: Microinsurance Distribution Channels, Friendship Bridge, MicroVest Impact Reports

“Microinsurance Distribution Channels: Insights for Insurers;” by Alice Merry, Pranav Prashad and Tobias Hoffarth; published by the Microinsurance Innovation Faciltiy as Paper Number 33; International Labour Organization; June 2014; 25 pages; available at http://www.microinsurancefacility.org/sites/default/files/MP33.pdf

The Microinsurance Innovation Facility of the International Labour Organization (ILO), an agency of the United Nations that addresses labour standards and related issues, recently analyzed the distribution channels available to microinsurance providers based on the experiences of 60 of its partner institutions. Continue reading

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MICROFINANCE PAPER WRAP-UP: Symbiotics 2014 MIV [Microfinance Investment Vehicle] Survey Report: Market Data and Peer Group Analysis

“Symbiotics 2014 MIV [Microfinance Investment Vehicle] Survey Report: Market Data and Peer Group Analysis;” published by Symbiotics Group; 2014; 36 pages; available at http://www.symbioticsgroup.com/media/72461/symbiotics-2014-symbiotics-miv-survey-report.pdf

Symbiotics, a Switzerland-based investment company that is “specialized in emerging, sustainable and inclusive finance”, recently performed a survey of microfinance investment vehicles (MIVs) regarding their financial and social performance during 2013. Continue reading

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SPECIAL REPORT: European Microfinance Platform (e-MFP) Action Group Proposes Best Practices for Microfinance Institutions Offering Remittances

MicroCapital: Please tell us a bit about the Remittances Action Group of the European Microfinance Platform (e-MFP).

Gera Voorrips: As you know, e-MFP is a membership organization that promotes members working together on specific topics on which they have a shared interest. In 2011, I took the initiative to engage several members who were working on remittances to launch an Action Group to collaborate on this topic. As one of the requirements of an e-MFP Action Group is to work toward specific results, we decided that we wanted to focus on best practices for microfinance institutions (MFIs) that want to be successful in remittances. Continue reading

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MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Seeks Responses to “Global Pulse Survey on Responsible Digital Finance” by August 8, 2014

CGAP (Consultative Group to Assist the Poor), a US-based, nonprofit policy and research center that aims to facilitate the expansion of financial access, has launched its “Global Pulse Survey on Responsible Digital Finance”[1]. Continue reading

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MICROFINANCE PUBLICATION WRAP-UP: “The Microfinance Sector in Morocco: Investment Opportunities After the Crisis;” Published by MicroFinanza Rating

“The Microfinance Sector in Morocco: Investment Opportunities After the Crisis,” published as part of the Insight series by MicroFinanza Rating, May 2014, 4 pages, available at http://www.microfinanzarating.com/images/Insight_Morocco_March_2014.pdf

Performed by Italy’s MicroFinanza Rating in May 2014, this “country screening” analyzes the political, economic and legal frameworks in which microfinance institutions (MFIs) function in Morocco. Continue reading

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MICROFINANCE PUBLICATION WRAP-UP: “FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev, Kinga Dabrowska; published by Microfinance Centre

“FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev and Kinga Dabrowska; published by the Microfinance Centre; March 2014; 7 pages; available at http://www.mfc.org.pl/sites/mfc.org.pl/files/FinDev_SP_Fund_ENG.pdf

The authors of this paper describe Finance for Development Limited Liability Company (LLC) (FinDev), an Azerbaijan-based institution that offers economic opportunities for poor people, particularly the evolution of its “staff performance appraisal system and salary compensation scheme.” Continue reading

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MICROFINANCE PUBLICATION WRAP-UP: “The Promise of Microfinance and Women’s Empowerment; What Does the Evidence Say?;” by Dina Pomeranz; published by EY (Ernst & Young)

“The Promise of Microfinance and Women’s Empowerment; What Does the Evidence Say?;” by Dina Pomeranz; published by EY (Ernst & Young Global Limited), February 2014; 24 pages; available at http://www.ey.com/Publication/vwLUAssets/EY_-_Microfinance_and_womens_empowerment/$FILE/EY-The%20promise-of-microfinance-and-womens-empowerment.pdf

In this paper, Dr Pomeranz gives a brief overview of the history of microfinance as well as is discussing the “size, magnitude and geographical reach” of the sector, citing that approximately 3,600 microfinance institutions (MFIs) served 200 million customers globally as of 2010. Continue reading

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MICROCAPITAL BRIEF: JPMorgan Chase Commits $30m to “Financial Solutions Lab”

JP Morgan Chase, a US-based investment and banking firm, reportedly has committed USD 30 million for the establishment of a “Financial Solutions Lab.” The lab will be created as a five-year project with the Center for Financial Services Innovation, a US-based nonprofit consultancy specializing in serving unbanked and underbanked consumers. Continue reading

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MICROFINANCE PUBLICATION WRAP-UP: “Financial Inclusion and Development: Recent Impact Evidence;” by Robert Cull, Tilman Ehrbeck, Nina Holle; published by CGAP (Consultative Group to Assist the Poor)

“Financial Inclusion and Development: Recent Impact Evidence;” by Robert Cull, Tilman Ehrbeck and Nina Holle; published by CGAP (Consultative Group to Assist the Poor) as Focus Note Number 92; April 2014; 12 pages; available at http://www.cgap.org/sites/default/files/FocusNote-Financial-Inclusion-and-Development-April-2014.pdf

The authors of this document argue that “financial inclusion is an important development priority”[1] that helps poor people around the world improve their lives. Continue reading

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MICROCAPITAL BRIEF: World Bank Group’s Global Consumption Database Suggests 4.5b Low-income People Spend $5t Per Year in Developing World

The Global Consumption Database recently released by the World Bank Group (WBG) suggests that the total annual spending of approximately 4.5 billion people with low incomes in the developing world exceeded USD 5 trillion in 2010, more than the combined spending of the middle- and high-income groups in the same 92 developing countries. Continue reading

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MICROCAPITAL PAPER WRAP-UP: “Technical Guide: Performance and Social Indicators for Microfinance Institutions;” by Sebastian von Stauffenberg, Damian von Stauffenberg, Maritza Rodriguez, Rebecca Spradlin, Antonio Bryant; Published by MicroRate

“Technical Guide: Performance and Social Indicators for Microfinance Institutions;” by Sebastian von Stauffenberg, Damian von Stauffenberg, Maritza Rodriguez, Rebecca Spradlin and Antonio Bryant; Published by MicroRate; 2014; 64 pages; available at http://www.microrate.com/media/downloads/2014/05/MicroRate_-Technical-Guide-20142.pdf

Published by MicroRate, a US-based rating agency that evaluates risk and performance of microfinance institutions (MFIs), this guide provides an outline on how to assess the quality of an MFI. Continue reading

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SPECIAL REPORT: June 15 is Deadline for $132k European Microfinance Award: “Micofinance and the Environment”

June 15 is the deadline to apply to the European Microfinance Platform (e-MFP), a Luxembourg-based network of approximately 130 microfinance organizations and individuals, to win EUR 100,000 (USD 132,000) as part of the Fifth European Microfinance Award, which is themed “Microfinance and the Environment.” Continue reading

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