by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: From Nepal: “Improving Operational Efficiency of MFIs through Tablet Banking,” published by Louis Berger Group

Published by Louis Berger Group, November 2019, 9 pages, available at https://sakchyam.com.np/wp-content/uploads/2019/12/Improving-Operational-Efficiency-of-MFIs-through-Tablet-Banking.pdf

The authors argue that “tablet banking” can reduce the operational costs of microfinance institutions (MFIs) while improving the quality of customer service. Through the Sakchyam Access to Finance Program, approximately 2,300 tablets were provided to 10 MFIs in Nepal for use by staff in a total of 486 branches. Based on observations of this rollout, the authors identify three partially overlapping questions

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Landscape of Microinsurance in Africa 2018,” published by Microinsurance Network

By Alice Merry, published by the Microinsurance Network, November 2019, 27 pages, available at https://microinsurancenetwork.org/sites/default/files/Landscape%20of%20Microinsurance%20in%20Africa%202018_LR.pdf

This iteration of the Landscape series provides insights into the microinsurance industry based on data from 2017 supplied by 100 insurers in 16 countries in Africa, focusing on changes since a similar study published in 2015. Overall, as of December 2017,

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Handbook on Consumer Protection for Inclusive Finance,” published by Center for Financial Inclusion, New Perimeter

“Handbook on Consumer Protection for Inclusive Finance,” by the Center for Financial Inclusion (CFI) at Accion and New Perimeter, October 2019, 91 pages, available at https://www.centerforfinancialinclusion.org/handbook-on-consumer-protection-for-inclusive-finance

This handbook highlights the importance of having a robust legal and regulatory framework in place to ensure the protection of low-income consumers of financial services via new delivery channels. It is intended to supplement the seven Consumer Protection Principles developed by CFI’s Smart Campaign by highlighting legal

by Anuhya Tadepalli -

MICROFINANCE EVENT: FINNOSUMMIT, Connecting Fintech Leaders Across LatAm; December 3 – 4, 2019; Miami, Florida, USA

FINNOSUMMIT, whose name refers to the concept of a “Fintech and Insurtech Innovator Summit,” brings together those interested in new ideas in financial technology (fintech) and insurance technology (insurtech) in Latin America. The session topics include: Forging the Future of Money with Fintechs: Visa’s Vision for the Next Five Years of Payments Innovation; Blockchain as Payments Infrastructure;

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Geographic Diversification and Credit Risk in Microfinance;” by Stephen Zamore, Leif Atle Beisland, Roy Mersland

Published by the Journal of Banking and Finance; October 2019; 38 pages; available at https://www.researchgate.net/publication/336539379_Geographic_diversification_and_credit_risk_in_microfinance

In this paper, the authors use 18 years of data on 657 microfinance institutions (MFIs) in 88 countries to investigate whether there is a correlation between MFIs’ credit risk and their geographic diversification. The authors measure credit risk using indicators including 30-day portfolio-at-risk ratios

by the MicroCapital Team -

SPECIAL REPORT: e-MFP Investors Action Group Wrestles with Measuring Microfinance Client Outcomes in Alignment with UN’s SDGs

Members European Microfinance Platformof the European Microfinance Platform (e-MFP) Investors Action Group met at last week’s European Microfinance Week to review their progress on developing methods for reporting client outcomes in terms of meeting the UN Sustainable Development Goals (SDGs).

Cécile Lapenu from Cerise explained that the action group is working to: (1) identify investors’ expectations regarding reporting on outcomes; (2) review existing impact reports and websites to identify the metrics now in use; (3) conduct field tests of selected indicators; and (4) document the results to serve as guidance for moving forward.

The group is now soliciting data from investors on their current data collection practices. This includes if and how they collect data from: (1) the financial services providers (FSPs) they invest in; and (2) directly from those FSPs’ clients.

Ms Lapenu argued that factors such as client satisfaction do not

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Rethinking Climate Finance,” published by BlueOrchard

Rethinking Climate Finance; by Maria Teresa Zappia, Veronika Giusti Keller and Stefano Battiston; published by BlueOrchard; 34 pages; available at http://www.blueorchard.com/wp-content/uploads/BlueOrchard-Academy-study_Rethinking-Climate-Finance-1.pdf

In this report, the authors argue for the increased use of “climate finance” to address climate-change risks. Climate finance refers to “financial investments directed toward mitigating climate-change effects

by the MicroCapital Team -

SPECIAL REPORT: “Trend Toward Rigor,” Microfinance Barometer, Financial Inclusion Compass Offer Views of the Past, Future at European Microfinance Week

At European Microfinance Platformthis week’s session titled “Looking Back / Looking Ahead” at European Microfinance Week, the European Microfinance Platform (e-MFP) officially launched the second Financial Inclusion Compass, a survey indicating the top trends in financial inclusion are: (1) digital transformation (institutional-side); (2) client protection; (3) digital innovation (client-side); (4) regulatory environments; and (5) social performance / impact measurement. Meanwhile, the document identifies the following as top “areas of focus:” (1) agri-finance; (2) climate change; (3) finance for small and medium-sized enterprises (SMEs); (4) finance for displaced populations; and (5) finance for youth.

Sam Mendelson of e-MFP notes that financial services providers (FSPs) responding to the Compass are more interested in

by the MicroCapital Team -

SPECIAL REPORT: Sibling Rivalry, Pre-disaster Microinsurance Payments, Protecting Climate-displaced People via International Law at European Microfinance Week

At European Microfinance Platformtoday’s opening plenary of European Microfinance Week, Manuel Tonnar, who leads Luxembourg’s Directorate for Development Cooperation and Humanitarian Affairs, said that his country “is committed to transforming itself and helping others transform their economies into sustainable economies.” This is “not for charitable reasons,” he argued, “but because it’s the most efficient way” to move forward. Mr Tonnar also said, “Financial inclusion should be closely allied with other development interventions to provide the most value to disadvantaged populations.” In closing, he quoted Jean Monnet, who said, “I am not optimistic. I am not pessimistic. I am

by the MicroCapital Team -

SPECIAL REPORT: MFR Launching Atlas Platform to Unify Data on Financial Performance, Social Performance, Pricing, Client Protection: a Preview at European Microfinance Week

Today, on European Microfinance Platformthe opening day of European Microfinance Week in Luxembourg, Lucia Spaggiari and Aldo Moauro of MicroFinanza Rating (MFR) described Atlas, a platform for collecting and analyzing data on microfinance. Atlas offers data on financial performance, social performance, pricing and client protection. The data sources include a range of data types from MFR, as well as pricing data from the now-closed NGO MicroFinance Transparency. These cover about 550 financial services providers (FSPs), including microbanks, financial technology (fintech) lenders, and

by the MicroCapital Team -

SPECIAL REPORT: Harnessing Digital Finance, Protecting Consumers at the UNCDF/SAM Night for Digital and Inclusive Finance

During SAM 2019the recent UNCDF/SAM Night for Digital and Inclusive Finance, UN eTrade for Women Advocate Patricia Zoundi-Yao discussed the importance of agriculture to Burkina Faso as well as West Africa in general. She noted that 80 percent of the fruits and vegetables cultivated in the region are grown by women. She argued that these farmers need support to minimize pesticide use and reduce the clearing of forests. For example, Ms Zoundi-Yao suggests that governments guarantee the purchase of farmers’ crops. Regarding digital financial services, she proclaimed, “No one is to be left behind by this revolution!”

Hermann Messan of the UN Capital Development Fund (UNCDF) explained how internet access can help farmers learn about agricultural best practices, check the weather to time their application of fertilizer, apply for loans and insurance, check crop prices, and purchase running time for

by the MicroCapital Team -

SPECIAL REPORT: Solar Kits for Reselling Power, Internet Access; Staff Training by Subscription; Free Business Planning Software on Offer as 30 Firms Showcase Inclusive Finance Products at SAM Innovators’ Village (Part Two)

Thirty SAM 2019organizations shared their latest products during the Innovators’ Village at the SAM conference held recently in Burkina Faso. Among these was Qotto, a provider of kits that bring solar power and internet to off-grid households. The kits include battery packs and can be used to run appliances such as lamps, televisions and telephone chargers. The system includes an app for tracking usage and allowing Qotto and the owner to share revenue from selling phone recharges or wireless internet access to neighbors.

Eclectics International offers a core banking system for financial services providers (FSPs) that was designed “by Africans for the African market.” Its features allow for loan disbursal via mobile money, as well as integration with

by the MicroCapital Team -

SPECIAL REPORT: Diffusing Excuses for Failing to Measure Microfinance Institutions’ Social Performance

Amelia SAM 2019Greenberg of the Social Performance Task Force (SPTF), at a SAM session on measuring social impact, reviewed some of the excuses microfinance institution leaders use to postpone measuring client outcomes. Some say satisfaction surveys are sufficient, or they feel a robust process will be too expensive. Some worry that it is unreasonable to claim a cause-effect relationship between their institution’s financial services and changes in clients’ lives.

Colin Rice of South Africa’s Small Enterprise Foundation (SEF) argued that it is valuable to start by measuring just a few parameters that the organization is already tracking. Monitoring the amount that clients save over time is a prime example. It is easy to

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Microfinance Barometer 2019,” Published by Convergences

Published by Convergences in partnership with the Advans Group, BNP Paribas, the European Microfinance Platform (e-MFP) and the Grameen Credit Agricole Foundation; October 2019; 16 pages; available at http://www.convergences.org/en/104906-2/

This tenth edition of the “Microfinance Barometer” offers insights into the microfinance sector garnered through interviews, case studies and a review of data from the Microfinance Information Exchange (MIX). The publication explores trends in the sector over

by Anna Gravois -

MICROCAPITAL BRIEF: Fiji, IFC Partnering on Access to Insurance Against Cyclones

The government of Fiji and the International Finance Corporation (IFC), a member of the World Bank Group, recently signed an agreement to provide payments to disadvantaged families affected by cyclones in Fiji. Registered households that are impacted by future cyclones will be

by the MicroCapital Team -

SPECIAL REPORT: Sébastien Boyé of I&P on Microfinance Institutions Digitalizing for SMEs, Taking on “Aggressive New Actors” in Africa

At SAM 2019last week’s SAM conference, Sébastien Boyé, the Chief Investment Officer of Investisseurs & Partenaires, delivered a keynote address on the future of financial inclusion in Africa. Mr Boyé expressed optimism about Africa’s future because of the continent’s dynamism and entrepreneurial spirit. He cited forecasts that by 2050, 250 million new jobs will be created in Africa as the continent’s GDP overtakes that of the EU. In terms of weaknesses, there is significant volatility, and several countries are getting into trouble with too much public borrowing.

Mr Boyé argues that stakeholders in the financial inclusion sector need to focus on topics such as human resources, academic research and digitalization. When it comes to digitalization, institutions must look to

by Jolene Khor -

MICROFINANCE PAPER WRAP-UP: “Making Digital Credit Truly Responsible: Insights From Analysis of Digital Credit in Kenya;” published by MicroSave Consulting, SPTF, Smart Campaign, AFD

Published by MicroSave Consulting, the Social Performance Task Force, the Smart Campaign and Agence Française de Développement; September 2019; 103 pages; available at https://www.microsave.net/wp-content/uploads/2019/09/Digital-Credit-Kenya-Final-report.pdf

This report draws on first-hand data, secondary research and the use of data analytics to provide insights into the Kenyan digital credit sector from the perspectives of both customers and suppliers of digital credit. The authors highlight advances that have been