MicroCapital

MICROCAPITAL BRIEF: SEEP Network, Citigroup Foundation Launch Planning Stage of Global Savings Campaign

Brett Cohen — Wed, 16 May 2012 14:35:10 +0000

The Small Enterprise Education and Promotion (SEEP) Network, an association of microfinance institutions (MFIs) and non-governmental organizations (NGOs) headquartered in Washington DC, is launching the planning phase of its Global Savings Campaign. In conjunction with Citigroup Foundation, the charitable branch of US-based financial services provider Citigroup, the initiative aims to provide widespread access to savings services as well as reducing transaction costs for MFIs.

The planning stage, which is expected to last one year, includes identifying existing knowledge gaps in the field, developing a multi-year agenda, forming alliances with other stakeholders, and achieving a greater understanding of the needs of potential low-income savers. The budget for the effort has not been released.

Founded in 1985, SEEP connects microenterprise practitioners from around the world to develop practical guidance and tools, build capacity and help set standards to advance its mission of sustainable income in every household. Its members reportedly are active in 180 countries. The Citi Foundation provides grants and loan guarantees focusing on the areas of microfinance, small and growing businesses, education, asset building and neighborhood revitalization. As of 2010, Citi Foundation reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 63.2 million.

By Brett Cohen, Research Associate

About SEEP Network

The Small Enterprise Education and Promotion (SEEP) Network, which was founded in 1985, connects microenterprise practitioners from around the world in an effort to develop practical guidance and tools, build capacity and help set standards to advance its mission of sustainable income in every household. Its members reportedly are active in 180 countries. Headquartered in Washington DC, SEEP is a non-profit governed by its members, which include microfinance institutions (MFIs) and nongovernmental organizations (NGOs). As of 2010, SEEP reports assets of USD 6.9 million.

About Citi Foundation

The Citi Foundation provides grants and guarantees focusing on the areas of microfinance, small and growing businesses, education, asset building and neighborhood revitalization. As of 2010, Citi Foundation reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 63.2 million of which USD 12.8 million is allocated to microfinance investments. Citi Foundation is the charitable arm of US-based financial services provider Citigroup.

Sources and Additional Resources

SEEPnetwork.org, press release: “Citi Foundation and SEEP Launch Planning Phase of Global Savings Campaign”
http://www.seepnetwork.org/citi-foundation-and-seep-launch-planning-phase-of-global-savings-campaign-pages-232.php

MicroCapital.org, story: MICROCAPITAL BRIEF: Small Enterprise Education and Promotion (SEEP) Network Releases “Pocket Guide to the Microfinance Financial Reporting Standards: Measuring Financial Performance of Microfinance Institutions”
http://www.microcapital.org/microcapital-brief-small-enterprise-education-and-promotion-seep-network-releases-“pocket-guide-to-the-microfinance-financial-reporting-standards-measuring-financial-performance-of-microfin/

MicroCapital.org story: “MICROCAPITAL BRIEF: Citi to Buy 1.1m Tons of Carbon Credits from MicroEnergy Credits, Offsetting Cost of Efficient Heaters Finance?by Mongolian Microfinance Institution XacBank”
http://www.microcapital.org/microcapital-brief-citi-to-buy-1-1m-tons-of-carbon-credits-from-microenergy-credits-offsetting-cost-of-efficient-heaters-financed-by-mongolian-microfinance-institution-xacbank/

MicroCapital Universe Profile: SEEP Network
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SEE…

MicroCapital Universe Profile: Citi Foundation
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Cit…

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

MICROFINANCE EVENT: Convergences 2015 Presents Fifth Annual “World Forum for the Millennium Development Goals”, September 19 – 21, 2012, Paris, France

Courtney Snelling — Wed, 16 May 2012 07:43:01 +0000

Event Name: World Forum for the Millennium Development Goals

Event Date: September 19 – September 21, 2012

Event Location: Palais Brongniart and Hôtel de Ville de Paris, Paris, France

See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events

Cost: Corporate attendees may register to attend the forum for EUR 300 (USD 386) per person or EUR 1,000 (USD 1,287) for an unlimited number of participants from the same organization. Nonprofit attendees may register for EUR 100 (USD 129) per person or EUR 300 (USD 386) for an unlimited number of participants from the same organization. Students, unemployed people and retirees may register for EUR 15 (USD 19). All prices are good until June 29 and will increase thereafter.

Summary of Event: This forum brings together professionals, scholars and students to develop and explore innovative solutions to social and environmental challenges presented by poverty. The forum will focus on strategies for attaining the United Nations’ Millennium Development Goals by 2015. The 5th edition of the forum will consist of 70 sub-conferences, three days of debates and multiple round-table meetings. Sessions will be conducted in French with English translation available.

Background on Organizer: Created in 2008, Convergences 2015 is a nonprofit network of international development organizations and professionals that seeks to promote the objectives of the United Nations’ Millennium Development Goals in the fight against poverty in developed and underdeveloped countries.

Event Website: http://www.convergences2015.org

For additional information, you may phone Alexia Tronel at + 33 1 42 65 78 84 or send an email to alexia.tronel[at]convergences2015.org.

Submit Your Event: http://microfinanceassociation.ning.com/events

By Courtney Snelling, Research Associate

Sources and Additional Resources:

MicroCapital.org Event, March 11, 2011, “MICROFINANCE EVENT: Fourth Annual Convergences 2015 – Working towards the Millennium Development Goals, Paris, France, May 3-5, 2011”, http://www.microcapital.org/microcapital-event-fourth-annual-convergence…

MicroCapital.org Event, May 14, 2010, “MICROFINANCE EVENT: Convergences 2015, Conference to Design Road Map For Microfinance in Next Decade, May 25 to May 26, Paris, France”, http://www.microcapital.org/microfinance-event-convergences-2015-confere…

MicroCapital Universe Profile: Millennium Development Goals, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Millennium+Development+Goals+%28MDGs%29

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

MICROCAPITAL BRIEF: Wincor Nixdorf Deploys Automated Teller Machines (ATMs) in Bangladesh

Charlotte Newman — Wed, 16 May 2012 05:01:30 +0000

Wincor Nixdorf, a Germany-based information technology (IT) provider reportedly has announced it is supplying banks in Bangladesh with automated teller machine (ATM) technology in an effort to increase access to financial services via the self-service channel. According to the company, approximately 330 ATMs have been installed with the help of Wincor Nixdorf’s partner IT Consultants Limited. A total of 500 are expected to be put in place by October 2012. Wincor Nixdorf’s ProCash 280 ATMs, the models that are being deployed in Bangladesh, have embedded portrait and cash slot cameras to provide security for users and banks in the event of disputes over cash-out transactions.

According to Bangladesh Bank, the central bank of Bangladesh, the number of ATMs per 100,000 people in the countryhas increased from 0.09 in 2005 to 1.43 in 2010.
Wincor Nixdorf works in approximately 110 countries and held total working capital of EUR 263 million (USD 338 million) as of 2011.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

Financial Channel: “Wincor Nixdorf Supports Bangladesh With Financial Inclusion,” http://finchannel.com/Main_News/Tech/108546_Wincor_Nixdorf_Supports_Bangladesh_with_Financial_Inclusion/

MicroCapital.org story, May 10, 2012, “MICROCAPITAL BRIEF: Grameen Foundation India Launches Newest Version of Progress Out of Poverty Index,” http://www.microcapital.org/microcapital-brief-grameen-foundation-india-launches-newest-version-of-progress-out-of-poverty-index/

MicroCapital.org story, November 7, 2011, “MICROCAPITAL BRIEF: NCR Corporation Designs ‘Pillar’ Automated Teller Machine (ATM) for Illiterate Users,” http://www.microcapital.org/microcapital-brief-ncr-corporation-designs-%E2%80%9Cpillar%E2%80%9D-automated-teller-machine-atm-for-illiterate-users/

MicroCapital.org story, October 5, 2011, “MICROCAPITAL BRIEF: Bangladesh Bank Issues Guidelines on Mobile Microfinance,” http://www.microcapital.org/microcapital-brief-bangladesh-bank-issues-guidelines-on-mobile-microfinance/

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

MICROCAPITAL BRIEF: Union Cabinet of India to Present Microfinance Bill to Parliament

Brendan Millan — Tue, 15 May 2012 17:34:17 +0000

The Union Cabinet of India, a decision-making body of the executive branch of the government of India, reportedly has approved a bill proposing that all microfinance institutions (MFIs) register with the Reserve Bank of India (RBI) and maintain a minimum of funds equal to INR 5 lakh (USD 9,270). The bill also proposes a microfinance council that would advise the government on policies for the industry. The bill was drafted in response to the downturn in the microfinance sector that began in the Indian state of Andhra Pradesh in 2010. The next step for the bill is that it will be presented to parliament for consideration. As MicroCapital reported in March, plans to propose the bill during the current parliamentary session were made public by Finance Finance Minister Pranab Mukherjee.

For the year 2010, 93 microfinance institutions (MFIs) in India report to the US-based nonprofit Microfinance Information Exchange (MIX) an aggregate gross loan portfolio of USD 5.2 billion outstanding to approximately 31.7 million borrowers and total aggregate deposits of USD 300 million.

By Brendan Millan, Research Associate

About Union Cabinet of India: Formed in 2009, the Union Cabinet of India (officially known as the Union Council of Ministers of India) is a decision-making body of the executive branch of the government of India and is composed of the prime minister and 35 cabinet ministers. It is the most senior of the government ministries.

About the Reserve Bank of India (RBI): Established in 1935, the Reserve Bank of India (RBI) undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies (NFBCs). The current focus of RBI is to supervise financial institutions, consolidate accounting standards, resolve legal issues in cases of banking fraud, monitor non-performing assets and supervise the rating model for the banking sector. In 1979, the National Bank for Agriculture and Rural Development (NABARD) was formed at the behest of RBI to provide regulatory oversight to regional rural banks (RRBs) and to promote the development of agricultural lenders: tasks that had been the responsibility of RBI. While all microfinance institutions (MFIs) and non-banking financial companies still operate under RBI regulations, the responsibility for inspecting nonprofit MFIs, agricultural lenders, RRBs, state cooperative banks, district central cooperative banks and state cooperative agricultural and rural development banks was transferred to NABARD. RBI maintains these responsibilities for for-profit MFIs. Although RBI was originally the parent organization of NABARD and until October 2010 held a 72.5 percent stake in the outfit, RBI owns a one-percent stake in NABARD as of 2011.

Sources and Resources:

[1] The Financial Express: “Cabinet Clears Microfinance Bill”, http://www.financialexpress.com/news/cabinet-clears-micro-finance-bill/9…

MicroCapital.org story, April 12, 2012, “MICROCAPITAL BRIEF: Reserve Bank of India (RBI) Imposes Requirements on Communications with Microfinance”, http://www.microcapital.org/microcapital-brief-reserve-bank-of-india-rbi…

MicroCapital story, April 4, 2012, “MICROCAPITAL BRIEF: Indian Microfinance Sector Cautious on Branch Expansion, Hiring”, http://www.microcapital.org/microcapital-brief-indian-microfinance-secto…

MicroCapital.org story, March 28, 2012, “MICROCAPITAL BRIEF: Draft Microfinance Institution Bill in India to Moot Local Regulations, Allow RBI to Set Rate Cap, Establish Advisory Councils, Microfinance Development Fund”, http://www.microcapital.org/microcapital-brief-draft-microfinance-instit…

MicroCapital story, March 27, 2012, “MICROCAPITAL BRIEF: 9.2m Microfinance Borrowers in India Have Defaulted Since 2010”, http://www.microcapital.org/microcapital-brief-9-2m-microfinance-borrowe…

MicroCapital story, February 28, 2012, “MICROCAPITAL BRIEF: 76 Criminal Cases Pending Over Alleged Role of Microlenders in Borrower Suicides in India’s Andhra Pradesh”, http://www.microcapital.org/microcapital-brief-76-criminal-cases-pending…

MicroCapital story, November 15, 2010, “MICROCAPITAL BRIEF: India’s Microfinance Industry on Brink of “Collapse” Due to Credit Freeze in State of Andhra Pradesh”, http://www.microcapital.org/microcapital-brief-indias-microfinance-indus…

MicroCapital Universe Profile: Reserve Bank of India (RBI), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Res…

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

MICROCAPITAL BRIEF: MicroScore From MicroNed Measures Success of Microfinance Institution Capacity Building Programmes

Brett Cohen — Tue, 15 May 2012 13:46:41 +0000

MicroNed, a network of Dutch organizations involved in microfinance, has introduced MicroScore, a tool intended to help microfinance institutions (MFIs) and cooperatives assess themselves before, during, and after conducting capacity building programmes. MicroScore measures the following four performance ratios: governance, institutional, financial performance management, and services and social performance management.

Joost de La Rive Box, a Dutch microfinance consultant specializing in impact study and financial projection models, developed the tool in conjunction with MicroNed. MicroNed members, as well as Dutch microfinance support organization, Terrafina Microfinance, tested and developed the tool for one year before releasing it to the public free of charge.

As of 2011, MicroNed reported supporting microfinance activities in approximately 50 countries with an annual budget of EUR 250,000 (USD 322,000). Terrafina Microfinance provides financial and technical support to MFIs primarily in rural areas of West Africa. From its founding in 2005 through 2010, Terrafina reports involvement in approximately 100 projects with 62 African MFIs.

By Brett Cohen, Research Associate

About MicroNed
MicroNed is a network of Dutch development finance organizations that includes: Cordaid, a Catholic humanitarian agency; Hivos, a nongovernmental organization (NGO) that provides grants and technical assistance; the Interchurch Organization for Development Co-operation (ICCO in Dutch), which provides financial services to socially-oriented organizations; Ofxam-Novib, an investment fund that supports microfinance institutions; and the Rabobank Foundation, a microfinance-focused initiative of the Rabobank financial services group. As of 2011, MicroNed reports supporting microfinance activities in approximately 50 countries and operates on an annual budget of EUR 250,000 (USD 322,000).

About Terrafina Microfinance
Terrafina Microfinance is a Dutch organization that was founded in 2005 by the Interchurch Organisation for Development Cooperation (ICCO in Dutch), Rabobank Foundation, and Oikocredit. It provides financial and technical support to microfinance institutions (MFIs) primarily in rural areas of West Africa. As of 2010, Terrafina reported involvement in approximately 100 projects with 62 African MFIs. The size of this organization’s budget is unavailable.

Sources and Additional Resources:

Microfinanceplatform.nl story, “MicroNed launches measurement tool for capacity building”
http://www.microfinanceplatform.nl/2012/05/microned-launches-tool-to-mea…

Microcapital.org story, December 24, 2012, “MICROCAPITAL BRIEF: Vietnam Sets 10-Year Microfinance Strategy, French Development Agency Donates $1.3m”
http://www.microcapital.org/microcapital-brief-vietnam-sets-10-year-micr…

Microcapital.org story, September 8, 2011, “MICROCAPITAL BRIEF: MFTransparency, Association of Ethiopian Microfinance Institutions (AEMFI) to Launch “Transparent Pricing Initiative in Ethiopia” with Funding from MicroNed”
http://www.microcapital.org/microcapital-brief-mftransparency-associatio…

MicroCapital Universe Profile MicroNed
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mic…

MicroCapital Universe Profile: Terrafina Microfinance
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ter…

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

MICROCAPITAL BRIEF: Nigerian National Petroleum Corporation (NNPC) to Seek License to Open Microfinance Bank

Charlotte Newman — Tue, 15 May 2012 05:01:59 +0000

The Nigerian National Petroleum Corporation (NNPC) Staff Cooperative Multipurpose Society Limited, Lagos, a cooperative of oil and gas company NNPC, recently announced it has begun taking steps to get a license to set up a microfinance bank intended to benefit both members and nonmembers. Further information on the planned microfinance bank has not been released.

The 34 Nigerian microfinance institutions (MFIs) that reported 2011 data to the US-based nonprofit Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 2.4 million disbursed to approximately 2,160 borrowers and total deposits of USD 2.9 million.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

BusinessDay: “NNPC Cooperative Plans to Set Up Microfinance Bank,” http://www.businessdayonline.com/NG/index.php/microfinance/36788-nnpc-cooperative-plans-to-set-up-microfinance-bank

MicroCapital.org story, May 10, 2012, “MICROCAPITAL BRIEF: Microfinance Accounts for 3% of Nigeria’s GDP, says National Association of Microfinance Banks (NAMB),” http://www.microcapital.org/microcapital-brief-microfinance-accounts-for-3-of-nigerias-gdp-says-national-association-of-microfinance-banks-namb/

MicroCapital.org story, April 27, 2012, “MICROCAPITAL BRIEF: MTN, Stanbic IBTC Bank Partner to Provide Mobile Money Services in Nigeria,” http://www.microcapital.org/microcapital-brief-mtn-stanbic-ibtc-bank-partner-to-provide-mobile-money-services-in-nigeria/

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

MICROCAPITAL BRIEF: National Insurance Timor-Leste (NITL), Tuba Rei Metin, Moris Rasik Introduce Life Microinsurance Products

Charlotte Newman — Mon, 14 May 2012 13:19:11 +0000

National Insurance Timor-Leste (NITL), an insurance company in the Democratic Republic of Timor-Leste, has partnered with local microfinance institutions (MFIs) Tuba Rai Metin and Moris Rasik to introduce regulated microinsurance products in the country. NITL will underwrite the products, which will be distributed by Tuba Rai Metin and Moris Rasik to their clients. The first two products, “Credit Life Plus,” which was launched in April, and “Asuransi Protesaun ba Familia,” launched in May, are mandatory for clients accepting new loans. If a borrower dies, the insurance pays off her outstanding loan balance and her family will receive USD 500. If a borrower’s husband dies, the family will receive a minimum of USD 250, but the loan must still be repaid. The products are expected to cover approximately 34,000 people by the end of 2012.

The partnership between NITL and the MFIs was facilitated by the Inclusive Finance for the Under-served Economy (INFUSE), a program funded by the United Nations Capital Development Fund (UNCDF), United Nations Development Programme (UNDP) Timor-Leste, the Ministry of Economy and Development (MoED) of Timor-Leste and the Australian Agency for International Development (AusAID).

At the end of the first quarter of fiscal year 2012, Tuba Rai Metin reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.8 million, gross loan portfolio of USD 1.9 million and approximately 7,000 clients. Moris Rasik reported total assets of USD 7.7 million and a gross loan portfolio of USD 4.4 million as of 2010.

By Charlotte Newman, Research Associate

About Tuba Rai Metin
Tuba Rai Metin (TRM) of Timor-Leste (East Timor) aims to provide “microfinance and allied services for a large number of poor in a sustainable and regulated manner to improve the quality of lives of families and empower women.” At the end of the first quarter of fiscal year 2012, TRM reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 2.8 million, gross loan portfolio of USD 1.9 million and approximately 7,000 clients.

About Moris Rasik
Moris Rasik is a microfinance provider in Timor-Leste that was established in November 2010. The head office of the institution is in Dili, and the organization has branches in all other 12 districts of the country. Moris Rasik’s mission is poverty reduction and empowerment through provision of financial and non-financial services to rural women with incomes below the poverty line. As of 2010, Moris Rasik reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 7.7 million and a gross loan portfolio of USD 4.4 million.

Sources and Additional Resources:

Pacific Financial Inclusion Programme: Press Release: “Timor Leste Women Get Protection Through Partnership with Tuba Rai Metin, Moris Rasik and National Insurance Timor-Leste (NITL),” http://www.pfip.org/media-centre/press-releases/timor-leste-women-get-protection-through-partnership-with-tuba-rei-metin-moris-rasik-national-insurance-timor-leste-nitl.html

MicroCapital.org story, January 26, 2012, “MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Lends $1.5m to Microfinance Institutions Tuba Rai Metin of East Timor; Humo and Partners, Arvand of Tajikistan,” http://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-lends-1-5m-to-microfinance-institutions-tuba-rai-metin-of-east-timor-humo-and-partners-arvand-of-tajikistan/

MicroCapital.org story, September 12, 2011, “MICROCAPITAL BRIEF: ADB’s Pacific Private Sector Development Initiative (PSDI) Annual Report Covers Partnership with Microfinance Institutions (MFIs) in Papua New Guinea, Timor-Leste, Vanuatu,” http://www.microcapital.org/microcapital-brief-adb%E2%80%99s-pacific-private-sector-development-initiative-psdi-annual-report-covers-partnership-with-microfinance-institutions-mfis-in-papua-new-guinea-timor-leste-vanuatu/

MicroCapital Universe Profile: Tuba Rai Metin
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tuba+Rai+Metin

MicroCapital Universe Profile: Moris Rasik
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Moris+Rasik

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

MICROCAPITAL BRIEF: International Finance Corporation, MasterCard Foundation Plan $37m Effort to Improve Financial Services in Africa

Charlotte Newman — Sun, 13 May 2012 05:01:53 +0000

The International Finance Corporation (IFC), a member of the World Bank Group that supports private-sector development, and MasterCard Foundation, a Canada-based foundation that focuses on microfinance end education, recently announced a USD 37.4 million partnership to increase access to financial services in Sub-Saharan Africa. The project will aim to help microfinance institutions (MFIs) expand into new regions and develop new products with low-cost delivery channels such as mobile services. Further details on the partnership have not been released.

As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects. The MasterCard Foundation, which was established in 2010 by US-based payments firm MasterCard Worldwide, reported approximately CAD 3 billion (the equivalent of USD 2.9 billion) in assets as of 2010.

By Charlotte Newman, Research Associate

About International Finance Corporation
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

About MasterCard Foundation
Based in Canada, the MasterCard Foundation is a private foundation with the goal of enabling people living in poverty to improve their lives with increased access to microfinance and education. The foundation was established in 2006 by a gift of shares from US-based payment processor MasterCard Worldwide during the company’s initial public offering. As of 2010, the MasterCard Foundation reported approximately CAD 3 billion (the equivalent of USD 2.9 billion) in assets.

Sources and Additional Resources:

International Finance Corporation: “IFC and The MasterCard Foundation Launch Partnership to Improve Financial Services for Millions in Africa,” http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/C0BAD42CDB6BFEE5422579F70032F6FF

MicroCapital.org story, May 9, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), BPI Globe BanKO to Develop Sustainable Energy Project for Microfinance Institutions in the Philippines,” http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-bpi-globe-banko-to-develop-sustainable-energy-project-for-microfinance-institutions-in-the-philippines/

MicroCapital.org story, May 3, 2012, “MICROCAPITAL BRIEF: MasterCard Foundation Scholarship Applications Due May 4 for Sustainable Microenterprise and Development Program, New Hampshire, USA,” http://www.microcapital.org/microcapital-brief-mastercard-foundation-scholarship-applications-due-may-4-for-sustainable-microenterprise-and-development-program-new-hampshire-usa/

MicroCapital Universe Profile: International Finance Corporation
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: MasterCard Foundation
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MasterCard+Foundation

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

MICROFINANCE PUBLICATION ROUND-UP: Financial Behavior in Latin America; Microfinance Reporting Technology; Evaluation of India’s Kshetriya Gramin Financial Services (KGFS)

Charlotte Newman — Sat, 12 May 2012 05:01:28 +0000

“The Financial Behavior of Rural Residents: Findings from Five Latin American Countries;” by Jacqueline Urquizo; published by Accion; March 2012; 45 pages; available at: http://centerforfinancialinclusionblog.files.wordpress.com/2012/03/the-financial-behavior-of-rural-residents_march-2012.pdf

This document is a summary of the results of research from the years 2009 and 2010 intended to learn about the financial behavior of rural residents who had the potential to become clients of microfinance institutions partnering with Accion in Colombia, Dominican Republic, Ecuador, Nicaragua and Peru. The study found that working capital credit and savings are the best known and most used financial services. While 80 percent of study participants knew about these services, 40 percent used them. Products that are least known about and used are debit cards, consumer credit and life insurance. Approximately half of respondents had some form of savings, which was meant to be used for emergencies. However, the study shows that business investments are often made from emergency savings. Between 50 percent and 70 percent of respondents in each country borrow money, with the most common form being individual credit. Many respondents expressed dissatisfaction with credit and a desire for more financial training.

“Information Overload: Can Technology Address MFIs’ Reporting Burden?” by Blaine Stephens; Published by Microfinance Information Exchange; April 2012; available at: http://www.themix.org/publications/microbanking-bulletin/2012/04/technology-address-MFI-reporting-burden#ixzz1saZGb6PA

This publication summarizes the findings of a study undertaken to understand data reporting by microfinance institutions (MFIs). The study found that MFIs must report under various formats, making reporting a tedious process. The study also shows an overlap in the data being requested of MFIs, which covers approximately 100 variables. Study respondents in Africa prepared approximately 40 reports each year, spending 60 days filling in forms. The publication recommends the creation of a technology such as the “common application,” which allows students to apply to many universities with one application, or online tax preparation software that allows a tax filer to enter each piece of information once. According to the author, this type of technology could help MFIs to respond to report requests much more efficiently than can be done at present.

“The Pursuit of Complete Financial Inclusion: The KGFS Model in India;” by Bindu Ananth, Gregory Chen, and Stephen Rasmussen; published by CGAP (Consultative Group to Assist the Poor); May 2012; 20 pages; available at: http://www.cgap.org/gm/document-1.9.57523/Forum4.pdf

This report examines the Kshetriya Gramin Financial Services (KGFS) model, a network of financial institutions that provide a range of financial products to rural households in India. The document explains KGFS’s three main principles: (1) complete coverage of the population in a focused geographic area; (2) customized client wealth management services; and (3) client access to a broad range of products. At the time of publication there are five KGFS institutions that collectively have 110 branches and a loan portfolio of USD 10 million. Some branches have become profitable, but none of the five institutions has broken even on a consolidated basis. Client response shows approximately 50 percent of the population enroll within the first 18 months of branch opening. Of those enrolled, approximately 60 percent use insurance services and approximately 55 percent access loan products.

By Charlotte Newman, Research Associate

About Accion
Accion is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and business training. Accion was founded in 1961 and issued its first microloan in 1973 in Brazil. Accion’s partner microfinance institutions provide loans to men and women entrepreneurs in 22 countries in Latin America, Asia, Africa and the United States. As of 2010, Accion’s network serves 3.18 million active clients and has an active loan portfolio of USD 3.81 billion.

About Microfinance Information Exchange
The Microfinance Information Exchange (MIX) is a US-based nonprofit provider of performance data and analysis on microfinance institutions (MFIs), funders, networks and service providers dedicated to serving the financial needs of low-income clients. The mission of MIX is to strengthen the microfinance sector and financial inclusion in general by promoting transparency. The organization’s MIX Market website offers access to financial and social performance information covering approximately 2,000 MFIs. MIX publications include the MicroBanking Bulletin and MIX Microfinance World, which feature periodic research and data analysis. Incorporated in 2002, MIX is headquartered in Washington, DC, with regional offices in Azerbaijan, India, Morocco and Peru. Its supporters include the Bill & Melinda Gates Foundation, CGAP (Consultative Group to Assist the Poor), Omidyar Network, The MasterCard Foundation, the UN’s International Fund for Agricultural Development, the Michael & Susan Dell Foundation, Citi Foundation, Ford Foundation and Deutsche Bank.

About CGAP (Consultative Group to Assist the Poor)
CGAP (Consultative Group to Assist the Poor) is a US-based nonprofit policy and research center dedicated to providing financial access to poor people worldwide. CGAP is supported by approximately 30 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. CGAP reports taking in USD 20.9 million in total revenue for fiscal year 2010.

Sources and Additional Resources:

“The Financial Behavior of Rural Residents: Findings from Five Latin American Countries,” http://centerforfinancialinclusionblog.files.wordpress.com/2012/03/the-financial-behavior-of-rural-residents_march-2012.pdf

“Information Overload: Can Technology Address MFIs’ Reporting Burden?” http://www.themix.org/publications/microbanking-bulletin/2012/04/technology-address-MFI-reporting-burden#ixzz1saZGb6PA

“The Pursuit of Complete Financial Inclusion: The KGFS Model in India,” http://www.cgap.org/gm/document-1.9.57523/Forum4.pdf

MicroCapital.org story, April 27, 2012, “MICROFINANCE PUBLICATION ROUND-UP: Disclosure Regimes for Responsible Financial Inclusion; The Thailand Village and Urban Revolving Fund; ‘Microsavings Works Much Better’,” http://www.microcapital.org/microfinance-publication-round-up-disclosure-regimes-for-responsible-financial-inclusion-the-thailand-village-and-urban-revolving-fund-microsavings-works-much-better/

MicroCapital Universe Profile: Accion
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Accion

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

MicroCapital Universe Profile: CGAP
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: International Labor Organization Training Centre Offers Africa, Caribbean, and Pacific/European Union (ACP/EU) Microfinance Programme Scholarships to Policymakers To Attend 2012 Boulder Microfinance Training Programme

Charlotte Newman — Fri, 11 May 2012 18:06:13 +0000

The Africa, Caribbean, and Pacific/European Union (ACP/EU) Microfinance Programme, a multinational effort investing in microfinance in 80 countries, is offering twenty scholarships for the 2012 Boulder Microfinance Training Programme, which will be held in Turin, Italy from July 16 to August 3. Hosted by the International Training Centre of the UN’s International Labor Organisation, the program is intended to improve the capacity of policymakers to support microfinance. Classes are offered in both the English and French languages.

Senior staff of central banks, regulatory bodies, and ministries of finance in ACP countries are eligible to apply for the scholarships, which are worth USD 4,500. Applications can be made online at http://eu-acp-boulder-scholarships.itcilo.org/application/index.html until May 15, 2012.

By Jeffery Patterson, Research Associate

About The ACP/EU Microfinance Programme
Founded in 2005, The Africa, Caribbean, and Pacific/European Union (ACP/EU) Microfinance Programme is a multinational effort to support the provision of financial services to low-income individuals lacking access to bank-related services. Based in Brussels, the programme fields a budget of approximately EUR 200 million (USD 262 million) engaged in two hundred microfinance projects in eighty countries.

Sources and Additional Resources

European Commission: http://ec.europa.eu/europeaid/index_en.htm

MicroCapital Universe Profile: ACP/EU Microfinance Programme
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACP%2FEU+Microfinance+Framework+Programme

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