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Microfinance “networks” facilitate financial services to the poor by offering support to lower-level partners. The term “network” refers to the main organization and its partner organizations as a whole. The diversity of network structures makes a precise definition difficult, and herein we only define and list what we call “wholesale networks” defined as transnational, not national or regional, partnerships.
Adding to the challenge of a clean definition, some organizations such as ACCION and Credit and Savings for the Hard-Core Poor (CASHPOR) simultaneously exist as individual institutions as well as a network of secondary partners.
Unfortunately, much of the confusion about networks is self-imposed. Donors prefer to give to actual micro-lenders “where the rubber hits the road”, not supporting organizations. Networks at times present the aggregate micro-banking activities of their partners with the implication that they themselves actually provide microfinance services. Another opaque outcome generated by the counter-incentives inherent to donation-driven “development aid”.
Twenty-one second-tier networks are listed below. Fourteen of those are based in North America, one in South America, one in Asia, one in
“Networks” can be grouped broadly in four ways: 1) Degree to which they provide technical support, 2) Extent of ownership over partners (0-100%), 3) whether they invest in partners through loans or equity (or both), and 4) amount of donor cash inflow (private or public) to secondary partners (p. 8).
Microfinance networks are either involved only within the microfinance industry and/or in multi-sector development. The World Savings Bank Institute (WSBI) focuses on microfinance and business development services for instance, while Catholic Relief Services “works in microfinance, community health, education, and emergency response among other development sectors.” (p. 4). With the exception of ShoreCap International, a subsidiary of Shore Bank in
Numerous subcategories further clarify distinctions between networks—this information appears in the article, “What is a Network? The Diversity of Networks in Microfinance Today.” Broadly speaking however, “NGOs, cooperatives, non-bank financial institutions, MFIs, and banks,” may all be part of a network. While some of these organizations were simply strengthened by higher-level partners, many were formed by them. Mennonite Economic Development Associates (MEDA) for example, both supports existing institutions and creates others.
Due to the diverse roles different networks play, microfinance institutions may belong to multiple networks such as SHARE Microfinance, Ltd. of
WHOLESALE TRANSNATIONAL MICROFINANCE NETWORKS:
ACCION, US
Catholic Relief Service (CRS), US
Developpement International Desjardins (DID), Canada
Finca International (FINCA), US
Freedom from Hunger (FFH), US
Mennonite Economic Development Associates (MEDA), Canada
Opportunity International, US
Pro Mujer, US
Save the Children, US
ShoreCap International, US
Unitus, US
Women’s World Banking (WWB), US
World Council of Credit Unions (WOCCU), US
World Vision, US
International Network of Alternative Financial Institutions (INAFI), Costa Rica
Credit and Savings for the Hard-Core Poor (CASHPOR), Malaysia
Banking with the Poor Network (B.W.T.P.), Australia
Ecumenical Church Loan Fund International (ECLOF), Switzerland
PlaNet Finance, France
Microfinance Centre for Eastern Europe and the New Independent States, Poland
World Savings Bank Institute (WSBI), Belgium
