MICROFINANCE PUBLICATION ROUND-UP: Microfinance and Mobile Banking, Financing Incremental Housing Improvements, Middle East and North Africa (MENA) 2012 Microfinance Snapshot

“Microfinance and Mobile Banking: Blurring the Lines?”; by Michel Hanouch and Sarah Rotman; published by CGAP (Consultative Group to Assist the Poor); 2013; 20 pages; available at http://www.cgap.org/sites/default/files/Focus-Note-Microfinance-and-Mobile-Banking-August-2013.pdf

This report presents the results from a study conducted by US-based NGO CGAP (Consultative Group to Assist the Poor) that explored the impact of mobile banking services on the microfinance market. The study’s methodology consisted of interviews with microfinance institutions (MFIs) that have “experimented with or fully implemented” mobile banking into their microfinance operations. The authors’ goal was to address the following topics: the experiences of MFIs that have implemented or experimented with mobile banking services, the potential benefits for MFIs and their customers that arise from mobile banking services and whether mobile banking has “created opportunities for new innovative microfinance business models to emerge.” The report finds that successful implementation of mobile banking services depends primarily on the previous success of similar services in the given market; in markets where mobile banking has proven to be successful, new mobile banking initiatives are more likely to experience similar success. Finally, the report notes that there is “increasing evidence” that suggests that MFI customers value the “time and cost savings” associated with mobile banking services and are “better served” when they have the option to use mobile banking.

“Step by Step: Supporting Incremental Building Through Housing Microfinance;” published by Habitat for Humanity; 2013; 40 pages; available at http://www.habitat.org/sites/default/files/2014_shelter_rpt_final.pdf

This report examines how housing microfinance can support incremental building, a process of making small home improvements over time, in developing countries. According to the authors, incremental building that is supported by microfinance services enables poor people to “drastically improve” their living conditions. According to the report, approximately 1 billion people worldwide live in households that lack protection against extreme climate conditions, sufficient living space, access to safe water at an affordable price, proper sanitation and security from eviction. The report suggests that by facilitating home improvement efforts through housing microfinance, governments and nonprofits can help to create more safe and secure dwellings and reduce the net financial burden on governments.

“2012 MENA Regional Snapshot;” by Audrey Linthorst and Melina Djre; published by the Microfinance Information Exchange (MIX); 2013; available at http://www.themix.org/http%3A/%252Fwww.themix.org/publications/mix-microfinance-world/2013/06/2013-MENA-regional-snapshot

This presentation provides a summary of the state of the microfinance market in the Middle East and North Africa (MENA) as of 2012. According to the authors, MENA “continues to be the smallest [microfinance] market in terms of both borrower outreach and gross loan portfolio.” While the microfinance markets in Egypt and Morocco display “higher levels of outreach and scale,” microfinance markets are “younger” in Iraq, Sudan and Syria. Egypt has the largest microfinance market in terms of the number of borrowers served; however, Morocco has the largest market in terms of aggregate loan portfolio. Despite social and political turmoil in the region, MENA exhibited “modest” returns on assets of approximately one percent during the year.

By Makai McClintock, Research Associate

Sources and Additional Resources:

“Microfinance and Mobile Banking: Blurring the Lines?,”
http://www.cgap.org/sites/default/files/Focus-Note-Microfinance-and-Mobile-Banking-August-2013.pdf

“Step by Step: Supporting Incremental Building Through Housing Microfinance,” http://www.habitat.org/sites/default/files/2014_shelter_rpt_final.pdf

“2012 MENA Regional Snapshot,” http://www.themix.org/http%3A/%252Fwww.themix.org/publications/mix-microfinance-world/2013/06/2013-MENA-regional-snapshot

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

MicroCapital Universe Profile: Habitat for Humanity International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Habitat+for+Humanity+International

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

MicroCapital, August 28, 2013, “World Bank Group, National Housing Bank, Government of India Sign $100m Agreement for Low-Income Housing Finance Project,” https://www.microcapital.org/microcapital-brief-world-bank-group-national-housing-bank-government-of-india-sign-100m-agreement-for-low-income-housing-finance-project/

MicroCapital, July 2, 2013, “Silatech, Macroinvest, Jaida, Afif, ANAPEC, IYF, Ministry of Tourism to Support Moroccan Small and Medium-Sized Enterprises (SMEs), Youth,” https://www.microcapital.org/microcapital-brief-silatech-macroinvest-jaida-afif-anapec-iyf-ministry-of-tourism-to-support-moroccan-small-and-medium-sized-enterprises-smes-youth/

MicroCapital, March 22, 2011, “Micro Housing Finance Corporation (MHFC) of India Achieves $5.5m in Loan Sanctions,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-corporation-mhfc-of-india-achieves-5-5m-in-loan-sanctions/

MicroCapital, November 5, 2010, “Micro Housing Finance Corporation (MHFC), Tata Housing Partner to Launch Shubh Griha Housing Project for Lower Income Families Including Microfinance Clients Near Mumbai, India,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-commission-mhfc-tata-housing-partner-to-launch-shubh-griha-housing-project-for-lower-income-families-including-microfinance-clients-near-mumbai-india/

MicroCapital, September 20, 2010, “Micro Housing Finance Corporation (MHFC) of India Achieves $2.16m in Loan Sanctions,” https://www.microcapital.org/microcapital-brief-micro-housing-finance-corporation-mhfc-of-india-achieves-2-16m-in-loan-sanctions/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

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