MICROFINANCE PUBLICATION ROUND-UP: The Broadband Effect: Enhancing Market-based Solutions for the Base of the Pyramid, Strengthening Regulated SACCO Societies in Kenya, Microfinance Barometer

“The Broadband Effect: Enhancing Market-based Solutions for the Base of the Pyramid;” by Olivier Kayser, Lucie Klarsfeld and Simon Brossard; published by the Inter-American Development Bank; September 2014; available at http://www.iadb.org/en/publications/publication-detail,7101.html?id=75634

This report examines how private companies are using broadband, a high-capacity internet connection, to improve the efficiency and reach of their operations that are geared towards the “base of the pyramid (BOP) markets” [1]. According to the authors, the availability of broadband facilitates the development of business models that are more efficient in terms of “accessing, creating, and distributing goods and services to the BOP.” The report cites a number of case studies from sectors such as financial services, education and health from developing countries such as India, Kenya and Mexico.

“Strengthening Regulated SACCO Societies in Kenya;” video produced by MicroSave; October 2014; 3.39 minutes; available at http://youtu.be/lQBP6HRimGk

This video features David Cracknell, a regional managing director for India-based microfinance consulting and training firm MicroSave, explaining the initiatives being taken in Kenya to support savings and credit cooperatives societies (SACCO), which are member-owned, self-help cooperatives where members regularly pool their savings and subsequently, members can avail loans from the pooled funds [2]. The video also introduces the training curriculum that MicroSave will be providing to consultants and institutions to develop skills in “risk management and process enhancement” to help strengthen SACCOs.

“Microfinance Barometer;” published by Convergences; 2014; available at http://www.convergences.org/en/bibliotheque/microfinance-barometer-2014/

The fifth annual edition of the Microfinance Barometer, themed “The future of microfinance: towards a new deal,” includes write-ups that present insights from researchers and practitioners in the microfinance sector on the “evolution and prospects of microfinance” globally [3]. The column titled “Mobile Money: State of the Industry” presents data on the status of the mobile money sector, including an uptick in using mobile services for bulk transactions such as “government-to-person” payments. “UGAFODE’s improvements through social performance management” features a case study on UGAFODE Microfinance, a microfinance institution (MFI) in Uganda, illustrating the adoption of a social performance management (SPM) system. The column titled “Addressing evolving financial needs: Can microfinance meet the challenge?” argues that existing MFIs find it difficult to broaden their financial services to include services such as savings, insurance and a greater diversity of credit products, without “cannibalizing too much of their primary source of revenue – the microenterprise loan.” It makes the case for “new entrants and emerging organizations” to provide services beyond microcredit to fulfill the goal of financial inclusion.

By Nisha Koul, Research Associate

Sources and Additional Resources:

[1] Inter-American Development Bank, The Broadband Effect: Enhancing Market-based Solutions for the Base of the Pyramid

[2] MicroSave, Strengthening Regulated SACCO Societies in Kenya

[3] Convergences, Microfinance Barometer

MicroCapital, April 2014, 7th Convergences 2015 World Forum, September 8 – 10, 2014, Paris, France

MicroCapital, March 2013, Rwanda’s Microfinance Growth Attributed to Both Existing Institutions, Launch of New Savings and Credit Cooperatives (SACCOs)

MicroCapital Universe Profile, Inter-American Development Bank

MicroCapital Universe Profile, MicroSave

MicroCapital Universe Profile, Convergences

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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