MICROFINANCE PUBLICATION ROUND-UP: Women and Mobile Financial Services in Uganda; Quantitative Poverty Scoring Methods; European Investment Bank’s Rural Impulse Fund II Symposium in Africa

“Research on Women and Usability of Mobile Financial Services in Uganda;” published by Grameen Foundation; February 2014; 40 pages; available at http://www.grameenfoundation.org/resource/use-mobile-financial-services-among-poor-women

This presentation gives an overview of the Uganda-specific results of a series of studies undertaken by the US-based nonprofit Grameen Foundation with the goal of understanding how mobile-phone usability, or lack thereof, impacts the ability of poor women to access mobile financial services in India, the Philippines and Uganda. The Uganda study was conducted using a series of interviews and facilitated educational sessions of existing and prospective female mobile financial services customers, as well as by observing mobile service agent centers in the Luweero District of Central Uganda. The authors highlight seven key challenges for poor women accessing mobile financial services: (1) a lack of transparency by service providers; (2) limited user capabilities; (3) distance from mobile money agents and service centers; (4) a lack of usage incentives; (5) lack of trust; (6) lack of support; and (7) the frequency of technical failures. The authors further detail each challenge and report that many mobile schemes lack transparency in pricing and use software that is neither intuitive nor adequately adapted to local cultural and linguistic realities. In addition, many customers have limited experience in using mobile phones, do not understand technical terminology and find it challenging to memorize personal security related access information and telephone numbers. The authors conclude by offering a set of recommendations and best practices on how to respond to these challenges in a transparent, accessible and cost-effective manner, including creating a standardized and consistent user experience across access platforms; expanding communication channels with clients to deliver timely and relevant information and notifications; empowering client self-help by offering live and pre-recorded training classes, brochures and helplines; simplifying the registration process; recruiting and training additional rural agents; and working with mobile service providers to improve the reliability of networks.

“How Do the Poverty Scorecard and the PAT Differ?” by Mark Schreiner; published by Microfinance.com; March 1, 2014; 84 pages; available at http://www.microfinance.com/English/Papers/Scorecard_versus_PAT.pdf

This publication offers a comparative analysis of two quantitative tools used to measure the poverty levels of clients of lending institutions: the Poverty Assessment Tool (PAT), developed at the US-based University of Maryland for the United States Agency for International Development (USAID), and the Poverty Scorecard (PS), developed by the author with support from the US-based nonprofits Grameen Foundation, CGAP (Consultative Group to Assist the Poor) and Ford Foundation. According to the author, while PAT and PS use different statistical methodologies, they have similar levels of accuracy as measured by “hit rate,” or the share of households in a sample correctly identified as either poor or not. The author deems both tools user-friendly, low-cost and statistically unbiased; however, the author argues that PS IS superior because it: (1) has smaller standard errors in estimation; (2) is available in 53 countries while PAT is available in 36; (3) uses more recent data in 13 out of 14 countries that use both methods. The publication includes an appendix detailing errors of both PS and PAT in calculating poverty lines, using case studies in countries in which both tools are used in Asia, Africa and the Americas.

“European Investment Bank (EIB) Rural Impulse Fund II Symposium in Africa: Promoting rural microfinance through peer to peer learning;” published by Incofin Investment Management and Frankfurt School of Finance & Management Bankakademie; February 17, 2014; 17 pages; available at: https://www.incofin.com/sites/default/files/attachments/newsitems/EIB%20Rural%20Impulse%20Fund%20II%20Symposium%20in%20Africa%20-%20Report.pdf

This report provides an overview of the European Investment Bank’s (EIB’s) “Rural Impulse Fund II (RIF II) Symposium in Africa,” a five-day conference held in Mombasa, Kenya, in October 2013 with the goal to “…encourage capacity building and peer-to-peer learning for microfinance practitioners coming from the African, Caribbean and Pacific (ACP) region.” With financial support from EIB, the symposium was organized by the Frankfurt School of Finance & Management, a German business school, in collaboration with Incofin Investment Management, a Belgium-based asset management company that manages RIF I and RIF II. The report summarizes discussions held at the symposium related to four themes: (1) the transformation of microfinance institutions (MFIs) into for-profit commercial entities; (2) agricultural lending; (3) micro-, small and medium-sized enterprise (MSME) finance; and (4) social performance management and responsible finance. The participants included 20 microfinance institutions (MFIs) from Sub-Saharan Africa and the Pacific, international donor agencies, commercial banks, development consultants and academic institutions.

By A’kos Szebeni, Research Associate

Sources and Additional Resources

Incofin Investment Management, “European Investment Bank (EIB) Rural Impulse Fund II Symposium in Africa: Promoting rural microfinance through peer to peer learning,” https://www.incofin.com/sites/default/files/attachments/newsitems/EIB%20Rural%20Impulse%20Fund%20II%20Symposium%20in%20Africa%20-%20Report.pdf

Grameen Foundation, “Research on Women and Usability of Mobile Financial Services in Uganda,” http://www.grameenfoundation.org/resource/use-mobile-financial-services-among-poor-women

Microfinance.com, “How Do the Poverty Scorecard and the PAT Differ?” http://www.microfinance.com/English/Papers/Scorecard_versus_PAT.pdf

MicroCapital, January 12, 2014, “Accion Venture Lab Invests in Kenyan Mobile Money System Kopo Kopo, MeraDoctor of India,” https://www.microcapital.org/microcapital-brief-accion-venture-lab-invests-in-kenyan-mobile-money-system-kopo-kopo-meradoctor-of-india/

MicroCapital, December 26, 2013, “Incofin Investment Management Seeking to Raise $200m for “agRIF” Fund for Small-Scale Agriculture,” https://www.microcapital.org/microcapital-brief-incofin-investment-management-seeking-to-raise-200m-for-agrif-fund-for-small-scale-agriculture/

MicroCapital, March 11, 2013, “Incofin’s Rural Impulse Fund II, Norwegian Microfinance Initiative (NMI) Frontier Fund, Invest $4.5m in Fusion Microfinance of India,” https://www.microcapital.org/microcapital-brief-incofins-rural-impulse-fund-ii-norwegian-microfinance-initiative-nmi-frontier-fund-invest-4-5m-in-fusion-microfinance-of-india/

MicroCapital, October 18, 2012, “Incofin’s Rural Impulse Fund II Loans $2.6m to Kenya Women Finance Trust, Incofin Investment Management to Finance Technical Assistance Project for AB Bank Zambia,” https://www.microcapital.org/microcapital-brief-incofins-rural-impulse-fund-ii-loans-2-6m-to-kenya-women-finance-trust-incofin-investment-management-to-finance-technical-assistance-project-for-ab-bank-zambia/

MicroCapital, February 7, 2012, “Poverty Scorecard for Afghanistan, Implementing Microfinance Information Systems, Improving Client Value from Microinsurance,” https://www.microcapital.org/microfinance-publication-round-up-poverty-scorecard-for-afghanistan-implementing-microfinance-information-systems-improving-client-value-from-microinsurance/

MicroCapital, February 8, 2011, “Microfinance Risk Management Develops Simple Poverty Scorecard for Jordan, Expanding Range of Progress Out of Poverty Index,” https://www.microcapital.org/microcapital-brief-microfinance-risk-management-develops-simple-poverty-scorecard-for-jordan-expanding-range-of-progress-out-of-poverty-index/

MicroCapital, September 2, 2010, “Grameen Foundation Issues Standards for Progress out of Poverty Index Prior to Commencement of Certification Program,” https://www.microcapital.org/microcapital-brief-grameen-foundation-issues-standards-for-progress-out-of-poverty-index-prior-to-commencement-of-certification-program/

MicroCapital Universe Profile, Incofin Investment Management (Incofin IM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile, Incofin Rural Impulse Funds (RIF I and RIF II), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?%20page=Incofin+Rural+Impulse+Funds+%28RIFs%29

MicroCapital Universe Profile: European Investment Bank (EIB), https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Investment+Bank+%28EIB%29

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

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

MicroCapital Universe Profile: Ford Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ford+Foundation

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