Spain-based Gawa Capital recently disbursed EUR 6 million (USD 6.5 million) from the Huruma Fund, a public-private partnership also based in Spain, to purchase a minority stake of undisclosed size in Pahal Financial Services, a microfinance institution based in the city of Ahmedabad, India. Among the goals of the investment are
Category: South Asia, East Asia and Pacific
MICROCAPITAL BRIEF: Philippines Looking to Satellites to Improve Access to Finance, Internet, Disaster Response
The government of the Philippines recently acted to reduce regulatory barriers to companies such as internet service providers and financial technology (fintech) firms looking to use satellite systems to reach customers and their own staff in rural areas and during natural disasters. Benjamin Diokno, Governor of Bangko Sentral ng Pilipinas (BSP), reportedly said, “With enhanced access to satellite broadband services, financial institutions can improve their disaster recovery plans as part of their resilience strategy…. They will also be able to set up more access points, such as branch lite operations, ATMs [automated teller machines], and cash agents in underserved areas.” For example,
MICROCAPITAL BRIEF: Agents for Impact Disburses $15m in Local Currency from IIV to MBK Ventura of Indonesia for Group Microfinance Loans for Women
Agents for Impact (AFI), a Germany-based impact investing company, recently informed MicroCapital that it has disbursed a local-currency loan equivalent to USD 15 million in favor of Mitra Bisnis Keluarga (MBK) Ventura, a microlender in Indonesia, on behalf Invest in Visions (IIV). Established in 2006, MBK Ventura seeks to raise the living standards of low-income women in rural parts of the island of Java by providing access to group microloans for use as
MICROCAPITAL BRIEF: New Flexibility for NBFC-MFIs in India Includes Lifting Interest Ceiling on Microfinance Loans
Non-banking financial company-microfinance institutions (NBFC-MFIs) in India may set their own interest rates freely now that the Reserve Bank of India (RBI) has repealed the ceilings that previously applied to microlending rates. In the interest of client protection, however, lenders may no longer charge a penalty fee in cases of prepayment, and client repayments may not exceed half of household income. Meanwhile,
MICROFINANCE PAPER WRAP-UP: “Women’s Agent Network – the Missing Link in India’s Financial Inclusion Story: A Supply-Side Perspective,” by Akhand Tiwari et al, Published by MicroSave
Based on a survey of 12 private-sector business correspondent network managers (BCNMs), the authors seek a supply-side perspective on the challenges and opportunities for expanding the reach of female business correspondents (BCs) in India. BCs are agents who contract with banks to offer banking services outside of bank branches. The authors find that women are underrepresented among BCs, but that “according to BCNMs, more female BC agents would improve the quality of the agent network.” One possible reason
MICROCAPITAL BRIEF: Nepal’s Gateway Payments Service, Manam Infotech, National Payments Corporation of India to Boost Digital Transactions in Nepal
Gateway Payments Service, one of 10 licensed payment system operators in Nepal; the National Payments Corporation of India (NPCI), which is owned by the government of India; and Manam Infotech, an Indian financial technology (fintech) firm are partnering to rollout NPCI’s Unified Payments Interface (UPI) in Nepal. Among UPI’s functions is to allow users to control multiple bank accounts from a single mobile app, facilitating payments to merchants as well as among individuals. The rollout in Nepal will allow transactions within the country at first and may be extended to execute cross-border payments in the future. NPCI is participating in the effort through
MICROFINANCE PAPER WRAP-UP: “Market Opportunities for Women’s Savings: Evidence From India,” Published by Women’s World Banking (WWB)
Approximately 80 percent of people in India over the age of 15 own a bank account, however only 34 percent of adults – and just 30 percent of women – saved money in the year leading up to this study. The authors surveyed 2,000 women in the states of
MICROFINANCE EVENT: Impact Investment Summit Asia Pacific; March 29 – April 1, 2022; Sydney, Australia
Themed “Collective Wisdom, Courage, and Urgent Action,” the goal of this event is to encourage greater use of “capital as a force for good.” Its speakers represent investors seeking to promote
MICROCAPITAL BRIEF: IREDA Loans $4m to Husk Power Systems for 140 Solar Microgrids in Rural India
The India Renewable Energy Development Agency (IREDA), a government entity, recently loaned INR 310 million (USD 4.2 million) to Husk Power Systems, an India-based supplier of small-scale electricity generation and distribution networks in rural India and Africa, to construct 140 solar microgrids in the Indian states of Bihar and Uttar Pradesh. IREDA is
MICROFINANCE EVENT: Microfinance & NBFCs Exhibition (MINE) cum Conference; March 11, 2022; Chennai, India
This conference will include speakers from the government and the private sector on topics such as the effects of COVID-19 on microlending and the ways new forms of technology can boost the field’s “overall reach and profitability.” Sample topics include the
MICROCAPITAL BRIEF: ResponsAbility Lends $18m to Fintech U Gro Capital for MSME Funding in India
ResponsAbility Investments, a Swiss firm in the process of being acquired by UK-based M&G, recently facilitated INR 1.4 billion (USD 18 million) in borrowing by U Gro Capital, an Indian financial technology (fintech) platform, to increase its funding of micro-, small and medium-sized enterprises (MSMEs). The debt package comprises INR 1.1 billion (USD 14 million) in nonconvertible debentures (NCDs) with the remainder in the form of an external commercial borrowing transaction. The latter is
MICROCAPITAL BRIEF: Kamyab Pakistan Offers Government Guarantees, Subsidies for Wholesale Funding of Microenterprise, Housing, Farming Loans
The government of Pakistan recently launched the Kamyab Pakistan Program, through which commercial banks and development finance institutions can bid to provide wholesale loans to retail providers of housing and microfinance loans. Successful bidders will be eligible to apply for government funds to: (1) increase the ability of retail lenders to borrow from the wholesale lenders; and (2) cover the first 10 percent of losses retail lenders may incur within the program plus half of the losses wholesale lenders may incur. Through Kamyab Pakistan, retail lenders
MICROCAPITAL BRIEF: European Investment Bank Launches EIB Global to Expand in Africa, Asia, Latin America
The EU’s European Investment Bank (EIB) recently launched a new unit, EIB Global, to expand its operations in Africa, Asia and Latin America with support from Team Europe, an initiative launched by the EU to help countries worldwide adjust to the COVID-19 pandemic. To support its expanded geographic scope,
MICROCAPITAL BRIEF: CIMB Bank Philippines, Zoloz Partner on e-KYC in Effort to Boost Digital Financial Services, Inclusion
CIMB Bank Philippines, a digital banking unit of Malaysia-based CIMB Group Holdings, recently announced a partnership with China-based Zoloz to leverage its electronic know-your-customer (e-KYC) technology to simplify the bank’s verification of customers’ identities and otherwise create an “enhanced payment experience.” Zoloz, which is owned by China’s Ant Group, offers products that
MICROCAPITAL BRIEF: One World Connect, Philippine National Bank (PNB) Partner on Online Remittances
One World Connect, a UK-based company that facilitates remittances from the UK and Australia to the Philippines, recently announced a partnership with Philippine National Bank (PNB) to expand the options the firms offer recipients in the Philippines. Users can now receive money transfers in cash at 700 PNB branches or directly into their PNB accounts, whether denominated in pesos or US dollars. For example,
MICROFINANCE PAPER WRAP-UP: “Beyond Wage Digitization: Financial Capability and Economic Empowerment of Cambodian Women Migrant Workers,” Published by Women’s World Banking (WWB)
This report analyzes the financial awareness, financial behaviors and economic empowerment of 2,800 women – mostly migrants – who work in 13 factories in Cambodia and are paid via digital accounts with Wing Bank. The authors’ initial literature review indicated
MICROCAPITAL BRIEF: Study-abroad Firm Leverage Edu Facilitating Student Access to Finance, Banking Services, Cross-border Remittances
Leverage Edu, which offers platforms for students in India looking to study in other countries, recently launched Leverage Finance, a unit facilitating loans to pay for tuition, cross-border remittances, and remote opening of bank accounts in countries to which students will travel for their education. During the pilot phase of the service, Leverage Finance customers accessed loans totaling INR 750 million (USD 10 million) and opened approximately 500 accounts at banks in Canada and the UK. Going forward, the firm plans to:
MICROCAPITAL BRIEF: In Response to COVID-19 Pandemic, Khalti Broadens E-commerce Platform to Offer Deliveries from MSMEs to Customers in Nepal
Khalti, a Nepal-based provider of digital financial services, has modified its digital platform to support micro-, small and medium-sized enterprises (MSMEs) in Nepal, including small shops known as kirana stores, with the support of the UN Capital Development Fund (UNCDF). Before the COVID-19 pandemic, Khalti offered a service through which enterprises could open digital storefronts to sell their services and collect payments. In adjusting to the pandemic, Khalti started