With the theme to “empower tech innovations and mobile digital channels,” this summit will enable participants to explore the impact of insurance technology (insurtech) innovations, “cloud tech-innovations [that] automate…credit scoring and loan application processes” and other efforts toward “improving customer experience in [the] microfinance sector.”
MICROCAPITAL BRIEF: FinTech Lab Accelerator Accepting Applications from Startups in Pakistan Through January 31
The publicly traded National Bank of Pakistan, the Pakistan-based consultancy Trioca Ventures and the Asia, Pacific, Middle East and Africa (APMEA) division of Fern Software recently launched the National FinTech Lab (NFL) Accelerator Program for financial technology (fintech) startups in Pakistan. The 15-week program offers a platform for selected startups to develop a working proof-of-concept of their financial solutions integrated real-time with Fern Software’s core banking system. Participating firms will also collaborate with
MICROCAPITAL BRIEF: Grameen Credit Agricole Foundation Loans $1.7m to EFC Zambia, Provider of Housing, Microenterprise Loans
The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has loaned local currency approximately equivalent to USD 1.7 million to Entrepreneur Financial Centre (EFC) Zambia, a microfinance institution offering loans and savings services, mainly in urban areas. Founded in 1996, the microbank offers loans for working capital, invoice
MICROCAPITAL BRIEF: Wells Fargo, OPIC Commit $108m to Banco Pichincha for MSMEs Supporting, Controlled by Women in Ecuador
The Overseas Private Investment Corporation (OPIC), an agency of the US government that promotes economic partnerships in countries deemed important to US interests, recently committed to loan USD 100 million to Banco Pichincha of Ecuador for on-lending to micro-, small, and medium-sized enterprises (MSMEs) that are “owned by, led by, or support women.” Wells Fargo, a US-based financial services provider, also has committed USD 8.5 million to the project, which is expected to reach
MICROFINANCE EVENT: Asia Financial Institutions Forum (AFIFORUM); January 22 – 23, 2020; Bangkok, Thailand
The second Asia Financial Institutions Forum (AFIFORUM) aims to connect stakeholders in Asia’s financial industry to “catalyze debt raising, equity investments and technical assistance programs” to support “a resilient financial system that combines financial inclusion and private sector growth with sustainable development.”
MICROFINANCE EVENT: Livelihoods India Summit; December 12 – 13, 2019; New Delhi, India
Targeting “issues that impede and afflict the livelihoods of the poor,” the ninth Livelihoods India Summit will address topics such as “inclusive value chains, technology infusion for livelihoods enhancement, women[’s] enterprises, [and the impact of] climate change…”. No detailed agenda has been released.
MICROFINANCE PAPER WRAP-UP: “Handbook on Consumer Protection for Inclusive Finance,” published by Center for Financial Inclusion, New Perimeter
“Handbook on Consumer Protection for Inclusive Finance,” by the Center for Financial Inclusion (CFI) at Accion and New Perimeter, October 2019, 91 pages, available at https://www.centerforfinancialinclusion.org/handbook-on-consumer-protection-for-inclusive-finance
This handbook highlights the importance of having a robust legal and regulatory framework in place to ensure the protection of low-income consumers of financial services via new delivery channels. It is intended to supplement the seven Consumer Protection Principles developed by CFI’s Smart Campaign by highlighting legal
MICROFINANCE EVENT: FINNOSUMMIT, Connecting Fintech Leaders Across LatAm; December 3 – 4, 2019; Miami, Florida, USA
FINNOSUMMIT, whose name refers to the concept of a “Fintech and Insurtech Innovator Summit,” brings together those interested in new ideas in financial technology (fintech) and insurance technology (insurtech) in Latin America. The session topics include: Forging the Future of Money with Fintechs: Visa’s Vision for the Next Five Years of Payments Innovation; Blockchain as Payments Infrastructure;
MICROCAPITAL BRIEF: BNP Paribas Loans $4.2m to Annapurna of India for Microfinance Lending
France-based BNP Paribas recently informed MicroCapital that it has issued a two-year loan of INR 300 million (USD 4.2 million) to Annapurna Finance Private Limited, payable in quarterly installments. Annapurna, a microfinance institution
MICROFINANCE PAPER WRAP-UP: “Geographic Diversification and Credit Risk in Microfinance;” by Stephen Zamore, Leif Atle Beisland, Roy Mersland
Published by the Journal of Banking and Finance; October 2019; 38 pages; available at https://www.researchgate.net/publication/336539379_Geographic_diversification_and_credit_risk_in_microfinance
In this paper, the authors use 18 years of data on 657 microfinance institutions (MFIs) in 88 countries to investigate whether there is a correlation between MFIs’ credit risk and their geographic diversification. The authors measure credit risk using indicators including 30-day portfolio-at-risk ratios
SPECIAL REPORT: e-MFP Investors Action Group Wrestles with Measuring Microfinance Client Outcomes in Alignment with UN’s SDGs
Members 
of the European Microfinance Platform (e-MFP) Investors Action Group met at last week’s European Microfinance Week to review their progress on developing methods for reporting client outcomes in terms of meeting the UN Sustainable Development Goals (SDGs).
Cécile Lapenu from Cerise explained that the action group is working to: (1) identify investors’ expectations regarding reporting on outcomes; (2) review existing impact reports and websites to identify the metrics now in use; (3) conduct field tests of selected indicators; and (4) document the results to serve as guidance for moving forward.
The group is now soliciting data from investors on their current data collection practices. This includes if and how they collect data from: (1) the financial services providers (FSPs) they invest in; and (2) directly from those FSPs’ clients.
Ms Lapenu argued that factors such as client satisfaction do not
MICROFINANCE PAPER WRAP-UP: “Rethinking Climate Finance,” published by BlueOrchard
Rethinking Climate Finance; by Maria Teresa Zappia, Veronika Giusti Keller and Stefano Battiston; published by BlueOrchard; 34 pages; available at http://www.blueorchard.com/wp-content/uploads/BlueOrchard-Academy-study_Rethinking-Climate-Finance-1.pdf
In this report, the authors argue for the increased use of “climate finance” to address climate-change risks. Climate finance refers to “financial investments directed toward mitigating climate-change effects
MICROFINANCE EVENT: The Jobs Conference; December 9 – 10, 2019; New Delhi, India
The Jobs Conference 2019 will gather stakeholders to discuss problems in India’s labour market. The event will cover topics ranging from “inclusion of the LGBT [Lesbian, Gay, Bisexual and Transgender] community” to the impact of “automation, digitalization, artificial intelligence and robotics.”
SPECIAL REPORT: SheInvest to Deliver $1.1b to Women in Africa, Access Bank’s “Beta Friends” Bringing Digital Savings to Market Sellers, Women Move Slowly to Mobile Money: All at European Microfinance Week
At Friday’s session on gender and financial inclusion during European Microfinance Week, Enrico Pini of the European Investment Bank (EIB) argued that, “It’s smart business,” to boost opportunities for women. Such is the motivation for EIB’s SheInvest program, which is scheduled to mobilize EUR 1 billion (USD 1.1 billion) to invest in entrepreneurship, financial inclusion, digital inclusion and climate-resilience efforts for African women.
Njideka Nwabueze of Nigeria’s Access Bank described her company’s product, “Beta,” which translates as “Good” in the local language. She said that many poor women use informal savings schemes because they do not believe that banks offer products that meet their needs. One of these women’s priorities is easy access to funds. Women who sell products in a market, for example, risk losing a good selling spot if they leave during the day to visit a bank. Also, bank lines can be very long.
This is why, six years ago, Access launched Beta, an interest-bearing savings account that leverages mobile money but is
MICROCAPITAL BRIEF: CBSI, SINPF Launch LoMobile, Offering Digital Access to youSave Accounts for Self-employed Workers in Solomon Islands
The Central Bank of Solomon Islands (CBSI) and the Solomon Islands National Provident Fund (SINPF), a government-backed retirement trust, recently launched LoMobile, a digital savings channel that allows SINPF account holders to
SPECIAL REPORT: Are MFIs Making Child Labor Worse? Willing to Test a Risk-assessment Prototype? How Can Schools Boost Child Protection? Why Buy Disposable Sanitary Pads When You Can Sew Reusable Ones?
During Thursday’s “Risky Business” session at European Microfinance Week, Patricia Richter of the UN’s International Labour Organization (ILO) led the audience through a poll of audience members’ personal work histories and how they think microfinance institutions (MFIs) can help reduce child labor. The audience voted that MFIs should do more to “raise awareness among clients and households” about the issue. The ILO’s Minimum Age Convention of 1973, which has been ratified by 172 countries, specifies the youngest acceptable ages for various types of work, ranging from 12 years old for fewer hours of light work in developing countries to 18 years old for hazardous work in any country.
The motivations for adults to engage children in age-inappropriate work include: (1) the family’s need for more income; (2) social norms that encourage child labor or the passing down of skills from parents to young children; (3) insufficient educational opportunities; (4) market demand for
MICROCAPITAL BRIEF: Angaza, SIMA Launch Distributor Financing Fund for Off-grid Solar Power
Angaza, a provider of “pay-as-you-go” metering technology, and US-based Social Investment Managers and Advisors (SIMA), recently announced the launch of the SIMA Angaza Distributor Financing Fund (DFF), an investment vehicle that will lend to distributors of off-grid solar energy equipment. The partners expect the use of Angaza’s data tools by DFF’s partner distributors to
SPECIAL REPORT: “Trend Toward Rigor,” Microfinance Barometer, Financial Inclusion Compass Offer Views of the Past, Future at European Microfinance Week
At this week’s session titled “Looking Back / Looking Ahead” at European Microfinance Week, the European Microfinance Platform (e-MFP) officially launched the second Financial Inclusion Compass, a survey indicating the top trends in financial inclusion are: (1) digital transformation (institutional-side); (2) client protection; (3) digital innovation (client-side); (4) regulatory environments; and (5) social performance / impact measurement. Meanwhile, the document identifies the following as top “areas of focus:” (1) agri-finance; (2) climate change; (3) finance for small and medium-sized enterprises (SMEs); (4) finance for displaced populations; and (5) finance for youth.
Sam Mendelson of e-MFP notes that financial services providers (FSPs) responding to the Compass are more interested in