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Private Sector Engagement in Financial Inclusion

Posted on by MSC

“As per Global Findex Database 2014, 2 billion adults – about two out of five of the word’s adults – do not have access to formal financial services. Families at the base of the pyramid need financial services to manage economic decisions and risks. Financial services must extend well beyond just payments or indeed the traditional microcredit. There is a real risk that the very poor at the base of the socio-economic pyramid are excluded from digitally-enabled financial inclusion because they are unable to afford or use the mobile handsets or data packages to transact.

Financial inclusion in present times is seen as a viable business opportunity by private sector. If Governments create an enabling environment, the private sector will leverage digital technology to meet the needs of the majority of the currently unbanked / under-banked.

Governance is the Weight Around MGNREGS’s Neck: Technology May Offer a Way Out

Posted on by MSC

Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is the world’s largest public employment generation scheme with a budget of US$ 6 billion per annum. Despite its enormous potential and the safety net it provides, questions about the programme remain. However, MicroSave’s experience, gained through engagement with the deployment of MGNREGS across various states, highlights that lack of focus on governance and/or the inadequate administrative capacity of state governments, limits potential of the programme. They can achieve this by automating a few key processes. Given disproportionate impact, states should not miss the opportunities provided by relative simple applications of technology to optimise the administration of MGNREGS.

Institutionalising Social Performance Management In Financial Institutions: What Does It Take? – Part 2

Posted on by Parul Tandon

Implementing social performance management (SPM) in microfinance institutions (MFIs) has challenges. MicroSave has considerable experience in implementing SPM in MFIs across Africa and Asia. We feel that unless there is adequate support from the Board and the senior management of the MFI, SPM initiatives do not move smoothly. Our understanding is that the effective implementation of SPM initiatives in any MFI is possible only when all these four pillars work in unison: Board commitment and support, management involvement and commitment, staff buy-in and adequate investment in resources. It is these 4 elements which differentiate an MFI with good SPM initiatives (working) versus a not so successful one.

The Part 2 of this Briefing Note (BN) explains the last two pillars viz. staff involvement and investment in resources. Please see the Part 1 of this Briefing Note (BN) which explains the first two pillars viz. Board commitment and management’s role.

However a key point which needs to be kept in mind is that the benefits / fruits of SPM are not immediate. Building SPM oriented products and processes takes time but it is worth the effort.

Institutionalising Social Performance Management In Financial Institutions: What Does It Take? – Part 1

Posted on by Parul Tandon

Implementing social performance management (SPM) in microfinance institutions (MFIs) has challenges. MicroSave has considerable experience in implementing SPM in MFIs across Africa and Asia. We feel that unless there is adequate support from the Board and the senior management of the MFI, SPM initiatives do not move smoothly. Our understanding is that the effective implementation of SPM initiatives in any MFI is possible only when all these four pillars work in unison: Board commitment and support, management involvement and commitment, staff buy-in and adequate investment in resources. It is these 4 elements which differentiate an MFI with good SPM initiatives (working) versus a not so successful one.

The Part 1 of this Briefing Note (BN) explains the first two pillars viz. Board commitment and management’s role.

Please see the Part 2 of this Briefing Note (BN) which explains the last two pillars viz. staff involvement and investment in resources.

OTC: A digital stepping stone or a dead end path?

Posted on by MSC

In this paper, we want to look more closely at OTC model, with the help of data from The Helix Institute, InterMedia and the GSMA, which provide an analytical perspective on the pros and cons of the OTC model. This will allow us to propose some recommendations on how to manage OTC going forward.

Eko In India

Posted on by MSC

Eko is a Business Correspondent (India’s term for banking agent) serving the State Bank of India (SBI), ICICI Bank and Yes Bank. The Reserve Bank of India (RBI) only allows banks to have exclusive agents. Therefore, while Eko now has partnerships with multiple banks, each agent outlet may only offer services for a single bank. This means that Eko is effectively running multiple agent networks in tandem and therefore providing a third-party specialist model for banks. To read through the case study, please click here.