MFIs can play an important role in agriculture value chain financing. In this video, MSC’s Senior Specialist Raj Kumar explores the possibility of MFIs performing important functions in the value chain by offering agriculture financing and risk management products for the farmers. He also highlights some of the key considerations and risks if the MFIs were to get into this line of business.
Blog
Client Protection in Digital Financial Services Sector
Here’s an interesting video on ‘Client protection in digital financial services’. As mobile banking is gradually gaining ground; it also raises concerns for client protection especially for low income clientele who are not familiar with formal financial services and new age technology. So, how should MNOs, agent network managers and banks protect end clients? Watch MSC Responsible Finance expert Veena Yamini discuss key issues concerning client protection in mobile banking. MicroSave has conducted research in India and elsewhere around this topic and has developed a customer protection assessment tool. And based on these findings MicroSave continues to provide insights to agent network managers and service providers to design their product and channel management in such a way to ensure better client protection.
Defining and Measuring Financial Education – MicroSave’s Perspective
Presented at the College of Agriculture Banking, Reserve Bank of India, Pune for a panel discussion on design and evaluation approaches to financial education (FE) programmes, this presentation outlines MicroSave’s current thinking on product-led FE, as well as the perspectives to consider while designing and evaluating FE programmes.
Agent Network Accelerator Programme
Around 20,000 detailed assessments of more than 25 agent networks, in eight countries (Uganda, Tanzania, Kenya, Nigeria, India, Indonesia, Bangladesh and Pakistan), twice, over a period of 4 years. These assessments will generate systematic qualitative and quantitative data and leading operational insights across a wide range of agent networks. Data and insights acquired during this research project will be documented into outstanding knowledge pieces and research documents.
Launch of The Helix Institute of Digital Finance in partnership with the Gates Foundation, IFC and UNCDF. The Institute will provide world-class training courses, an elite networking community and cutting-edge operational insights to develop and grow the capacities of MNO’s and financial institutions in building sustainable and successful deployments around the world.
Access to Credit Post Microfinance Crisis
MicroSave conducted a study in August 2011 to collate clients’ experiences, opinions and needs, to inform policy makers and perhaps help devise solutions most suited to the requirements of the poor. To further enhance understanding of the effect of the microfinance crisis on poor clients two years after it started, MicroSave conducted another study in July 2012 in two states – Andhra Pradesh and West Bengal. While the MFIs in AP have struggled to make a turn around, MFIs in West Bengal, such as Bandhan, still grew during this period – albeit at a reduced rate. This Policy Brief draws a comparison between how access to credit for the MFI clients changed in these two states post AP crisis, and its impact on the MFI clients. It then offers policy and operational recommendations for MFIs, regulators and those that finance MFIs.
Design Considerations for Credit Scorecard for MSME Financing
Globally, Micro, Small and Medium enterprises (MSMEs) have been playing a crucial role in promoting economic development. MSMEs contribute to the local economy by creation of employment opportunities for millions and in the process inject much-needed capital and liquidity in the local economy. However, one of the major challenges faced by MSMEs is the lack of access to finance. As per a recent McKinsey1 study, 15-40% of SMEs cite finance as the most important obstacle to growth. On the other hand, financial institutions are wary of financing MSMEs and cite a variety of reasons including lack of reliable financial information, poor financial record keeping and absence of credit history. High transaction costs in servicing MSMEs as well as a perceived high-risk profile further add to the distrust. Through this paper, we suggest a fresh approach to MSME finance by introducing a simple but effective credit scorecard. We base our approach on practical examples from MicroSave’s work in expanding access to finance for MSMEs and hope that this approach will help financial institutions to look at MSMEs as a strategic segment.