In this video series-3, Alex Silva, a microfinance pioneer, summarises the details of the study of MFI failures, gives important recommendations for MFI sponsors, managers, and funders, such as: recognise microfinance as financial intermediation, focus on risk management systems, and create good corporate governance. Detailing on the specific conclusions of the study, Alex recommends donors or funders should not over supply the funds for rapid growth of MFIs. Similarly, he focuses on microfinance institutions must be very careful on dealing with risk including operational risk, systematic risk etc. Further, he emphasises good regulatory and governance body for microfinance.
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BancoSol: Latin America’s First Commercial Microfinance Bank Part 3
In this video, CEO Kurt Koenigsfest talks about the unique positioning of BancoSol, Latin America’s and the world’s first bank fully dedicated to microfinance, how it evolved and become a role model for the industry. He outlines the challenges of transformation and how BancoSol became a leader in deposit mobilisation. Kurt further highlights the role of management in putting a relentless focus on the design of new and adequate products for BancoSol’s customers.
Failures in Microfinance Lessons Learned Part 1
In this video series-1Alex Silva, a microfinance pioneer focuses on the need to study the failures of microfinance institutions so the new generation practitioners can avoid those pitfalls and learn from the past mistakes. Studying the 10 unsuccessful MFIs in the past 10 years in Latin America, Alex outlines six major reasons for the downfall of MFIs, namely, because organisations abandoned their methodology, systematic frauds within the organisation, organisations grew too fast, inability to adapt to new atmosphere, government’s intervention and lack of focus.
Understanding remittance networks in Punjab and Uttar Pradesh
This research explores the various remittance options currently available to Indian migrant workers in Punjab and recipient families in rural Uttar Pradesh. It also examines the benefits a business correspondent (BC) remittance service may provide to both.
BancoSol: Latin America’s First Commercial Microfinance Bank Part 2
In this video series-2, Jaime Zegarra regional manager of BancoSol, a MFI at El Alto in Bolivia, talks about the bank’s strategic focus: loan portfolio growth, portfolio quality, and expanding BancoSol’s client base. The video further interviews various clients of El Alto and how the banks timely assistance has helped them grow their business. Further, Jaime informs that the bank’s main motto is to serve as many clients as possible and the bank is consistently acquiring larger customer base.
Insights from a Microfinance Pioneer BancoSol 2
In this video series-2, Pancho Otero – the founding CEO of the Prodem Foundation, one of the global industry pioneers, explains how financial crisis will help microfinance institutions and their client. He shares his perspective on the importance of the enabling good legal environment and regulations to help produce mature microfinance institutions. Pancho sees the lack of effective regulatory system a major challenge to set up a successful microfinance industry because authorities are unlikely to support a programme unless it is thriving. In such a situation, a well connected institution with enough liquidity and strong management team is conducive for successful MFI.