Several attempts are being made to make Business Correspondent model work for Indian Markets. This note summarises some of the major challenges that the model faces and how these challenges can be overcome by adopting client centric approach. It also examines the need for appropriate governance in making the model successful.
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Community Managed Microfinance Part 1
In this video series-1, Hugh Allen Founder of VSL Associates Ltd., discusses the major features of community managed microfinance and the nature of their clients. He also discusses the common obstacles in such community managed programs. Explaining the workings of a community managed microfinance in Africa, he says that a community managed groups consist of about 20-25 members who pool their resources and meet weekly or fortnightly as they choose; they make loans to each other and at the end of the annual cycle they distribute the amount based upon some formula.
Nascent Indian MFIs and their Fund Raising Challenges
This Focus Note attempts to provide insights into the different sources of capital available to nascent MFIs in India and how an MFI might improve its ability to attract such capital. Much of the data for this note is collated from MicroSave partners under the RBSFI/Cordaid Technical Assistance programme for “Nascent MFIs”.
Branchless Banking And Technology Role Of Regulators
In this video Marguerite Robinson Independent Consultant discusses the success stories of branchless banking and the major obstacles faced while establishing such business model. Marguerite further elaborates the regulators’ understanding of branchless banking and their role in facilitating the roll out of branchless banking solutions. Correspondingly, Marguerite acknowledges the contribution of CGAP towards the expansion of branchless banking and in making it a sustainable business model.
BRI Why It Became a leader
In this video Marguerite Robinson Independent Consultant discusses the success story of Bank Rakyat Indonesia (BRI) wherein savings products were developed for low-income families of Jakarta. Sharing her experiences of Indonesia, Marguerite tells us the initial problems they faced in Indonesia. She talks about the findings of the research conducted among low income group in rural and urban area and how it led to development of savings products for low income groups. The success of the first pilot project led to many other projects. Ultimately, the blueprint was replicated across the country. She further explains how BRI managed to sail smoothly during the financial crisis.
Alternative Financing for Indian MFIs
Unlike traditional methods of funding (debt and equity), MFIs can use alternative financing measures that are not reflected on their balance sheets, and are thus referred to as “Off-Balance Sheet Financing” (OBSF). Portfolio buy-out, the ‘partnership model’ and securitisation are some examples of OBSF. Though not evident in the financial statements, these unaccounted assets and liabilities have real cash-flow consequences. This Focus Note analyses different forms of alternative financing, their advantages, disadvantages and feasibility issues with regard to implementation for Indian MFIs.