This note briefly discusses four major concerns/opinions voiced by different stakeholders, namely the promoters, the beneficiaries and the general public. First is the justification for a new breed of financial institutions in order to meet the varied financial needs of the poor. Secondly, the cost of providing financial services by MFIs which are largely dependent on nature of services they provide (doorstep) and the cost of capital for them. Third concerns are on the nature and types of services they could provide that includes “plus” such as insurance and remittances which adds to their administration cost. The final one is on getting trained human resources, who have understanding of both banking as well as social development.
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MicroSave project completion report for FSD Kenya
The Market-led Microfinance Project or MicroSave started in 1998 as a four-year project funded by the Financial Sector Deepening Kenya (FSD Kenya) or the Department for International Development (DFID), the Consultative Group to Assist the Poor (CGAP), the Austrian Development Agency (ADA) and the Norwegian Agency for Development Cooperation (NORAD). MicroSave was converted into a commercial service-providing organization after its final phase (2004–2007). This paper assesses the performance of its final phase and overall experience over nine years. It also highlights the achievements of the project and the lessons learned, and critically analyzes the strategy employed for the development of MicroSave.
Individual Lending(IL): Biashara Imara (Flagship microfinance product of Equity Bank Kenya)
In this video, Mark Pickens, Microfinance Analyst, CGAP, describes the characteristics and features of Biashara Imara, the individual loan product of Equity Bank Kenya. Biashara Imara means “strong, solid business.” He also describes the profile of clients that Biashara Imara is designed to target at. Elaborating the client base of Biashara Imara, Elizabeth Wambui Gathai Head of Microcredit, Equity Bank, describes that Biashara Imara has been developed for small business owners; market traders; shopkeepers etc. and is designed to function in a non-conventional manner.
Equity Bank Employees’ Market led Success-Equity Bank Kenya
The video depicts the journey of Equity Bank Kenya from a Society to a commercial Bank. The Equity Bank business model has attracted both local and international recognition. Equity has also become a hub of other institutions worldwide keen on learning and exchanging insights on the Equity model of extending financial services to the low income segment and the un-banked population. The CEO and other employees discuss the challenges faced in this journey and the methods adopted by Bank to overcome them. It also has testimonials from clients of Equity Bank.
Reaching Remote Areas – A Case For North East India
Unfolding the limitations faced by the poor due to lack of financial access, this note draws attention to the indicators for financial inclusion in the North Eastern states of India. It underlines the geographical diversity in the North East, highlighting the fact micro and small enterprises thrive in the region quite well and that they are mostly dependent on informal sources. It also gives a dismal picture of growth of microfinance in the North Eastern area. It suggests that a start up & capacity building fund, technical service providers, building institutional mechanisms for effective interventions, would lead to a better development of the North East Indian microfinance sector.
Microfinance in Bangladesh BRAC
In this video, Senior Microfinance Specialist of CGAP Syed Hashemi talks about the common vision of Muhammad Yunus and Fazle Hasan Abed i.e social transformation. Hashemi describes the different methods followed by both leaders to build a society where the poor were integrated in the development process. He explains in detail about the organisational structure of Grameen Bank and BRAC outlining their similarities and differences. Hashemi further elaborates the functions of BRAC and how it has successfully made inroads into other development efforts such as education, health etc. through multi-sector approach.