In this video, Robert Dressen, Vice President, Economics, Business and Finance, DAI, begins with the importance of credit administration and credit control. He goes on to explain the difference between credit administration and credit control. Robert further talks about the principle functions of credit administration such as Reporting and Record keeping, Monitoring the portfolio and Compliance checking. He also lists the various methods of credit administration and credit control tools which financial institutions must apply to mitigate credit risk.
Blog
The Role of Partnerships and Strategic Alliances to Promote Mobile Phone Banking at the Bottom of the Pyramid
This note looks at the role of partnerships and alliances in m-banking, drawing some of the existing examples represented at the MicroSave-CGAP M-banking Dialogue held in 2008. It examines the importance and the different configurations/types of partnerships necessary to bring mass m-banking to the low income market, as well as the options for microfinance institutions. It specifically focuses on opportunities and benefits that may accrue to the small banks and networks of MFIs interested in offering mobile phone banking services as they collaborate and share a mobile banking platform. The note also predicts that third-party mobile phone banking service providers will also continue to play a role for banks as well as small MFIs who would prefer to outsource certain banking functions and turn over much of the technical development and management of an agent network to a third party.
Risk Management Credit Scoring Part 2
In this video series-2, Mark Schreiner, Director, Microfinance Risk Management, talks in detail how credit scoring system works. In rich countries, lenders often rely on credit scoring— formula to predict risk based on the performance of past loans with characteristics similar to current loans—to inform decisions. Can credit scoring do the same for microfinance lenders in poor countries? Does scoring have a place in microfinance? Answering these questions, Mark outlines the importance of MIS in a scoring system. Mark also explains what kind of MFIs should opt for Credit Scoring System.
Risk Management Credit Scoring Part 3
In this video series-3, Mark Schreiner, Director of Microfinance Risk Management, talks about the cost of installing and testing credit scoring system in an organisation. Mark further says that the pilot test runs till the organisation smooths all problems arising in due course and it usually takes about year and half. Later he discusses the future of scoring in microfinance. He says that the future of credit scoring depends on credit bureaus adding that Poverty Scoring will be a part of microfinance in future.
Risk Management Credit Scoring Part 1
In this video series-1, Mark Schreiner, Director, Microfinance Risk Management, discusses Credit Scoring System for microfinance industry. Mark says that credit scoring system works best for large lending organisation that have large amount of data, have decent MIS in place and where the management is ready for change. Basing his argument on this parameter, Mark explains how credit scoring can be useful in cutting cost and mitigating credit risk in MFIs. Mark warns that credit scoring system might not be an answer for organisations that are not into lending or downsizing.
Bullock-cart Workers’ Development Association & BWDA Finance Limited: Leveraging Partnerships for Growth
The study describes the transformation of BWDA from an SHG promoting NGO to a regulated financial entity, including its change management efforts and growth strategies, and market segmentation.