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.
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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.
Choosing a Mobile Phone Banking Format
During the September 2008 MicroSave-CGAP workshop in Nepal, various m-banking providers shared the use of a range of communication formats supported on GSM networks, ranging from SMS (Short Messaging Service) through to HTTPS (internet). Each format has a number of advantages and disadvantages over the other potential formats. This note discusses key issues faced when choosing which m-banking format to use. These issues include: usability/reliability, security and ubiquity. The note examines the trade-offs involved and highlights the implications of some of the decisions that must be made on formats.