www.brac.net

BRAC Microfinance Programme

www.brac.net

Outline

• Update on 2013 performance• Innovation

– New financial products and services– Financial inclusion and integration– Research and information systems

• Upcoming initiatives– “One BRAC”– Innovation Fund for Digital Financial Services

www.brac.net

Description of loan productsAverage loan size

Loan term Repayment mechanism

Major uses of loans

Dabi $275 12 months Equal weekly/monthly installments

Small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade

Progoti $2,200 12 or 18 months

Equal monthly installments

Working capital for shops, agricultural businesses and small manufacturing

Migration loan

$2,300 12, 18, or 24 months

First month no installment, Increasingly over time

Financing outgoing migrants’ costs, migrants’ families well being

www.brac.net

Dabi52%

Progoti43%

Migration Loan5%

Portfolio Distribution

Dabi92%

Progoti7% Migration Loan

1%

Borrower Distribution

www.brac.net

Savings

• Regular Passbook Savings• Monthly Deposit Scheme• Double Deposit Scheme • Fixed Deposit Scheme• Monthly Profit Scheme

www.brac.net

Savings portfolio distributionDouble Deposit

16%Fixed

Deposit <1%Monthly Deposit

11%

Monthly Profit <1%

Passbook Sav-ings 72%

www.brac.net

Microfinance at a Glance Bangladesh

Particulars As of October 2013

Loan Portfolio: $ 894 million

Savings: $ 349 million

Members: 5.72 million

Borrowers: 4.38 million

Average Monthly Disbursement: $127 million

Staff: 17,000

www.brac.net

Trend: BRAC MicrofinanceBangladesh

Particulars 2010 2011 2012 2013(as of Oct)

Portfolio (Mil) $ 534 $ 644 $773 $894

Savings (Mill) $ 243 $ 272 $ 320 $349

Disbursement (Mil) $ 899 $ 1,052 $1,250 $1,270

PAR (>30 days) 10.3% 7.9% 5.9% 6.5%

Operating self sufficiency 118.6% 110.8% 128.3% 135.6%

www.brac.net

De-posits39%

Equity30%

Bor-rowing

31%

Sources of Fund

www.brac.net

Microfinance at a Glance BRAC International

Portfolio(USD, mil)

Members Borrowers Avg. Monthly disbursement

(USD, mil)

Branch Offices

Pakistan 8.1 65,000 58,000 1.6 78

Sri Lanka 9.2 81,000 68,000 1.3 87

Tanzania 20 131,000 101,000 3.8 112

Uganda 22 161,000 127,000 4.5 130

Sierra Leone

2.8 26,000 20,000 0.48 29

Liberia 2.3 25,000 13,000 0.38 25

www.brac.net

Innovation

www.brac.net

Capacity for research and development

www.brac.net

New products and services

• Medical loan• Mobile money-based special savings

www.brac.net

Integration and inclusion

• Partnership with the Center for Rehabilitation of the Paralyzed

• Skills training for village organization members’ children

• Youth savings product for members of kishori clubs (Adolescent Development Programme)

www.brac.net

www.brac.net

Research and information

• Understanding clients’ behavior and needs– Financial diaries– MIS-based analyses to be followed by field

studies (with Cambridge University)• Improving data systems through increased

GIS information and cross-program sharing initiatives

www.brac.net

Dinajpur Chehelgaji community resources map

Mapping BRAC’s presence at the grassroots

www.brac.net

Plans for 2014 in Bangladesh

• Micro-pensions• Financial education and client protection• BRAC Innovation Fund for Digital

Financial Services

www.brac.net

Thank You