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1 Development of Microfinance Associations as Apex Institutions Abuja, Nigeria January 18 th , 2011
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Development of Microfinance Associations as Apex Institutions
Abuja, NigeriaJanuary 18th, 2011
Importance of Microfinance Associations
70+ microfinance associations
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Importance of Microfinance Associations
70+ microfinance associations60 million microentrepreneurs affiliated
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Importance of Microfinance Associations
70+ microfinance associations60 million microentrepreneurs affiliated
Almost all are connected through the SEEP Global Network of Networks
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Mission
Connecting practitioners in a Global Learning Community
Vision
A Sustainable Income in Every Household
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ValuesMember-Driven
Practitioner-BasedSustainableTransparentInnovativeInclusive
Importance of Microfinance Associations
70+ microfinance associations60 million microentrepreneurs affiliated
Almost all are connected through the SEEP Global Network of Networks.
Associations can promote and guideentire microfinance industries.
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Areas of Network Effectiveness
GovernanceOperations
Human ResourcesFinancial ViabilityService Delivery
External Relations
Areas of Network Effectiveness
GovernanceOperations
Human ResourcesFinancial ViabilityService Delivery
External Relations
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Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives.
External Relations
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External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders.
Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives.
External Relations
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External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders.
Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives.
Credibility-The association is recognized as an important and capable representative of the microfinance sector and effectively advocates on behalf of its members.
External Relations
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External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders.
Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives.
Credibility-The association is recognized as an important and capable representative of the microfinance sector and effectively advocates on behalf of its members.
External Relations
Areas of Network Effectiveness
GovernanceOperations
Human ResourcesFinancial ViabilityService Delivery
External Relations
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Market Responsiveness-The association is market oriented and responsive to changing conditions.
Service Delivery
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“$2 a day”
Emphasis: incomes are low
“$2 a day”
Emphasis: incomes are low
Findings: incomes are low
incomes are irregular
incomes are unpredictable
Expanded Product Lines
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Expanded Product Lines
NEED PRODUCTHelping poor households with day-to-day cash flow management
Savings of any value at any time with ready access
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Expanded Product Lines
NEED PRODUCTHelping poor households with day-to-day cash flow management
Savings of any value at any time with ready access
Helping them borrow for all usesTiny loans quickly, when needed and repaid in small, possibly irregular installments
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Expanded Product Lines
NEED PRODUCTHelping poor households with day-to-day cash flow management
Savings of any value at any time with ready access
Helping them borrow for all usesTiny loans quickly, when needed and repaid in small, possibly irregular installments
Helping them build savings over the long term
Structured opportunities for long term savings
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Expanded Product Lines
NEED PRODUCTHelping poor households with day-to-day cash flow management
Savings of any value at any time with ready access
Helping them borrow for all usesTiny loans quickly, when needed and repaid in small, possibly irregular installments
Helping them build savings over the long term
Structured opportunities for long term savings
Helping them manage risks Insurance products
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Expanded Product Lines
NEED PRODUCTHelping poor households with day-to-day cash flow management
Savings of any value at any time with ready access
Helping them borrow for all usesTiny loans quickly, when needed and repaid in small, possibly irregular installments
Helping them build savings over the long term
Structured opportunities for long term savings
Helping them manage risks Insurance products
0
1,000
2,000
3,000
84 85 86 87 88 89 90 91 92 93 94 95 96
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Expanded Product Lines
18 million small savers
Average < US$200
Bank Rakyat Indonesia
Loans
Savings
US$ Millions
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Member Focus-The association is driven by the needs and demands of its members.
Market Responsiveness-The association is market oriented and responsive to changing conditions.
Service Delivery
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Member Focus-The association is driven by the needs and demands of its members.
Service Mix-The association's core services are well designed and reflect its comparative advantage.
Market Responsiveness-The association is market oriented and responsive to changing conditions.
Service Delivery
Service Mix-The association's core services are well designed and reflect its comparative advantage.
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Financial Administration - Financial administration processes are transparent and provide the necessary level of control to ensure that resources are used efficiently and for their intended purpose.
Financial Planning - Financial planning is an integral part of short- and long-term organizational plans, and appropriate financial performance measures are used to set goals and monitor performance.
Financial Performance - Earned income, institutional reserves, operating efficiencies are strong and show positive trends
Financial Viability
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Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus-oriented systems.
Governance
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Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus-oriented systems.
Board of Directors-Each association has a board of directors that is accountable to its membership and provides effective leadership in fulfilling the association's mission.
Governance
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Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.
Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus-oriented systems.
Board of Directors-Each association has a board of directors that is accountable to its membership and provides effective leadership in fulfilling the association's mission.
Governance
Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.
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“Doing Bad by Doing Good?
Theft and Abuse by Lenders
in Inadequately Regulated Microfinance Markets”Catherine Duggan
Harvard Business School
Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.
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1. Avoidance of Over-Indebtedness2. Transparent and Responsible Pricing3. Appropriate Collections Practices4. Ethical Staff Behavior5. Mechanisms for Redress of Grievances6. Privacy of Client Data
SMART Campaign
Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.
Defining and Measuring Ultimate Impact
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Statement of Success
A vibrant and inclusive financial sectors providing appropriate services to poor and low-income people
• A strong, sustainable association that provides demand driven products to their member base;
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• A strong, sustainable association that provides demand driven products to their member base;
• A range of healthy, sustainable microfinance institutions that offer a wide range of quality services to clients at competitive prices;
• A strong, sustainable association that provides demand driven products to their member base;
• A range of healthy, sustainable microfinance institutions that offer a wide range of quality services to clients at competitive prices;
• A transparent business environment that ensures fair competition and protection for consumers.
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Association Performance
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Member Results
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Industry Quality
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Industry Quality
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SEEP Documents for Nigeria
Savings Groups
Steps in Advocacy Planning: A workbook for Microfinance Associations
Effective Governance: A toolkit for Microfinance Association Boards
Performing a State of the Sector Analysis: A Guide for Microfinance Associations
Investment Readiness and Microfinance Associations: Bridging the Financing Gap
Measuring Financial Performance: Practitioners guide for Microfinance Associations
Donor Strategies for Advancing Social Performance through Microfinance Associations
Promoting Credit Bureaus: The Role of Microfinance Associations
Product Costing and Performance Analysis: A toolkit for Analyzing Associations’ Service Offerings
Managing Your Association’s Brand: The Strategic Importance of Integrated Marketing Communications
Training Strategies: A Technical Note for Microfinance Associations
How to Promote Industry Innovation: A Technical Note for Microfinance Associations
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Thank You!
