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  • Donner exemple de chiffre non significatif : cf calcul du retard de remboursement
  • I added this slide as an introduction as to why PF has created this new group. Again, this is open for discussion and comments.
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    • 1. Networking,Training & Technical Cooperation for Microfinance Growth & Sustainability WORKSHOP “ Micro-Credit Financing and Poverty Alleviation in OIC Member States” 9-10 July, 2007, Istanbul Dr. Mostaq Ahmmed FINCA International-Afghanistan
    • 2. Introduction-FINCA International
      • FINCA has been operating for over 20 years, having been established in 1984, by Dr. John Hatch.
      • Dr. John Hatch had conceived a small loan program for low-income farmers that put them in charge. The program allowed them to obtain loans without collateral—their main obstacle to accessing credit—at markup rates they could afford. His program became known as “Village Banking.”
    • 3. Countries where FINCA Operates FINCA Currently Operates in 22 Countries Around the Globe Africa Malawi Uganda Congo Tanzania Zambia Eurasia Azerbaijan Armenia Georgia Kosovo Kyrgyzstan Tajikistan Uzbekistan Russia Latin America Mexico Ecuador Guatemala Nicaragua El Salvador Haiti Honduras Middle East Afghanistan Jordan
    • 4. Financial and Non-Financial Services offered by FINCA International
      • Financial Services
      • Microcredit
      • SME Loans
      • Murabaha Loans
      • Health Insurance
      • Life Insurance
      • Savings
      • Non-Financial Services
      • Health Education
      • Financial Education
      • Skills/Vocational Training
      • Networking with other NGOs and organizations
    • 5. FINCA Product and Services
      • FINCA Uganda
        • Microinsurance: FINCA covers the debt of a dead village bank member, so it does not result in hardship for the family.
      • FINCA Azerbaijan
        • SME Loans: FINCA's product offerings have expanded to include larger, individual loans, collateralized by office or specialized equipment, vehicles, or property.
      • FINCA Malawi
        • Health Education: FINCA’s network of village banks is used to provide HIV/AIDS prevention education to clients.
    • 6. FINCA-Afghanistan Islamic Microfinance Program
      • The demand for Islamic banking amongst Afghans led FINCA Afghanistan to create Islamic banking products, ever since opening its doors in 2004.
      • Its products were created in consultation with local community leaders and received a fatwa of approval from the famous Islamic Al-Azhar university in Cairo, Egypt.
      • In 2006, FINCA introduced a new line of Murabaha products, in response to its evaluation of local market demands.
    • 7. FINCA’s Interest-Free Loans
      • Since all FINCA loans are based on Murabaha principles, FINCA does not charge interest, but a markup rate.
      • FINCA does not charge a fee on borrowed money, rather, it charges a profit margin on goods sold to clients, just like a vendor charges a markup on sold goods.
    • 8. FINCA Afghanistan Statistics
      • Clients: 41,213
      • Village Banks: 5,529
      • Portfolio: $8,324,142
      • Average loan size: $329
      • Staff members: 387
      • Clients per CO: 187
      • PAR: 0.6%
    • 9. FINCA’s Global Statistics Countries in Operation 22 Active Clients 500,030 Portfolio Outstanding $173,338,572 Average Loan Outstanding $432 Portfolio at Risk >30 Days 2.8% Savings Mobilized $17,505,561
    • 10.
      • Microfinance's M ission is to F ight P overty W orldwide by
      • Empowering poor people and allowing them to generate income through providing them credit and other financial services
      • Creating employment, increasing poor people’s income and thus reducing their vulnerability
      • Among the F uture I ssues of the S ector, a K ey Issue is to C ontinuously R each Large N umber of P oor P eople in Sustainable Manner
      Challenging Issues in Microfinance Sector Innovation Funding Legal Framework Capacity Building Outreach Current Challenging I ssues A substantial outreach is a guarantee of efficiency that can play a large part in leveraging funds
    • 11. Top Management Middle CONCEPTUAL HUMAN TECHNICAL Relative Skills Needed for Effective Performance at Different Levels of MFIs Management First-line Management Management
    • 12.
      • Structural Strength
      • Institutional Planning and Development
      • Working Environment
      • Operational Efficiency
      • Good Communication and Understanding
      • Management Efficiency
      Training and Technical Cooperation are Prerequisite for Microfinance Growth and Sustainability
    • 13. Summary of Activities & D iagram Effective circulation of information Assessment of customers satisfaction and opinion + = Empowerment of the existent human capital
      • Solutions to P oor P eople S pecific N eeds
      • Increased O utreach
      Head Office Management T eam Branch O ffices Human Resources Marketing Communication Policy & D emand-led S trategy D efinition Policy & S trategy I mplementation +
      • External E nvironment
      • Money L enders
      • Other MFIs
      • Commercial B anks
      Targeting Products delivery Identification of potential customers Close answer to customers need for financial services + + Decentralization Standardization
    • 14. Organizational S tructure Field L evel Middle Management Management T eam Policy M aking, Strategic Planning and M onitoring Branch M anager Area A Area B Area C Credit Officers Standardization & Decentralization Democratic S tructure Regional M anager Supervision , M onitoring & Training Operations E xpansion Human Resources Accounts, A udit and P rocedure Standardized N umber of B orrowers Branch M anager Branch M anager Credit Officers Credit Officers Field V isits Marketing & Communication Top Management
    • 15. MFI’s Products and its Management Products and Services of Microfinance Other Financial Services
      • Micro-insurance
      • Life Insurance
      • Health Insurance
      • Loan for Housing, Education, Health...
      Non Financial Services
      • Family Health and Sanitation Education
      • Financial Education
      • Micro-entrepreneur Training
      Financial Services To T ailor ‘need-based’ P roducts, C redit O fficers & Branch Staff S hould be E mpower ed to T ake into A ccount C lients S uggestions and C omplaints Deposit Services
      • Voluntary Savings Services
      • Mandatory Savings Services
      Credit Services
      • Small Credit
      • Small Business Credit
      • Credit for Micro Entreprises
    • 16. Delivery M echanism Screening of potential customer by credit officer = socioeconomic survey to ensure borrower’s repayment capacity and business viability Loan D isbursement Repayment P rocedure & F ollow up
      • -Weekly instalments
      • -Fixed day, time and place
      • -Limited length
      • -Physical presence ensured by record of attendance
      • Geographical proximity
      • Customer service standards
      -Physical presence of the borrower -At branch officeorrower’s home -Simple forms Field L evel D ecentralization of decision making for customer admission The D elivery M echanism of MFIs P roducts and S ervices should be S tandardized to E nsure S peed and E fficiency A ccording to P oor P eople P articular N eeds
    • 17. Key C omponents of C ost-effective M anagement C apacity B uilding Decentralization Organizational structure On the job training Close communication Standardization Working manual, written guidebook Human capital empowerment Marketing tools
    • 18. Need Based Training To I nstitutional C ulture To J ob S kills and A ptitudes
      • For new staff members: on-the-job training
      • About the institution’s strategy and operations
      • About the MFI’s values and issues (particularly client focus)
      • On an ongoing basis
      • To their general role and daily duties through ‘on-the-job training’ in practical work situation with a close supervision from an experienced employee
      • To customer service standards (how to create an environment where client feel comfortable voicing his opinion, suggestions and apprehension)
      • To marketing techniques to assess customer satisfaction and needs
      • To help customers improve their business
      • Training T ools
      • -Guidebook
      • -Training Manuels
      • -Operations M anu e l s
      • Interactive courses
      • Field Training
      • Discussions…
    • 19. Training Content for MF Capacity Building Microfinance Operations 1 . Marketing Strategy and Microfinance Clients Targeting Methodology 2. Microfinance Products, Services and Lending Procedures 3. Microfinance Lending Methodology: Individual and Group Lending 4. Microfinance Islamic Lending Methodology 5 . Institutional Business Planning for Microfinance Program 6 . Financial Planning & Analysis 7 . Savings and Credit Management 8 . Program Operational Policies and Procedures 9 . Accounting and Record Keeping 1 0 . Auditing for Microfinance Operation 1 1 . Management Information System 1 2 . Branch Manager Leadership Training: Managing, Controlling, and Reporting Tools 1 3 . Detection of Fraud and Internal Control 1 4 . Monitoring and Supervision System 15 . Delinquencies and its Management Microfinance Training & Capacity Building Methods 16 . Microfinance Training Methodology and How to Build Efficient Workforce? 17 . Staff Motivation & Built in Cost effective Training Component 18 . Human Resource Planning and Development 19 . Good Governance
    • 20. Technical Cooperation for Growth & Sustainability Creating Apex Funding Body and Ressources Mobilisation for OIC Member State Knowledge Hub and Resource Centre Training Institute Exchange Expertise and Best Practices Technology Transformation Green Fielding Friendly and Flexible Regulation for Microfinance Practices
    • 21. Why MFIs Need Micro Finance Training and Technical Support ?
      • Maximizing Effeciency
      • To Standardise and Improve its Services Through the Need Basis Training
      • Maximum Utilisation of Manpower
      • To Integrate its Exparts and Training Tools to Managing Growth
      • To Develop a Cost-effective and User-friendly Methodology for Training and the Use of Technology
      • To Develop the Professional Expertise Through
        • Sharing best practices and
        • Increasing the opportunities to network on a regular basis
        • Evaluating training activities systematically
        • Developing a built in training process for human resourse development
    • 22. How E ffective Training Can Maximise Efficiency & R educe C osts ?
      • Decentralization of D ecision M aking
      • Front line agents empowerment in the process of field decision making
      • Procedure standardization and fund management decentralization
      • Duties and scope for initiativedecision making clearly explained at each hierarchical level
      • Optimization of E xistent R esources
      • More responsibilities given to front line agents along with loan repayment task (average client and portfolio per credit officer)
      • Vehicle for collecting client information and conveying MFI image during group meetings
      • Close watch over staff turnover rate to prevent departures and related costs
      • Skills and practice accumulation of staff member thanks to on going training allow promotion
      • Non C onventional S taff R ecruitment
      • Adapted personal competences ( neither too low, nor too high)
      • Group interviews and situation tests allowing savings in time and cost reduction
      • On-the-job training in practical work situation
      • Close supervision from colleagues and immediate superior
    • 23. For More Information Please Contact Dr. Mostaq Ahmmed FINCA Afghanistan Microfinance and Development Expert [email_address] THANKS