The role of national and regional networks in creating an environment for sustainable microfinance reynold walter


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The role of national and regional networks in creating an environment for sustainable microfinance reynold walter

  1. 1. The Role of National and Regional Networks in creating a Sustainable Environment for MIcrofinance Reynold O. Walter P. Founder of REDCAMIF Manila, Philippines, October 2013
  2. 2. Background Antecedentes: The Central American and the Caribbean Microfinance Network, REDCAMIF, is a private entity, made up of Associations and institutions specialized in Microfinance of the Isthmus of Central America and the Caribbean. The purpose of REDCAMIF is to facilitate assistance to the promotion and development of Microfinance Institutions (MFI s) and to the permanent sustainability of financial services, addressed to the MIPYME sector in the Region.
  3. 3. MISION REDCAMIF aims to consolidate the microfinance industry in Central America and the Caribbean, through union representation, institutional strengthening, the pursuit of sustainability of Networks, and the creation of strategic alliances, in order to contribute to improving the quality of life of men and women living in poverty. VISION To be the representative organization of the Central American and the Caribbean Microfinance Network, with leadership worldwide, which promotes high standards and implements financial, social and environmental performance, based on principles, ethical values and gender equality.
  4. 4. Objetivos Estratégicos: STRATEGIC OBJECTIVES 1. Positioning, Incidence and Strengthening of the REDCAMIF System. 2. Promote products and services competitiveness and sustainability of Microfinance Institutions MFI s, through National Networks in the Isthmus of Central America and the Caribbean. 3. Promote equal access to families in poverty, to innovative financial and no financial products and services, to improve their quality of life.
  6. 6. ORGANIZATION CHART REDCAMIF General Assembly External Audit Board of Directors Working Committee Gender GDS Technical Executive Committee Technical Coordinator Rural Finances Executive Direction Working Committee Micro Insurances Assistant AdministrativeFinancial Coordinator Program Coordinator National Microfinance Network (7) MIcropensions
  7. 7. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance Regulatory Framework and Public Policies To look for incidence in public polices, legal and regulatory frameworks, international treaties, so that Microfinance sector is benefited and strengthened, in the Central American Isthmus. Micropension Programs Pension fund for micro and small entrepreneurs who do not receive social security benefits in their countries, so that their quality of life improves, when they reach retirement age. Micro Insurances System that uses the insurance mechanism and whose beneficiaries are people excluded from formal systems of social security protection; particularly, informal economy workers and their families.
  8. 8. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance Microfranchise Microfranchise is an innovative business model that promises to generate economical opportunities within pyramid populations, who do not necessarily possess a great entrepreneur spirit, or technical abilities; however, they could run a successful business. Microleasing It is a small-amount leasing contract that allows a financial institution to acquire specific equipment, previously requested by a customer selected. The main aspect of this contract is that the legal property of the item is separated from its economic use. Microfactoring They are factoring operations for small producers that allow them to discount the value of their product sales invoices to paying customers, so that the product gets liquidity immediately.
  9. 9. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance Collecting Services It a service provided by Microfinance Network Institutions, when risk portfolio has reached the limit days permitted by an Institution; therefore, diverse cases are grouped in geographical zones where some collection agents visit delayed payment customers from various organizations, from their Network. Credit Bureaus It is a private institution, independent from financial, commercial and governmental institutions that pursue to provide information concerning people obligations towards their credits, to affiliated companies. Technology Platforms Unified for Microfinance Regional and National Networks have a great opportunity to perform business increasingly, regarding technology services, identifying possible outsourcing alliances that provide opportunities to their institutions, so that they can specialize in microfinance products and services.
  10. 10. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance Second-Floor Funds (SICSA) Second-Floor Banking is a group of financial institutions that do not assist either directly or personally to the customers of the financial system, but they act as intermediaries between them and the financial institutions in order to manage resources. Financial Education Its objective is to form and train technicians, personnel, professors, Microfinance staff, training entities, academic sectors; among others, who work with groups of entrepreneurs for the development of the MIPYMES in every country. Rural Finance and Environment They are all rural services that can be offered from a Network of Microfinance, focused on strengthening Microfinance operations of an Institution and the can be: innovation of rural and environmental finance services, rural and environmental credit funds, technical assistant fund to customers, knowlege management and financial and environmental education to customers.
  11. 11. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance Financial Inclusion It is the sustained access and use in equality of conditions for the population, to a group of financial products and services; including credit, deposit accounts, insurances, pensions and payment services, among others. a) Non bank correspondents Distribution channel that allows credit institutions to provide Microfinance services, under their full responsibility, through outsourcing (commerce), with the purpose of reaching those regions where Microfinance service is limited. b) Remittances Resource transferences from people abroad, mostly from the United States but also from any place in the world to Latin America, sent to people living in their native country. These resources may come from family or friends. c) Mobile Banking Service provided to customers from their financial institution, to have access to information from transactions, through their cellular telephones.
  12. 12. REDCAMIF: Strategic Lines and Projects that promote a Sustainable Environment for Microfinance d) Conditional Transfer Delivery of transference of economical and non economical resources to families living in poverty or extreme poverty, who have one or more underage children, upon condition that they may improve the quality of their human capacities. In some programs, there are other categories of support: non employed adults, people with disabilities, and elderly people; which allows families without underage children, to be beneficiated. e) Social Interest Housing It is defined as a housing solution with the purpose of solving the situation of the lack of houses in the most socially deprived areas, where families remain in compelling economical conditions.
  13. 13. Microfinance 2013 Global Microscope Communication The Economist, Intelligence Unit, London, July 2013 With the support of FOMIN, BID, CAF, CIF/ACCION, and CITI Microfinance Global Microscope –Business Environment in Microfinance 2013 Findings after analyzing Microfinance environment in 55 countries of the world. Categories of Analysis: Regulatory Framework and Practice     Microcredit portfolio regulation and supervision Creation of regulated/supervised microcredit institutions Creation / operation of non regulated microcredit institutions Regulation and supervision capacity of Microfinance (including credit and other services).  Regulatory Framework for the fundraising of deposits. Institutional Framework for Support     Accounting Transparency Protection to clients: transparency of prices Protection to clients: resolution of risk central conflicts. Regulation and implementation of financial transactions through agents  Adjustment Factor: Stability  Political commotions affecting Microfinance  Political stability
  14. 14. Scores of the first 10 countries of the Microfinance Global Environment Sum of Scores from Categories 0 to 100, where 100 is the most favorable
  15. 15. 10 better qualified Countries Global Microscope – Business Environment for Microfinance 2013- 10 Dominican Republic 4 Philippines 8 El Salvador 7 Colombia 1 Peru 2 Bolivia CONTINENT 3 Pakistan COUNTRIES LATIN AMERICA 5 ASIA 3 AFRICA 2 8 Uganda 5 Kenya 6 Cambodia
  16. 16. Mayan Civilization!! Thank you for your attention!!! Reynold O. Walter P. Manila, Philippines, October 2013