Samridhi Plural India PresentationPresentation Transcript
Samridhi Financial Services www.samridhiindia.com
What is Mission drift?
Is it out there?
Do we need to fear?
Will we be safe?
Depth of Poverty outreach –
Clients’ income, loan size and interest rate
Quality of outreach – Client Satisfaction Level
Scope of outreach – Services offered
Bancosol( Beth Rhyne – ACCION)
Bancosol and 27 other MFIs
No significant difference in operative expenses for commercial or non-commercial MFIs in India
“ It seems to us at CGAP that after 2000 there was a direct conflict between the profits of private investors and the financial interest of Compartamos borrowers. We don't think that Compartamos gave enough weight to borrowers when setting its prices ”CGAP 2007
Something for all Vs. Everything for a few – Moral Dilemma
Do MFIs become more interested in serving their investors than in serving the poor?
Should the regulators step in?
Transformed institutions tend to extend their borrower reach and diversify their product offerings – E.g. from 27 transformed MFIs
Law of Demand and Supply – Higher Competition
Strong Brand – check for short term profit at the cost of long term advantages
Need for Standards of operations and communication
Sectoral Cap – keeping out the high risk high gain kind of investment
Audits to be commissioned by customers
Free flow of information – Transparency to be way out
“ Evaluating mission drift”, Hishigsuren Gamma
“ Stemming the tide of mission drift”, Frank christian
“ Sector Report 2007-08” , Access Development Services
“ What is Mission Drift”, Opportunity International