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Presentations - Microfinance Event: …

Presentations - Microfinance Event:
- Luc Haegemans
- Marion Cahen
- Philippe Duhamel

Published in: Economy & Finance, Business
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  • 1. Microfinance November 6th, 2013
  • 2. Upcoming events Events Date Regulation in financial services – Brussels Camput Nov 14, 2013 PUB/MGM Speeddating – Leuven Nov 18, 2013 Vlerick Expat Event (5th edition) – Brussels Campus Nov 22, 2013 Visit the “Ghelamco Arena” – Ghent Nov 26, 2013 PUB/MGM Speeddating – Ghent Nov 28, 2013 Winter Reunion 2013 – ICC Ghent Dec 18, 2013 NY Reception 2014 – Brussels Campus Jan 21, 2014 Chief Economists January 2014 Controlling Event February 2014 Meet the Industry April 2014 Meet the CFO May 2014
  • 3. Keynote Speakers Speaker Company and Function Sophie Manigart Prof. Dr. Ir. Vlerick Business School Loïc De Cannière Managing Director, Incofin Luc Haegemans Secretary General & Member of the Executive Committee of BNP Paribas Fortis Marion Cahen Manager, Microstart Gent Philippe Duhamel Head of credits of Hefboom - Impulskrediet
  • 4. AGENDA  Welcome - by Vlerick Finance Alumni  Introduction to tonight’s debate – by Prof. Dr. Ir. Manigart  Incofin - Microfinance: Definition, Investment funds and Incofin IM  Microfinance at BNP Paribas Fortis  MicroStart - “Klein krediet voor grote plannen”  Impulskrediet - “Because your projects deserve our support”  Q&A  Networking reception 5
  • 5. Loïc De Cannière CEO, Incofin Investment Management
  • 6. Luc Haegemans Secretary General & Member of the Executive Committee BNP Paribas Fortis
  • 7. Responsible Engaged Bank Platform Microfinance at BNP Paribas Fortis November 2013
  • 8. Agenda CSR Microfinance to fight poverty, financial & social exclusion Group support to microfinance microStart Volunteership Incofin - Rural Impulse Fund II
  • 9. CSR : 4 pillars & 12 commitments 4 pillars 12 Commitments
  • 10. Microfinance to fight poverty, financial & social exclusion  Microfinance allows to achieve at the same time various objectives:  Financial Inclusion: • Providing small loans for productive investments purpose to people that do not have access to the traditional financial system.  Social inclusion: • Targeting women and minority groups  Microfinance as an instrument to achieve the UN Development Goals  Solidarity opportunity : • Volunteership program for employees, who are highly motivated to help microfinance institutions (MFI’s).
  • 11. Group support to microfinance in 2012 : 78,8 M€ Investissement products proposed to customers: 10,4 M€ out of which: Obli Etheis ResponsAbility (retail) 6,2 M€ ResponsAbility (WM) 4,2 M€ Epargne clients ‘Epargne salariale’ : 9,25 M€ out of which Epargne salariale Dons Fonds propres Micro crédits personnels Financements SIFA France Active Adie France initiatives SIDI 4,8 M€ 3,7 M€ 500 k€ 250 K€ Donations to IMF : 1,52 M€ out of which Adie France Initiatives Planète Finance Microstart 1,15 M€ 216 k€ 125 k€ 30 k€ Investissements in Equity (cumul ) : 7,4 M€ out of which Credits : 49,7 M€ out of which Emerging Markest Domestic Markets + RU 33 M€ 16,7 M€ Microstart Per Micro LMDF Rural Impulse II Planet Guarantee Microcred Côte d'Ivoire Gamifi (Gabon) Taysir (Tunisie) 2,36 M€ 1,5 M€ 1,05 M€ 1,25 M€ 625 k€ 500 k€ 100 k€ 185 K€ ‘Micro-crédits personnels’ : 0,5M€ 12
  • 12. Group support to microfinance in june 2013 : 123 M€ Investissement products proposed to customers : 14,4M€ out of which: Obli Etheis ResponsAbility (retail) ResponsAbility (WM) Proximité (FIP) 7,8 M€ 4,9 M€ 1,7M€ (BNP PE dans SIFA) ‘Epargne salariale’ : 14,7 M€ out of which SIFA France Active Adie Initiative France SIDI ACTED 9,15 M€ 3,7 M€ 500 k€ 250 K€ 1,04 M€ Donations to IMF : 1,9M€ out of which Adie Initiative France Microstart BoW 1,15 M€ 216 k€ 30 k€ 550k€ Investissements in Equity (cumul ) : 7,9 M€ out of which Credits : 79,5 M€ of which: Emerging Markets 44,5 M€ Domestic Markets + RU 35 M€ Microstart Per Micro LMDF Rural Impulse II Planet Guarantee Microcred Côte d'Ivoire Gamifi (Gabon) Taysir (Tunisie) Alterfin (Belgique) 2,36 M€ 1,75 M€ 1,05 M€ 1,25 M€ 625 k€ 500 k€ 100 k€ 185 K€ 50 k€ ‘Micro-crédits personnels’ : 0,5M€ 13 Micro-insurance : 3,9M€
  • 13. microStart An innovative enterprise to promote social cohesion
  • 14. microStart Overall statistics on August 31, 2013:  4 branches (BXL, Gent, Luik)  1050 entrepreneurs met  250 projects already financed  Average micro-loan = EUR 4700  90% of entrepreneurs from minority groups  Various training sessions  Various promotional activities within communities (local festivals, markets, etc.)
  • 15. Volunteership As a complement to the banking component of BNP Paribas microfinance activity, the Group mobilizes its volunteers (retired/active) by launching a double-approach initiative: -International Approach : Microfinance Sans Frontières (MFSF) Volunteers’ mobilization to bring their professional skills to MFIs in emerging countries -National Approach : via microStart Support (microStart) Volunteers’ mobilization to support microStart’s micro-entrepreneurs Growing demand for social commitment from employees: at BNPP Fortis, more than 130 employees have spontaneously expressed their interest to participate in the program of MFSF and microStart Support
  • 16. Volunteership’ achievements MFSF (Belgium, France, UK, USA, …): 100 missions implemented since 2008 30 countries : France, Syria, Niger, Madagascar, Mali, Burkina Faso, Bénin, Togo, Burundi, Argentina, Cambodia, Ecuador… 450 volunteers declared available microStart Support (Belgium): 96 active volunteers (64 at Bxl, 19 at Gent and 13 at Luik) 1/3 are BNP Paribas Fortis Employees Mainly Coaching 17
  • 17. Incofin- Rural Impulse II Investment in Equity, and in Debt  Rural Impulse Fund II financing and Investing in RIFII managed by IncoFin  Incofin will then invest 45% in the Equity part of some selected MFI and 55% in loans to other selected MFI  Our investment (30/09/2013): • 2.5 Mio € in the equity part of the fund • 2.5 Mio € in the senior loan part of the fund. 18 Plus de détails en annexes
  • 18. Marion Cahen Manager, Microstart Gent
  • 19. About us 21
  • 20. A group of Social Entreprises microStart SCRL-FS • • • • Cooperative company Social Purpose Capital: 3,2 M EUR 12 employees microStart support asbl • • • • Non For Profit Subsidized Budget: 250 K EUR 5 employees & 80 volunteers 22
  • 21. Network of 6 branches 23
  • 22. Products & Services Business Loans • • • • • • 100-10.000 EUR 36 Installments max. Fees: 5% flat Interest Rate: 8,25%-9,75% Individual-Group Lending Investment-Treasury Business Development Services • • • • • • Idea  Development Expert Meetings Group Trainings Individual Coaching Free of Charge Provided by Volunteers 24
  • 23. Our Clients Profesionnal occupation before microloan Not Active 8% Social Welfare 15% Selfemploy ed 30% Employee 18% Jobseeker 29% 25
  • 24. 80% Below Poverty Line 26
  • 25. Factsheet Outstanding amount: 2 Million EUR Average loan: 4,800 EUR PAR 90: 10% Transformation Rate: 25% BDS: 35% of the portfolio 27
  • 26. Disbursments (Since March 2011) 700 600 500 400 300 200 100 0 Loans disbursed (Cumulative) 28
  • 27. 400 New Jobs (since March 2011) 29
  • 28. Regulatory Framework Immediate loss of Social Income High Amount of Social Contributions University Degree to get your VAT Number If not, exam organized by the Fed. Min. 30
  • 29. Business Model 31
  • 30. Cooperative - % Revenues 2011 Financial Revenues 2013 Subsidies Capital 2017 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 32
  • 31. NGO - % Revenues 2011 Public Subsidies 2013 Private Donations Own Revenues 2017 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 33
  • 32. 2500 Loans/year break-even 34
  • 33. 20% Break-Even in 2015 35
  • 34. 3.000.000 € Equity needed until 2018 36
  • 35. 650.000 € Subsidies needed until 2018 37
  • 36. How Much ? 30,000 € Annual Direct & Indirect Costs of a unemployed person 3,000 € Annual Costs of BDS Services and Extra Costs to access Financial Services (per Client) Source: Study 2012 of the European Federation of Services 38
  • 37. Main Issues 39
  • 38. Stay focused on the poorest Innovate in new services that fit the needs (microinsurance…) Keep a reasonable amount of loan Word of Mouth 40
  • 39. Improve our performances Processes Management & Information System New Technologies Improve our Portfolio at Risk 41
  • 40. Provide nice services at a fair price Adapt the European Code of Good Conduct Keep a reasonable amount of fees/interest Let our clients be commited in the designing of our products 42
  • 41. Spend less time in Fundraising More accessible funds Procedures fit the size ! Start-Up Grants, loans & equity for FS No more than 3 or 4 donors for BDS 43
  • 42. The right question is not whether the Interest Rate is high or not, but probably who will pay the difference between a fair price and a breakeven price 44
  • 43. Thank you for your attention v i s www.microStart.be 45
  • 44. Philippe Duhamel Head of credits of Hefboom - Impulskrediet
  • 45. Philippe Duhamel 6 November, 2013
  • 46. Agenda     Mission Strategy Microfinance at Hefboom: IMPULSKREDIET Conclusions
  • 47. Mission statement “Hefboom strives for a social and durable society & wants to support this goal in close collaboration with companies, organizations and persons” Hefboom provides ethical investments, consulting services and financing solutions towards social and durable initiatives. We want to create an added value for vulnerable organizations with limited financial capacity, who have need for additional management consulting support and want to launch new innovative projects and commercial activities. All this is only possible through the shareholders community who provide the necessary capital on the long term.
  • 48. Strategy Focussing on the social profit sector in Flanders & the Capital region Brussels the target group has been defined around the following pillars: – organizations in relationship towards the social integration economy like social workplaces, protected workplaces, centers for education,... – organizations in relationship with vulnerable groups like children, youngsters in difficult educational situations, persons with handicaps,... – Social organizations or companies, co-operations, people and environmental companies – Innovative projects or activities related to the social economy
  • 49. Microfinance at Hefboom: IMPULSKREDIET         Target group Offering Partners Guidance Marketing Results Analytical view on customers Lessons learned
  • 50. Target Group Entrepreneurs or startups who do not have access to adequate bank credit because of: - Insufficient collateral or capital insertion history of their credits (filed at NBB) insufficient income (unemployed, depending on life wage,...) professional history (bankruptcy) Necessity of commercial & administrative skill Our target group goes towards trustable & experienced entrepreneurs with activities who need not a lot of capital (rather services) that are well prepared (business plan available, eventually some clients) and with limited private costs or expenses
  • 51. Our Partners       Flemish Government NV Waarborgbeheer (public guarantee fund, Ltd) Agentschap Ondernemen (public agency Entrepreneurship) Collaboration with banking industry: operational support, funding, consulting services, introducers,....like Belfius, Febelfin,... Patronage European Microfinance Network Introducers of candidates:  Agentschap Ondernemen, Unizo, Activiteiten Coöperaties, Steunpunten Participatiefonds, NFTE, Accanto, KUM, …
  • 52. Offering For easy to use, transparency, clear communication and comprehensive offer our proposal is articulated around 4 different products: GO “Existing entrepreneur or starter becoming independent as main activity” PART “Entrepreneurs starting as additional job” COOP “Starting through activity co-operative” START “Jobseekers wanting to start their own business in close collaboration with “participatie fonds”
  • 53. 56
  • 54. How to proceed? 1. 2. You fill up a contact-form from the site (www.impulskrediet.be ), We check if you, your activity our your investment can be considered for an Impulskrediet. (no access to bank credit, independent activity , micro-enterprise, …) 3. We send an application form. You send it back, filled up with the needed additional documents. (for instance certificates , contracts, licenses….). 4. If it seems acceptable you are invited.
  • 55. 5. 6. 7. 8. 9. 10. We gather the needed information and figures to estimate the application. Based on the business plan and the information, we make a file. If good enough we introduce it on our credit committee. The credit committee takes a decision on the amount and on the conditions taking the human factor into consideration. If the loan is accredited, we indicate a coach and we make up a contract. If all conditions fulfilled the Impulskrediet is paid, based on evidences. During 2 years coaching free of charge by one of our coaches. He gives practical support, stays in contact and gives advice.
  • 56. Results 2012 – The start of Impulskrediet is a success
  • 57. Coaching       team of volunteers 2 years Obligatory Free of charge On the floor Always available, flexible
  • 58. Conclusions – We have seen a definite social impact for the borrower – The combination of Credits and Consultancy has a positive effect on the relationship with the customer and the quality of the file – Related to the financial risk, micro finance has not yet demonstrated its positive business case. External funding funding is necessary to get in the money – Future development based upon controlled growth and differentiation through product offering 61
  • 59. Q&A Finance Alumni, Your Financial Network
  • 60. Thank you Finance Alumni, Your Financial Network
  • 61. Networking Drink Finance Alumni, Your Financial Network

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