About MFT
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This document discusses MFTransparency, an organization that promotes transparent pricing in the microfinance industry. It has a team of over 20 staff members and works with partners in nearly 30 countries. MFTransparency collects pricing data from over 300 microfinance institutions on over 1,000 loan products used by 41 million clients. It publishes this data on its website and provides technical assistance to help institutions improve practices and disclosure. The goal is to create a healthier industry through open information and education of all stakeholders.
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About MFT
- 1. Promoting Transparent Pricing in the Microfinance Industry About MFTransparency June 2011
- 2. MFT Team Chuck Waterfield, CEO & President Alexandra Fiorillo, Vice President 2 Ann Duval, Vice President, Finance & Administration Randall Weaver, Manager, Finance & Administration Daniel Miller, Web Developer Fred Reed, Technical Project Manager Jordan Filko, Development & Communications Associate
- 3. MFT Team 3 Bachir AmadouResearch Analyst, West Africa Mélina DjreResearch Analyst, West Africa Joseph KiiryaResearch Analyst, Africa Rhoda MahamahResearch Analyst, Africa Jessica Haeussler, Technical Specialist Laila DelesResearch Analyst, Philippines Darrel FloresResearch Analyst, Philippines Milyeri Hopkins Mathee Project Manager, Africa Alexander PerezResearch Analyst, Latin America
- 4. MFT Board of Directors Howard Brady (USA) Murray Gardiner (Canada, South Africa) Maria Sara Jijon(Ecuador) Nejira Nalić(Bosnia) Tony Sheldon (USA) Narasimhan Srinivasan (India) 4
- 5. 5 Our Sponsors Ford Foundation Elena Nelson • Anna Maria Zegarra• Nancy Goyburo Maria Sara Jijon• Bill Maddocks• Kim Wilson • NarasimhanSrinivasan• Point Loma Nazarene University 5
- 6. OurPartners Global Regional AFRICA
- 7. OurPartners National Argentina Azerbaijan Benin Bolivia Ecuador Ghana Cambodia Bosnia Burkina Faso Colombia India Ivory Coast Kenya Malawi Rwanda Senegal Philippines Mali Niger Direction de la Microfinance South Africa Zambia Togo Uganda Tanzania
- 8. 8 How to achieve Responsible Finance? MFT’s Business Model Consulting on Legislation & Regulation: MFT provides recommendations to central banks and regulatory authorities around consumer protection and pricing transparency Data Collection & Dissemination: MFT collects product prices and information to display on its website to facilitate a more transparent market. Technical Assistance & Training to Service Providers: MFT provides technical training to MFIs, rating agencies, industry initiatives, and other organizations to improve practices and create standardized practices in the industry Consumer awareness, education and “financial capability”: Provide training materials and resources to improve client consumer literacy
- 9. Transparency for a Healthy Microfinance Industry Policy / Regulation Conferences and Educational Materials Analytical Publications Transparency Pricing Data Education Website Effective policy requires building a strong foundation at the Bottom of the Pyramid -- Pricing Transparency and education of all stakeholders creates an enabling environment for a healthy microfinance industry
- 10. 10 MFT Works with all Industry Stakeholders
- 11. 11 MFT’s Data Collection Process
- 12. 12 Data Output - Sample Graph
- 14. Of the MFIs that attended the training sessions:
- 15. 14/14 Bosnian MFIs submitted data (100%)
- 16. 35/43 Peruvian MFIs submitted data (81%)
- 17. Bosnia data live on www.mftransparency.org
- 21. 17 Transparent Pricing in a Country
- 22. Participation Rewards 18
- 23. 19 Endorse MFT We invite all to sign our endorsement statement, committing to transparency in pricing and education of MF stakeholders
- 24. Sponsor Country Operations Financial Support Relationship Support Sponsor or co-sponsor a country’s transparency initiative Fund implementation operations in a specific country of your choice Partner with 1 or several other donors/organizations to fund the transparency initiative in a desired country Sponsor MFT’s transparency initiative in specific countries by: Introducing us to your affiliates/partners Encouraging your MFI partners to participate Sending a letter of support Donating office space in country 20
- 28. Allow MFTransparencyto distribute your materials
- 29. Host pricing & transparency workshops with MFTransparency21
- 30. 22 A long-overlooked need “We have made major investments in improving the quality and clarity of information on microfinance institutions. But we have not yet invested as much as we should in making sure costs of financial services for poor clients are clear and fair. MFTransparency’s initiative is a bold one that promises to fill an important gap.” Elizabeth Littlefield, former Director and CEO, CGAP
- 31. Promoting Transparent Pricing in the Microfinance Industry
Editor's Notes
- Cover slide
- Nous avonsplusieurspartenaires financiers cettediapodonneunepartieseulement . Highlight LUX, Ford, MCF, Oikocredit, Microned, Doen, Citi and Deutsche Bank.
- Nous travaillons avec plusieurspartenairesdans le monde, certain au niveaumondiale, ceratain au niveau regional et d’autres au niveau pays.Danschaque pays nous travaillons nous collaborons avec l’associationprofessionelle, dans certain pays l’associationprofessionelleesttresengagé et prend part activement au travail dansd’autres pays ellesjouent le role de partenaire qui fait la promotion de l’activité. Au Niveau regional nous somme en partenanriat avec INAFI International, AFMIN, AMT and ADA. Nous sommes members du Social Performance Task Force, SMART Campaign et nous travaillons avec le MIX et les institutions de rating.
- Nous travaillons avec plusieurspartenairesdans le monde, certain au niveaumondiale, ceratain au niveau regional et d’autres au niveau pays.Danschaque pays nous travaillons nous collaborons avec l’associationprofessionelle, dans certain pays l’associationprofessionelleesttresengagé et prend part activement au travail dansd’autres pays ellesjouent le role de partenaire qui fait la promotion de l’activité. Au Niveau regional nous somme en partenanriat avec INAFI International, AFMIN, AMT and ADA. Nous sommes members du Social Performance Task Force, SMART Campaign et nous travaillons avec le MIX et les institutions de rating.
- MFIs any financial institutions that offers a micro-finance loan product (includes NGOs, commercial banks, cooperatives, caja municipales, susus, etc.)Networks & Associations international, regional or local networksRegulatory & supervisory bodies Central Bank, Superintendency, independent regulators, consumer protection agenciesDonors & Investors we work with them because they tend to have close relationships with their MFIs and want to ensure their portfolio institutions maintain a consumer-focused plan
- Country Selection: country selection tool uses approximately 20 criteria including macroeconomic, financial, regulatory environment, microfinance market and other indicators to help us select subsequent countries for our pricing transparency initiative. Training Workshops:Work one-on-one with MFIs:Data verification process: we require at least 3 distinct, live repayment schedules for each loan product offered by the institution. These repayment schedules must be representative of the loan (representative of loan size range, loan cycle (both early cycle and later cycle), loan term (shortest, medium and longest loan periods), etc. In fact, we prefer 6 repayment schedules for each institution but 3 seems to be sufficient. In addition, we plan to verify the data submitted by the MFI by randomly selecting clients of the MFI and using his/her repayment schedule. Dissemination of data:
- Mention X axis (loan size) and Y axis (annual effective interest rate- APR or EIR)
- *Sunrise is the only MFI in Bosnia that has not submitted but they plan to this month, once their new products are operational.
- * Can be individuals or representatives of the organization; just because you sign does not mean your organization endorses; we accept employees’ endorsements as well as organizations’ endorsements (usually sent in by CEO or President)
- Use example of Oikocredit in Peru investor pressure resulted in many more MFIs submitting data
- MFT is looking for partners to develop educational materials for MFIs, investors, donors, government agencies, regulators and other stakeholders
- Cover slide