Uploaded byMicroFinance Transparency
About MFT
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.
More Related Content
About MFT
- 1. Promoting Transparent Pricingin the Microfinance IndustryAbout MFTransparencyJune 2011
- 2. MFT TeamChuck Waterfield,CEO & President Alexandra Fiorillo, Vice President2Ann Duval, Vice President, Finance & AdministrationRandall Weaver, Manager, Finance & AdministrationDaniel Miller, Web DeveloperFred Reed, Technical Project ManagerJordan Filko, Development & Communications Associate
- 3. MFT Team3Bachir AmadouResearchAnalyst, West AfricaMélina DjreResearch Analyst, West AfricaJoseph KiiryaResearch Analyst, AfricaRhoda MahamahResearch Analyst, AfricaJessica Haeussler, Technical SpecialistLaila DelesResearch Analyst, PhilippinesDarrel FloresResearch Analyst, PhilippinesMilyeri Hopkins MatheeProject Manager, AfricaAlexander PerezResearch Analyst, Latin America
- 4. MFT Board ofDirectorsHoward Brady (USA)Murray Gardiner (Canada, South Africa)Maria Sara Jijon(Ecuador)Nejira Nalić(Bosnia)Tony Sheldon (USA)Narasimhan Srinivasan (India)4
- 5. 5Our SponsorsFord FoundationElenaNelson • Anna Maria Zegarra• Nancy GoyburoMaria Sara Jijon• Bill Maddocks• Kim Wilson • NarasimhanSrinivasan• Point Loma Nazarene University5
- 6.
- 7. OurPartnersNationalArgentinaAzerbaijanBeninBoliviaEcuadorGhanaCambodiaBosniaBurkina FasoColombiaIndiaIvory CoastKenyaMalawiRwandaSenegalPhilippinesMaliNigerDirectionde la MicrofinanceSouth AfricaZambiaTogoUgandaTanzania
- 8. 8How to achieveResponsible Finance? MFT’s Business ModelConsulting 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 industryConsumer awareness, education and “financial capability”: Provide training materials and resources to improve client consumer literacy
- 9. Transparency for aHealthy Microfinance IndustryPolicy / RegulationConferences and Educational MaterialsAnalyticalPublicationsTransparencyPricing DataEducationWebsiteEffective 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. 10MFT Works withall Industry Stakeholders
- 11. 11MFT’s Data CollectionProcess
- 12. 12Data Output -Sample Graph
- 13. 13CGAP Funded PilotProjectMethodology tested in Peru and Bosnia in March 2009
- 14. Of the MFIsthat attended the training sessions:
- 15. 14/14 Bosnian MFIssubmitted data (100%)
- 16. 35/43 Peruvian MFIssubmitted data (81%)
- 17. Bosnia data liveon www.mftransparency.org
- 18. Peru data tobe updated in 2010Rapid Progress in Transparency(Results of past 18 months)MFTransparency currently working in nearly 30 countries 300+ Institutions1,000+ different loan products41 million clients (35 million women, 82%)US$14 billion in outstanding portfolioMicrofinance is the first industry of any kind in the world to practice global, voluntary disclosure of true pricing.
- 19. 15Immediate Effects ofthe Transparent Pricing InitiativeMFIs lowering prices for products priced high relative to the market
- 20. MFIs increasing theirprices for products priced low relative to the marketProgress by regulators toward new pro-poor policiesMFTransparency Coverage
- 21. 17Transparent Pricing ina Country
- 22.
Editor's Notes
- #2 Cover slide
- #6 Nous avonsplusieurspartenaires financiers cettediapodonneunepartieseulement . Highlight LUX, Ford, MCF, Oikocredit, Microned, Doen, Citi and Deutsche Bank.
- #7 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.
- #8 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.
- #11 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
- #12 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:
- #13 Mention X axis (loan size) and Y axis (annual effective interest rate- APR or EIR)
- #14 *Sunrise is the only MFI in Bosnia that has not submitted but they plan to this month, once their new products are operational.
- #20 * 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)
- #21 Use example of Oikocredit in Peru investor pressure resulted in many more MFIs submitting data
- #22 MFT is looking for partners to develop educational materials for MFIs, investors, donors, government agencies, regulators and other stakeholders
- #24 Cover slide