Presentations from the December 5th seminar held at the LSE on women's economic empowerment through savings groups and business skills training. The seminar centred on NGO partnership between CARE International and Hand in Hand International in Rwanda. Speaker presentations are by Care International, Hand in Hand International, Credit Suisse and Sparkassenstiftung für internationale Kooperation e.V.

1. With thanks to our sponsor

2. Uwimana Rose

3. Financial Inclusion for women and adolescent girls

4. The 1.1 billion unbanked women
Middle East, South Asia and Sub Saharan Africa will account for more than 70% of
unbanked women by 2020 (CARE/Accenture, 2016)
261
82
114
63
359
173
82
38
57 60
236
154
0
50
100
150
200
250
300
350
400
East Asia &
Pacific*
Europe &
Central Asia*
Latin America
& Caribbean*
Middle East* South Asia Sub-Saharan
Africa*
2014 2020E
million

5. Olive

6. BEYOND SAVINGS:
TOWARDS INCLUSIVE
GROWTHJosefine Lindänge Gutman | Hand in Hand International
London School of Economics | December 5th 2016
Rahabu Mukampenda | Shop Owner of Nyarubuye | Kirehe, Rwanda
@HiHInt #beyondsavings

7. How can you help
Beatrice Wanjiku | Yoghurt Maker | Nairobi, KenyaHanna Haciku | Tailor | Nairobi, Kenya

8. Hand in Hand & CARE – what we set out to do
• Three-year, US $3m partnership
• Graft Hand in Hand’s business training on to CARE’s existing
VSLAs (Savings Groups)
• Create 80,000 sustainable jobs in Eastern Province, Rwanda
• Increase incomes, savings and asset accumulation
• Improve financial knowledge, skills and confidence
• Increase skills to develop small businesses and income
generating activities
@HiHInt #beyondsavings

9. The science
• In June 2016 the Swedish Development Advisers
surveyed 530 randomly selected respondents from
CARE VSLAs, representing:
– 430 respondents from the ‘Project Members’ of the Job
Creation Project
– 100 respondents from the ‘Comparison Groups’ (CARE
savings groups members, not included in the Job Creation
Program and therefore not beneficiaries of the Hand in
Hand business training)
@HiHInt #beyondsavings

10. How did we do?
130,000 members trained 115,000 jobs created/
enhanced
Women’s participation
80%
@HiHInt #beyondsavings

11. Job Creation
• Insert table here that shows the full time and part time
workers hired by the project and comparison groups. A
difference of 30 and 55% respectively
@HiHInt #beyondsavings@HiHInt #beyondsavings

12. How did the enterprises perform?
• Insert table which shows the net business income
between project and comparison groups. 75% difference

13. Investments
• Insert table which shows how many nave invested in
assets in the past 12 months and how much has been
invested in assets

14. Financing
• Insert table which shows the effect on access to credit
@HiHInt #beyondsavings

15. Savings groups
Florida Mukaruge | Retailer | Rwanda @HiHInt #beyondsavings

16. What next?
http://www.handinhandinternational.org/interactive-infographic/
Florida Mukaruge | Retailer | Rwanda

17. Thank you
Josefine Lindänge Gutman
CEO | Hand in Hand International
T: + 44 207 514 5091
E: jlindange@hihinternational.org
Connect with our people on LinkedIn
We hope to hear from you soon.
Thank you,
Hand in Hand International

18. The Financial Inclusion Challenge –
A Bankers´ Perspective
London, 5 December 2016
Finanzgruppe
Sparkassenstiftung für
internationale Kooperation

19. 1. 200 years of Sparkassen in Germany
2. How Banks earn Money
3. Financial Inclusion – or not
4. Project Example: Tanzania
Agenda

20. 1. 200 years of Sparkassen in Germany
Sparkassen today: professional with a social mandate
Sparkassen are …
• Banks …
 German Banking Act
 Supervision by ECB
 Full regulatory requirements for banks
• … with a Social Mandate
 Defined in state laws and statutes
 Objectives:
 Provide financial services to all segments of the population,
everywhere in the country (“account for everyone”)
 Provide SMEs with loans and other services
 Promote local entrepreneurial activity
 Promote social and cultural development
Profitability is a necessary prerequisite for sustainable development

21. 11
24
30
50
Commerz-
bank
Deutsche
Bank &
Postbank
Cooperative
banks
Number of customers
in million
Market share of …
in %
Number of …
in million
403 Sparkassen (savings banks)
Others
Savings
deposits
Loans to
customers
Principal bank
account
50
50
62
38
48
52
Savings
accounts
Credit /
debit card
Current
account
55
52
45
*Germany‘s total population: 81 million
1. Sparkassen today
Core figures (group of 403 local banks)

22. page 23
Sources of Income
Fees and
Commissions
Interest Margin
Return on
Investments
2. How Banks Earn Money
Sources of Income
Retail Banking …
Investment Banking …

23. 2. How Banks Earn Money
Interest Rates for Small Loans - Components
Cost of Funds
(if in Forex:
incl. exchange rate risk)
Expected Profit ?
Operating Expense
(e.g. staff, equipment,
rent, taxes)
Loan Losses
5 - 20 %
(Ø 7.8 %)
2 - 20 %
(Ø 3.6 %)
10 - 30 %
(Ø 14,0 %)
(Ø 2.6 %)
influenced by …
type of institution
efficiency
professionalism
donors,
savings business,
lending currency,
inflation rate …
components …typical range …
Data for developing countries as of 2011: (CGAP 2013, Rosenberg et.al.)

24. 3. Financial Inclusion – or not
Challenge 1: costs per loan
Challenge: most operational costs are fixed (e.g. salaries, rent, IT)
Result: higher costs for small loans (as percentage of loan amount)
 higher interest rates for smaller loans !
Solution: reduce costs esp. for smaller loans !
- efficient workflows and procedures
- economies of scale (e.g. more loans per credit officer)
- standardized products (amounts, terms etc.)
- reduced transaction costs (technology e.g. POS terminals)
- outsourcing (e.g. cooperation with agents, NGOs and others)

25. 3. Financial Inclusion – or not
Challenge 2: non performing loans
Challenge: non performing loans are extremely expensive:
follow-up costs + loss of loan + loss of expected income
Result: general rule for small loans: total costs = 2 * loan amount
Solution: reduce risk of loan losses !
- standardized workflows and procedures
- use of technology
- training of staff
- risk sharing agreements (e.g. with NGOs)

26. 4. Project Example: Tanzania
Training and Strengthening of MFIs, Financial Inclusion
Partners: Tanzania Association of MFIs (TAMFI), Tanzania Postal Bank
(TPB) and Karagwe Rural Development and Environmental
Conservation Agency (KARUDECA)
Objectives: Increase outreach of TPB, training of staff in MFIs and TPB,
professionalize MFIs in Tanzania, savings mobilisation,
business skills of micro-entrepreneurs
Results: - new TPB Training Center (for TPB and TAMFI)
- modernization/extension of TPB branches (incl. workflows)
- savings mobilization campaign (World Savings Day etc.)
- business simulation game for micro-entrepreneurs

27. Niclaus Bergmann, Managing Director
Phone: 0049-228-9703 6615
Email: Niclaus.Bergmann@SBFIC.de
If there are any further questions,
do not hesitate to contact me.

28. Microfinance at Credit Suisse
Financial solutions to link the top with the base
of the pyramid
December 2016
Laura Hemrika
Global Head of Corporate Citizenship and Foundations

29. Our world today
Economic wealth pyramid
30

30. Credit Suisse
Leadership & Innovative Solutions to Link Top with BOP
31
TOP
≥ $1m in financial assets
BASE
< $4 a day / PPP
Link
EducationFin Services Health Agriculture Housing
32 million
people
4'500 million
people

31. Microfinance & Impact Investing at Credit Suisse
Aligning assets across the bank for industry impact and for our clients
September 2016 32
Providing capacity building via grants
and expertise-sharing
Corporate Citizenship
Microfinance Capacity
Building
Private Banking &
Wealth Management
Providing private capital via
investment vehicles
Investment Banking
Providing public capital via access to
capital markets
Complements our business
commitment, incl. collaboration on
product development, research
and communications/events
Six leading partners to deliver
management strengthening,
innovation and research projects
Skill-sharing programs through the
Global Citizens Program, Virtual
Volunteering and MF Advocates
Co-founder of responsAbility
Product development & offering
Structuring of microfinance and
impact funds
Administration and custody of
microfinance and impact funds
Market research
Pioneer global IPOs of MFIs:
Innovative debt raising for MFIs:
-
2012 IFC/FT Sustainable Finance
Awards
Special Commendation
Global Sustainable Bank of the Year
2014 Business in the Community Awards
Expertise and Funding Expertise, Grants,
Partnerships
Expertise and Funding

32. Developing the microfinance industry
Stages and drivers
Credit Suisse BusinessMicrofinance Capacity Building
Uncoordinated
Innovation
Market Place
Building
Capturing
Value
Maturity
Employee Expertise Programs

33. Microfinance/Impact Investment at Credit Suisse
What Is Impact Investment
Return
Investment
Return
Financing
Payment
Service End-BeneficiariesSocial
Enterprises
(selection)
Impact
Investment
Vehicle
Investors
Investment fund
Structured product
Private placement
Retail
HNWI/Family Office
Institutional
(Micro-)
Entre-
preneurs
Small
Farmers
Students
Microfinanc
e
Institutions
Agricultural
Cooperative
s
Education
Programs
Impact Investing is about actively placing capital in enterprises that
generate a financial return and make a positive social/environmental impact
Investment Process

34. because our clients care
63%
26%
11%
Social impact
Financial return
Diversification
Motives for investing in microfinance
Source: Credit Suisse internal survey, 2008
Benefits for Clients
Sound
Financial
Returns
Positive
Social
Impact
Portfolio
Diversification
Strong Quality
Of Underlying
Assets
Delivers steady and
positive returns with low
volatility (3–6% net return
p.a.)
Access to finance for small
businesses (microfinance),
fair access to markets for
small farmers (fair trade),
education for high potential
students
Historically constitutes low
correlation vs. other asset
classes. Financing SMEs
detached from global
capital markets.
Experiences very high
repayment rates from asset
underlyings (e.g., 98.5% of
microfinance clients repay
their loans on time, 99% of
students repay their loans)
Impact Investment – back to the client
What matters to our clients

35. 36
Still a young industry
Lack of pipeline
Lack of investible MFIs
Lack of volume
Lack of track record…
..
..
..
Lack of management capacity
Microfinance Investing: Hurdles

36. Microfinance 2.0: Beyond Credit

37. Many risks are internal to the organization…
September 2016 38

38. Microfinance Capacity Building Initiative (MCBI)
Market development and capacity building to develop more diverse financial
services
Virtual Volunteering Microfinance Advocates
Network
Credit Suisse expertise sharing and employee engagement:
Global Citizens Program: In-the-field skills-based volunteering
Virtual Volunteering: Innovative remote skills-based volunteering program leveraging international teams
Microfinance Advocates Network: Events, news and local volunteering
Mission
Market development and innovation by strengthening MFIs’ ability
to serve the increasingly diverse financial needs at the base of the
pyramid through:
• Enabling product and services development and innovation
across sectors beyond traditional microfinance products
• Developing strong industry partnerships and knowledge
sharing
• Effectively leveraging Credit Suisse’s skills, expertise, financial
and social capital
• Continuous measurement and optimization of impact
7

39. 40
Finance
Innovation
Women’s
Empowerment
Education
Agriculture
Housing
Accion
Venture Lab
Centre for Financial Inclusion
Women’s World Banking
Leadership and Diversity for
Innovation Program
Opportunity International
Empowering Generational
Change through Education
Finance
FINCA International
Sustainable Agriculture Finance
Initiative
Swisscontact
Microleasing Innovation
SCBF with Habitat
Sustainable Housing Initiative
Microfinance Capacity Building Initiative (MCBI)
Grant programs with global Reach

40. Focus on Women: Women still face greater financial
exclusion in every geography and across every income level
41
Source: World Bank FINDEX database/
Women’s World Banking

41. 42
Women’s World Banking develops innovative financial products to meet
the dynamic needs throughout a woman’s life
Expanding Financial Access
MarriageStart a business
ChildbirthEducation
Home ownershipHealth
Children’s education
and marriageSupported by family
 Credit (C)  Insurance (I) Savings (S)
YOUTH
LATE ADULTHOOD ADULTHOOD
YOUNG ADULT
S C
S I S C I
S C I
Source: Women’s World Banking