SlideShare a Scribd company logo
Role of MFIs in Serving Micro
   and Small Enterprises
         Survey Results


           May 2012
Publication




The survey results in this presentation are published in CGAP Focus Note 81: “Financing Small
Enterprises: What Role for Microfinance Institutions?” by Jasmina Glisovic and Meritxell Martinez
(July 2012).

For more information please visit: www.cgap.org/publications




                                                                                               2
Outline

1   Research objective, sample, and methodology
    ▫   Objective
    ▫   Regional distribution by institutional type


2   Understanding the difference between micro and small enterprises
    ▫   Informality levels of micro and small enterprises
    ▫   Women-led micro and small enterprises
    ▫   Growth from micro to small enterprises


3   Focus on serving small enterprises
    ▫   MFIs strategies: Why serving small enterprises?
    ▫   Growth trend of small enterprise portfolio
    ▫   Growth trend by region
    ▫   MFIs definition of small enterprises
    ▫   MFIs product offering
    ▫   Market segmentation of small enterprises
    ▫   Competition for small enterprise clients
    ▫   MFIs systems to serve small enterprises (staff/department/monitoring portfolio)
    ▫   Main challenges faced by MFIs
    ▫   Key success factors


                                                                                          3
1   RESEARCH OBJECTIVE, SAMPLE
        AND METHODOLOGY




                                 4
1   Research objective




    To better understand the current and potential
    role of Microfinance Institutions (MFIs) with
    regard to serving small enterprises




                                                     5
1   Sample and research methodology

• Industry survey with over 350 MFIs conducted in Nov-Dec 2011 in 3
  languages (French, Spanish, English)
• Quantitative and qualitative analysis of responses
• MFIs from 69 countries
      Sample distribution by region                                  Institutional type                 Commercial bank
                                                                                                             5%
                                                                                  Rural bank
                                                                                     3%                             Credit
                                                                                                                union/Financial
                                                                                                              cooperative/SACCO
                             EAP                                                                                     12%
             SSA             11%
             21%




                                         ECA                     Non-bank financial
                                         24%                        institution
                                                                       31%                         Microfinance bank
       SA                                                                                                 16%
      13%




            MENA
             10%
                           LAC
                                                                                      NGO/Foundation
                           21%
                                                                                           33%

            NOTE: ECA: Eastern Europe and Central Asia; EAP: East Asia and Pacific; LAC: Latin America and the
                                                                                                                          6
            Caribbean; MENA: Middle East and North Africa; SA: South Asia; SSA: Sub-Saharan Africa.
Diverse regional distribution by institutional
1
         type

    35


                                                                                                Commercial Bank
    30
                                                                                                Credit union/Coop
                                                                                                MF Bank
    25
                                                                                                NGO/Foundation
                                                                                                NBFIs
    20
                                                                                                Rural bank

    15



    10



     5



     0

           EAP          ECA              LAC           MENA               SA              SSA
             NOTE: ECA: Eastern Europe and Central Asia; EAP: East Asia and Pacific; LAC: Latin America and the
             Caribbean; MENA: Middle East and North Africa; SA: South Asia; SSA: Sub-Saharan Africa.              7
2       UNDERSTANDING THE
DIFFERENCES BETWEEN MICRO AND
      SMALL ENTERPRISES




                                8
2       Informality levels of micro and small
        enterprises

                                 MICRO                                                                   SMALL
    SSA                                        82%                            ECA                                                          24%

     SA                                        85%                            SSA                                                 50%

MENA                                           85%                           MENA                                                58%

    LAC                                    88%                                LAC                                                  44%

    ECA                                               57%                     EAP                                                60%

    EAP                                    88%                                 SA                                      81%

           0%           20%      40%            60%       80%         100%          0%          20%       40%              60%         80%         100%

            Up to 25% informal   Between 25-50%       More than 50%                          Up to 25%    Between 25-50%           More than 50%
                                                                                              informal
             informal               informal            informal                                                informal                informal

    N= 206 (*) MFIs estimates                                                       N= 189



                While small enterprises are more formal than micro, informality is
                      widespread in all regions with the exception of ECA.                                                                          9
2        Women-led micro and small enterprises


                                   MICRO                                              SMALL

    EAP                                                             EAP

      SA                                                             SA

    SSA                                                             SSA
                                                           WOMEN                                                  WOMEN

                                                           MEN                                                    MEN
    LAC                                                             LAC


    ECA                                                             ECA


MENA                                                               MENA

                                                                          0%   20%   40%       60%   80%   100%
            0%           20%    40%     60%   80%   100%

                               N= 209                                                 N= 192
    (*) MFIs estimates


            Compared to micro enterprises, small enterprises are less often led by
                           women, specially in MENA and ECA.                       10
                                                                     N=
2   Growth from micro to small enterprises

                      % of enterprises that grow from micro to small
          40%



                         28%


                                        18%


                                                       7%                  8%




     Less than 10%     10-20%         20-50%        Over 50%            Don't know


    40% of MFIs said that less than 10% of their microenterprise clients grow to
                                  become small.

                                                                                     11
                                                               N= 213
3   SERVING SMALL ENTERPRISES:
        INSIGHTS FROM MFIs




                                 12
For most MFIs, serving small enterprises is
3
    part of their business strategy
           Is serving small enterprises part of your strategy?
                                Yes   No   Not yet




                          16%



                   6%




                                           78%




                                                                     13
                                                                 N= 186
Growth trend of MFIs’ small enterprise
3
    portfolio


          69%




                        21%

                                       9%



       Increasing      Stable       Decreasing



                                             N=193   14
Growth trend of MFIs’ small enterprise
3
    portfolio by region


    79%       79%          78%                                            Increasing
                                      68%                                 Stable
                                                                          Decreasing
                                                  55%
                                                              50%


                                                                32%

                                                    23% 23%
                             18%        16% 16%                     18%
        13%     12%
      8%              9%
                                 4%



     EAP       LAC          SSA       MENA          SA         ECA



                                                                      N=193
                                                                               15
3   Why do MFIs serve small enterprises?


             Business growth opportunities                              85%


                                                              69%
           Following micro clients over time                           Main reasons
                                                                       to serve small
                                                                       enterprises
    Increased competitions for micro clients            37%


                         Higher profitability           35%


            Disbursement targets/pressure         21%


                    Incentives from funders     17%


              Incentives from governments       15%



                                                                                          16
                                                                N= 150 Multiple answers
3   MFIs typically characterize small enterprises by
    loan size
                              Criteria used to define small
                                enterprises (% of MFIs)
                        54%


                                          33%


                                                              13%



                      Loan size        Number of       Annual sales
                                       employees

    While “loan size” and “annual sales” differ by country/institution, “number
    of employees” typically ranges from 5 to 30 workers, outside household.



                                                                         N = 114
3     Most MFIs offer small business loans


                                                 Types of services offered
   85%

                 71%
                               63%

                                            49%

                                                            38%         37%
                                                                                   33%
                                                                                               25%
                                                                                                              21%
                                                                                                                                17%



croloan individual business loan
            Small              Group loan Consumer loan    Business
                                                             BDS        Deposit   Insurance   Payments   Remmittances          Overdraft
                                                          Development
                                                            Services

                                                                                                                                 18
                                                                                                     N= 235 Multiple answers
3   Market segmentation of small enterprises


        How do MFIs sub-segment the small enterprise market?

                         5%
                                                Economic sector
                                                (e.g., agriculture, industry, s
                17%                    29%      ervices)
                                                Geographic area
                                                (rural, urban)

                                                Business profitability of
                                                enterprises

                                                Revenue to the MFI

               22%
                                                Other (e.g., gender)

                                 27%




                                                                                   19
                                                         N= 159 Multiple answers
3   Intense competition for small enterprise clients

          Level of competition among financial service
          providers serving small enterprises (% of MFI)



                          Not
                        intense
                          16%
                                        Very
                                      intense
                                        44%

                   Somewhat
                    intense
                      40%




                                                                    20
                                                           N= 197
3     MFI systems to serve small enterprises

        Do you have a separate                      Separate risk methodology by
    methodology for small enterprise                      institutional type
     risk assessment? (% of MFIs)
                                        Commercial banks                72%


                                                Credit unions           71%


                                         Microfinance bank             60%
                                  Yes
                                                                                               Yes
                         49%      No      NGO/Foundation            49%                        No
           51%

                                                      NBFIs        43%


                                                  Rural bank     24%


                                                                0% 20% 40% 60% 80% 100%
                                        N=190


                                                                                          21
3
    44% of MFIs do not monitor micro and small
    enterprise portfolio separately
         Do you monitor micro and small enterprise portfolio
                            separately?




                       44%
                                                       Yes

                                                       No
                                           56%




                                                               N=225
Most MFIs do not have dedicated
3
     staff/department to serve small enterprises
    Do you have dedicated staff for         Do you have a dedicated small
       small enterprise clients?               enterprise department?




         61%                                  70%              30%
                          39%
                                      Yes                                   Yes

                                      No                                    No




               N=201                                  N=202

                                                                        23
3      Main challenges faced by MFIs

Top three internal, external and enterprise-level challenges MFIs
face in serving small enterprises:
                 INTERNAL                              EXTERNAL                            ENTERPRISE-LEVEL

    • Lack of appropriate risk           • High cost of operations                 • Lack of financial statements
    assessment methodologies
                                         • Lack of demand for MFI                  • Business are not registered
    • Management perceives segment       products by enterprises
    as too risky                                                                   • Lack of collateral to secure the
                                         • Restrictive regulations                 loan
    • Inadequate MFI products            (e.g., lending regulations, tax
                                         regime)                                   • No clear separation between
    • Lack of MFI staff capacity to                                                household and business accounts
    analyze the business (e.g., loan     • Lack of credit registry (i.e., credit
    officers)                            bureau)
    • Lack of internal processes (i.e.   • Judicial system (i.e., court
    MIS systems)                         system)
    • High cost of operations            • High competition (e.g., from
                                         banks, other providers)
                                         • Lack of basic infrastructure in
                                         the country (e.g., roads and
                                         electricity)
                                                                                                                    24
3     Main challenges: What MFIs say…




    “Financial statements of small business are often not actual.” NBFI Manager, Armenia


    “The main challenge is the presence of competitors including government institutions.”
     NGO/MFI Chairman of Board and CEO, Iraq


    “In most cases we are not able to serve small businesses as we cannot provide all services
     they need. Even in the case of loans, since small business need larger loans with longer terms”
    NBFI Credit Manager, Bosnia




                                                                                              25
3   Key success factors identified by MFIs

       Client-focused approach
       Commitment from top management and dedicated staff
       Strong risk management
       Flexible products and delivery

    Key success factors: What MFIs say…

    “KYC approach is not enough, to successfully serve small enterprises you need to have a
    BWYC (Be With Your Clients)” NGO/MFI Manager, the Philippines

    “Deep insights and strong relationship with the client” NGO/MFI Executive
    Director, Dominican Republic

    “Having separate, dedicated units for serving micro and small enterprises” Commercial
    Bank Manager, Kenya

                                                                                          26
We welcome your comments, questions and
               examples.

                  CGAP contacts:
 ▫ Jasmina Glisovic     jglisovicmeziere@worldbank.org
 ▫ Meritxell Martinez   mmartinez1@worldbank.org




                                                     27
Advancing financial access for the world’s poor
                 www.cgap.org
           www.microfinancegateway.org

More Related Content

Similar to Financing Small Enterprises: What Role for Microfinance Institutions?

2011 Sub-Saharan Africa Regional Snapshot
2011 Sub-Saharan Africa Regional Snapshot2011 Sub-Saharan Africa Regional Snapshot
2011 Sub-Saharan Africa Regional SnapshotMIX
 
Florent Bédécarrats Combining Social and Financial Performance
Florent Bédécarrats Combining Social and Financial PerformanceFlorent Bédécarrats Combining Social and Financial Performance
Florent Bédécarrats Combining Social and Financial PerformanceMicrocredit Summit Campaign
 
Economic Development Marketing in Canada
Economic Development Marketing in CanadaEconomic Development Marketing in Canada
Economic Development Marketing in Canada
Heather @ Rain
 
Klapper,l savings plenary_presenter1
Klapper,l savings plenary_presenter1Klapper,l savings plenary_presenter1
Klapper,l savings plenary_presenter1
CommSEEP
 
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013 Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Altify
 
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
Edelman
 
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...Altify
 
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...spirecorporate
 
Angel Ron: Banco Popular Gs conference Crisis Junio 2010
Angel Ron: Banco Popular Gs conference Crisis Junio 2010Angel Ron: Banco Popular Gs conference Crisis Junio 2010
Angel Ron: Banco Popular Gs conference Crisis Junio 2010
Banco Popular
 
Sales Webinar | The State of the UK Sales Industry
Sales Webinar | The State of the UK Sales Industry Sales Webinar | The State of the UK Sales Industry
Sales Webinar | The State of the UK Sales Industry Altify
 
metlife Investor Day 2008 International
metlife Investor Day 2008 Internationalmetlife Investor Day 2008 International
metlife Investor Day 2008 Internationalfinance5
 
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
Social Entrepreneurship
 
Winning in the new reality Nestlé in Africa and the Middle East
Winning  in the new reality  Nestlé in Africa and the Middle EastWinning  in the new reality  Nestlé in Africa and the Middle East
Winning in the new reality Nestlé in Africa and the Middle East
Nestlé SA
 
The coca cola co.
The coca cola co.The coca cola co.
The coca cola co.
Vishal Ahuja
 
Angel Ron: European Banks Conference. Crisis
Angel Ron: European Banks Conference. CrisisAngel Ron: European Banks Conference. Crisis
Angel Ron: European Banks Conference. CrisisBanco Popular
 
20090416 Update
20090416 Update20090416 Update
20090416 Update
bcondon42
 
Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2ADFIAP
 
Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2ADFIAP
 

Similar to Financing Small Enterprises: What Role for Microfinance Institutions? (20)

2011 Sub-Saharan Africa Regional Snapshot
2011 Sub-Saharan Africa Regional Snapshot2011 Sub-Saharan Africa Regional Snapshot
2011 Sub-Saharan Africa Regional Snapshot
 
Florent Bédécarrats Combining Social and Financial Performance
Florent Bédécarrats Combining Social and Financial PerformanceFlorent Bédécarrats Combining Social and Financial Performance
Florent Bédécarrats Combining Social and Financial Performance
 
Economic Development Marketing in Canada
Economic Development Marketing in CanadaEconomic Development Marketing in Canada
Economic Development Marketing in Canada
 
Klapper,l savings plenary_presenter1
Klapper,l savings plenary_presenter1Klapper,l savings plenary_presenter1
Klapper,l savings plenary_presenter1
 
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013 Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
Sales Webinar | The Global Sales Industry - Where to Spend Your Time in 2013
 
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries
 
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...
Dealmaker Index - Sales Effectiveness Study | The Global Sales Industry - Whe...
 
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Bank Sinar Bra...
 
Angel Ron: Banco Popular Gs conference Crisis Junio 2010
Angel Ron: Banco Popular Gs conference Crisis Junio 2010Angel Ron: Banco Popular Gs conference Crisis Junio 2010
Angel Ron: Banco Popular Gs conference Crisis Junio 2010
 
Sales Webinar | The State of the UK Sales Industry
Sales Webinar | The State of the UK Sales Industry Sales Webinar | The State of the UK Sales Industry
Sales Webinar | The State of the UK Sales Industry
 
metlife Investor Day 2008 International
metlife Investor Day 2008 Internationalmetlife Investor Day 2008 International
metlife Investor Day 2008 International
 
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
INDEV308 Class 4 - Identifying Business Potential - Serge LeVert-Chiasson, Sa...
 
Q1 2009 Earning Report of Iberiabank Corp
Q1 2009 Earning Report of Iberiabank CorpQ1 2009 Earning Report of Iberiabank Corp
Q1 2009 Earning Report of Iberiabank Corp
 
Winning in the new reality Nestlé in Africa and the Middle East
Winning  in the new reality  Nestlé in Africa and the Middle EastWinning  in the new reality  Nestlé in Africa and the Middle East
Winning in the new reality Nestlé in Africa and the Middle East
 
The coca cola co.
The coca cola co.The coca cola co.
The coca cola co.
 
Angel Ron: European Banks Conference. Crisis
Angel Ron: European Banks Conference. CrisisAngel Ron: European Banks Conference. Crisis
Angel Ron: European Banks Conference. Crisis
 
20090416 Update
20090416 Update20090416 Update
20090416 Update
 
KZero Universe Q4 2012
KZero Universe Q4 2012KZero Universe Q4 2012
KZero Universe Q4 2012
 
Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2
 
Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2Tom Apacible Ceo Panel 2
Tom Apacible Ceo Panel 2
 

More from CGAP

Digital Credit Market Monitoring in Tanzania
Digital Credit Market Monitoring in TanzaniaDigital Credit Market Monitoring in Tanzania
Digital Credit Market Monitoring in Tanzania
CGAP
 
Digitizing Retail Payments: Building a Successful Loyalty Model
Digitizing Retail Payments: Building a Successful Loyalty ModelDigitizing Retail Payments: Building a Successful Loyalty Model
Digitizing Retail Payments: Building a Successful Loyalty Model
CGAP
 
Merchant Payments: Loyalty Playbook
Merchant Payments: Loyalty PlaybookMerchant Payments: Loyalty Playbook
Merchant Payments: Loyalty Playbook
CGAP
 
Merchant Payments: VAS Playbook
Merchant Payments: VAS PlaybookMerchant Payments: VAS Playbook
Merchant Payments: VAS Playbook
CGAP
 
Digitizing Merchant Payments: What Will It Take?
Digitizing Merchant Payments: What Will It Take?Digitizing Merchant Payments: What Will It Take?
Digitizing Merchant Payments: What Will It Take?
CGAP
 
Wallet and Over-the-Counter Transactions: Understanding Financial Incentives
Wallet and Over-the-Counter Transactions: Understanding Financial IncentivesWallet and Over-the-Counter Transactions: Understanding Financial Incentives
Wallet and Over-the-Counter Transactions: Understanding Financial Incentives
CGAP
 
Real-Time Customer Interactions via SMS (Juntos and Mynt)
Real-Time Customer Interactions via SMS (Juntos and Mynt)Real-Time Customer Interactions via SMS (Juntos and Mynt)
Real-Time Customer Interactions via SMS (Juntos and Mynt)
CGAP
 
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
CGAP
 
The Emerging Landscape of Digital Credit
The Emerging Landscape of Digital CreditThe Emerging Landscape of Digital Credit
The Emerging Landscape of Digital Credit
CGAP
 
Global Landscape Study on P2G Payments (India)
Global Landscape Study on P2G Payments (India)Global Landscape Study on P2G Payments (India)
Global Landscape Study on P2G Payments (India)
CGAP
 
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
CGAP
 
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
CGAP
 
OXXO's Saldazo: Successes and Challenges
OXXO's Saldazo: Successes and ChallengesOXXO's Saldazo: Successes and Challenges
OXXO's Saldazo: Successes and Challenges
CGAP
 
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
CGAP
 
Customer Segmentation: Design and Delivery (Webinar)
Customer Segmentation: Design and Delivery (Webinar)Customer Segmentation: Design and Delivery (Webinar)
Customer Segmentation: Design and Delivery (Webinar)
CGAP
 
Why Star Ratings Matter for Financial Inclusion
Why Star Ratings Matter for Financial InclusionWhy Star Ratings Matter for Financial Inclusion
Why Star Ratings Matter for Financial Inclusion
CGAP
 
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’IvoireServices Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
CGAP
 
Digital Financial Services for Cocoa Farmers in Côte d'Ivoire
Digital Financial Services for Cocoa Farmers in Côte d'IvoireDigital Financial Services for Cocoa Farmers in Côte d'Ivoire
Digital Financial Services for Cocoa Farmers in Côte d'Ivoire
CGAP
 
Digital Finance and Innovations in Education: Workshop Report
Digital Finance and Innovations in Education: Workshop ReportDigital Finance and Innovations in Education: Workshop Report
Digital Finance and Innovations in Education: Workshop Report
CGAP
 
An Introduction to Digital Credit: Resources to Plan a Deployment
An Introduction to Digital Credit: Resources to Plan a DeploymentAn Introduction to Digital Credit: Resources to Plan a Deployment
An Introduction to Digital Credit: Resources to Plan a Deployment
CGAP
 

More from CGAP (20)

Digital Credit Market Monitoring in Tanzania
Digital Credit Market Monitoring in TanzaniaDigital Credit Market Monitoring in Tanzania
Digital Credit Market Monitoring in Tanzania
 
Digitizing Retail Payments: Building a Successful Loyalty Model
Digitizing Retail Payments: Building a Successful Loyalty ModelDigitizing Retail Payments: Building a Successful Loyalty Model
Digitizing Retail Payments: Building a Successful Loyalty Model
 
Merchant Payments: Loyalty Playbook
Merchant Payments: Loyalty PlaybookMerchant Payments: Loyalty Playbook
Merchant Payments: Loyalty Playbook
 
Merchant Payments: VAS Playbook
Merchant Payments: VAS PlaybookMerchant Payments: VAS Playbook
Merchant Payments: VAS Playbook
 
Digitizing Merchant Payments: What Will It Take?
Digitizing Merchant Payments: What Will It Take?Digitizing Merchant Payments: What Will It Take?
Digitizing Merchant Payments: What Will It Take?
 
Wallet and Over-the-Counter Transactions: Understanding Financial Incentives
Wallet and Over-the-Counter Transactions: Understanding Financial IncentivesWallet and Over-the-Counter Transactions: Understanding Financial Incentives
Wallet and Over-the-Counter Transactions: Understanding Financial Incentives
 
Real-Time Customer Interactions via SMS (Juntos and Mynt)
Real-Time Customer Interactions via SMS (Juntos and Mynt)Real-Time Customer Interactions via SMS (Juntos and Mynt)
Real-Time Customer Interactions via SMS (Juntos and Mynt)
 
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
Real-Time Customer Interactions via SMS (Juntos and Tigo Money)
 
The Emerging Landscape of Digital Credit
The Emerging Landscape of Digital CreditThe Emerging Landscape of Digital Credit
The Emerging Landscape of Digital Credit
 
Global Landscape Study on P2G Payments (India)
Global Landscape Study on P2G Payments (India)Global Landscape Study on P2G Payments (India)
Global Landscape Study on P2G Payments (India)
 
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
Global Landscape Study on P2G Payments: Summary of in-country consumer resear...
 
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
Digital Rails: How Providers Can Unlock Innovation in DFS Ecosystems Through ...
 
OXXO's Saldazo: Successes and Challenges
OXXO's Saldazo: Successes and ChallengesOXXO's Saldazo: Successes and Challenges
OXXO's Saldazo: Successes and Challenges
 
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
Smartphones & Mobile Money: Principles for UI/UX Design (1.0)
 
Customer Segmentation: Design and Delivery (Webinar)
Customer Segmentation: Design and Delivery (Webinar)Customer Segmentation: Design and Delivery (Webinar)
Customer Segmentation: Design and Delivery (Webinar)
 
Why Star Ratings Matter for Financial Inclusion
Why Star Ratings Matter for Financial InclusionWhy Star Ratings Matter for Financial Inclusion
Why Star Ratings Matter for Financial Inclusion
 
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’IvoireServices Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
Services Financiers Numériques pour les Producteurs de Cacao en Côte d’Ivoire
 
Digital Financial Services for Cocoa Farmers in Côte d'Ivoire
Digital Financial Services for Cocoa Farmers in Côte d'IvoireDigital Financial Services for Cocoa Farmers in Côte d'Ivoire
Digital Financial Services for Cocoa Farmers in Côte d'Ivoire
 
Digital Finance and Innovations in Education: Workshop Report
Digital Finance and Innovations in Education: Workshop ReportDigital Finance and Innovations in Education: Workshop Report
Digital Finance and Innovations in Education: Workshop Report
 
An Introduction to Digital Credit: Resources to Plan a Deployment
An Introduction to Digital Credit: Resources to Plan a DeploymentAn Introduction to Digital Credit: Resources to Plan a Deployment
An Introduction to Digital Credit: Resources to Plan a Deployment
 

Recently uploaded

APP I Lecture Notes to students 0f 4the year
APP I  Lecture Notes  to students 0f 4the yearAPP I  Lecture Notes  to students 0f 4the year
APP I Lecture Notes to students 0f 4the year
telilaalilemlem
 
how can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYChow can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYC
DOT TECH
 
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdfPensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Henry Tapper
 
What website can I sell pi coins securely.
What website can I sell pi coins securely.What website can I sell pi coins securely.
What website can I sell pi coins securely.
DOT TECH
 
How Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit RatingsHow Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit Ratings
Shaheen Kumar
 
The secret way to sell pi coins effortlessly.
The secret way to sell pi coins effortlessly.The secret way to sell pi coins effortlessly.
The secret way to sell pi coins effortlessly.
DOT TECH
 
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
muslimdavidovich670
 
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
obyzuk
 
Analyzing the instability of equilibrium in thr harrod domar model
Analyzing the instability of equilibrium in thr harrod domar modelAnalyzing the instability of equilibrium in thr harrod domar model
Analyzing the instability of equilibrium in thr harrod domar model
ManthanBhardwaj4
 
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdfWhich Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Kezex (KZX)
 
when will pi network coin be available on crypto exchange.
when will pi network coin be available on crypto exchange.when will pi network coin be available on crypto exchange.
when will pi network coin be available on crypto exchange.
DOT TECH
 
This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...
lamluanvan.net Viết thuê luận văn
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
VishnuVenugopal84
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
University of Calabria
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
DOT TECH
 
Transkredit Finance Company Products Presentation (1).pptx
Transkredit Finance Company Products Presentation (1).pptxTranskredit Finance Company Products Presentation (1).pptx
Transkredit Finance Company Products Presentation (1).pptx
jenomjaneh
 
can I really make money with pi network.
can I really make money with pi network.can I really make money with pi network.
can I really make money with pi network.
DOT TECH
 
how to swap pi coins to foreign currency withdrawable.
how to swap pi coins to foreign currency withdrawable.how to swap pi coins to foreign currency withdrawable.
how to swap pi coins to foreign currency withdrawable.
DOT TECH
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
Neal Brewster
 
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Role of Information Technology in Revenue  - Prof Oyedokun.pptxRole of Information Technology in Revenue  - Prof Oyedokun.pptx
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 

Recently uploaded (20)

APP I Lecture Notes to students 0f 4the year
APP I  Lecture Notes  to students 0f 4the yearAPP I  Lecture Notes  to students 0f 4the year
APP I Lecture Notes to students 0f 4the year
 
how can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYChow can I sell pi coins after successfully completing KYC
how can I sell pi coins after successfully completing KYC
 
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdfPensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
Pensions and housing - Pensions PlayPen - 4 June 2024 v3 (1).pdf
 
What website can I sell pi coins securely.
What website can I sell pi coins securely.What website can I sell pi coins securely.
What website can I sell pi coins securely.
 
How Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit RatingsHow Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit Ratings
 
The secret way to sell pi coins effortlessly.
The secret way to sell pi coins effortlessly.The secret way to sell pi coins effortlessly.
The secret way to sell pi coins effortlessly.
 
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
 
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
一比一原版(GWU,GW毕业证)加利福尼亚大学|尔湾分校毕业证如何办理
 
Analyzing the instability of equilibrium in thr harrod domar model
Analyzing the instability of equilibrium in thr harrod domar modelAnalyzing the instability of equilibrium in thr harrod domar model
Analyzing the instability of equilibrium in thr harrod domar model
 
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdfWhich Crypto to Buy Today for Short-Term in May-June 2024.pdf
Which Crypto to Buy Today for Short-Term in May-June 2024.pdf
 
when will pi network coin be available on crypto exchange.
when will pi network coin be available on crypto exchange.when will pi network coin be available on crypto exchange.
when will pi network coin be available on crypto exchange.
 
This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...This assessment plan proposal is to outline a structured approach to evaluati...
This assessment plan proposal is to outline a structured approach to evaluati...
 
Introduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.pptIntroduction to Value Added Tax System.ppt
Introduction to Value Added Tax System.ppt
 
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...Eco-Innovations and Firm Heterogeneity.Evidence from Italian Family and Nonf...
Eco-Innovations and Firm Heterogeneity. Evidence from Italian Family and Nonf...
 
where can I find a legit pi merchant online
where can I find a legit pi merchant onlinewhere can I find a legit pi merchant online
where can I find a legit pi merchant online
 
Transkredit Finance Company Products Presentation (1).pptx
Transkredit Finance Company Products Presentation (1).pptxTranskredit Finance Company Products Presentation (1).pptx
Transkredit Finance Company Products Presentation (1).pptx
 
can I really make money with pi network.
can I really make money with pi network.can I really make money with pi network.
can I really make money with pi network.
 
how to swap pi coins to foreign currency withdrawable.
how to swap pi coins to foreign currency withdrawable.how to swap pi coins to foreign currency withdrawable.
how to swap pi coins to foreign currency withdrawable.
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
 
Role of Information Technology in Revenue - Prof Oyedokun.pptx
Role of Information Technology in Revenue  - Prof Oyedokun.pptxRole of Information Technology in Revenue  - Prof Oyedokun.pptx
Role of Information Technology in Revenue - Prof Oyedokun.pptx
 

Financing Small Enterprises: What Role for Microfinance Institutions?

  • 1. Role of MFIs in Serving Micro and Small Enterprises Survey Results May 2012
  • 2. Publication The survey results in this presentation are published in CGAP Focus Note 81: “Financing Small Enterprises: What Role for Microfinance Institutions?” by Jasmina Glisovic and Meritxell Martinez (July 2012). For more information please visit: www.cgap.org/publications 2
  • 3. Outline 1 Research objective, sample, and methodology ▫ Objective ▫ Regional distribution by institutional type 2 Understanding the difference between micro and small enterprises ▫ Informality levels of micro and small enterprises ▫ Women-led micro and small enterprises ▫ Growth from micro to small enterprises 3 Focus on serving small enterprises ▫ MFIs strategies: Why serving small enterprises? ▫ Growth trend of small enterprise portfolio ▫ Growth trend by region ▫ MFIs definition of small enterprises ▫ MFIs product offering ▫ Market segmentation of small enterprises ▫ Competition for small enterprise clients ▫ MFIs systems to serve small enterprises (staff/department/monitoring portfolio) ▫ Main challenges faced by MFIs ▫ Key success factors 3
  • 4. 1 RESEARCH OBJECTIVE, SAMPLE AND METHODOLOGY 4
  • 5. 1 Research objective To better understand the current and potential role of Microfinance Institutions (MFIs) with regard to serving small enterprises 5
  • 6. 1 Sample and research methodology • Industry survey with over 350 MFIs conducted in Nov-Dec 2011 in 3 languages (French, Spanish, English) • Quantitative and qualitative analysis of responses • MFIs from 69 countries Sample distribution by region Institutional type Commercial bank 5% Rural bank 3% Credit union/Financial cooperative/SACCO EAP 12% SSA 11% 21% ECA Non-bank financial 24% institution 31% Microfinance bank SA 16% 13% MENA 10% LAC NGO/Foundation 21% 33% NOTE: ECA: Eastern Europe and Central Asia; EAP: East Asia and Pacific; LAC: Latin America and the 6 Caribbean; MENA: Middle East and North Africa; SA: South Asia; SSA: Sub-Saharan Africa.
  • 7. Diverse regional distribution by institutional 1 type 35 Commercial Bank 30 Credit union/Coop MF Bank 25 NGO/Foundation NBFIs 20 Rural bank 15 10 5 0 EAP ECA LAC MENA SA SSA NOTE: ECA: Eastern Europe and Central Asia; EAP: East Asia and Pacific; LAC: Latin America and the Caribbean; MENA: Middle East and North Africa; SA: South Asia; SSA: Sub-Saharan Africa. 7
  • 8. 2 UNDERSTANDING THE DIFFERENCES BETWEEN MICRO AND SMALL ENTERPRISES 8
  • 9. 2 Informality levels of micro and small enterprises MICRO SMALL SSA 82% ECA 24% SA 85% SSA 50% MENA 85% MENA 58% LAC 88% LAC 44% ECA 57% EAP 60% EAP 88% SA 81% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Up to 25% informal Between 25-50% More than 50% Up to 25% Between 25-50% More than 50% informal informal informal informal informal informal N= 206 (*) MFIs estimates N= 189 While small enterprises are more formal than micro, informality is widespread in all regions with the exception of ECA. 9
  • 10. 2 Women-led micro and small enterprises MICRO SMALL EAP EAP SA SA SSA SSA WOMEN WOMEN MEN MEN LAC LAC ECA ECA MENA MENA 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% N= 209 N= 192 (*) MFIs estimates Compared to micro enterprises, small enterprises are less often led by women, specially in MENA and ECA. 10 N=
  • 11. 2 Growth from micro to small enterprises % of enterprises that grow from micro to small 40% 28% 18% 7% 8% Less than 10% 10-20% 20-50% Over 50% Don't know 40% of MFIs said that less than 10% of their microenterprise clients grow to become small. 11 N= 213
  • 12. 3 SERVING SMALL ENTERPRISES: INSIGHTS FROM MFIs 12
  • 13. For most MFIs, serving small enterprises is 3 part of their business strategy Is serving small enterprises part of your strategy? Yes No Not yet 16% 6% 78% 13 N= 186
  • 14. Growth trend of MFIs’ small enterprise 3 portfolio 69% 21% 9% Increasing Stable Decreasing N=193 14
  • 15. Growth trend of MFIs’ small enterprise 3 portfolio by region 79% 79% 78% Increasing 68% Stable Decreasing 55% 50% 32% 23% 23% 18% 16% 16% 18% 13% 12% 8% 9% 4% EAP LAC SSA MENA SA ECA N=193 15
  • 16. 3 Why do MFIs serve small enterprises? Business growth opportunities 85% 69% Following micro clients over time Main reasons to serve small enterprises Increased competitions for micro clients 37% Higher profitability 35% Disbursement targets/pressure 21% Incentives from funders 17% Incentives from governments 15% 16 N= 150 Multiple answers
  • 17. 3 MFIs typically characterize small enterprises by loan size Criteria used to define small enterprises (% of MFIs) 54% 33% 13% Loan size Number of Annual sales employees While “loan size” and “annual sales” differ by country/institution, “number of employees” typically ranges from 5 to 30 workers, outside household. N = 114
  • 18. 3 Most MFIs offer small business loans Types of services offered 85% 71% 63% 49% 38% 37% 33% 25% 21% 17% croloan individual business loan Small Group loan Consumer loan Business BDS Deposit Insurance Payments Remmittances Overdraft Development Services 18 N= 235 Multiple answers
  • 19. 3 Market segmentation of small enterprises How do MFIs sub-segment the small enterprise market? 5% Economic sector (e.g., agriculture, industry, s 17% 29% ervices) Geographic area (rural, urban) Business profitability of enterprises Revenue to the MFI 22% Other (e.g., gender) 27% 19 N= 159 Multiple answers
  • 20. 3 Intense competition for small enterprise clients Level of competition among financial service providers serving small enterprises (% of MFI) Not intense 16% Very intense 44% Somewhat intense 40% 20 N= 197
  • 21. 3 MFI systems to serve small enterprises Do you have a separate Separate risk methodology by methodology for small enterprise institutional type risk assessment? (% of MFIs) Commercial banks 72% Credit unions 71% Microfinance bank 60% Yes Yes 49% No NGO/Foundation 49% No 51% NBFIs 43% Rural bank 24% 0% 20% 40% 60% 80% 100% N=190 21
  • 22. 3 44% of MFIs do not monitor micro and small enterprise portfolio separately Do you monitor micro and small enterprise portfolio separately? 44% Yes No 56% N=225
  • 23. Most MFIs do not have dedicated 3 staff/department to serve small enterprises Do you have dedicated staff for Do you have a dedicated small small enterprise clients? enterprise department? 61% 70% 30% 39% Yes Yes No No N=201 N=202 23
  • 24. 3 Main challenges faced by MFIs Top three internal, external and enterprise-level challenges MFIs face in serving small enterprises: INTERNAL EXTERNAL ENTERPRISE-LEVEL • Lack of appropriate risk • High cost of operations • Lack of financial statements assessment methodologies • Lack of demand for MFI • Business are not registered • Management perceives segment products by enterprises as too risky • Lack of collateral to secure the • Restrictive regulations loan • Inadequate MFI products (e.g., lending regulations, tax regime) • No clear separation between • Lack of MFI staff capacity to household and business accounts analyze the business (e.g., loan • Lack of credit registry (i.e., credit officers) bureau) • Lack of internal processes (i.e. • Judicial system (i.e., court MIS systems) system) • High cost of operations • High competition (e.g., from banks, other providers) • Lack of basic infrastructure in the country (e.g., roads and electricity) 24
  • 25. 3 Main challenges: What MFIs say… “Financial statements of small business are often not actual.” NBFI Manager, Armenia “The main challenge is the presence of competitors including government institutions.” NGO/MFI Chairman of Board and CEO, Iraq “In most cases we are not able to serve small businesses as we cannot provide all services they need. Even in the case of loans, since small business need larger loans with longer terms” NBFI Credit Manager, Bosnia 25
  • 26. 3 Key success factors identified by MFIs  Client-focused approach  Commitment from top management and dedicated staff  Strong risk management  Flexible products and delivery Key success factors: What MFIs say… “KYC approach is not enough, to successfully serve small enterprises you need to have a BWYC (Be With Your Clients)” NGO/MFI Manager, the Philippines “Deep insights and strong relationship with the client” NGO/MFI Executive Director, Dominican Republic “Having separate, dedicated units for serving micro and small enterprises” Commercial Bank Manager, Kenya 26
  • 27. We welcome your comments, questions and examples. CGAP contacts: ▫ Jasmina Glisovic jglisovicmeziere@worldbank.org ▫ Meritxell Martinez mmartinez1@worldbank.org 27
  • 28. Advancing financial access for the world’s poor www.cgap.org www.microfinancegateway.org

Editor's Notes

  1. In December 2011 CGAP conducted a survey to understand the role of MFIs in serving micro and small businesses. Around 300 MFIs responded to the survey sent to a larger number of institutions (including those in the MIX Market database), mostly from SSA, ECA, and LAC. Some countries predominantly represented in the survey include Azerbaijan, India, Philippines, and Tajikistan. By institutional type, most participating MFIs were nonbank financial institutions and NGOs/foundations. Additional information was gathered from ASA Philippines, Women World Banking Colombia, Cooperative Housing Foundation (CHF), Cresol Brazil, Access Tanzania, ACEP Senegal, InternationaleProjekt Consult (IPC), IFC’s A2F Risk Management Department and the Small Business Banking Network (SBBN).