SlideShare a Scribd company logo

Competition in microfinance

•Download as PPT, PDF•
•
S
snb9899

The document discusses competition in the Indian microfinance sector and its effects. It presents results from a study analyzing loan repayment data from multiple MFIs with over 500,000 client records. The study found that approximately 10% of MFI clients had loans from multiple lenders. Interviews with these clients suggested they borrowed from multiple MFIs primarily to obtain larger loan sizes or as a backup in case of default. While competition benefits customers through lower rates and better service, concerns remain around potential negatives like over-indebtedness and mission drift. The document advocates further research to better understand the impacts of competition.

Economy & FinanceTechnology
1 of 22
Competition in the Indian Microfinance Sector Doug Johnson Center for Microfinance Institute for Financial Management & Research
[object Object],[object Object],[object Object],[object Object]
Phenomenal Growth in Microfinance Is Leading to Increasing Levels of Competition ,[object Object],[object Object],[object Object],[object Object],% women member of MFI or SHG by district as of March 2005 *Prabhu Ghate, “Consumer Protection in Indian Microfinance Lessons from Andhra Pradesh and the Microfinance Bill”, Economic and Political Weekly, March 31, 2007 ** APMAS, “Voice of people on lending practices of microfinance institutions in Krishna and Guntur District of Andhra Pradesh” , APMAS Report, Andhra Pradesh, 2006
In most cases competition benefits end customers… Inefficient MFIs and MFIs with poorly designed products or poor customer service forced to adopt products and strategies of competitors or face bankruptcy. Net result is… ,[object Object],[object Object],[object Object]
…but competition may have negative effects as well ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
A Quantitative Analysis of MFI Client Data by Karuna Krishnaswamy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Potential Motivations for Multiple Borrowing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data ,[object Object],[object Object],[object Object],[object Object],Approx % of total client base # of distinct urban colonies # of distinct villages # of clients MFI 10.04% 359 926 77612 MFI7 22.04% 287 1195 38546 MFI6 NA 0 142 20869 MFI5 87.26% 604 0 41662 MFI4 30.31% 64 226 5146 MFI3 51.21% 166 2819 244396 MFI2 41.22% 197 1420 147152 MFI1 Summary Statistics
Brief Background on Partnership Model ,[object Object],[object Object],[object Object]
Name Matching Client records compared across all MFIs to identify multiple borrowers ,[object Object],[object Object],[object Object],[object Object],[object Object]
Limitations and Potential Biases ,[object Object],[object Object],[object Object],[object Object]
Key results from quantitative analysis ,[object Object],[object Object],[object Object],[object Object]
Results from interviews with multiple borrowers In depth interviews were conducted with twenty one multiple borrowers from among those identified in the quantitative analysis. All multiple borrowers interviewed belonged to one branch of one MFI. Among these 21 borrowers… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Results from interviews with sector experts As part of the study, 20 sector experts, including several managers of large MFIs, were asked various questions regarding issues of competition and multiple borrowing. ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Map of Microfinance The CMF, in collaboration with 17 major MFIs and with the support of the Swiss Development Corporation, has created a district-by-district map of MFI and SHG coverage for 2005 and 2006. MFIs Which Provided Data for Latest Round (2006) ,[object Object],[object Object],6631 Satin Care 73368 GV 14268 IASC 84349 SNFL 22814 KBSLAB 123359 CMC 23081 Kotalipara 132027 BASIX 40915 GK 132027 BISWA 44434 ESAF 149886 Bandhan 48352 Mahasemam 172970 SKS 53932 VWS 772775 Spandana Total # Active Borrowers 2006 MFI Total # Active Borrowers 2006 MFI
Sample Map Detail: Andhra Pradesh Snapshot
Planned Additions to Map of Microfinance for 2007 ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Further CMF Research ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Recommended

Microfinance :a step towards women empowerment
Microfinance :a step towards women empowermentMicrofinance :a step towards women empowerment
Microfinance :a step towards women empowerment
Nishu Kanwar
 
Micro Finance In India
Micro Finance In IndiaMicro Finance In India
Micro Finance In IndiaTenendra Tembhare
 
MFI Presentation
MFI PresentationMFI Presentation
MFI PresentationHaimanot Minwuye
 
Micro finance
Micro financeMicro finance
Micro finance
Jotpal Singh
 
Ppt on micro finance
Ppt on micro financePpt on micro finance
Ppt on micro finance
riya06
 
Sme banking
Sme bankingSme banking
Sme banking
Md. Sharif Hossain Sabbir
 
Microfinance - Shades of Sustainability
Microfinance - Shades of SustainabilityMicrofinance - Shades of Sustainability
Microfinance - Shades of SustainabilityAkhil Prabhakar
 
Microfinance in India
Microfinance in IndiaMicrofinance in India
Microfinance in IndiaSudip Dutta
 

Recommended

Microfinance :a step towards women empowerment
Microfinance :a step towards women empowermentMicrofinance :a step towards women empowerment
Microfinance :a step towards women empowerment
Nishu Kanwar
 
Micro Finance In India
Micro Finance In IndiaMicro Finance In India
Micro Finance In IndiaTenendra Tembhare
 
MFI Presentation
MFI PresentationMFI Presentation
MFI PresentationHaimanot Minwuye
 
Micro finance
Micro financeMicro finance
Micro finance
Jotpal Singh
 
Ppt on micro finance
Ppt on micro financePpt on micro finance
Ppt on micro finance
riya06
 
Sme banking
Sme bankingSme banking
Sme banking
Md. Sharif Hossain Sabbir
 
Microfinance - Shades of Sustainability
Microfinance - Shades of SustainabilityMicrofinance - Shades of Sustainability
Microfinance - Shades of SustainabilityAkhil Prabhakar
 
Microfinance in India
Microfinance in IndiaMicrofinance in India
Microfinance in IndiaSudip Dutta
 
Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69domsr
 
Report On Micro Finance
Report On Micro FinanceReport On Micro Finance
Report On Micro Financealwkdi83
 
Micro finance
Micro financeMicro finance
Micro finance
st.Joseph's college Irinjalakuda
 
Microfinance
MicrofinanceMicrofinance
Microfinance
ICFAI Business School
 
Microfinance in India
Microfinance in IndiaMicrofinance in India
Microfinance in India
Ishan Parekh
 
Project on Rural Bankking
Project on Rural BankkingProject on Rural Bankking
Project on Rural BankkingSubhajit Sar
 
Microfinance in India
Microfinance in India Microfinance in India
Microfinance in India
Shouryadipta Ghosh
 
Digitalization of Banking in bangladesh
Digitalization of Banking in bangladeshDigitalization of Banking in bangladesh
Digitalization of Banking in bangladesh
Mohammad Al Amin
 
Fintech In Bangladesh - Bkash
Fintech In Bangladesh - BkashFintech In Bangladesh - Bkash
Fintech In Bangladesh - Bkash
SabereenFaruqueSafa
 
Microfinance in india
Microfinance in indiaMicrofinance in india
Microfinance in india
Malko29
 
Microlending Basics
Microlending BasicsMicrolending Basics
Microlending Basics
Emily Williams
 
History of micro finance
History of micro financeHistory of micro finance
History of micro finance
heba bashier
 
Microfinance and women empowerment
Microfinance and women empowermentMicrofinance and women empowerment
Microfinance and women empowerment
Harsh Tayal
 
Introduction To Microcredit And Microfinance
Introduction To Microcredit And MicrofinanceIntroduction To Microcredit And Microfinance
Introduction To Microcredit And Microfinance
peter_nakamura
 
Microfinance
MicrofinanceMicrofinance
Microfinance
International advisers
 
Karur vysya bank
Karur vysya bankKarur vysya bank
Karur vysya bank
rakesh m
 
Empowering women through micro finance
Empowering women through micro financeEmpowering women through micro finance
Empowering women through micro finance
Rashneel Dhillon
 
Micro finance
Micro financeMicro finance
Micro finance
Mohit Chauhan
 
Impact Of Micro finance in India
Impact Of Micro finance in IndiaImpact Of Micro finance in India
Impact Of Micro finance in India
TilikaChawda
 
Impact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty AlleviationImpact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty Alleviation
Nitesh Khatiwada
 
2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report
Mitek
 
SME Finance--a Global Perspective
SME Finance--a Global PerspectiveSME Finance--a Global Perspective
SME Finance--a Global Perspective
SME Finance Forum
 

More Related Content

What's hot

Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69domsr
 
Report On Micro Finance
Report On Micro FinanceReport On Micro Finance
Report On Micro Financealwkdi83
 
Micro finance
Micro financeMicro finance
Micro finance
st.Joseph's college Irinjalakuda
 
Microfinance
MicrofinanceMicrofinance
Microfinance
ICFAI Business School
 
Microfinance in India
Microfinance in IndiaMicrofinance in India
Microfinance in India
Ishan Parekh
 
Project on Rural Bankking
Project on Rural BankkingProject on Rural Bankking
Project on Rural BankkingSubhajit Sar
 
Microfinance in India
Microfinance in India Microfinance in India
Microfinance in India
Shouryadipta Ghosh
 
Digitalization of Banking in bangladesh
Digitalization of Banking in bangladeshDigitalization of Banking in bangladesh
Digitalization of Banking in bangladesh
Mohammad Al Amin
 
Fintech In Bangladesh - Bkash
Fintech In Bangladesh - BkashFintech In Bangladesh - Bkash
Fintech In Bangladesh - Bkash
SabereenFaruqueSafa
 
Microfinance in india
Microfinance in indiaMicrofinance in india
Microfinance in india
Malko29
 
Microlending Basics
Microlending BasicsMicrolending Basics
Microlending Basics
Emily Williams
 
History of micro finance
History of micro financeHistory of micro finance
History of micro finance
heba bashier
 
Microfinance and women empowerment
Microfinance and women empowermentMicrofinance and women empowerment
Microfinance and women empowerment
Harsh Tayal
 
Introduction To Microcredit And Microfinance
Introduction To Microcredit And MicrofinanceIntroduction To Microcredit And Microfinance
Introduction To Microcredit And Microfinance
peter_nakamura
 
Microfinance
MicrofinanceMicrofinance
Microfinance
International advisers
 
Karur vysya bank
Karur vysya bankKarur vysya bank
Karur vysya bank
rakesh m
 
Empowering women through micro finance
Empowering women through micro financeEmpowering women through micro finance
Empowering women through micro finance
Rashneel Dhillon
 
Micro finance
Micro financeMicro finance
Micro finance
Mohit Chauhan
 
Impact Of Micro finance in India
Impact Of Micro finance in IndiaImpact Of Micro finance in India
Impact Of Micro finance in India
TilikaChawda
 
Impact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty AlleviationImpact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty Alleviation
Nitesh Khatiwada
 

What's hot (20)

Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69Micro finance institution(mf-is)_20_26_36_49_69
Micro finance institution(mf-is)_20_26_36_49_69
 
Report On Micro Finance
Report On Micro FinanceReport On Micro Finance
Report On Micro Finance
 
Micro finance
Micro financeMicro finance
Micro finance
 
Microfinance
MicrofinanceMicrofinance
Microfinance
 
Microfinance in India
Microfinance in IndiaMicrofinance in India
Microfinance in India
 
Project on Rural Bankking
Project on Rural BankkingProject on Rural Bankking
Project on Rural Bankking
 
Microfinance in India
Microfinance in India Microfinance in India
Microfinance in India
 
Digitalization of Banking in bangladesh
Digitalization of Banking in bangladeshDigitalization of Banking in bangladesh
Digitalization of Banking in bangladesh
 
Fintech In Bangladesh - Bkash
Fintech In Bangladesh - BkashFintech In Bangladesh - Bkash
Fintech In Bangladesh - Bkash
 
Microfinance in india
Microfinance in indiaMicrofinance in india
Microfinance in india
 
Microlending Basics
Microlending BasicsMicrolending Basics
Microlending Basics
 
History of micro finance
History of micro financeHistory of micro finance
History of micro finance
 
Microfinance and women empowerment
Microfinance and women empowermentMicrofinance and women empowerment
Microfinance and women empowerment
 
Introduction To Microcredit And Microfinance
Introduction To Microcredit And MicrofinanceIntroduction To Microcredit And Microfinance
Introduction To Microcredit And Microfinance
 
Microfinance
MicrofinanceMicrofinance
Microfinance
 
Karur vysya bank
Karur vysya bankKarur vysya bank
Karur vysya bank
 
Empowering women through micro finance
Empowering women through micro financeEmpowering women through micro finance
Empowering women through micro finance
 
Micro finance
Micro financeMicro finance
Micro finance
 
Impact Of Micro finance in India
Impact Of Micro finance in IndiaImpact Of Micro finance in India
Impact Of Micro finance in India
 
Impact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty AlleviationImpact of Microfinance on Poverty Alleviation
Impact of Microfinance on Poverty Alleviation
 

Similar to Competition in microfinance

2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report
Mitek
 
SME Finance--a Global Perspective
SME Finance--a Global PerspectiveSME Finance--a Global Perspective
SME Finance--a Global Perspective
SME Finance Forum
 
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
Aseem Srivastava
 
Andhra Pradesh MFI Crisis and its Impact on Clients
Andhra Pradesh MFI Crisis and its Impact on ClientsAndhra Pradesh MFI Crisis and its Impact on Clients
Andhra Pradesh MFI Crisis and its Impact on Clients
MicroSave - Financial Inclusion Consulting
 
FICCI IBA Bankers' Survey (July - December 2017)
FICCI IBA Bankers' Survey (July - December 2017)FICCI IBA Bankers' Survey (July - December 2017)
FICCI IBA Bankers' Survey (July - December 2017)
Nitine
 
FICCI IBA Bankers' Survey
FICCI IBA Bankers' Survey FICCI IBA Bankers' Survey
FICCI IBA Bankers' Survey
Federation of Indian Chambers of Commerce & Industry (FICCI)
 
FICCI IBA Bankers Survey Report | July - December 2016
FICCI IBA Bankers Survey Report | July - December 2016FICCI IBA Bankers Survey Report | July - December 2016
FICCI IBA Bankers Survey Report | July - December 2016
Federation of Indian Chambers of Commerce & Industry (FICCI)
 
Accenture Purpose Driven Banking
Accenture Purpose Driven BankingAccenture Purpose Driven Banking
Accenture Purpose Driven Banking
accenture
 
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
adriancook
 
The future of microfinance in india
The future of microfinance in indiaThe future of microfinance in india
The future of microfinance in indiasatrujeetsahoo
 
Effect of Credit Information Bureau and Appraisal Methods on performance of C...
Effect of Credit Information Bureau and Appraisal Methods on performance of C...Effect of Credit Information Bureau and Appraisal Methods on performance of C...
Effect of Credit Information Bureau and Appraisal Methods on performance of C...
AI Publications
 
2014Liquidity-FINAL
2014Liquidity-FINAL2014Liquidity-FINAL
2014Liquidity-FINALKevin Roth
 
04 003-executive summary
04 003-executive summary04 003-executive summary
04 003-executive summarygayusen
 
Building profitable relationships with multichannel consumers
Building profitable relationships with multichannel consumersBuilding profitable relationships with multichannel consumers
Building profitable relationships with multichannel consumers
Paul McAdam
 
Banking industry-outlook-survey
Banking industry-outlook-surveyBanking industry-outlook-survey
Banking industry-outlook-survey
Bankir_Ru
 
Business strategy and sustainability of microfinance institutions in ghana
Business strategy and sustainability of microfinance institutions in ghanaBusiness strategy and sustainability of microfinance institutions in ghana
Business strategy and sustainability of microfinance institutions in ghana
Alexander Decker
 
N srinivasan
N srinivasanN srinivasan
N srinivasansnb9899
 
Stocktaking on SME Finance
Stocktaking on SME Finance Stocktaking on SME Finance
Stocktaking on SME Finance
SME Finance Forum
 
Annie duflo
Annie dufloAnnie duflo
Annie duflosnb9899
 

Similar to Competition in microfinance (20)

2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report2017 Mobile Deposit Benchmark Report
2017 Mobile Deposit Benchmark Report
 
SME Finance--a Global Perspective
SME Finance--a Global PerspectiveSME Finance--a Global Perspective
SME Finance--a Global Perspective
 
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
17-08-11_Status of cash-lite among MFIN partner MFIs_KMM.pptx
 
Andhra Pradesh MFI Crisis and its Impact on Clients
Andhra Pradesh MFI Crisis and its Impact on ClientsAndhra Pradesh MFI Crisis and its Impact on Clients
Andhra Pradesh MFI Crisis and its Impact on Clients
 
FICCI IBA Bankers' Survey (July - December 2017)
FICCI IBA Bankers' Survey (July - December 2017)FICCI IBA Bankers' Survey (July - December 2017)
FICCI IBA Bankers' Survey (July - December 2017)
 
FICCI IBA Bankers' Survey
FICCI IBA Bankers' Survey FICCI IBA Bankers' Survey
FICCI IBA Bankers' Survey
 
FICCI IBA Bankers Survey Report | July - December 2016
FICCI IBA Bankers Survey Report | July - December 2016FICCI IBA Bankers Survey Report | July - December 2016
FICCI IBA Bankers Survey Report | July - December 2016
 
Accenture Purpose Driven Banking
Accenture Purpose Driven BankingAccenture Purpose Driven Banking
Accenture Purpose Driven Banking
 
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
2010 KPMG Nigeria Banking Industry Customer Satisfaction Survey
 
The future of microfinance in india
The future of microfinance in indiaThe future of microfinance in india
The future of microfinance in india
 
Effect of Credit Information Bureau and Appraisal Methods on performance of C...
Effect of Credit Information Bureau and Appraisal Methods on performance of C...Effect of Credit Information Bureau and Appraisal Methods on performance of C...
Effect of Credit Information Bureau and Appraisal Methods on performance of C...
 
2014Liquidity-FINAL
2014Liquidity-FINAL2014Liquidity-FINAL
2014Liquidity-FINAL
 
04 003-executive summary
04 003-executive summary04 003-executive summary
04 003-executive summary
 
Building profitable relationships with multichannel consumers
Building profitable relationships with multichannel consumersBuilding profitable relationships with multichannel consumers
Building profitable relationships with multichannel consumers
 
Banking industry-outlook-survey
Banking industry-outlook-surveyBanking industry-outlook-survey
Banking industry-outlook-survey
 
Business strategy and sustainability of microfinance institutions in ghana
Business strategy and sustainability of microfinance institutions in ghanaBusiness strategy and sustainability of microfinance institutions in ghana
Business strategy and sustainability of microfinance institutions in ghana
 
N srinivasan
N srinivasanN srinivasan
N srinivasan
 
Stocktaking on SME Finance
Stocktaking on SME Finance Stocktaking on SME Finance
Stocktaking on SME Finance
 
Annie duflo
Annie dufloAnnie duflo
Annie duflo
 
W cmoc05
W cmoc05W cmoc05
W cmoc05
 

More from snb9899

Transformation
TransformationTransformation
Transformationsnb9899
 
Wwb nancy barry
Wwb nancy barryWwb nancy barry
Wwb nancy barrysnb9899
 
Sirtaine (1)
Sirtaine (1)Sirtaine (1)
Sirtaine (1)snb9899
 
Track 2 b mor-icici microfinance bank
Track 2 b mor-icici microfinance bankTrack 2 b mor-icici microfinance bank
Track 2 b mor-icici microfinance banksnb9899
 
Sourcefinance
SourcefinanceSourcefinance
Sourcefinancesnb9899
 
Se mirg 24_sept
Se mirg 24_septSe mirg 24_sept
Se mirg 24_septsnb9899
 
Sanchetna ria
Sanchetna riaSanchetna ria
Sanchetna riasnb9899
 
Sample guide tomicrofinance
Sample guide tomicrofinanceSample guide tomicrofinance
Sample guide tomicrofinancesnb9899
 
Samer abudalo
Samer abudaloSamer abudalo
Samer abudalosnb9899
 
Ratan mf tech_path_bmgf
Ratan mf tech_path_bmgfRatan mf tech_path_bmgf
Ratan mf tech_path_bmgfsnb9899
 
Presentation materials measuring performance
Presentation materials measuring performancePresentation materials measuring performance
Presentation materials measuring performancesnb9899
 
Presentation kecia rust
Presentation kecia rustPresentation kecia rust
Presentation kecia rustsnb9899
 
Pe1 050401a1 en
Pe1 050401a1 enPe1 050401a1 en
Pe1 050401a1 ensnb9899
 
Overview of mis mr. ramachandran
Overview of mis mr. ramachandranOverview of mis mr. ramachandran
Overview of mis mr. ramachandransnb9899
 
Niamh goggin
Niamh gogginNiamh goggin
Niamh gogginsnb9899
 
Mr ali-shaker,first-day-second-meeting-16-8-2009
Mr ali-shaker,first-day-second-meeting-16-8-2009Mr ali-shaker,first-day-second-meeting-16-8-2009
Mr ali-shaker,first-day-second-meeting-16-8-2009snb9899
 
Microfinance annie
Microfinance annieMicrofinance annie
Microfinance anniesnb9899
 
Measuring performance of microfinance institutions a framework for reportin...
Measuring performance of microfinance institutions a framework for reportin...Measuring performance of microfinance institutions a framework for reportin...
Measuring performance of microfinance institutions a framework for reportin...snb9899
 

More from snb9899 (20)

Transformation
TransformationTransformation
Transformation
 
Wwb nancy barry
Wwb nancy barryWwb nancy barry
Wwb nancy barry
 
T beck
T beckT beck
T beck
 
Sirtaine (1)
Sirtaine (1)Sirtaine (1)
Sirtaine (1)
 
Track 2 b mor-icici microfinance bank
Track 2 b mor-icici microfinance bankTrack 2 b mor-icici microfinance bank
Track 2 b mor-icici microfinance bank
 
Sourcefinance
SourcefinanceSourcefinance
Sourcefinance
 
Se mirg 24_sept
Se mirg 24_septSe mirg 24_sept
Se mirg 24_sept
 
Sanchetna ria
Sanchetna riaSanchetna ria
Sanchetna ria
 
Sample guide tomicrofinance
Sample guide tomicrofinanceSample guide tomicrofinance
Sample guide tomicrofinance
 
Samer abudalo
Samer abudaloSamer abudalo
Samer abudalo
 
Rinne
RinneRinne
Rinne
 
Ratan mf tech_path_bmgf
Ratan mf tech_path_bmgfRatan mf tech_path_bmgf
Ratan mf tech_path_bmgf
 
Presentation materials measuring performance
Presentation materials measuring performancePresentation materials measuring performance
Presentation materials measuring performance
 
Presentation kecia rust
Presentation kecia rustPresentation kecia rust
Presentation kecia rust
 
Pe1 050401a1 en
Pe1 050401a1 enPe1 050401a1 en
Pe1 050401a1 en
 
Overview of mis mr. ramachandran
Overview of mis mr. ramachandranOverview of mis mr. ramachandran
Overview of mis mr. ramachandran
 
Niamh goggin
Niamh gogginNiamh goggin
Niamh goggin
 
Mr ali-shaker,first-day-second-meeting-16-8-2009
Mr ali-shaker,first-day-second-meeting-16-8-2009Mr ali-shaker,first-day-second-meeting-16-8-2009
Mr ali-shaker,first-day-second-meeting-16-8-2009
 
Microfinance annie
Microfinance annieMicrofinance annie
Microfinance annie
 
Measuring performance of microfinance institutions a framework for reportin...
Measuring performance of microfinance institutions a framework for reportin...Measuring performance of microfinance institutions a framework for reportin...
Measuring performance of microfinance institutions a framework for reportin...
 

Recently uploaded

Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spirit
egoetzinger
 
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfUS Economic Outlook - Being Decided - M Capital Group August 2021.pdf
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
pchutichetpong
 
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
 
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
 
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
 
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
 
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
 
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)
 
The European Unemployment Puzzle: implications from population aging
The European Unemployment Puzzle: implications from population agingThe European Unemployment Puzzle: implications from population aging
The European Unemployment Puzzle: implications from population aging
GRAPE
 
The Role of Non-Banking Financial Companies (NBFCs)
The Role of Non-Banking Financial Companies (NBFCs)The Role of Non-Banking Financial Companies (NBFCs)
The Role of Non-Banking Financial Companies (NBFCs)
nickysharmasucks
 
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
 
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
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
egoetzinger
 
Seminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership NetworksSeminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership Networks
GRAPE
 
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
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
 
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
 
Intro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptxIntro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptx
shetivia
 
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
 
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Vighnesh Shashtri
 

Recently uploaded (20)

Instant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School SpiritInstant Issue Debit Cards - High School Spirit
Instant Issue Debit Cards - High School Spirit
 
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfUS Economic Outlook - Being Decided - M Capital Group August 2021.pdf
US Economic Outlook - Being Decided - M Capital Group August 2021.pdf
 
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...
 
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.
 
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
 
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...
 
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
 
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
 
The European Unemployment Puzzle: implications from population aging
The European Unemployment Puzzle: implications from population agingThe European Unemployment Puzzle: implications from population aging
The European Unemployment Puzzle: implications from population aging
 
The Role of Non-Banking Financial Companies (NBFCs)
The Role of Non-Banking Financial Companies (NBFCs)The Role of Non-Banking Financial Companies (NBFCs)
The Role of Non-Banking Financial Companies (NBFCs)
 
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...
 
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
 
Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
 
Seminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership NetworksSeminar: Gender Board Diversity through Ownership Networks
Seminar: Gender Board Diversity through Ownership Networks
 
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
Tax System, Behaviour, Justice, and Voluntary Compliance Culture in Nigeria -...
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
 
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
 
Intro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptxIntro_Economics_ GPresentation Week 4.pptx
Intro_Economics_ GPresentation Week 4.pptx
 
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.
 
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...
 

Competition in microfinance

  • 1. Competition in the Indian Microfinance Sector Doug Johnson Center for Microfinance Institute for Financial Management & Research
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. Sample Map Detail: Andhra Pradesh Snapshot
  • 20.
  • 21.
  • 22.

Editor's Notes

  1. Since microfinance still concentrated in the South these figures understate true level of competition
  2. Overly aggressive loan tactics – if MFIs compete solely on interest rates, there may be a “race to the bottom” in terms of the tactics used by credit officers to Mission drift – mention that, for example, a strategy of subsidizing the ultra-poor with the better off may no longer be viable
  3. Loan product structure not ideal  e.g. if you are a farmer and have two seasons of planting
  4. The audience is probably very familiar  Can I say that the partnership model was designed to get around the capital adequacy requirements
  5. Multiple borrowers may provide false / misleading info  unlikely as KYC docs required for all partnership model clients, in many cases docs were gathered well after initial sign-up; most managers thought that this was implausible Partnership model clients different from other clients  unlikely, based on interviews MFIs, process for designating clients as partnership model seems to be pretty much random (much more info on this in paper)
  6. Estimate of overall incidence of multiple borrowing  means % of people who have loans from more than one MFI out of all MFI clients in the states (does not include loans from SHGs)
  7. Mention that MFI staff and other borrowers were not present during interviews Other group members being aware of loan  many of the managers we interviewed claimed that field staff were completely aware of multiple borrowing