The document discusses the need for qualified microfinance professionals to address challenges such as over-indebtedness and management quality in the sector. It presents microfinance statistics by region and outlines the growth outlook along with the importance of a structured professional development framework, including a Certified Microfinance Professional (CMP) program. The CMP aims to enhance operational competencies, focusing on financial and technical skills, capacity building, and soft skills for sustainable microfinance practices.

1. Developing Qualified
Microfinance
Professionals
Dr Raymond Madden, CEO
Asian Institute of Finance

2. Extensive geographic coverage……
40% of the world’s population is living below
the poverty line
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3. Microfinance Statistics by Region (2011)
Gross
Loan Number of
Total Portfolio active Deposits Assets Number of
Region MFIs (US$) borrowers (US$) (US$) depositors
South Asia,
East Asia & 808 23.3 bln 38.0 mln 6.5 bln 10.7 bln 17.6 mln
the Pacific
Eastern
Europe and 430 7.8 bln 2.1 mln 5.4 bln 9.6 bln 2.4 mln
Central Asia
Latin America
& the 501 27.7 bln 18.1 mln 18.1 bln 34.4 bln 15.6 mln
Caribbean
Middle East & 80 441.3 mln 536,687 5.2 mln 535.8 mln 33,047
North Africa
Africa 635 6.6 bln 3.1 mln 6.4 bln 9.2 bln 7.0 mln
Source: Mix Market
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4. Microfinance Growth Outlook 2012
Region Outlook
Central America 5-10%
South America 10-20%
Eastern Europe 0-10%
Middle East and North Africa 15-25%
Sub-Saharan Africa 10-20%
Caucasus 10-20%
Central Asia 15-20%
South and East Asia 20-30%
Source: responsABILITY
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5. Top 5 Challenges
1. Over-indebtedness
2. Corporate governance
3. Management quality
4. Credit risk
5. Political interference
Microfinance Banana Skins 2012
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6. Management Quality
Still lagging…….
Shortage of skilled personnel: people with experience,
management ability and the vision to steer their institutions
through difficult times.
Frequently voiced: managers are good at delivering
growth, but less good at “capacity building”, i.e. putting
MFIs on a sustainable long term path.
Microfinance Banana Skins 2012
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7. Management Quality….concerns
“This is an on-going problem as MFIs here in Fiji (except for one which
is operating as a company) do not have the financial resources to afford
recruiting and retaining qualified and experienced management staff.
Short seminars and workshops are not adequate and most MFIs tend to
settle for less in terms of quality management in the areas of finance and
human resources.” Microfinance manager, Fiji
“Middle managers are often left to fend for themselves without clear
expectations, career plans, or training and mentoring about what else
their job entails other than hitting productivity and portfolio quality
targets.” European development finance consultant
Microfinance Banana Skins 2012
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9. Developing qualified talent is critical for future
sustainability of microfinance …….
…..requires a unique approach in human capital development
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10. Different Skill Set & Competencies
Different Clientele
Donor-based
Different Business Risk
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11. 3Es of Microfinance Professionals
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12. Transforming Microfinance
Professionalism
Professional Development Framework
Code of Conduct CPD/CPE
Qualification Standards Governance
& Ethics
Sets quality Core Ensures MFP Define how Structured
standards, levels Competency: maintains highest microfinance continuous
& achievements •Knowledge ethical standards in institutions are development &
in line with •Skill the pursuance of their governed enhancement of
Qualification •Applicability profession professional
Standards competence &
3 components: lifelong learning
Accreditation of principles of conduct,
training providers standards of conduct Standardised
& programmes & best practices CPD
requirements

13. Certified Microfinance Professional (CMP)
 First of its kind developed by AIF
 Objective is to develop & enhance
operational competencies with a focus on:
 Financial / Technical skills
 Capacity Building
 Soft Skills
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14. Pathway to CMP
Introduction to Financial Analysis Product
Microfinance Development
Appraisal Guide
Social Business Planning
Performance Delinquency & Managing
Management Measurement & Productivity
Control, Interest
Operational Risk Rate Calculations Management
Management & Settings Information System
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15. Microfinance Leadership Programme
Key Focus Area:
 Enhancing strategic level competencies of
senior management of MFIs.
 MFIs sustainability and outreach, high level
understanding of microfinance, operations,
practices and models in Malaysia and around
the Region.
 Human resources management.
 Development of strategic action plans.
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16. Microfinance Leadership Programme
• Microfinance Overview – Practices around the
region
• Sustainability and outreach of Microfinance
Institutions
• Human Resource Management – Cultivating the
Social Values
• Capacity Building of Micro-entrepreneurs
• Strategic Action Plans

17. First Batch of CMP
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18. Demographic Profile
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19. Demographic Profile
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20. Testimonial
“It's an amazing programme. It has 3
steps to be a Certified Microfinance
Professional. I'm proud to be one of
the pioneer batch, as well a pioneer
in the Central Bank of Sudan.
Thank you AIF for this opportunity ,
and I hope to be part of your future
programmes.”
Mr Seifeldeen Hassan Ahmed Barri
Deputy Director,
Central Bank of Sudan, Khartoum
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21. THANK YOU
THANK YOU

22. AIF Microfinance Technical
Programme – Dates & Fee
Course Dates 2012 2013
Overview 28 – 31 May 11 – 14 March
Financial Aspects 2- 5 July 10 – 13 June
Business 24 – 28 Sept 2 – 6 Sept
Management
Course Fee Local – MYR4,000
International – USD1,500

23. AIF Microfinance Leadership
Programme – Dates & Fee
Course Dates 8 - 12 October 2012
8 - 12 April 2013
Course Fee Local – MYR7,500
International – USD2,500