This document provides an introduction to a course on microfinance. It outlines the topics to be covered in the first week, including an introduction to household financing and different approaches to accessing financing. The key mechanisms for providing financing are discussed, such as microfinance institutions, savings and credit groups, and money lenders. Different types of financial services like group lending, individual lending, and village banking models are also introduced. The primary goals of microfinance institutions are outlined as breadth and depth of outreach, length of outreach, positive impact, and creating sustainable local institutions. The outline provided indicates future weeks will focus on specific microfinance institutions, clients' experiences, and local investors in microfinance.

1. Introduction to FinancingMicrofinance 101: Week ONERobert Gailey, Point Loma Nazarene UniversityWELCOME!

2. 2Brief Outline for Tonight Introduction of Mr. Ali – learning about his businessIntroduction of participantsExploring how household financing works – group activityWhat are some different approaches to financing and how does microfinance fit in?Inspiration from Grameen Bank and Dr. YunusOutline of remaining weeks of classQuestion Time

3. 3Introductions State your nameYour institutional affiliation if you have oneYour first exposure to microfinanceWhat you hope to get out of the course

4. Opening Questions4Why do people need financing?What things/events do people finance?What mechanisms exist for people to access financing?

5. 5Rutherford (2000 + Summer 2009)The Poor and Their Money

6. 6Old Chinese Proverb: A Fishing AnalogyGive a man a fish(Traditional relief)orTeach a man to fish?(more progressive development)butHe still needs the TOOLS to fish and ACCESS to the water

7. Difference between MED and MFWhat is the economic objective of an MED/MF Intervention?To build a business/enterprise: For start-up, expansion, or transformation.To provide lump sums of money: For people to use for a variety of needs/wantsWhich tools are available to meet the economic objective of the MED/MF interventionFinancial Tools: Involve some form of cash transactionNon-financial Tools: Do not primarily involve a cash transaction7

8. MF and MED Tool MatrixEconomic ObjectiveNon-Financial ToolsFinancial ToolsMicrofinance Institutions (MFIs), Business ROSCAs and ASCAs, Business Insurance, Pre-Entrepreneurial Business Grants (such as Trickle Up Program), moneylenders.Business Development Services (BDS), Livelihood and Vocational Training, Networking/Mentoring.Helping a Business/Enterprise start, expand, or be transformed (from micro to small-scale or small-scale to medium-scale).Helping an individual or family meet their needs/wants for Lump Sums of Money for use in emergencies, life-cycle needs, opportunities, and cultural obligations.Emergency, cultural, and life-cycle ROSCAs and ASCAs, Post Office Savings accounts, Deposit Collectors, Money Lenders Health education, literacy education, and other non-financial forms of information dissemination.8

9. Typology of Financial ServicesMajor DistinctionFinancial ServicesMethodologiesGroupingGroup LendingIndividual LendingLoan fund generated within groupLoan fund provided from outside sourceSource of fundingSize of groupsVillage Banking(e.g FINCA)Solidarity Group LendingAccumulationASCAsROSCAsNon-time-bound ASCATimeTime-bound ASCALatin America ModelGrameen ModelOwnership9

10. Primary Goals of Microfinance Institutions (MFI)Breadth of Outreach (how many people served)Depth of Outreach (how poor are people served)Length of Outreach (serving people for many years)Positive Impact (long-lasting and substantive)10

11. Vision of many MFIsProviding many poor families with access to affordable financial services.Creating indigenous sustainable institutions that can meet the long-term financial needs of their communities.Improving social conditions—better health, sanitation, nutrition, education.11

12. 12Outline for Rest of Course Week 2: Focus will be on Microfinance Institutions, interest rates, key debates, Week 3: Focus on local microfinance institutions – International Rescue Committee, Accion, CDC Finance – introduction and informationWeek 4: Hearing from the clients, clubs, and investors – meet staff and clients from La Maestra, college clubs, and San Diego Microfinance Alliance, and local individuals who are invested in microfinance

13. 13Concluding RemarksQuestions/RemarksPlease turn in your tagsCome hungry next week – Client of Accion – Happy Joe Luck Kape