Financial services providers for low-income customers typically believe that their business case is based on expanding the number of accounts or the number of transactions made by these customers. This is only part of the equation to business success.
Advances in digital technologies and the increased availability of data can be used to support low-income customers to do more than make payments. These advances can help them to make financial decisions and develop strategies to manage their finances.
Customers are turning to formal channels that use digital and mobile technologies for remittances because these are often able to offer services at lower costs. As more customers turn to formal services, remittances will have an even stronger developmental impact, notably in countries where protracted humanitarian crises affect large numbers of people.
Across Sub-Saharan Africa, new success stories are playing out, yet little is understood about the approaches many countries in the region have taken to develop inclusive payment ecosystems. CGAP set out to examine pathways to inclusive payment ecosystems in two Sub-Saharan African countries, Tanzania and Ghana, to learn from their experiences.
Participants learn how to format financial statements for decision making, adjust for inflation and subsidies, measure portfolio quality, asset/liability management, efficiency and productivity and profitability and to choose strategies to reach sustainability.
The Accounting course introduces MFI managers to the basics of accounting and how to create the most commonly used financial statements like the Balance Sheet, the Income Statement, and the Chart of Accounts.
The present version of the course includes sessions on financial modeling—namely, defining institutional mission, goals and objectives, understanding clients and markets, carrying out environmental and institutional assessments and designing a strategy.