Blog

Scenarios for 2020

How can government and private sector most affect the uptake and usage of branchless banking among the unserved majority by 2020?
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Does Microcredit Really Help Poor People?

Since microcredit first came to public attention in the 1980′s, the usual story line has been that it funds creation and expansion of microenterprises, producing additional income that lifts the borrowers’ households out of poverty. But is it true?
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Is 95% a Good Collection Rate?

For most MFIs a collection rate of 95% would be unsustainable: at that level, delinquency will have already spun of control and the institution won’t be around much longer unless drastic action is taken to improve collection quickly.
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Why M-PESA Should Offer Savings Accounts

The fact that M-PESA is being used for savings illustrates the latent demand for appropriate savings products in Kenya.
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Multiple Borrowing or Multiple Lending and Debt Fatigue

The common thread across locations in which repayment problems have been experienced is that customers are showing signs of fatigue arising from debt.
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What You Don’t Know about M-PESA

Using the mobile as a platform, they plan to create developmental services that penetrate other spheres —m-health, agribusiness. They further predicted that the mobile will soon begin to revolutionize these other spaces as well.
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CGAP Podcast with Jonathan Donner of Microsoft Research India

Jonathan Donner is a Researcher in the Technology for Emerging Markets Group at Microsoft Research India.
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All about Where the Curves Meet

The basic challenge in both micro and SME finance is that it costs more in absolute terms to lend a given amount in a number of small loans rather than one big loan, especially when it comes to those household and enterprise loans where approval decisions can’t be based on automatic scoring.
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Are Microcredit Interest Rates Excessive?

High microfinance interest rates is a hotly debated topic in a lot of places. Obviously, the answer for a given MFI depends on its particular circumstances.
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What Drives MFI Efficiency?

Institutional efficiency is generally measured by dividing operating expenses by the size of the loan portfolio. A given MFI is usually regarded as having become more efficient when this indicator gets lower.
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How Sustainable is Microfinance, Really?

Lots of MFIs are now drawing billions (really!) in investment from microfinance investment funds that are dominated, not by development agencies, but by investors who are not willing to accept anything below a fully commercial risk-return profile.
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New CGAP Paper: Banking through Networks of Retail Agents

This Focus Note considers the issues, challenges, and opportunities of banking through networks of retail agents.
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Why Has M-PESA Become So Popular in Kenya?

Despite the cash float problems, the majority of customers in both the urban and rural areas assert that they prefer M-PESA over other money transfer services. This means that M-PESA must be offering them some kind of substantial benefit.
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New CGAP Paper Explores the Power of Shared Agent Networks

This Focus Note presents an alternative, systemic approach to branchless banking in which there is no need for a bank to have a contractual relationship with any of the retail outlets through which it is absorbing deposits or meeting liquidity needs of its customers.