Blog

How to Tell Good MFIs from Bad MFIs

Most of us working in microfinance want microloan clients to be paying interest rates that are as low as possible. While we have the same vision, there is disagreement about how to determine whether an interest rate is an appropriate one.

Rules of the Road for Branchless Banking in the Year 2020

What is the key purpose of having a scenarios session for policymakers during this seminar? The key has been to get people to focus on what the consequences of certain policy directives might have on how much – or how little – branchless banking truly increases access to financial services for the unbanked poor in the next decade.

Are MFIs in India Overvalued?

Opportunities for reasonably-valued equity investments still remain, but the majority of recent transactions by foreign-owned funds suggest that finding such opportunities is not necessarily an easy task.

Nationwide Impact of Agents in Brazil

These insights come from a recent mission to Brazil to look at the business case for agents (termed “banking correspondents” in Brazil) and good practice for building a viable agent network.

The Internet and Mobile Money – Scenarios for 2020

In 2009, CGAP and DFID talked with over 200 technology and finance leaders from 30 countries to determine how branchless banking, including mobile banking, might look in the year 2020.

What Is Che Guevara Doing in this Bank?

We often think of branchless banking without looking at the nonprofits working in the community for social and economic development.

Crime and Mobile Banking – Scenarios for 2020

The risk and cost of cash crime is an important force on the demand side—driving customer adoption of electronic forms of payment—as well as affecting the business case of providers.

Branchless Banking: The Test and See Approach

When it comes to regulating branchless banking, some regulators believe they need to spend a lot of time and energy in developing a comprehensive framework. But putting in place extensive regulations without first observing and understanding how the market is developing can often result in a regulatory framework that is ill-tailored to the risks involved.

Branchless Banking in Brazil: Making it Work for Small Merchants

The agent economics around branchless banking can be a complicated subject.

Does Branchless Banking Empower the Poor?

One segment of society that has directly benefited from banking agents are older people who receive monthly pensions.

Does Microcredit Really Help the Poor? Take II

When people think about “getting out of poverty,” they are usually thinking in terms of income and/or consumption.

The Perils of Uncontrolled Growth

The causes of the delinquency crisis are well known and can be summarized in two words: unsustainable growth.

Scenarios for 2020

How can government and private sector most affect the uptake and usage of branchless banking among the unserved majority by 2020?

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?

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.

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.

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.

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.

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.

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.