Recent Blogs
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.
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.
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.
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.
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.
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.
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.