Post on 18-Nov-2014
description
Technology to reduce poverty by PlaNet Finance
NASSCOM Foundation "Catalysing change through ICTs”
15th February 2008
PlaNet FinanceONE MISSION :TO REDUCE WORLD POVERTY
By providing the poorest populations with access to financial services, the financialintermediaries, including banks, cooperatives, Non Governmental Organizations(NGOs) and the Microfinance Institutions (MFIs), have shown for thirty years thatmicrofinance is one of the most efficient tools to fight poverty.
The PlaNet Finance Group is an International Solidarity Organization, which develops and promotes networks of MFIs, experts and local players in order to support the development of professionalprojects for men and women who wish to get out of poverty with dignity.
Overview of Microfinance sector
Microfinance sector, a very strong potential of increase-10 000 Microfinance Institutions (MFIs) in the world: saving and loan cooperatives, local or international NGOs, village banks, programmes set-up by international intitutions etc.
- 2.5 billion people (30% of worldwide population), currently lives with less than 2 USD/day,
-150 million clients in 2006, 84% whom are women,
- potential market estimated to 3 billion people,
- 66.6 million clients of microfinance belong to the poorest of the poor,
- The total outstanding portfolio estimated at USD 30 billion in 2006,
- Annual growth of microfinance: over 30%.- The potential is estimated to 1.5 billion beneficiaries and 300 billion US dollars
Sources : CGAP, BIT, Microcredit Summit
1,000 microfinance institutions supported, 10 million micro entrepreneurs,
PlaNet FinanceONE DESIRE:TO BE CLOSE TO ENTREPRENEURS ALL OVER THE WORLD
THE ANSWER:A LEADING ORGANISATION IN MICROFINANCE
38 permanent offices, projects in 60 countries,
557 collaborators,90% in the field.
PlaNet FinanceONE COMMITMENT:6 ACTIVITIES TO DEVELOP THE MICROFINANCE SECTOR
The PlaNet Finance Group responds to all the needs of those involved in microfinance by providing them with a wide range of services.
1. TECHNICAL ASSISTANCE: AT THE CENTREOF PLANET FINANCE’S ACTIVITIES
2. PLANET FINANCE INVESTMENT SERVICES (PlaNIS): FINANCIAL SERVICES
3. PLANET RATING: THE RATING AGENCY
4. MICROCRED: THE INVESTMENT COMPANY
5. FINANCITES: THE VENTURE CAPITAL COMPANY OF SENSITIVE URBAN NEIGHBORHOODS
6. PLANET GUARANTEE: THE MICROINSURANCE EXPERT
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Railw ays Aviation Internet MobilePhones
Technology
Years to Spread Worlwide
Microfinance and Technology 2 FAST-GROWING SECTORS
The newest technologies will reach the most remote areas in max 10 years
Technology is spreading faster and faster
Promising Technologies
Increasing REACH
ATM : allows to reach people that do not have access to the traditional banking system like people from remote rural areas
Wimax : fast internet technlogy. its deployment does not need heavy, complexe or expensive infrastructures. It can provide cheap internet access for MFIs.
Increasing SECURITY
Biometrics and smart cards : Biometrics technology measures an individual's unique physical or behavioral characteristics, such as fingerprints. Coupled with a smart card it increases security and access to bank accounts.
Microfinance and Technology 2 FAST-GROWING SECTORS
Increasing EFFICENCY
PDAs : Personal Digital Assistants (PDAs) are small, handheld digital computers that can run specialized programs to manage MFI and client data and perform financial calculations. Loan officers can even fill out loan applications forms on the PDA and calculate the indicators used for loan review and approval.
Episurveyor : Free, open source tool enabling anyone to very easily create a handheld data entry form, collect data on a mobile device, and then transfer the data back to a desktop or laptop for analysis
Scoring Technology :Scoring technology analyzes historical client data, identifies links between client characteristics and behavior, and assumes those links will persist to predict how clients will act. The technology can help a microfinance institution (MFI) analyze how its clients have behaved in the past to make more reliable loan application decisions, devise more effective collections strategies, better target marketing efforts, and increase client retention.
Promising Technologies
Microfinance and Technology 2 FAST-GROWING SECTORS
Increasing EFFICENCY
Voice Recognition : Interactive Voice Response (IVR) system helps people to quickly retrieve information a short distance from her home rather than traveling to the nearest microfinance institution (MFI) branch office and waiting in line. Computer Munshi : In India, micro-finance is primarily administered through self-help groups (SHGs). To increase efficiency, the Computer Munshi program, through which a community-based computer entrepreneur provides accounting services to about 200 SHGs for a reasonable payment. the Computer Munshis are better trained in both accounting and computer skills.
HISAAB : group-level microfinance software designed for illiterate and uneducated users.
Ekgaon CAM : Mobile information services framework for rural areas in the developing world. Reads orally the information written on paper. Facilitate information exchanges between MFIs and Customers.
Microfinance and Technology 2 FAST-GROWING SECTORS
Promising Technologies
Information and Communication Technology can bring significant improvements in Microfinance
Microfinance Institutions become more competitive
decrease of interest rates reduce the risk reduce transaction costs
Poor people are better secured and improve their life conditions
reduce their over indebtness have better acces to financial services decrease their credit expenses gain time
Microfinance and Technology 2 COMPLEMENTARY SECTORS
PlaNet Finance Information & Communication Technology Program’
1) Mission : Bringing significant improvements in microfinance technology to
enhance microfinance service to poor people.
2) Vision :
Develop Information and Communication Technology systems to reach 5 million
micro entrepreneurs in 2011 in 10 countries
3) Strategy and aims: Develop a global IT program in 3 main domains :
Mobile Banking: mobile phone payments will climb from $3.2 billion to $37 billion in 2008
Management of Information System: to reduce risks for MFIs and costs for population
Credit Bureaus: to decrease the indebtness of borrowers
PlaNet FinanceInformation & Communication Technology ProgramMobile BankingDifficulties encountered by poor people:
They have small amounts of money, providing them financial services is quite expensive
They live in sparsely populated areas,
They rarely have documented credit histories.
Mobile Banking help:
Supporting MFIs to reduce transaction costs,
streamline control procedures, improve delivery
process and increase transaction volume,
Enabling microentrepreneurs to process credit
reimbursement, routine deposits and withdrawals,
fund transfers and balance enquiry transactions at
a nearby outlet.
Our ambition:10 countries, 30 MFIs equipped with mobile banking solutions in 2011
PlaNet Finance is already successfully leading Mobile Banking projects in Egypt and Senegal with its partner, a Global Telecom Leader : Orange
Focus on Mobile banking in Egypt
In Egypt, the microfinance sector reached an active base of 1 000 000 clients, most of them being part of the informal economy
Mission to overcome many regulatory constraints as the cost and outreach benefits and seek local partners/allies as necessary.
Partners : Mobinil, ASBA, Orange
PlaNet FinanceInformation & Communication Technology ProgramManagement of Information System (MIS)
MFIs have difficulties in managing their portfolio,
industrializing their process, following their
growth
PlaNet Finance is already successfully implementing
its Management of Information System for
Microfinance Institutions: MicroFit
One of the best Management Information
System for mid-range MFIs 12 MFIs have MicroFit for more than 1 million
clients 50 MFIs have shown their interest in implementing
MicroFit
Our ambition: 10 countries and 30 MFIs equipped with Microfit solutions in 2011
A good Management of Information System can:
• Reduce risk for Microfinance Institutions by improving good governance,• Reduce cost for customer by decreasing time to process loans.
PlaNet FinanceInformation & Communication Technology ProgramCredit Bureaus
PlaNet Finance has developed its own software for Credit Bureaus :
• PF has already lead 2 credit bureau projects in Benin and Morocco
• PF is currently leading a credit bureau project in Egypt
Credit Bureaus software permits to provide a better security to MFI’s clients :
• Improving MFI’s coordination
• Finding quickly borrowers’ insolvency
• Reducing Interest rates by reducing risk
• Facilitating the loan grants by better controlling the risk
• Reducing over indebtness or cross indebtness of 3 millions microentrepreneurs
Our ambition : 4 countries equipped in 2011
PlaNet Finance Information & Communication Technology Program’Can bring significant improvements in Microfinance
Make informed decisions
Lower operating costs
Streamlining reporting
Speed up access
Reach new customers
Benefits
Increase Good Governance
Decrease Interest rates
Increase Transparency
Increase Customer Convenience
Increase Outreach
Consequences
Partners of the PlaNet Finance’s IT Program
They already help us in terms of:
Financing PlaNet Finance’s projects
Giving to us their technology expertise
Offering us their own solutions
Sharing their network
PlaNet Finance13, rue Dieumegard
93 400 Paris Saint-Ouen France
Tel : + 33 (0)1 49 21 26 26Fax: + 33 (0)1 49 21 26 27
PlaNet Finance India and South AsiaDLF phase III, T22/10
Gurgaon, HaryanaIndia
Tel : + 91 99 71 16 45 23 Contact: Regional director Delphine Thizy
dthizy@planetfinance.org