[email protected] Mission To expand the economic assets, participation, and power of low-income...

[email protected] www.e-mfp.eu

Mission

To expand the economic assets, participation, and power of low-income women and their households by helping them access financial services, knowledge, and markets

Network

• Largest network in microfinance, built over 30 years

• 40 microfinance providers

• 28 countries: 8 in Africa, 8 in LAC, 6 in Asia, 6 in EMENA

• 24+ million active clients, 80% women

• $5.5 billion in outstanding loan portfolio; $2.6 billion in deposits

• Average loan size of $1,200

Women’s World Banking


• Generally sufficient capital in the sector, WWB is concerned about the quality of that capital

• Recent CGAP research shows that while local currency lending is increasing, MIV debt investments are still 69% hard currency. MIV average loan tenor is just under 3 years but most other funding is 1 to 2 years

• Recent WWB research indicates a strong link between capital providers and institutions’ ability to remain mission focused

• For the first time in its history, WWB is making direct investments in network members, “putting principles into practice”


• Debt

• MFIs need capital that is:

• long-term, 3 to 5 years or longer depending on the product offering (housing loans);

• local currency;

• fixed-rate, unsecured

• transparent in pricing; and

• standardized for reporting and covenants

• Increasingly foreign investors are recognizing this and offering better terms; WWB would like to see increasing alignment on this issue


• Equity

• MFIs need equity capital that:

• Is patient (minimum 5 to 7 year horizon)

• Achieves goals through mission alignment

• Outreach to poor, especially women

• Provision of full suite of financial products

• Invests in market research, impact studies and staff training

• Provides resources beyond financial support

• Good governance

• Connects the MFI with technical assistance and best practices

• Can advocate at the regulator and industry level

• Strengthens leadership’s commitment to the mission


• WWB is concerned that equity investors rely too readily on standard models for success for commercial finance

• Not focused on serving women

• Increasing average loan size

• Overly reliant on collateral

• Singular focus on loan officer productivity (at expense of client relationships)

• Cutting expenses without considering long-term effect (market research, impact studies, financial education/business development, gender diversity investments)

≠ pro-poor strategies

• WWB believes building a growth strategy based on traditional MFI principles of investing in the poor, especially women, and knowing your customer can achieve comparable financial returns

[email protected] Mission To expand the economic assets, participation, and power of low-income...

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