leading the poor out of poverty towards an empowered and dignified life

OUTLINE

History

Micro-credit: Grameen Credit

Business Model Innovation

Product Design Improvement

Business Process Improvement

Where is it now?

HISTORY

1976 – the Grameen Bank Project

Low income

Low saving Low

investment

NEW CYCLE

GRAMEEN CREDIT

PTM-The Poor

Credit trust rating

Progressive attitude

Savings vs. Credit

Monitoring Financial standing

Solidarity group

HR capital investment

16-POINT DECISION

1. 4 principles – discipline, unity, courage and hard work

2. Prosperity to the family

3. Repair/construct own shelter

4. Plant vegetables

5. Plant many seedlings during planting season

6. Responsible parenthood

7. Self-support – child education

8. Clean environment

9. Pit latrines

10. Potable drinking water

11. No to dowry and child marriage

12. No to violence and abuse

13. Collective business undertakings

14. Helping one another

15. Restore discipline

16. Collective social activities

BUSINESS MODEL INNOVATION

Reversed conventional banking practice

Social collateral approach

Banking system based on mutual trust,

accountability, participation and creativity

Loan and life insurance and pension fund

Loan provisioning

Loans paid off at death

Flexi-loan

CREDIT DELIVERY SYSTEM

Exclusive focus on the poorest of the poor

Borrowers organised into small homogeneous groups

Special loan conditionalities suited for the poor

Simultaneous undertaking of social development agenda

Design and development of organization and management systems

Expansion of loan portfolio to meet the needs of the poor

BUSINESS PROCESS IMPROVEMENT

Custom-made credit service

Repayment scheme and exit options

Assistance programs

Capacity building

Computerization

FIVE-STARS OF ACHIEVEMENT

- 100% repayment record

- earns profit

- self-sufficient (more deposits than loans)

- 100% Grameen borrowers’ children in-school or completed primary school

- GB borrowers cross-over poverty line

10-POINT INDICATOR

1. Food

2. Clothing

3. Shelter

4. Drinking potable water

5. Sanitary latrine

6. Adequate healthcare

7. Basic education to children

8. Minimum weekly loan installment ≥ 200 Tk.

9. Other sources of income

10. Annual savings of Tk. 5,000

CURRENT STATUS

68% of GB borrowers have crossed the

poverty line

March 2011

8.36 million borrowers = 97% women

2,565 branches = 22,289 staff

servicing 81,379 villages = 97% villages

over Tk 622.26 B (US$10.52B) disbursed

88.74% repaid; 97.26% loan recovery rate

100% loans financed from GB deposits

GRAMEEN BANK-CREATED COMPANIES

Grameen Fund

Grameen Krishi Foundation

Grameen Motsho (Fisheries) Foundation

Grameen Kalyan (well-being)

Social Advancement Fund

GRAMEEN FAMILY OF ENTERPRISES

Grameen Trust

Grameen Communications

Grameen Shakti (Energy)

Grameen Telecom

Grameen Shikka (Education)

GRAMEEN FAMILY OF ENTERPRISES

Grameen Baybosa Bikash (Business Promotion

and Services)

Grameen Phone

Grameen Solutions

Grameen CyberNet Limited

Grameen Knitwear Limited

AWARDS AND RECOGNITION

1989 Aga Khan Award for Architecture

1993 King Baudouin International Development Prize

1994 Bangladesh Independence Day Award

1994 Tun Abdul Razak Award

1997 World Habitat Award

2000 Gandhi Peace Prize

2004 Petersberg Prize

2006 Nobel Peace Prize

LEARNINGS

Giving the poor alms rob them of their

dignity. Let them work for every penny and

you have given them life and light and have

them recover their dignity as human beings.

All we are, are poor. All we need, are

opportunities and trust, a new lifeline, that’s

what loving in the eyes and image of Christ is

all about.

pamisaupan

uling maulaga at paulaga ya ing tau

REFERENCES

Based on the articles, information, data and

images provided for in its website,

www.grameen-info.org.

Photos and images were sourced from

google and Youtube images,

http://news.bbc.co.uk/2/shared/spl/hi/pict

ure_gallery/05/south_asia_bangladesh_sur

vey/html/7.stm,

THANK YOU!

Atty. Vivian T. Dabu

Entrepreneurship

July 8, 2011

Ateneo-Regis, AGSB Clark

ian8dabu@yahoo.com