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MicroSave News, Views, and Reviews | ||||||||||||||||||
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| News from MicroSave | Brief Announcements | |||||||||||||||||
Business Re-engineering at OK Bank, Philippines OK Bank, a Microfinance Oriented Thrift Bank, headquartered in Iloilo, Philippines is going through a strategic reformation/restructuring. To assist them in the process, the bank commissioned MicroSave to design and implement the business re-engineering process, which includes:
The team from MicroSave is expected to complete these assignments by the end of November 2009, and the results of these efforts can be verified in the short to medium term horizon. | MicroSave launches MFIOOAB MicroSave and RBSFI will launch of the “MFI Out of A Box” series of toolkits on 25th of October 2009, at the Shahjehan Hall Taj Palace Hotel, New Delhi. The MFI Out of A Box is a set of three DVDs each focused on one of the three leading methodologies in Indian microfinance: Joint Liability Groups, Self-Help Groups, and Individual Lending. It is a compilation of templates, samples, papers, and videos of processes, as well as documents in public domain, from MicroSave, CGAP, USAID and others, for novice and experienced microfinance practitioners. The launch will be followed by a panel discussion on Governance issues in MFIs.
MicroSave will present at two M-banking conferences in December MicroSave will present in two sessions at the Mobile Money Transfer (MMT) APAC Conference Manila (http://www.mobile-money-transfer.com/apac) on “How to implement mobile microfinance” and “How mobile money can interface with existing financial services infrastructures”. MicroSave has been asked to discuss its extensive knowledge of optimising the client value proposition for m-banking solutions. MicroSave will also present at the Mobiles and Money – India Conference in Mumbai (www.BizEvents.Asia/m&m2009/),where it will run a half-day workshop in collaboration with its Action Research Partner Eko on “Designing an m-banking platform offering for the low income market” and will also make a plenary presentation with Eko on “Delivering Low Cost Financial Services: Strategies for Sustainable Financial Inclusion”. | |||||||||||||||||
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| OK Bank, a Microfinance Oriented Thrift Bank, headquartered in Iloilo, Philippines is going through a strategic reformation/restructuring. To assist them in the process, the bank commissioned MicroSave to design and implement the business re-engineering process, which includes: strategising for the future, deciding the market segments the bank would address, refining existing and designing new products for these segments, improving the portfolio and delinquency management systems, standardising processes and systems, strengthening the audit and control functions, enhancing HR and staff incentive systems, designing appropriate MIS for the bank, and working on efficient e-banking delivery solutions. The team from MicroSave is expected to complete these assignments by the end of November 2009, and the results of these efforts can be verified in the short to medium term horizon. | ||||||||||||||||||
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| MicroSave is furthering its understanding and knowledge of Cooperatives in Africa too, with the completion of an assignment with Muramati SACCO in Kenya on the costing and pricing of its products and services. Further assignments in this sector are likely as Kenya prepares for the implementation of the SACCO Societies Act 2008, which will eventually bring the entire credit union sector in Kenya under a stronger regulatory umbrella. | ||||||||||||||||||
| The MicroSave team in Africa has been working with Family Bank on its product range, as a result of efforts from the Family Bank and MicroSave teams. Family Bank launched the Mwanachi Account on 21st of June. This interest bearing transaction account offers improved services, more competitive pricing and consolidates many other accounts. The Mwananchi Account was launched by the President of the Republic of Kenya Mwai Kibaki at Family Bank’s twenty fifth anniversary celebrations. In the two months following its launch more than 41,000 Kenyans opened accounts, and many others reactivated their dormant accounts. The value of deposits has increased significantly too. Furthermore, as a result of very positive publicity, the bank is benefiting in increased business throughout its product range. | ||||||||||||||||||
Institutional Assessment of Arthacharya Foundation (AF), Sri Lanka
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| MicroSave’s Training Reviews | ||||||||||||||||||
| The third batch of Applied Microfinance Institute (AMI) India participants graduated on 24th of July, 2009. In this third year of AMI India, there were 60 participants representing 36 institutions from India and the Philippines. Participants were from MFIs, Banks and networks. Participants were trained on the following 7 topics:
Learning by doing is the philosophy of AMI, and all sessions contained a series of exercises designed to facilitate learning and to enhance participants’ skills in using MicroSave’s practical tools. The plenary sessions on contemporary topics received huge appreciation, as participants interacted with the leading experts from the sector. The speakers helped develop the perspective on which the technical sessions were delivered. A 15 day residential programme provided a great time to interact and share; and participants noted in their end of course assessments that the peer-to-peer learning was a key benefit, especially due to the international nature of the event. "MicroSave team offered an excellent training. The trainers were the perfect combination of technical expertise, humour, patience and experience. Learning environment was terrific. Thank you for offering such a well organised productive training programme. Looking forward to the next opportunity to attend other classes at the next AMI."
Staff Incentives Workshop in the Philippines
Market Research for Microfinance Trainers of Trainers
Internal Audit & Controls Workshop in the Philippines
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| Workshop and Events | ||||||||||||||||||
Development of the Advanced HR toolkit and the workshop held in Hyderabad With increasing competition, managing Human Resources in MFIs has emerged as a key concern for MFIs. To address the complex HR issues, MicroSave has developed an Advanced Human Resource Management Toolkit. A workshop was held in Hyderabad on 19th and 20th of June, for selected MFIs to present and test the toolkit. The three objectives of the workshop were to:
The Advanced HR Toolkit is now in the final phase of review and will be available on the MicroSave website shortly. “By applying the HRM toolkit and systems which are taught during sessions, I will be able to develop our institution and staff to become more productive, efficient and effective.” | ||||||||||||||||||
| Knowledge Productions | ||||||||||||||||||
Development of the SPM Toolkit MicroSave is launching its Social Performance Management Toolkit, a participatory, quick, low-cost and actionable approach to foster improvements in MFIs’ overall performance. It is designed to assist MFIs and their stakeholders – Board, management, staff, clients, financial institutions, potential investors and others – to conduct a rapid diagnostic of an MFI and determine how well its processes and outcomes are aligned with its mission and social objectives. MicroSave’s SPM methodology has a strong emphasis on client/staff surveys and feedback, and participatory processes, which lead to the formation of an action plan. Gathering actionable information on client/staff needs and perceptions, when institutionalised, may in turn lead to increased staff and client retention – thus improving both social and financial performance. IFN 19: “SHGs Should Balance or Break” by Brett Hudson Mathews and Trivikrama Devi addresses the issue of the lack of audits of SHG balance sheets. It highlights the fact that Self-Help Group members are unable to use SHGs as a reliable source of savings because they cannot be sure that all their deposits are accounted for. This note also provides an array of management tools to SHGs and advice on what banks should do before lending to them. IFN 20: “Institutional Culture and Transformation: From NGOs to Market-led MFIs” by Matt Leonard discusses that though transformation of microfinance NGOs into a more regulated legal form is seen as one of the most effective strategies for achieving scale and sustainability, it requires a significant change in institutional culture, affecting stakeholders at all levels – from clients and field staff to managers and board members. IFN 21: “Village Financial Systems in Northeast India” by Abhijit Sharma and Brett Hudson Mathews provides an overview of the village financial systems in Northeast India, highlighting the flexibility and the multiple needs met by these Accumulating Savings and Credit Associations (ASCA). IFN 22: “Provisioning for Loan Impairment in MFIs” by Raj Kumar and Anil Paul delves into the calculation and importance of maintaining adequate reserves by MFIs to cushion against future loan losses as has been highlighted in the wake of recent financial crisis. The note highlights current challenges, and possible ways forward in provisioning for loan losses for Indian MFIs. IFN 23: “The Global Financial Crisis and Indian Microfinance” by Amit Garg and Diana Lewin summarises the impact of current global financial crisis on Indian microfinance sector and analyses the response of various stakeholders. The note also suggests various risk mitigation strategies specifically for small and medium size MFIs to reduce their vulnerability to such economic shocks in future. | ||||||||||||||||||
| Announcements | ||||||||||||||||||
Continuing the Optimising Performance and Efficiency series, which highlights key themes and issues in microfinance, two new booklets will be published in October: “Product Development” and “Savings”. | ||||||||||||||||||
| © 2009 MicroSave | ||||||||||||||||||
| www.MicroSave.org | ||||||||||||||||||
| Contacts | ||||||||||||||||||
| Graham A.N. Wright, Programme Director – India. +91 (0) 9956 291 535 ; Graham@MicroSave.net | ||||||||||||||||||
| David Cracknell, Programme Director – Africa. +254 (0) 733 713 380 ; David@MicroSave.org | ||||||||||||||||||
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