You are currently browsing the category archive for the ‘Blogosphere’ category.

BRAC Uganda shares strategy and sustainability insights from its transition from an MFI to a bank.

By Emily Coppel and Isabel Whisson, BRAC

Woman holds carton of eggs

©BRAC/Alison Wright

BRAC Uganda Microfinance is pursuing a shift in its regulatory status that will allow it to broaden the landscape of financial services it provides to Uganda’s rural poor.

BRAC, the largest microfinance provider in Uganda, currently serves more than 200,000 predominantly rural, female clients, through more than 150 branches across nearly every district in the country. In the nine years since the microfinance company was established, BRAC has provided microloans to poor women (a basic loan ranges from US $55 – $1,400), and small enterprise loans for male and female business owners (from US $1,400 – $10,000). Its current portfolio is around US $45 million. This year, BRAC submitted its application to transform into a bank. In Uganda, it was a Tier 4 institution, a category for unregulated credit-only NGOs, and money lenders. After the transformation, BRAC will become a regulated Credit Institution, under Tier 2, allowing it to expand its suite of services for clients – most notably, to savings accounts.

The process of transitioning to a regulated institution in Uganda is a lengthy one, and requires the organization to strategically analyze its goals and pro-poor model. Much can be learned from this process that can inform others considering a similar transformation to expand services for clients. As with any significant change, the organization is already facing new challenges that must be carefully and creatively navigated so as not to alienate its customer base.
Read the rest of this entry »

Nina Nieuwoudt of Mastercard explains the company’s commitment to financial inclusion for Financial Inclusion Week 2017.

Posted by Nina Nieuwoudt, Global Product Development, New Consumers, Mastercard

Women walking up dirt road with bundles on their heads

Around the world this week, governments, multilaterals, and companies are coming together to celebrate Financial Inclusion Week. It’s an opportunity to reflect on the progress that we’ve made in extending financial access to un-banked and underbanked communities, and also a time to take honest stock of how far we still have to go. As Mastercard’s Chief Product Officer Michael Miebach noted following his speech at Money20/20 last week – we’re making progress, but at our current pace we won’t achieve full financial inclusion for another 200 years. Needless to say, we’ve got work to do.

Read the rest of this entry »

> Posted by Jeffrey Riecke, Communications Specialist, CFI

Embed from Getty Images

If you had to embark on a journey similar to that of the 65 million people who are currently forcibly displaced, what would you bring? Most likely among your provisions would be a smartphone. Phones are the contemporary map and compass, a gateway to critical information, a means for keeping in touch with loved ones, and a financial toolkit. More and more, aid workers are witnessing refugees arriving at camps with smartphones. For both the refugee journey and the post-journey settlement process, a phone can be vital. With this in mind, you might not be surprised to learn that mobile money usage among refugees, including for cash transfers from governments and NGOs, is on the rise.

Read the rest of this entry »

> Posted by Daniel Balson, Lead Specialist for Eurasia and MENA, the Smart Campaign

This is the fourth and final blog entry in a series exploring how financial services can be leveraged to assist refugee populations. This entry will consider the future of refugee financial services and what our sector can do to ensure that the future is an inclusive one that serves genuine needs and protects refugee rights.

Embed from Getty Images

Syrian refugees shop at a market with their bank card given by the Turkish Red Crescent.

It is worth asking whether the financial inclusion sector is at the forefront of the movement to financially include refugees. The humanitarian sector has long struggled to determine how to provide assistance during a crisis in a way that is sustainable, effective, and accountable. Recently, humanitarian organizations such as Oxfam and the International Finance Corporation (IFC) have begun considering whether it’s possible to use payments as an on-ramp for financial inclusion of refugees. Cash transfers have historically facilitated corruption and failed to make it into the hands of the people who needed it most. In-kind donations of goods such as tents, food, sleeping material and other items undermined local merchants who made their livelihoods selling these very goods. In response, the sector has begun experimenting with digital financial payments. In Afghanistan, for example, the World Food Program (WFP) has issued e-vouchers and mobile money to cover food aid. The first e-voucher pilot was carried out on a small user base of 603 recipients in Kabul for a three-month disbursement cycle from April to June 2014. The total value of e-vouchers disbursed was US$72,360. The program proved successful and the WFP launched several follow-on pilots across the country in the subsequent year.

Read the rest of this entry »

> Posted by Center Staff

This edition of top picks features posts highlighting India’s financial inclusion progress and persisting gaps, how the deployment of digital financial systems requires strategic human capital management, and the state of the mobile money industry in Latin America and the Caribbean.

The proportion of adults in India with a bank account increased from 35 to 53 percent between 2011 and 2014, according to the recently-released Global Findex data. A new post on the IFMR LEAD blog shares the Findex findings for India, and outlines the ways in which financial inclusion in the country is still far from achieved. The post affirms that account ownership is just the first step towards inclusion, discussing account usage, gender disparity, and uptake of mobile services, among other topics.

Read the rest of this entry »

> Posted by Center Staff

This edition of top picks features posts highlighting initiatives to optimize smallholder finance data collection and usage, efforts to improve youth financial capability, and insights on how mobile money services can effectively reach women.

To better provide financing for the 450 million smallholder farmers around the world, there’s a big opportunity in developing shared knowledge bases and coordinated learning agendas for this topic area. A new post on the CGAP blog shares the work of Dalberg Global Development Advisors and the Initiative for Smallholder Finance to ascertain the state of the smallholder financing knowledge base and put in place a number of complementary tools so that those addressing this financing gap can work together, repurpose what others have already learned, and build off of the field’s scarce resources to drive it forward. The post highlights a smallholder impact literature wiki, an interactive map of smallholder finance tools, a framework for data collection that includes a shared learning agenda, and new briefings offering supply and demand side insights as well as indications of where data is lacking.

Read the rest of this entry »

> Posted by Center Staff

This edition of Top Picks features posts highlighting findings from new research on the global mobile money industry and on remittances in Africa and Asia, as well as a post on how innovation can encourage savings at the base of the pyramid.

A new post on GSMA’s Mobile Money for the Unbanked Blog shares preliminary findings from the MMU 2013 Global Mobile Money Adoption Survey. The Adoption Survey, which offers insights on the development of mobile money services and how they’re enabling the expansion of financial inclusion, will be published at the 2014 GSMA Mobile World Congress, February 24-27 in Barcelona. These preliminary findings included a few industry milestones. A few weeks ago the global industry surpassed 200 mobile money service deployments to total 208 services spread across 83 developing countries. Mobile money services are become a mainstay among mobile network operators, rather than a differentiator. In Sub-Saharan Africa, for example, mobile money is available in 36 out of the 47 countries in the region.

In Africa and Asia, domestic remittances may far surpass international remittances in both frequency and magnitude, two recent joint-reports from the Gates Foundation and Gallup found. That’s the subject of a new post on the Financial Access Initiative Blog, which details the reports’ key results and provides a brief overview of domestic remittances, internal migration, and how they relate. The reports revealed that across the 11 surveyed countries, 14 percent of people had sent money to family or friends within the country within the previous 30 days, and that 32 percent of these respondents had been on the receiving end of such a money transfer. In contrast, one to two percent of people reported sending an international remittance, and about three percent reported receiving an international remittance, in the previous 30 days.

Read the rest of this entry »

> Posted by Center Staff

This edition of Top Picks features a post that offers a fresh framework for examining savings groups, a post that synthesizes recent research on payments in South Asia, and a post on the relative effectiveness of aid approaches.

Steering the conversation on savings groups towards foundational concerns, or at least towards more interesting matters than the oft-trodden territory of model and methodology specifics (e.g. passbooks versus ledgers), Paul Rippey in a new Savings Revolution blog post offers six questions for potential consideration. Here’s a portion of one of the questions: “How big is the gap within the program between what is said and written, and what is done? Said another way, the casual disrespect and bending of procedures makes management incredibly difficult and inefficient.”

In South Asia, domestic remittances are conducted much more than international remittances, and they’re carried out mostly in cash through informal channels. These are two of the big findings from a recent Gates Foundation survey, highlighted by Jake Kendall in a new Next Billion blog post. The post provides a brief overview of the importance of digital payment options for the poor and shares the big findings from the Gates survey, which interviewed individuals in South Asia (Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka) and Indonesia on their experience with payments. Another key finding from the survey, demonstrating a big potential market for digital payments, was that the majority of those interviewed – who represent the majority of a population of 1.9 billion adults – reported having sent, brought, or received a domestic or international remittance in the past 12 months.

What’s better?: an organization giving money to the poor with no strings attached, or an organization giving the poor productive assets which require higher expenditures that hinder the organization’s scope? That’s one of the big questions presented in a new post, “Cash or Cows?“, on the Innovations for Poverty Action (IPA) blog. It’s a question getting a lot of attention recently thanks to the increasingly talked-about organization GiveDirectly that gives money directly to the poor in Kenya, with no associated conditions, via M-PESA mobile money transfers. To put this approach to the test, GiveDirectly agreed to allow IPA to conduct a public evaluation (which is currently underway) of the effectiveness of their work. In addition to exploring this question, the post takes an additional half-step of comparing the net impact of conditional and unconditional cash transfers, drawing on IPA research.

Image credit: Ianf

> Posted by Center Staff

This edition of Top Picks features three posts that each bring attention to a type of financial service: cash transfers both unconditional and conditional, mobile money, and gold savings and loans in India.

  • In “The Life and Death of Cash”, a new post on the Financial Access Initiative Blog, Timothy Ogden discusses recent developments in the area of cash transfer programs. After offering an introductory overview on common perceptions of physical cash in the development and financial inclusion contexts, Ogden contends that the advent in recent years of conditional cash transfer programs as well as program evaluations have increased support for cash transfers on the whole. The post cites two recently published cash transfer studies, and includes a Q&A with Chris Blattman, who is an author on both.
  • “I believe in the inevitability of mobile money, but I don’t believe we’re getting there very fast,” Ignacio Mas states in a recent CGAP Blog post. In this post on mobile money and why its successes are disappointingly slow and isolated, Ignacio tables the limitedly optimistic popular mobile money dialogue to examine barriers to industry growth, on both the demand and supply sides. Among the points made, Ignacio posits that mobile money programs don’t fit within telcos’ long-established decision models, that the services run counter to banks’ traditional attitudes and approaches to client touch-points, and that users largely do not see their mobiles as a store of value or as an expense management tool, but just as one payment instrument. Read the rest of this entry »

> Posted by Center Staff

This edition of Top Picks features three posts that each highlight an initiative with the potential to further inform financial inclusion efforts. These initiatives include an entrepreneurial assistance program for women in post-war Uganda, a project that explored the effectiveness of microfinance providers offering health services, and an interactive workshop on impact evaluation.

  • What’s the best way to help the poor in the aftermath of war? A new post on the Innovations for Poverty Action (IPA) blog highlights the recent release of findings from a program that provided entrepreneurial assistance – business training, start-up money, ongoing support and monitoring – to women in northern Uganda. The assistance led to increases in business activity and decreases in poverty, but did not have an effect on non-economic areas, such as physical and mental health. The program was conducted by IPA, Italian NGO AVSI Uganda, and Chris Blattman of Columbia University.
  • In his latest post on The Evidence Project, Chris Dunford shares the results of Freedom from Hunger’s Microfinance and Health Protection (MAHP) initiative, which sought to test the feasibility and impact of offering microfinance clients health education, as well as access to health services and products. Five large-scale microfinance providers participated in the initiative, developing health protection packages for their clients. The results from the initiative support a case for the effectiveness of integrating microfinance and health services.
  • Re-Evaluating Impact Evaluation, a new Next Billion post from Hui Wen Chan of the Citi Foundation, revisits a recent impact evaluation workshop and shares some of the key discussion points from the event. Arguably the most salient of these being think beyond the financial, consider both the economic and non-economic impacts of your products or services. Another key point shared in the post is the integrity of data depends both on the questions asked and the manner in which they are asked. The workshop was provided by the William Davidson Institute (WDI) and hosted by the Citi Foundation in New York City.

Read the rest of this entry »

Enter your email

Join 2,204 other followers

Visit the CFI Website

Twitter Updates

Archives

Founding Sponsor


Credit Suisse is a founding sponsor of the Center for Financial Inclusion. The Credit Suisse Group Foundation looks to its philanthropic partners to foster research, innovation and constructive dialogue in order to spread best practices and develop new solutions for financial inclusion.

Note

The views and opinions expressed on this blog, except where otherwise noted, are those of the authors and guest bloggers and do not necessarily reflect the views of the Center for Financial Inclusion or its affiliates.