You are currently browsing the tag archive for the ‘Pakistan Microfinance Network’ tag.

> Posted by Guy Stuart, Ph.D., Executive Director, Microfinance Opportunities

Can government-to-person (G2P) payments to low-income beneficiaries translate into their formal financial inclusion? This might happen if those beneficiaries can gain experience in dealing with a formal financial service provider (FSP) when they pick up their payments. This is especially the case where the government pays the beneficiaries of the program through a digital channel, such as a debit card or mobile money, and the payment pick-up process gives beneficiaries the chance to interact directly with this new technology. Furthermore, given that G2P programs are often targeted at women, there is the potential for these programs to increase the inclusion of the half of the population traditionally more excluded from formal financial services.

As part of the CFI Fellows Program, Microfinance Opportunities, in partnership with the Pakistan Microfinance Network and Centro de Formación Empresarial de la Fundación de Mario Santo Domingo, looked at the relationship between G2P payments and financial inclusion. For this project we analyzed global survey data and conducted field research in Colombia and Pakistan—two countries with large, well-established G2P programs.

The focus group discussions with the beneficiaries of the Familias program in Colombia showed the potential of G2P programs to have a direct effect on enabling women to become comfortable with using digital channels to receive money. The women unanimously reported that they used their Familias debit cards to withdraw their G2P payment from an ATM without any help from anyone else. They did report that, at first, they needed help, but soon learned how to use the cards themselves without any problem.
Read the rest of this entry »

> Posted by Guy Stuart, Ph.D., Executive Director, Microfinance Opportunities

Can government-to-person (G2P) payments to low-income beneficiaries translate into their financial inclusion? One way this might happen is if those beneficiaries can gain experience in dealing with a formal financial service provider (FSP) when they go to pick up their payments. This is especially the case where the government pays the beneficiaries of the program through a digital channel, such as a debit card or mobile money, and the payment pick up process gives beneficiaries the chance to interact directly with this new technology. Furthermore, given that G2P programs are often targeted at women, there is the potential for these programs to increase the inclusion of the half of the population traditionally more excluded from formal financial services.

As part of the Center for Financial Inclusion Fellows Program, Microfinance Opportunities, in partnership with the Pakistan Microfinance Network and Centro de Formación Empresarial de la Fundación de Mario Santo Domingo, looked at this issue as part of a larger project on the relationship between G2P payments and financial inclusion. For this project we analyzed global survey data as well as conducted field research in Colombia and Pakistan—two countries with large, well-established G2P programs called Familias en Acción (Familias) and the Benazir Income Support Program (BISP) respectively. The field research involved focus group discussions with the beneficiaries of the programs and, in Pakistan, a series of observations of transactions at the shops of agents of one of the commercial banks distributing payments to the beneficiaries of BISP.

Read the rest of this entry »

> Posted by Saquiba Aziz, Social Responsibility Associate, Pakistan Microfinance Network

Loan officers, who form the base of organizational hierarchy of a typical microfinance organization, are instrumental in expanding the outreach of microfinance and building goodwill with microfinance clients. Hence it is extremely important that the right kind of social and financial message is conveyed through them. However, despite the critical role that loan officers play in an organization, their voices and their challenges in the field are largely ignored when it comes to literature on microfinance.

Realizing the need to study and document the ground realities and perspectives of this fundamental human capital of microfinance providers, the Pakistan Microfinance Network (PMN), with financial support from the State Bank of Pakistan and the Pakistan Poverty Alleviation Fund, recently undertook a qualitative study on loan officers, titled, “Loan Officers’ Voices: Perspectives and Lessons from the Foot Soldiers“. For the research, PMN conducted focus group discussions and in depth interviews with loan officers from 10 institutions that volunteered to participate.

Some very interesting findings emerged from the study. Most of the loan officers were found to be aware of the vital role that they were entrusted with, i.e. the growth and risk management of their institutions. Their work, primarily based in the field, is premised upon assumptions of self-surveillance, monitoring, and discipline to achieve the targets set for them. Loan officers shared diverse visions about the job at hand: responses differed from helping the underprivileged to seeking experience in client handling. Another group viewed their jobs in terms of the authority and social power it brings to them as they monitor clients’ usage of loans. This improves their self-esteem as they feel good about the fact that they are in a position to oversee and help people.

Read the rest of this entry »

> Posted by Khadija Ali, Social Analyst, Pakistan Microfinance Network

The Pakistan Microfinance Network (PMN) – a national association of over 50 microfinance providers (MFPs) – has supported its members in conducting third-party client protection assessments using the Smart Campaign’s Smart Assessment tool. To date, 18 assessments have been conducted, covering over 60 percent of the market in terms of overall outreach to active borrowers. These assessments have been made possible with funding support from the State Bank of Pakistan (SBP) through the UK Aid-sponsored Financial Inclusion Program (FIP). The assessments provide a unique opportunity for PMN to observe the state of practice in client protection among member MFPs. For participating MFPs, the assessments provide an opportunity to evaluate their practices in comparison with globally accepted standards of client protection, and seek recommendations for institutional improvements to better comply with the standards. They also indicate whether an institution is ready to pursue Smart Certification, a designation recognized across the global market that an institution successfully integrates the Client Protection Principles into their practices. After undergoing an assessment and acting on its results, Kashf Foundation (KF) recently became the first microfinance institution in Pakistan to achieve Smart Certification.

The Pakistan Microfinance Network, a strategic partner of the Smart Campaign, sat down with Roshaneh Zafar, Managing Director of Kashf Foundation, to talk about the certification experience.

Read the rest of this entry »

> Posted by Syed Mohsin Ahmed, Chief Executive Officer, Pakistan Microfinance Network

The Financial Inclusion 2020 campaign at the Center for Financial Inclusion at Accion is building a movement toward full financial inclusion by 2020. Accordingly, this blog series will spotlight financial inclusion efforts around the globe, share insights coming out of the creation of a roadmap to full financial inclusion, and highlight findings from research on the “invisible market.”

At the Pakistan Microfinance Network, we are always in search of more data on financial inclusion in Pakistan. So imagine my delight when I heard about the Country Profiles feature on the Center for Financial Inclusion’s Mapping the Invisible Market website that features data from the World Bank Global Findex among other sources. My exploration of the Pakistan country profile page gave me some new insights and raised a few questions for future research.

First, a very high proportion of the people who took loans (largely informal) in the past year in Pakistan took them to deal with health and emergencies. Seventeen percent of all adults in Pakistan borrowed in the past year for health and emergencies, while only about 10 percent of the people in other middle income economies did so, even though in Pakistan, people are less likely to take out loans overall.

Reasons for taking out a loan

This observation makes me wonder if there is a pent-up demand for insurance in Pakistan. For a country that has seen a number of major disasters in the last few years, no doubt there is a great need for insurance products in Pakistan to help prepare for emergencies.

When I looked further at who it was that was taking out these loans (again, both formal and informal) for health or emergencies, I noticed that they were disproportionately rural, or poor, or to have only completed primary school. These observations offer a picture of what vulnerability looks like in Pakistan, and where financial inclusion efforts might be targeted for maximum impact.

Looking specifically at formal financial services, I found that the percent of people who have an account at a formal financial institution in Pakistan is quite low—10 percent—compared to the rest of South Asia—33 percent. In both, the number one use of accounts is to receive wages. Unsurprisingly, in Pakistan, education and gender have a great impact on the use of accounts—25 percent of people whose education level is secondary school or higher have an account compared to only four percent of people who have just a primary school education. Seventeen percent of men have an account compared to three percent of women. Read the rest of this entry »

> Posted by Merene Botsio, Financial Inclusion 2020 Project Coordinator, CFI

The Financial Inclusion 2020 campaign at the Center for Financial Inclusion at Accion is building a movement toward full financial inclusion by 2020. Accordingly, this blog series will spotlight financial inclusion efforts around the globe, share insights coming out of the creation of a roadmap to full financial inclusion, and highlight findings from research on the “invisible market.”

Huddled in the crowded lobby of the Sheraton Arlington hotel at the annual SEEP Network Conference, we listened intently to Syed Mohsin Ahmed as he elaborated on Pakistan’s new Microfinance Credit Information Bureau (MF-CIB). We scribbled in our notebooks, taking down points for the Financial Inclusion 2020 Credit Reporting and Client Information Analytics Experts’ Working Group, of which he is a member.

Read the rest of this entry »

Enter your email

Join 2,138 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.