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> Posted by Antoine Navarro, Blaine Stephens and Nikhil Gehani, MIX

Enabled by technology and fueled by the desire to improve business outcomes, over 60 percent of financial service providers (FSPs) are serving clients through ATMs, mobile money, agent networks, and other channels outside of branches, according to a recent global survey by MIX. While FSPs continue to deploy these alternative delivery channels (ADCs), assessing their performance presents a challenge. Even though many FSPs are developing internal metrics to track performance, basic information like number of transaction failures is largely unavailable outside the institution. And even when such information is available to external parties, comparisons against the market are hampered by a lack of standard metrics in the industry.

With the right reporting systems and processes in place, FSPs can compare internal channel performance to optimize their channel mix. FSPs have told us they need visibility onto the rest of the market to benchmark their performance against peers, inform managerial decisions and improve actual results. MIX’s recently published report, “Measuring the Performance of Alternative Delivery Channels” aims to do just that. Through research supported by The MasterCard Foundation, IFC’s Partnership for Financial Inclusion and UNCDF’s MicroLead program, we were able to engage with a number of FSPs in sub-Saharan Africa to develop and refine a set of standard metrics. We also created initial benchmarks based on the data collected from these institutions, which are published in the report. It is our hope that FSPs around the world will begin collecting and reporting on these metrics so market actors will have a common reference point for ADC performance measurement and comparison.

What was found? You’ll have to read the report to get the full scope, but here are a few high-level takeaways.

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> Posted by Lizzy Bolze, Analyst, Investing in Inclusive Finance, CFI

The following post was originally published on the Accion blog. 

Accion client Ma San Htwe selling fish in Myanmar, one of the key areas discussed at European Microfinance Week 2016.

European Microfinance Platform is celebrating 10 years of supporting inclusive finance innovation, and hosted European Microfinance Week 2016 (EMW) in Luxembourg a few weeks ago. At the conference, I joined discussions about key organizations and challenges in the industry. Here are five of the main takeaways from the week:

1. The Underserved Refugee Population

The Social Performance Task Force (SPTF) is helping to provide financial services to the refugee population, which is now approximately 20 million people. In reality we don’t know very much about the socioeconomic needs of refugees, and much of the research is focused on humanitarian efforts. SPTF is working to research and provide guidelines to financial service providers to better serve the financial needs of this population. The guidelines will be published on SPTF’s website in the coming months. Learn more about leading organizations supporting refugees from CFI’s blog series on refugees.

2. Opportunity in Myanmar

Representatives from VisionFund, Advans, UNCDF, and M-CRIL provided a look at the economic landscape of Myanmar and the future of financial inclusion there. In Myanmar, 70 percent of the population was excluded from formal financial services until 2011, when microfinance rapidly expanded. After 2011, 267 licensed Monetary Financial Institutions (MFIs) opened. This opportunity comes with many barriers to inclusion, such as a lack of government regulation and funds and capacity-building issues. However, there is widespread optimism with an adoption of regulations proposed by the Smart Campaign, as well as further demand for microfinance in Myanmar. Investors should consider moving into the region for long term impact.

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> Posted by Jeffrey Riecke, Communications Associate, CFI

On Monday, Myanmar launched its first domestic online payment network. The payment platform centers on a partnership between 2C2P, a Southeast Asian payment services company with a history of digital finance work in the country, and Myanmar Payment Union (MPU), the national payment network set-up by the country’s central bank. The new platform allows MPU cardholders, currently 900,000 individuals and counting, to make online purchases in-country. The e-pay advancement is a promising step for financial inclusion in the country, which continues its recovery from economic isolation and military rule.

The Myanmar Payment Union, the country’s only domestic card-based payment system, launched in 2011, encompasses 20 banking partners, including three state-owned banks. In the time since MPU introduced banking cards and ATMs, card adoption has increased, with enormous growth in 2014, from roughly 200,000 cardholders early in the year to the current level of 900,000. With the new online payment system, businesses now need to sign onto the service via one of MPU’s partner banks, which will provide technical support and consultation throughout the process. On both the business and consumer end, achieving the necessary platform traction will require significant awareness building – quelling fundamental questions like: will my payment actually reach the merchant?

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> Posted by Hema Bansal, India Director, the Smart Campaign

As a child growing up in India, I was always intrigued by stories from Myanmar, but disturbed by conflicts that it had witnessed. Not knowing much about the country, as an adult I still had an innate desire to visit. On May 7th and 8th, I attended the Responsible Finance Seminar, organized by Entrepreneurs du Monde (EDM), held in Myanmar’s city of Yangon. I was completely awed by the mystical peace of the city, I was also impressed by the demonstrations of support at the seminar for instilling client protection in Myanmar’s microfinance industry. It’s a great opportunity for a young market to secure responsible practices from its outset.

Myanmar, the second-largest country in Southeast Asia, remains one of its poorest. Decades of isolation have severely affected its development. In terms of financial inclusion, a large proportion of the population in Myanmar relies on informal lenders. The formal sector only serves about 20 percent of the population, largely because of the existing financial institutions’ limited capability.

In May 2011, President Thein Sein publicly recognized microfinance as a means of development by enabling local and foreign investors to establish fully privately-owned MFIs. Since the rationalization of licensing in Myanmar, around 110 MFIs have been registered. Deposit-taking institutions have been allowed to set-up shop rather easily due to low minimum capital requirements and the absence of separate prudential regulations from non-deposit-taking institutions, such as rules pertaining to reporting standards and portfolio quality management.

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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.