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MicroSave Releases New Assessment of Branchless Banking in India

India is undergoing a significant expansion in the use of agents (Business Correspondents) to offer a range of financial services. There are many questions about whether this present expansion can be sustained.

Variations on a Theme: Business Models in Branchless Banking

We’ve done a lot of thinking at CGAP about the different business models and partnerships that exist in branchless banking. What I find interesting is that rarely do you find two models that look exactly alike. Once you begin to really dig beneath the surface, you realize that even among those businesses that we might simplistically call “telco-led” or “bank-led”, there are significant differences.

Interoperability in Branchless Banking and Mobile Money

At the end of the day, we suspect interoperable systems will accelerate financial inclusion by allowing customers to use the infrastructure of multiple service providers to access their accounts. The question is how best do we get there?

Technology Challenges Accompany Voluntary Savings

Our discussions on branchless banking on this blog do not often touch on the role of microfinance institutions (MFIs). The main actors in this space seem to be mobile network operators, commercial banks, larger microfinance banks and technology companies. We have done a bit of thinking on microfinance and mobile banking, notably in this Focus Note and at this Virtual Conference.

Reflections on the Commercialization of Microfinance

Various voluntary efforts for MFIs to behave better in Andhra Pradesh went unheeded. Unfortunately, these voluntary commitments were never honored, resulting in a metastasized problem in AP in 2010.

Gold Backed Loans: Unlocking Liquidity for the Poor?

In some parts of South Asia there is a long standing tradition of accumulating gold as a preferred form of saving. Acquiring gold allows small amounts to be accumulated at different intervals; it is not easily lost or destroyed; it is small and lightweight compared to its value; and it is easily divisible into small units which can be sold off as needed.

The AP Crisis One Year On: The NCAER Study

The recent study by the National Council for Applied Economic Research (NCAER), sponsored by the Microfinance Network (MFIN), brings much-needed data into the discussion. Covering over ten thousand households across multiple Indian regions, this study merits attention.

Credit Reporting and the Indian MFI Bill

For more than a decade stakeholders across the spectrum in countries around the world have pinned hopes on ‘just the right microfinance regulation’ solving problems only indirectly affected by regulatory policy.

Overview of the G2P Payments Sector in India

We often write on this blog about the potential to link government-to-person (G2P) payments to financial services. We also closely follow branchless banking developments in India and have recently shared our take on the market. So imagine our excitement when we can talk about both together!

MFIs Should Do Responsible Finance

Responsible finance is not just the responsibility of the MFIs. Other stakeholders have a role to play. These stakeholders should exhibit the same virtues that they demand of MFIs.

The Next Breakthrough in Financial Services in India

The new service, like other mobile and agent banking services, including the successful Kenyan mobile money transfer service M-PESA , is intended to enable people to carry out microtransactions safely and conveniently.

Banks Have Some Good News…Are They Listening?

CGAP, in partnership with the Inter-American Development Bank and Akya, a banking consultancy, recently completed some analysis on the business case for banks in branchless banking.

India Microfinance Bill Offers a Mixed Bag to Investors

The change in the thinking of the government in terms of introducing the comprehensive microfinance bill to replace the old one and emphasizing the supremacy of the regulator, the Reserve Bank of India (RBI) is a consequence of the events in Andhra Pradesh where the State Government has introduced a State level Act to regulate MFIs.

India’s Microfinance Bill and Financial Inclusion

The draft Microfinance Bill placed by the Ministry of Finance on its website on 6 July 2011 represents a major step forward in the government’s engagement with the microfinance sector.

India’s Microfinance Bill Answers Most Questions

The bill is an important first step; several more steps in translating the bill to action are required before we reach a stage that restores the vitality of the sector.

India Microfinance Bill – The Good and The Bad

India’s microfinance bill is a very positive development for the microfinance sector because it brings the sector into the ambit of organized financial services.

The Cost-Benefit of Electronic Payment Systems: The Case of India

Electronic payments hold particular promise, and the key question is: What is the cost-benefit for a government to connect all households to an electronic payment system.

The Last Frontier for Branchless Banking: State of Play in WAEMU

Access to finance in WAEMU is very low, even by comparison to other regions of Africa. The rate of bancarization announced by the BCEAO in December 2010 was 9.5% and 12.7% of the population had an account with an MFI.

Branchless Banking in South Africa

South Africa has often been used as a case study by those with an interest in financial inclusion. The country has an advanced banking infrastructure with nearly 10,000 ATMs and over 100,000 POS devices deployed.

Does Savings Help Protect MFIs from Political Interference?

Until recently, microfinance in India (really microcredit) had been driven by innovators and entrepreneurs, but also enabled by government policies such as of priority sector lending and regulatory restrictions prohibiting deposit mobilization for most MFIs.