Recent Blogs
Blog
Headlines for March 2011
Retail banking is not a high margin business. It is one where you have to earn a little from lots of customers, know them well and serve them well – not easy when you have many millions spread over a large area who may not be worth much individually even if they are better off than they have ever been before.Blog
Mobile Money in mHealth
While most mHealth opportunities in developed countries tend to focus on reducing costs, mHealth in poor countries is often tackling the much more basic question of access.Blog
Over-Indebtedness: Roles and Responsibilities of All Actors
Still one of the keys to addressing over-indebtedness is analyzing the ability of the borrower to repay.Blog
Searching for Success Stories in Banking Beyond Branches
Who would have expected only three years ago that banking beyond branches would be receiving so much attention across the financial services and development industries?Blog
Constructing an Early Warning Index
Over-indebtedness has a detrimental effect on all players involved: first and foremost for the borrower.Blog
Two Cautionary Tales from Bangladesh
For leaders who devised Bangladeshi’s microfinance miracle in the first place, adjusting staff instructions and realigning incentives to remove these foolish practices should be a piece of cake.Blog
Over-indebtedness: Striking the Right Balance
Over-indebtedness is as old as lending itself. A growing credit market will always bring about cases of client over-indebtedness. To put consumer protection measures in place is an essential part of good practice.Blog
Can Branchless Banking Be Profitable?
The Agent Network Management toolkit comes with a financial model to help providers project the revenues generated in a branchless banking implementation for each member of the supply chain.Blog
Taking Islamic Microfinance to Scale
Today, microfinance and Islamic finance are professionalized industries with diverse products, growing client bases, and widening geographical coverage. Both have developed innovative solutions to cater to populations that are outside the fold of conventional financial access.Blog
Over-indebtedness: A Practitioner’s Perspective
The large MFIs seem to be revising down their growth targets, there are ongoing experiments with new products and there is some hope that a microcredit bureau, at least on a limited scale, will see the light of day within a year or so.Blog
No Single Recipe When Structuring Agent Networks
When providers are planning the launch of a branchless banking service, one of the critical decisions facing them is how to structure the agent network.Blog
How Do Migrant Workers Move Money in India?
To better understand just how costly making remote payments can be for poor households, the Bill & Melinda Gates Foundation commissioned the Centre for Micro Finance at the Institute for Financial and Management Research (IFMR) and the Reserve Bank of India’s College for Agricultural Banking to survey 274 domestic Indian migrants and their families living at opposite ends of four domestic remittance corridors.Blog
A Way Out of High Growth and Multiple Lending Indebtedness Trap
The global debate on over-indebtedness tends to focus on the role of high rates of growth as its cause. The argument is that growth is sustained by the less responsible MFIs who target easy to reach clients – the low hanging fruit – encouraging them to borrow and inadvertently getting them into trouble as a result.Blog
How Agent Network Managers Have Fueled M-PESA’s Success
As CGAP’s new Agent Management Toolkit emphasizes, managing an agent network is complicated. There are a lot of different pieces of the puzzle to get right.Blog
Microcredit Yatra: A Very Indian Journey
Vijay Mahajan, oft described in the Indian media as the “high priest of microfinance,” has set off on a spiritual and literal journey across India to explore the reality of what microcredit has done for poor people.Blog
Boosting the Business Case for Agents
FINO was founded on 13th July, 2006 with the single objective of building technologies to enable financial institutions (FIs) to serve the under-served and the unbanked sector and also to service the technology requirements of entities engaged in servicing the bottom of the pyramid customers.Blog
Debt Stress – A Harmless Cold or a Deadly Virus?
High debt stress holds serious risk for both consumers and for the lending industry.Blog
Over-Indebtedness and Market Forces
The issue of individual over-indebtedness has been around for a long time in microfinance, but the depth and extent of over-indebtedness that has recently emerged in Andhra Pradesh is quite unprecedented.Blog
CGAP Releases Agent Management Toolkit
CGAP’s Agent Management Toolkit aims to demystify the process of building a viable agent network. The toolkit is based on more than a year of research that yielded data on more than 16,000 agents with institutions in Brazil (Banco do Brasil and Banco Postal), India (EKO and FINO), and Kenya (M-PESA).Blog