Webinar recap: Is it too late for microfinance to be pro poor?

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https://www.youtube.com/watch?v=mh6iw8-lbKE&feature=youtu.be
On April 21st, the Microcredit Summit Campaign co-hosted with Uplift a webinar discussion focusing on the promise that graduation holds for sustainably reaching the ultra-poor. Our featured speakers were Debasish Ray Chaudhuri, CEO of Bandhan Konnagar in India, Rachel Proefke, a research associate with BRAC Uganda, Mark Daniels, the Philippines director for Opportunity International, and Allison Duncan, CEO of Amplifier Strategies and founder of Uplift. Anne Hastings, a global advocate with Uplift, moderated the webinar.

The conversation looked closely at the experiences that each of the three practitioners on the panel have had in implementing the program as well as the global advocacy message supporting the graduation approach being delivered by Uplift and its allies.

We hope you will get engaged with this promising avenue for reaching those living in ultra-poverty and be inspired by the potential it holds for helping microfinance institutions to reconnect to their original purpose. Some final thoughts from speakers on the webinar follow.

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Oradian’s innovative cloud system in West Africa empowers the microfinance community

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>>Authored by Vedrana Legovic, marketing and communications officer of Oradian

Last month, we travelled to Abu Dhabi for the 18th Microcredit Summit, which hosted a number of microfinance and financial inclusion experts from around the world. The summit explored new and effective ways in advancing financial inclusion and featured successes in Africa and the Middle East. One of those success stories is certainly that of Oradian, and we are honoured that the Microcredit Summit Campaign recognised the impact of our work in West Africa. By using our latest cloud-based technology, services, and domain expertise in that region, we increase efficiency and effectiveness of microfinance institutions (MFIs).

We had the opportunity to attend inspiring plenary and breakout sessions and be a part of the arena where so many great ideas were shared. Oradian’s co-founder and managing director, Antonio Separovic, spoke at the “Innovative Products and Services for Financial Inclusion” panel. Oradian creates technology (SaaS software) for MFIs. With our technology, we remove complexity, empower our users, and enable their growth because most of them still use pen and paper.

Antonio discussed Oradian’s experience in enabling ‪‎ MFIs to advance financial inclusion by using our innovative technology. More specifically, he shared our story about empowering microfinance communities in some of the most remote rural areas in Nigeria, our core market, where we have had impressive results with local MFIs in applying our multi-award winning software, Instafin, to their operations.‬‬‬‬‬‬‬

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Sohelia Haque: MFIs better serve the poor than traditional banks

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Sohelia Naznin Haque of Society for Development Initiatives (Bangladesh) discusses the role of microfinance to help end poverty and the lessons learned at the 18th Microcredit Summit with Miranda Beshara, editor of the Arabic Microfinance Gateway.

Haque echoed Dr. Muhammed Yunus, supporting the goals of zero poverty, zero unemployment, and financial inclusion through technological advancement. She explains how SDI reaches the poor in a way that big banks do not, going to their homes and visiting rural areas.

“We go to them, think about or listen to their demands, needs, motives, drives. According to that, we make our microfinance products and try fulfill their demands,” said Haque. “[Commercial] banks’ interest rates are too high, but our interest rates are not too high according to the demand we provide them.”

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Research on Ecuador’s digital platform to be featured at 18th Microcredit Summit

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The Microcredit Summit Campaign, as part of its 6 Pathways, is helping to highlight ways that digital platforms are helping to expand financial inclusion, especially for the extreme poor. We are pleased to share with you this Executive Summary of their research.

At the 18th Microcredit Summit this research will be included in the breakout session “The Digital Revolution and Financial Inclusion.” We hope to see you there!


>> Authored by Jorge Moncayo and Marcos Reis.

Financial systems have a vital role in national economies. They provide savings, credit, payment, and risk management products to society. In this sense, inclusive financial systems — those with a high share of individuals and firms that use financial services — are especially likely to benefit poor people and other disadvantaged groups. On the contrary, poor people must rely on their limited savings to invest in their education or become entrepreneurs. In addition, small enterprises must rely on their limited earnings to pursue promising growth opportunities (Demirguc-Kunt and Klapper, 2012).

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Grameen Fdn expands our knowledge on poverty measurement

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Photo credit: Grameen Foundation
We are pleased to post an update from Grameen Foundation about the Campaign Commitment that they launched in 2014. Focused on supporting the growth of the use of a very effective poverty measurement tool, the PPI®, their Commitment also underscores the importance of using the data from tools like this in helping to improve the way we support and serve those living in poverty.

You can learn first-hand how such tools can be used, not just to prove that you are reaching the extreme poor, but to improve the services that you offer and the way you interact with the extreme poor. We are organizing a breakout session at the 18th Microcredit Summit called “Innovations in Measuring Social Impact.” Learn more and register today!


>> Authored by Julie Peachey, Grameen Foundation

In early 2014, Grameen Foundation made several commitments, as part of the Microcredit Summit Campaign’s 100 Million Project, towards achievement of the collective goal of helping 100 million families escape poverty. Our commitments focused on demonstrating use of the Progress out of Poverty Index® (PPI®) for measuring household-level poverty, because reaching and lifting people out of poverty requires knowing who is actually poor.

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Campaign to host workshop with World Bank Annual Meeting in Peru

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Are you attending the 2015 Annual Meetings of the World Bank Group and the International Monetary Fund in Lima, Peru? Join us at the Civil Society Policy Forum* for a workshop to explore how microfinance and financial inclusion can contribute to the fight against extreme poverty.

The Microcredit Summit Campaign will host a workshop at the Forum at the World Bank Annual Meeting in Lima from October 6-9. The Forum promotes substantive dialogue and an exchange of views between Bank/Fund staff, civil society organizations (CSO), government officials, academics, and other stakeholders.

6 Financial Inclusion Pathways to End Extreme Poverty — What Role Can You Play?

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Does anti-poverty work actually … work?

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Photo credit: Giorgia Bonaga & Shamimur Rahman
The following blog post is re-posted with permission. Read the original article on Next Billion, “NexThought Monday – Does Anti-Poverty Work Actually … Work?: Three questions every ‘pro-poor’ group needs to ask themselves.”


>>Authored by Chris Dunford and Carmen Velasco

This month, the United Nations will celebrate achievement of Millennium Development Goal No. 1. The number of people living in extreme poverty has fallen by more than half, from 1.9 billion in 1990 to 836 million in 2015. How did this happen? Is it because of targeted anti-poverty programs, or is it due to broad-based economic growth, especially in China and India? If economic growth is the main cause, as it seems to be, further progress may be doubtful. Economic growth alone is unlikely to reach the residual hundreds of millions still living in extreme poverty.

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#tbt: Affordable Transactions for the Poor

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#Tbt_10


We are pleased to bring you this #ThrowbackThursday blog post, which was originally published in Resilience: The State of the Microcredit Summit Campaign Report, 2014, under the chapter “Mobile Network Operators Can Build Systems that Reach the Poorest and Most Remote.” The section excerpted below describes how important mobile technology and digital financial services are for reducing the cost of doing business with the poor and hard-to-reach — both for the provider and the client. Read also Ian Radcliffe’s blog post from Tuesday in which he describes WSBI’s progress achieved so far toward a related Campaign Commitment.


Transaction costs pose a significant challenge to those seeking to provide financial services to people transacting in very small amounts or living in remote areas. The cost of providing the service often exceeds the price that the client can afford to pay. People living in poverty must manage daily transactions with incomes that are small, inconsistent, and often unpredictable.

Ian Radcliffe, of the World Savings Bank Institute (WSBI) reported its research that calculates that people living in poverty can only afford to pay about USD 0.60 a month for financial transactions, an amount far lower than the cost to employ staff to manage the transactions. Moving transactions to mobile platforms can drastically reduce many of these costs.

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4 interventions to help victims of trauma find hope and dignity

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The Center for Financial Inclusion at Accion has made a Campaign Commitment to bring greater attention to the issue of aging and financial services and further support the inclusion of those with disabilities. Learn how you can join the global coalition of organizations working to help 100 million families lift themselves out of extreme poverty.

Read the full text of Josh Goldstein’s keynote speech.


>>Josh Goldstein, Vice President, Economic Citizenship & Disability Inclusion, The Center for Financial Inclusion at Accion

“Over a sixth of the world’s population has directly experienced armed conflict, torture, terrorism, sexual and gender-based violence, ethnic cleansing or genocide.”
— The Peter C. Alderman Foundation (PCAF) website

I recently attended the 8th Annual PCAF Pan-African Psychotrauma Conference in Nairobi, Kenya, a multidisciplinary event that focuses on psychological trauma in Africa’s war-affected societies. PCAF operates mental health clinics in Cambodia, Kenya, Liberia, and Uganda and conducts trainings for mental health professionals. At the conference,I was surrounded by global leaders from health care, academia, and a litany of organizations working in the mental health space.

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Post-MDG 2: Bringing the “last mile” children into our schools

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The United Nations recently issued The Millennium Development Goals Report, 2015, the latest assessment of progress towards the eight MDGs. In short, they have had mixed results. This article is part of a blog series reflecting on the MDGs and the U.N. report. These are produced in partnership with our colleagues at RESULTS (our parent organization).

MDG 2 is focused on primary school enrollment for children everywhere, including the poorest of the poor. The children of tens of millions microfinance clients may be some of the “last milers” still left behind, still excluded from primary school, and many MFIs are actively working to solve the access gap in their own corner of the world. For example, ESAF Microfinance (India) has just launched a Commitment to reach at least 2,000 children with educational programs for academic growth and value education. Fafidess (Guatemala) committed to offer education loans to their clients.


>>Authored by William C. Smith, Right to Education Index Senior Associate, RESULTS Educational Fund

Millennium Development Goal Achievements

graph_MDG2-out-of-school childrenTarget 2.A: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

During the Millennium Development Goal (MDG) period, the world saw a huge surge in the number of students enrolled in primary school. In 2015, an estimated 91 percent of all primary age students are enrolled in primary school with the largest increases in enrollment over the 15-year period found in sub-Saharan Africa and Southern Asia.

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#tbt: Clients Continue Movement above the US$1 a day Threshold

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We are pleased to bring you this #ThursdayThrowback blog post, which was originally published in The State of the Microcredit Summit Campaign Report 2011. We commissioned a study to estimate the net number of microcredit client households in Bangladesh that crossed the US$1.25 a day threshold between 1990 and 2008. You can download a copy of the study from our Resource Library as well.

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Post-MDG 1: Focusing the lens on those still in extreme poverty

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The United Nations recently issued The Millennium Development Goals Report 2015, the latest assessment of progress towards the eight MDGs. In short, they have had mixed results. This article is part of a blog series reflecting on the MDGs and the U.N. report. These are produced in partnership with our colleagues at RESULTS (our parent organization).

The overall number of people living in poverty in developing countries fell by more than half since 1990. The rate dropped to 14 percent in 2015 and the absolute number to 836 million people. There has also been significant progress made towards curbing hunger worldwide.

Looking at the regional distribution of data, poverty reduction was concentrated in eastern and southern Asia thanks to immense poverty reduction measures in China and India. Progress is less apparent in other regions. In sub-Saharan Africa, 40 percent of the population still live in extreme poverty, and in western Asia, extreme poverty is actually expected to increase between 2011 and 2015.

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A deep dive into the Millennium Development Goals Report

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The United Nation’s (U.N.) Inter-Agency and Expert Group on MDG Indicators recently issued the latest assessment of progress towards the Millennium Development Goals (MDGs) in a 75-page report. The Millennium Development Goals Report, 2015 is a rich document presenting data on each of the eight goals. In short, the MDGs have had mixed results, and the headline of one billion people lifted out of extreme poverty (living on less than US $1 a day) is almost entirely a result of the massive gains in China and India.

In the coming weeks, we will be publishing articles reflecting on each MDG and the assessment as presented in the 2015 MDG report. Here is what is published so far:
Post-MDG 1: Focusing the lens on those still in extreme poverty

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Colombia, a “Pathways” poster child

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>>Authored by Paul Gostomski, Microcredit Summit Campaign Program Intern

The 100 Million Project, an initiative of the Microcredit Summit Campaign, aims galvanize and support work that helps advance industry toward the goal of helping 100 million families lift themselves out extreme poverty. To do so, the Microcredit Summit Campaign advocates adoption of “Six Pathways,” which are financial inclusion strategies that can reach the extreme poor and facilitate their movement out of extreme poverty.

The Consultative Group to Assist the Poor (CGAP), a global partnership of 34 leading organizations that seek to advance financial inclusion, recently published a paper that does an excellent job highlighting two pathways that are currently being implemented in Colombia: conditional cash transfers and an initiative to link mobile banking services with agent networks.

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Community-based financial inclusion: Sarah’s story

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Sarah Chikuse standing in front of her pigsty

>>Authored by Alex Dalitso Kaomba, development consultant and freelance writer

At 39 years of age, Sarah Chikuse’s health is visibly better than the other women in her village. A single mother of two, she lives in Kang’oma village on the outskirts of Lilongwe’s Area 23 in Malawi. Her day starts at 4:00 AM when she usually wakes up to the din of her neighbors’ jerry cans and water tins at the only borehole in the village.

Sarah starts by lighting up her charcoal burner so that it gathers heat while she fetches water at the borehole. Next on the routine (if it’s during school term) is preparing her daughters for school. Once she bids her daughters goodbye, she tends to her newly acquired livestock.

Acquiring a pig is one highlight on her growing list of achievements. Sarah counts herself a success in being able to afford three meals a day for her family and providing her children with a basic education. She has paid their school fees and provides their books, uniforms, and lighting for evening homework.

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