LIDA VARDANIA SENIOR INVESTMENT OFFICER Microfinance –A Risky Business? 1.

Презентация:



Advertisements
Похожие презентации
Professions in our lifes professional Qualities. Sales assistant the Professional Qualities that you Need to be a good Sales Assistant : Product knowledge.
Advertisements

Innovation Strategy Management Lecture 11. Programme Part 1 – The basis of Innovation Part 1 – The basis of Innovation Part 2 – Innovation and New Product.
Purposes Working with students Working with teachers Opinion Conclusion.
1 Where is the O(penness) in SaaS? Make sure youre ready for the next wave … Jiri De Jagere Senior Solution Engineer, Progress Software Session 123.
INVENTORY CONTROL & ECONOMIC ORDER QUANTITY. INVENTORY Inventory is defined as the list of movable goods which help directly or indirectly in the production.
Dynamic Designer Is the easy way for you to cut as much as 80% from the time and cost of getting your new products to market, and improving the old ones.
1 - 1 Accounting role as element of a control system of any organization Soniev Jamoliddin.
What to expect? How to prepare? What to do? How to win and find a good job? BUSINESS ENGLISH COURSE NOVA KAKHOVKA GUMNASUIM 2012.
A doctor is a professional who practices medicine, which is concerned with promoting, maintaining or restoring human health through the study, diagnosis,
BSc (Hons) Social Work Working Across Organisations Assessment Event Briefing. An overview of the teaching within this unit and briefing on the assessment.
Introduction to ISO9001:2008 Have a quality manual – the system framework Create documents including a quality policy, core processes, objectives, procedures,
Internet as a MODERN WAY OF COMMUNICATION We are glad to present here our project which is called Internet is Modern Way of Communication. It is a very.
Risk Management. Risk Risk is the possibility of loss or injury. It is a part of everyday life for businesses and individuals.
Computers are a necessary part of modern life. Computers play an important role in the lives of most of us today, whether we realize it or not. Some people,
Innovation Strategy Management Lecture 7. Programme Part 1 – The basis of Innovation Part 1 – The basis of Innovation Part 2 – Innovation and New Product.
1 Short, succinct and descriptive title of technology including application (approx 5-7 words total) Conference name Date and City Speakers name Telephone.
11 BASIC DRESS-UP FEATURES. LESSON II : DRESS UP FEATURES 12.
Valentino chocolates are made in Turin. They are luxury products with a unique taste, and have many international awards.
St.Petersburg- Nokia Student Business Competition Irina Pritykina & Hyun Park 1.
Functional modeling of processes in the development of new technical solutions Kozhevnikova V.I. Scientific advisor: Chizhiumov S.D.
Транксрипт:

LIDA VARDANIA SENIOR INVESTMENT OFFICER Microfinance –A Risky Business? 1

o o New reality for microfinance? Was it always a risky business or did it become risky now? o o Untapped markets vs markets near saturation o o What are the main challenges MFIs are facing and how to address them? o o How do MFIs respond to new reality? o o Can MFIs and, as a result, clients benefit from this challenging stage of development of microfinance sector? 2

Challenges vs Responses from MFIs Challenge on a sector level: o o Finding place on saturated market Challenge on an MFI level: o o Finding right balance between risk and efficiency Most common responses to those challenges: o o To decrease time allocated to loan disbursement, often we see weaker o o Underwriting standards o o Internal control systems 3

Check list for underwriting standards o o What should be the focus while analyzing the clientcharacter/financials? o o Are the loan analysis forms used adequate? Do/should they differ by source of income, loan size etc? o o Which financial statements are prepared and analyzed? o o What are taken on the income/expense side? Should the household be analyzed? o o How the information should be gathered? How to make sure the information collected is of a high quality? Usage of Credit Bureau. 4

Check list for underwriting standards o o Are related parties/total exposures tracked? Consolidated? o o Too much focus on guarantors/switch of focus from client business analysis to blindly relying on guarantor o o Analysis of guarantors? Should it be done? o o Are cross checking techniques applied? o o What are the adequate ratios to be used for analysis and defining client eligibility? Should they differ by…? o o Client financial data is not stored in MIS 5

Check list for proper control system o o How loans are being approved? Scoring/Credit committee? What is the adequate composition of the committee? o o Post disbursement monitoring o o Quality of questions, are info presented by LO questioned? cross-checked? o o Is staff motivation system adequate 6

How to Manage Risks on a sector level Challenge on a sector level: o o Finding place on a saturated market How to address it: o o Know your customer o o enhance quality of customer surveys, customer segmentation o o identify client needs and design products accordingly o o Know your competition o o identification of potential markets, extensive vs intensive expansion o o portfolio diversification o o Fight competition via developing technologies o o alternative delivery channels o o delivering tailor made products o o innovative business models 7