Background:
The microfinance landscape is changing and various factors are at play in the new dynamic. For example, emphasis on poverty outreach and social performance has been accelerated. People who were once considered ‘too poor’ for microfinance are now targeted for inclusion in programs. Most donors are now focused on reaching down the economic scale. Groups concerned with poverty outreach are inevitably also concerned with practices that promote social impact.
More institutions are beginning to work with microfinance (especially commercial institutions), increasing competition for new clients. Microfinance clients are becoming more sophisticated as consumers and as people become more informed they are able to express needs and preferences for products and services. Even without new competition, some organizations experience high drop-out with clients choosing to leave after only one or two cycles because they cannot use any more loans.
Whether the agenda is to deepen poverty outreach, improve client satisfaction or increase social impact Microfinance ‘Plus’ is one way some institutions meet the challenge. Microfinance ‘Plus’ is an approach that offers clients both financial services and non-financial services. In most cases the increased value has benefited both clients and the financial institution. The added non-financial service activity allows for increased outreach to the poor and increases loyalty and capacity for existing clients making Microfinance ‘Plus’ a good business decision for the institutions, increases value-added for clients and affords a good investment for donors.
This course will inform participants of what a Microfinance ‘Plus’ approach involves and factors that need to be considered for implementing the approach.
Course Objectives:
Participants will learn why organizations are working with a Microfinance ‘Plus’ approach, the implications for both clients and institution and what conditions are necessary for success. Various approaches to program design and approach to delivery will be explored. The information will be useful primarily to inform decisions about program design, program funding and/or program evaluation.
Who should attend this course?
Content is best suited for senior staff of Microfinance institutions, representatives from donors, Government officials and anyone responsible for developing strategies and/or programs for poverty outreach, poverty reduction and other social impact.
Using a combination of lecture, case studies and group exercises during the four days the class will explore issues relating to the practice of complementing financial services with non-financial services – the Microfinance ‘Plus’ approach.
Day one: Microfinance ‘Plus’; what does it look like and is it important?
This session provides an overview of the Microfinance ‘Plus’ approach and why organizations are choosing to work with it. Information is drawn from position papers, articles, evaluations and the instructor’s experience working with Microfinance Plus programs in various settings. Some questions to be addressed are:
Day two: Some examples of Microfinance ‘Plus’ programs:
Participants will work with short cases studies of existing Microfinance ‘Plus’ programs. The group will prepare a presentation for the full group presenting the main features of their ‘example’. This will expose participants to information about different approaches to deliver Microfinance ‘Plus’ and results being achieved with the approach.
Examples of questions answered in this session are:
Day three: Planning Microfinance ‘Plus’ programs:
Using hypothetical scenarios participants will develop a proposal for Microfinance Plus program. Participants will be required to analyze the situation and then present a complete proposal including a ‘plus’ feature to be offered, what results are expected from the program, a cost analysis, how costs will be covered, how sustainability will be achieved and how the program will be monitored for social impact.
Day four: Presentations and analysis of the proposals:
Proposals will be presented and followed by discussion and analysis. This will provide an opportunity to evaluate the advantages and disadvantages of different approaches and identify what elements
