© f r a n k f u r t – s c h o o l. d e the critical role of women in microfinance 6th azerbaijan...

© F r a n k f u r t – S c h o o l . d e

The Critical Role of Women in MicrofinanceThe Critical Role of Women in Microfinance

6th Azerbaijan Microfinance ConferenceA Challenging Time: How to Mitigate Risks?

Lessons Learned from Azerbaijan and Global Experiences

© F r a n k f u r t – S c h o o l . d e© F r a n k f u r t – S c h o o l . d e 2

1. Relevance of Women in Microfinance Industry

2. Role of Women in the Economy

3. Women’s Use of Financial Services

4. Constraints faced by Women Entrepreneurs

5. Responses from MFIs

6. Role of Women in Financial Institutions

7. Constraints in Recruiting Women on Board, Management and Staff

8. Responses from MFIs

9. Introduction to the EBRD project on Promoting Gender Equality in the Microfinance Sector

10.Conclusion

Overview


Women in the Economy

Household economy

• Supplemental or primary income

• Investment in the nutrition, education of children

Local and wider economy

• Lubricating local economy

• Providing employment

• Backward forward linkages

• Contribution through taxes

Population

Women

Men

Economically active population

Women

Men

Women are 51.2% of the population Women are 49% of the economically

active population


Sub-sector Distribution of Women

Development of gender equality and women entrepreneurship programme, 2009, ILO and National Centre for Productivity and Competitiveness


Concentration of Women in Economy

Development of gender equality and women entrepreneurship programme, 2009, ILO and National Centre for Productivity and Competitiveness

Women

Peasant households (family businesses)

– 60.8%

Individual labor activities (self-employed in informal sector business activities) – 62.8%


Presence of Women in the MF Sector

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Household economy

• Board

• Management

• Staff

Clients

• Entrepreuneurs

• Employed Women


Range of Microfinance Products and Services

• Savings

• Insurance

• Leasing

• ATM card users

• Online banking

• Payments and transfers

• Credit cards

• Others

Credit

• Business loans

• Consumer loans

• Mortgage loans (housing)

• Livestock loans

• Education loans

• Emergency loans

• General loans

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Challenges in Gaining Access to Financial Services

0

200

400

600

800

1000

1200

1400

Savings Credit Insurance

Women want credit, but…• Lack access (distance)• Paperwork• Lack of confidence in themselves• Lack of information about banking• Rate of interest too high• Collateral for larger loans

Women save, but…• Lack trust in banks• Low interest rates• Invest surplus cash in business• Purchase livestock, gold, etc.

Women would purchase insurance, but…

• Do not see the value of the product• Product does not match need• Unable to afford premium

Numbers in millionsBased on 1.64 billion working poor in developing countries


Positive attitude towards female customers Build trust in the financial sector Educate women on advantages and specific benefits of products Bring banking closer to the women Simplify procedures Quick disbursement Responsible pricing on interest rates on loans and deposits Target informal sectors where women are concentrated Specialized products for start-up entrepreneurs, by age and work profile Range of products Cross-selling Partnerships – with NBFIs, entrepreneurial associations, business networks, enterprise development organizations, community based organizations – for financial education, enterprise development inputs

Achieving Financial Inclusion – Focus on Women


Small pool of qualified candidates with interest Lack of qualified and experienced candidates Social and cultural norms prohibit women from applying for

loan officer positions or remaining in field positions after marriage

Challenges faced by MFIs

Challenges:

Small pool of qualified candidates with interest Lack of qualified and experienced candidates Social and cultural norms prohibit women from applying for

loan officer positions or remaining in field positions after marriage

Constraints:


Of the 26 MFIs that report regularly to the MIX, 7 report on gender disaggregated data on board composition, 19 on management and18 on loan officer positions

Achievement in Recruiting Women within MFIs

It is possible to recruit women on the board and as management and as loan officers


Chart 1. Availability of

institutional gender policy

80%

20%

Yes

No

level of institutional gender awareness by 87.5%

participation of women in MFIs as field staff by 10%

number of female clients by 10%

Impact of ADB Project in 2005

Increase in:


EBRD Project on Promoting Gender Equality in the Financial Sector in Azerbaijan Technical cooperation (TC) component (20th September 2012 – 30 September 2013), implemented by FS in cooperation with the local partner AMFA

Integration component (year after the end of TC, monitored by the Focal Person), implemented by Partner Institutions independently


Work to create a modern image of women in society – visual images, role models, etc. Promote opportunities for women in the banking sector – use print and visual media Advertise job openings, especially in the regions – to address youth unemployment Conduct gender sensitivity training – to address negative attitudes towards women in management positions or as loan officers Organize specialized training for women staff to build healthy relationships with male colleagues and male clients HR of MFIs should focus on career path development approach for all staff Motivate competent female staff to apply for available positions Promote healthy competition among staff to avoid conflict and tensions Transparency and openness in recruitment procedures, remuneration and compensation Identify eligible candidates from other sectors and recruit as board and senior management Partner with agencies that provide specialized training and placement support to young women graduates

Going Forward


Thank you very much for your attention!

© f r a n k f u r t – s c h o o l. d e the critical role of women in microfinance 6th azerbaijan...

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