2008 microfinance trends in asia

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<ul><li> 1. Liz Larson, Asia Regional Manager Microfinance Information eXchange (MIX) 2008 Microfinance Trends in Asia 2010 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE , June 2, 2010 </li> <li> 2. Trends in Asia: structure of the presentation <ul><li>Introduction to MIX: data platforms </li></ul><ul><li>Snapshot of the Sector: MIX 2008 Trends and Benchmarks </li></ul><ul><li>How do Philippine rural banks compare with their regional peers in microfinance </li></ul><ul><li>Areas of strength of rural banks over their regional counterparts </li></ul><ul><li>Areas of improvement that Philippine rural banks find from the MIX market reports </li></ul></li> <li> 3. <ul><li>Limited ability for MFIs to benchmark performance for management diagnostic and business planning </li></ul><ul><li>New capital cannot connect with second tier MFIs </li></ul><ul><li>Donors / policy makers have limited picture of areas requiring public support </li></ul><ul><li> because </li></ul><ul><li>Lack of consistent, reliable data in public domain </li></ul><ul><li>Private data costly to aggregate on representative scale and coverage for any single actor </li></ul>The Problem: Overcoming data dearth Lack of transparency stymies industry growth MISSION: To support the growth of the microfinance industry through a world-class public information platform </li> <li> 4. Our Contribution: A Catalyst for Growth Promotes sound investments Increases comfort level of investors Reduces cost of investing in microfinance Improves microfinance providers performance Strengthens market surveillance and public support MIX is a catalyst for growth because good Information </li> <li> 5. Data Platforms <ul><li>MicroBanking Bulletin is a global leading publication on the sector </li></ul><ul><li>Customized Performance Reports (CPR) are performance reports for MFIs. </li></ul><ul><li>MIX Market is an online information platform a global clearinghouse for performance and outreach information </li></ul><ul><li>Regional and Country level analysis reports on microfinance performance and sector analysis </li></ul></li> <li> 6. Working with Partners <ul><li>MIX Partners (examples): </li></ul><ul><li>Latin America </li></ul><ul><li>ProDesarrollo </li></ul><ul><li>REDCAMIF (C. America) </li></ul><ul><li>COPEME (Peru) </li></ul><ul><li>RFR (Ecuador) </li></ul><ul><li>ASOFIN (Bolivia) </li></ul><ul><li>Africa </li></ul><ul><li>Ghamfin (Ghana) </li></ul><ul><li>AEMFI (Ethiopia) </li></ul><ul><li>Arab States </li></ul><ul><li>Sanabel </li></ul><ul><li>E. Europe / C. Asia </li></ul><ul><li>RMC (Russia) </li></ul><ul><li>AMFA (Azerbaijan) </li></ul><ul><li>Asia </li></ul><ul><li>PMN (Pakistan) </li></ul><ul><li>M-Cril (India) </li></ul><ul><li>MPCI/RBAP ( Philippines) </li></ul><ul><li>MICRA (East Asia) </li></ul><ul><li>CMF (Nepal) </li></ul><ul><li>RMDC (Nepal) </li></ul><ul><li>MISFA (Afghanistan) </li></ul></li> <li> 7. Asia Coverage: MIX Market Growth </li> <li> 8. State of the Sector Overview: Where the borrowers are The bulk of the borrowers in Asia are in Bangladesh and India, whilst the bulk of the GLP is dominated by the same. Loan sizes vary significantly. Source: MIX Market, missing Vietnam, BRI </li> <li> 9. Growth across the world Growth slowed across the globe, but total growth in borrowers in Asia remained the same. Source: MIX Market trend data </li> <li> 10. State of the Sector: Growth Rates in Asia Borrowers grew steadily across the region in most countries while growth in loan portfolio was mixed. Source: MIX Market trend data </li> <li> 11. Financial Performance: Expense Ratios and Revenue Asia, 2006-2008 Almost every market in Asia is profitable with a mixture of trends. </li> <li> 12. Financial Performance: ROA Trend Data Asia, 2006-2008 Diverse range of ROA trends across the region; larger market, deposit-reliant SE Asian MFIs remain the most stable; India had largest increase Source: MIX Market </li> <li> 13. Global Funding Liabilities by Lender Type - Global, 2008 Source: MIX Funding Liability Database </li> <li> 14. Funding Liabilities by Lender Type Asia, 2008 Source: MIX Funding Liability Database </li> <li> 15. Domestic and International Funding Liabilities, Asia 2008 Source: MIX Funding Liability Database </li> <li> 16. Philippines Rural Banks vs. NGOs </li> <li> 17. Depositors and GLP in the Philippines </li> <li> 18. Average Profit Margin, Operating Expense Ratio - 2008 </li> <li> 19. </li> <li> 20. Growth in borrowers (%) and depositors between rural banks globally and rural banks in Philippines </li> <li> 21. What areas of improvement can Philippine rural banks find from the MIX Market reports? <ul><li>You can measure your MFI against Rural Banks in the Philippines </li></ul><ul><li>You can see if your expense ratios are higher or lower than your peers </li></ul><ul><li>You can see if your financing structure is similar or different than your peers </li></ul><ul><li>You can learn about the products of your peers and your costs of delivering your products to your clients </li></ul><ul><li>You can find out if you are paying your staff more or less than your peers </li></ul><ul><li>And you can see how your performance is changing over time </li></ul></li> <li> 22. How to participate to MM <ul><li>Provide current data to MABS or MCPI </li></ul><ul><li><ul><li>Audited financial statements </li></ul></li></ul><ul><li><ul><li>One page questionnaire (outreach, product, portfolio, background of organization) </li></ul></li></ul><ul><li><ul><li>Deadline: August 2009 elarson@themix.org </li></ul></li></ul><ul><li>All benchmarked institutions receive </li></ul><ul><li><ul><li>Custom Performance Report </li></ul></li></ul><ul><li><ul><li>Trend Report (with 2-3 years data) </li></ul></li></ul><ul><li><ul><li>Recognition in MicroBanking Bulletin (MBB) </li></ul></li></ul><ul><li><ul><li>Inclusion in analytical reports </li></ul></li></ul><ul><li><ul><li>Profile on MIX Market site for global visibility </li></ul></li></ul></li> <li> 23. MICROFINANCE INFORMATION EXCHANGE, INC. The leading provider of business information and data services for the microfinance industry. Web: www.themix.org ; www.mixmarket.org Email: [email_address] Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Other Locations Lima, Peru Rabat, Morocco Hyderabad, India </li> </ul>