accelerating access to microfinance: unitus overview and results
Post on 18-Dec-2015
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Accelerating Access to Microfinance:
Unitus Overview and Results
www.unitus.com 5
Why Unitus Exists
• What We Do: Fight global poverty– We decrease poverty by increasing access to microfinance
• Our Strategy: Accelerate the growth of microfinance– We select and partner with early-stage, high-potential
microfinance institutions around the globe– We provide the technical and financial support that enables these
organizations to grow faster, and reach more of the world’s poor
• Our Impact: 1.4 Million+ empowered– Our global portfolio of microfinance partners is reaching more than
1.4 million micro-entrepreneurs with affordable and life-changing financial services
www.unitus.com 6
Where We Work
As of January 2007, Unitus has 13 partners
www.unitus.com 7
Unitus by the Numbers
1,400,000 Families empowered with access to microfinance
13 Worldwide partners in our portfolio
3 New countries represented in our portfolio in 2006,representing almost 70,000 new clients
94 Dollars – the average loan size offered to small entrepreneurs by Unitus microfinance partners
94 % Women – the Unitus portfolio of partners empowers over a million women with life-changing financial services.
109 % Annualized average growth rate of Unitus partners
“The work of Unitus as a microfinance accelerator is both complementary and consistent with the work of Grameen. We applaud their strategy.”
Muhammad Yunus, Founder & Director of The Grameen Bank Winner of 2006 Nobel Peace Prize
www.unitus.com 10
Most Microfinance Institutions (MFIs) are small
To date, the MFI industry has failed to develop a systematic and sustainable growth model.
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Why Don’t MFIs grow?
Lack of Capital
• Banks won’t lend because of negatively perception of MFIs as unprofitable and undisciplined
• Most are unregulated nonprofit organizations, prevents
– Building equity base– Optimizing use of commercial debt
for leverage– Capturing savings deposits
• Limited access and familiarity with local capital markets, except for the few top-tier MFIs
Lack of Capacity
• Weak corporate governance
• Lack of management depth
• Absence of management and strategic planning systems
• Insufficient business infrastructure
– MIS/Accounting– Technology– HR
www.unitus.com 13
Unitus Acceleration Model
www.unitus.com 14
Select
Due Diligence Components:• Market Opportunity: Supply/Demand, Social,
Political, and Environmental Considerations • Organization Life Cycle: Start-ups and mid-
market MFIs• Institutional Factors: Visionary Management,
Legal Structure, Track Record, Systems• Strategy and Mission: Poverty Focus,
Competitive Advantage, Marketing• Focus on Profitability and Sustainability:
Operating Model, Portfolio Quality, Financial Management
• Management’s dedication to collaboration and commitment to growth
Identifying favorable markets and selecting high-potential MFI partners.
100
50
7
5
2006
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Consult
Capacity-building to prepare MFIs for rapid, long-term, profitable growth
• Improve corporate governance– Ensure local board oversight; Unitus board participation
• Expand depth of senior management– Evaluate organization structure– Assist with establishment of hiring and training systems
• Strengthen reporting and strategic planning processes– Implement Monthly Management Reporting and Balanced Scorecard– Support adoption of industry best practices (e.g. CGAP reporting standards)
• Facilitate capacity-building consulting projects– Improve MIS/Accounting systems and technology– Implement performance and human resource management systems– Expand product offering for target customer base
www.unitus.com 16
Invest
www.unitus.com 19
Catalyzing Rapid Growth
** Peer group MFIs (based on those who began the year with less than 100K clients, and who had reported to client numbers for at least two consecutive years)
Unitus is the fastest growing network in the industry; our microfinance partners have more than a 109% annualized average growth rate.
Average Clients Added Per Year Unitus MFI Partners vs. Industry
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2003 2004 2005
Clie
nt G
row
th
Microfinance Industry Average** Unitus Portfolio Average
2x Industry
4x Industry
8x Industry
www.unitus.com 20
Unitus Outreach in India
2004 2005 2006 Projected 2007
0-50k clients
50-100k clients
100-250k clients
>500k clients
250-500k clients
150,000 clients 430,000 clients 1 million clients 2.6 million clients
Unitus penetration in India has grown both in breadth and depth
www.unitus.com 22
Where We’re Going…
Our Goal for 2007: Double our outreach
2006 11 Partners: 1.3 million empowered
2007 22 Partners: 2.6 million empowered
PROJECTION
FY 07
2,500+25,000+
245,000+
540,000+
1,000,000+
2,000,000+
1,300,000+