MABS Microfinance Basics Course
MABS Technical Resource SpecialistsMABS Technical Resource Specialists
Training and Accreditation ProgramTraining and Accreditation Program
Introduction
• Human resource is one of the most important assets of an organization.
• Qualified and well-trained staff is key to achieving the goals and objectives of an organization.
What is training?
• Organized learning designed to properly equip people in their jobs and improve their performance.
• Intervention aimed at developing or enhancing knowledge, attitudes and skills (KAS) in a particular area.
• Training can be done either in a classroom and/or through actual field experience with a mentor.
Why train?
• To improve performance at individual, unit and over all bank level.
• To upgrade the skills/competencies of individuals to enable them to undertake new jobs effectively
• To contribute to an individual’s personal growth
We train because there is a deficiency or an expected deficiency due to changes in plans, personnel or policies & procedures.
Why focus on account officers?
• Account officers are a vital link between the bank and its target-clientele – the microentrepreneurs.
• Account officers have the crucial task of generating, evaluating, recommending and monitoring loan accounts.
• Account officers are therefore the bank’s profit-generating centers.
The Microfinance Basics Course
Objectives: Make the account officers fully understand
their role, duties and responsibilities in the microfinance loan process
Explain the role of rural banks as financial intermediaries and as microfinance providers
Explain why MF best practices and principles are important to incorporate in microfinance product design.
The Microfinance Basics Course
Objectives: Evaluate if a loan applicant can qualify for
a microfinance loan based on the client eligibility criteria set by the bank
Evaluate if a loan applicant can qualify for a loan on the basis of an analysis of character and reputation as a borrower
Evaluate if a loan applicant can demonstrate capacity-to-pay on the basis of existing business activity as reflected in the cash flow
The Microfinance Basics Course
Understand the basic concepts of zero tolerance against delinquency ;know and apply the ways to prevent and remedy delinquency
The Microfinance Basics Course
Participants:
New and old account officers, senior account officers for promotion as MFU supervisors, and would-be credit committee members
The Microfinance Basics Course
Learning Modules:
The Role of the Account Officers in the Microfinance Loan Process
Basic Concepts of Financial Intermediation and Microfinance
Microfinance Best Practice and Principles Client Selection using Character & Risk
(CIBI) and Repayment (Cash Flow) Analysis Zero Tolerance against Delinquency
The Microfinance Basics Course
Duration: In-house Training
Ideally four (4) days, delivered within a 4-week period or a span of one month (i.e. all Fridays or Saturdays of a month)
The Microfinance Basic Course Training Design: Flow and Methodologies
First Module Second Module
First Part
Second Module
Second Part
Third Module
Training Component
Classroom Training on Basic Concepts of Financial Intermediation and Microfinance, MF Best Practices and Principles, Bank’s MF Loan Product Policies and Procedures
Classroom Training on Client Selection with focus on Character/Risk Analysis
Classroom Training on Client Selection with Focus on Repayment Capacity (Cash Flow) Analysis
Classroom Training on Zero Tolerance against Delinquency
Field Application Field Observation Field Observation and Application
Field Observation and Application
Field Observation
Monitoring & Evaluation
Assessment & Debriefing
Assessment & Debriefing
Assessment & Debriefing
Assessment & Debriefing
Expected Output/Results
Trainee’s narrative report on Results of Field ObservationTraining Evaluation Form
Trainee submits accomplished CIBI forms done on clients of Senior AOTraining Evaluation Form
Trainee submits accomplished Cash Flow Form/Worksheets done on clients of Senior AOTraining Evaluation Form
Trainee submits narrative report on Field Experience doing delinquency management with a Senior AO
When to Conduct the Microfinance Basics Course
• The complete Microfinance Basics Course must be given to all newly-hired account officers– The training must be given to the trainee- AO during
his/her first month in the bank
• Deliver the training course on a per module basis within a 4-week period.
ClassroomClassroom ApplicationApplication DiagnosticDiagnostic CorrectionCorrection
Evaluating Effectiveness of Training Course
Evaluation of the training program is necessary to yield information both for the trainor and the trainee.
Trainor
indicates whether stated objectives are met or not
highlights unclear points
identifies trainees experiencing difficulty
improves or enhances teaching strategy
Trainee
indicates that progress is being made or not
help to diagnose strengths and difficulties
helps distinguish relevant from irrelevant points
gives knowledge of results
Evaluating Effectiveness of Training Course
Measures of Training Effectiveness
Level 1: Satisfaction - measures how the participants liked the
course content, method of training delivery, training materials, method of facilitation
Level 2: Learnings - measures changes in core knowledge (improvement or deterioration as a result of undergoing the training course)
Evaluating Effectiveness of Training Course
Measures of Training Effectiveness
Level 3: Change in Behavior - measures how the participants actually apply techniques learned during the training in actual operation
Level 4: Return on Investment - measures return on training investment by the bank in the form of improved outreach and portfolio quality – ergo, increased profitability and sustainability of microfinance operations