European ActorsEuropean Actors Working in Microfinance

Part 1Part 1Directory of eDirectory of e--MFP MembersMFP Members

Prepared byPrepared by

Purpose & ProcessPurpose & Process

Update of the 2005 DirectoryUpdate of the 2005 Directory74 institutions responded to the 74 institutions responded to the questionnairequestionnairequestionnairequestionnaireAdditional directories produced forAdditional directories produced for–– Capacity building in microfinanceCapacity building in microfinance–– Research in microfinanceResearch in microfinance

Institutional FormatInstitutional Format

28% NGOs28% NGOs14% fi i l i tit ti14% fi i l i tit ti14% financials institutions14% financials institutions12% networks12% networks11% i i i & h11% i i i & h11% universities & research11% universities & research4% public entities4% public entities

31% others31% others(service providers)(service providers)

Human ResourcesHuman Resources

StaffingStaffing48% <20 staff48% <20 staff18% 2118% 21--50 staff50 staff6% 516% 51--100 staff100 staff7% 1007% 100 200 t ff200 t ff7% 1007% 100--200 staff200 staff

21% >200 staff21% >200 staffMF as percentage of all activitiesMF as percentage of all activitiesMF as percentage of all activitiesMF as percentage of all activities28% <20%28% <20%8% 208% 20--50%50%8% 208% 20--50%50%

14% 5014% 50--70%70%16% 7016% 70--100%100%16% 7016% 70 100%100%34% 100%34% 100%

Regions of InterventionRegions of Intervention

Of all respondents:Of all respondents: Africa; 50Oceania; 5

Open to all regions; 30

67% Active in Africa67% Active in Africa61%61% Active in AsiaActive in Asia Europe; 34

Oceania; 5

55% Active in the Americas55% Active in the Americas46%46% Active in EuropeActive in Europe

Americas; 42

Asia; 4546%46% Active in EuropeActive in Europe7% Active in Oceania7% Active in Oceania

Asia; 45

40% Have programs open 40% Have programs open to all regionsto all regions

Observations on Regional FocusObservations on Regional Focus

Fair representation of all continentsFair representation of all continentsBut some imbalance in continents:But some imbalance in continents:–– OverOver--representation of selected smallrepresentation of selected small–– OverOver--representation of selected small representation of selected small

countriescountriesAnd underAnd under representation of largestrepresentation of largest–– And underAnd under--representation of largest representation of largest countries: Russia, Nigeria, Brazil, Chinacountries: Russia, Nigeria, Brazil, China

Captured in organizationsCaptured in organizations--perper--million million inhabitants ratioinhabitants ratio

Trends on InterventionTrends on Intervention

Most actors support a wide range of Most actors support a wide range of ti iti i di ti llti iti i di ti llactivities, indicating overallactivities, indicating overall

–– Broad orientation andBroad orientation and–– Limited institutional specializationLimited institutional specializationNetwork and NGOs show broadestNetwork and NGOs show broadestNetwork and NGOs show broadest Network and NGOs show broadest interest and coverage of issuesinterest and coverage of issuesFinancial institutions tend to be mostFinancial institutions tend to be mostFinancial institutions tend to be most Financial institutions tend to be most specializedspecialized

Investors:Investors:Growth financed by various sources:Growth financed by various sources:–– Commercial, socially responsible, savers Commercial, socially responsible, savers , y p ,, y p ,

& members, high net& members, high net--worth personsworth personsDouble debate:Double debate:Double debate: Double debate: –– On crowding out commercial investors On crowding out commercial investors –– On jeopardizing origins and principles ofOn jeopardizing origins and principles of–– On jeopardizing origins and principles of On jeopardizing origins and principles of

microfinance microfinance

Practitioners:Practitioners:Continued growth of commercial MFIsContinued growth of commercial MFIsBut also growth of memberBut also growth of member--basedbasedBut also growth of memberBut also growth of member based based systemssystemsAnd rapid expansion of Southern MFIsAnd rapid expansion of Southern MFIsAnd rapid expansion of Southern MFIs And rapid expansion of Southern MFIs overseasoverseasI di ti ltiI di ti lti l it i ltl it i ltIndicating multiIndicating multi--polarity: simultaneous polarity: simultaneous growth of various mainstreams growth of various mainstreams

Clients:Clients:Horizontal expansion: more clients Horizontal expansion: more clients around the poverty linearound the poverty linearound the poverty linearound the poverty lineUpwards vertical expansion: more notUpwards vertical expansion: more not--

lilisoso--poor clientspoor clientsDownwards vertical expansion: moreDownwards vertical expansion: moreDownwards vertical expansion: more Downwards vertical expansion: more hardcore poor clientshardcore poor clients

Investment ProductsInvestment Products

Off all eOff all e--MFP members:MFP members: Mostly provided for Mostly provided for t th i tht th i th45% provide loans45% provide loans

46% provide guarantees46% provide guarantees

strengthening the strengthening the capital base of investee capital base of investee MFIMFI

p gp g42% provide equity42% provide equity6% provide other products6% provide other products

MFIsMFIsSometimes for Sometimes for

6% provide other products6% provide other products strengthening the strengthening the capital base of capital base of investment vehiclesinvestment vehicles

Grants and SubsidiesGrants and Subsidies

62% off all members62% off all members Off all grantOff all grant--makers:makers:provide grants:provide grants:

All public sector entitiesAll public sector entities95% support TA95% support TA85% capacity building85% capacity buildingpp

76% of the NGOs76% of the NGOs67% of the networks67% of the networks

p y gp y gand training and training

49% operations49% operations67% of the networks67% of the networks 49% operations49% operations41% equipment41% equipment37% capital grants37% capital grants12% other purposes12% other purposesp pp p

NonNon--Financial SupportFinancial Support

Essentially: support in kindEssentially: support in kind Of all support providers:Of all support providers:76% of all e76% of all e--MFP membersMFP members

provide this supportprovide this support68% support information68% support information

disseminationdisseminationp ppp ppAllAll public sector entitiespublic sector entitiesAllAll networksnetworks

66% network activities66% network activities54% BDS54% BDSAllAll networksnetworks

81% of NGOs81% of NGOs54% BDS54% BDS42% client education42% client education

50% of financial institutions50% of financial institutions 34% other activities34% other activities

Trends on Products and ServicesTrends on Products and Services

Overall: very broad product rangeOverall: very broad product range–– Constituting a most comprehensive Constituting a most comprehensive

collective supply side offercollective supply side offerpp ypp y

Possible downside: inequitable accessPossible downside: inequitable accessSome MFIs are very well servicedSome MFIs are very well serviced–– Some MFIs are very well servicedSome MFIs are very well serviced

–– Many MFIs are reasonably servicedMany MFIs are reasonably serviced–– Most MFIs are not servicedMost MFIs are not serviced

Future TopicsFuture Topics

Three broadly shared priorities:Three broadly shared priorities:–– Continued growth of microfinanceContinued growth of microfinance–– Special attention for access to the poorestSpecial attention for access to the poorestSpecial attention for access to the poorestSpecial attention for access to the poorest–– Matching financial with social performanceMatching financial with social performance

Whi h i di t f f thWhi h i di t f f thWhich indicates room for further Which indicates room for further cooperation and synergy creationcooperation and synergy creation

European Cooperation RationaleEuropean Cooperation Rationale

Not a given as cooperation usuallyNot a given as cooperation usually–– Follows national agendasFollows national agendas–– Categorical agendasCategorical agendas–– Or global agendasOr global agendasYet, two distinct European features:Yet, two distinct European features:Yet, two distinct European features:Yet, two distinct European features:–– Affinity with selfAffinity with self--organization formatsorganization formats

Appreciation of stakeholder value asAppreciation of stakeholder value as–– Appreciation of stakeholder value as Appreciation of stakeholder value as opposed to mere shareholder valueopposed to mere shareholder value

European Actors Working in Microfinance

Part 2Part 2Capacity Building Directory Capacity Building Directory Main FindingsMain FindingsMain FindingsMain Findings

Overall ImpressionOverall Impression

Broad range of service provisionBroad range of service provisionBut the offer is rarely specified, But the offer is rarely specified, detailed or packageddetailed or packageddetailed or packageddetailed or packagedPartly due to tailorPartly due to tailor--made approachmade approachBut also due to characteristics of a But also due to characteristics of a sellers marketsellers marketsellers marketsellers market

Future ProspectsFuture Prospects

In cases of emerging competition In cases of emerging competition more marketmore market--based offeringsbased offerings–– Already in credit rating and trainingAlready in credit rating and trainingAlready in credit rating and trainingAlready in credit rating and training–– Possibly coming in social performancePossibly coming in social performance

Y t t li iY t t li i hhYet, strong reliance on inYet, strong reliance on in--house or house or tied service provisiontied service provision

Challenges AheadChallenges Ahead

OpenOpen--market offeringsmarket offeringsMainstreamsMainstreams--related specializationrelated specializationDemandDemand driven product designdriven product designDemandDemand--driven product designdriven product designStronger involvement of local expertiseStronger involvement of local expertiseAnd building local support industriesAnd building local support industriesDealing with the paradox: strengtheningDealing with the paradox: strengtheningDealing with the paradox: strengthening Dealing with the paradox: strengthening nonnon--profits that may turn commercialprofits that may turn commercial

European Actors Working in Microfinance

Part 3Part 3Research Directory Research Directory Main FindingsMain FindingsMain FindingsMain Findings

Overall ImpressionOverall Impression

High level of fragmentation and low High level of fragmentation and low levels of consolidation in researchlevels of consolidation in researchMany institutions work on the sameMany institutions work on the sameMany institutions work on the same Many institutions work on the same topic but often in isolationtopic but often in isolationM h d d i fM h d d i fMost research conducted in context of Most research conducted in context of supply side policy developmentsupply side policy developmentpp y p y ppp y p y pRelatively little on typical demand side Relatively little on typical demand side issuesissuesissuesissues

European Research TrendsEuropean Research Trends

Francophone: focus on community Francophone: focus on community finance and social performancefinance and social performanceCentral European: focus on the art ofCentral European: focus on the art ofCentral European: focus on the art of Central European: focus on the art of banking (commercial & cooperative)banking (commercial & cooperative)S di iS di i D h bi f hiD h bi f hiScandinavianScandinavian--Dutch: a bit of everythingDutch: a bit of everythingItalian: focus on civil societyItalian: focus on civil societyItalian: focus on civil society Italian: focus on civil society

Challenges AheadChallenges Ahead

Diversity in research reflects the Diversity in research reflects the diversity of Europe; is an assetdiversity of Europe; is an assetFragmentation however a liabilityFragmentation however a liabilityFragmentation, however, a liabilityFragmentation, however, a liabilityRoom for stronger coalition buildingRoom for stronger coalition building–– Following pattern of mainstreams in MFFollowing pattern of mainstreams in MF–– Elaborate focus on demand side issuesElaborate focus on demand side issues–– Balancing inBalancing in--house policy research with house policy research with

independent impactindependent impact--related researchrelated researchindependent impactindependent impact related researchrelated research