microfinance presentation 2012
DESCRIPTION
Innovative, client focused and sustainable, the BRAC microfinance programme is a critical component of our holistic approach to support livelihoods. Over the course of the last four decades, we have grown to become one of the world’s largest providers of financial services to the poor, providing tools which millions can use for the betterment of their lives.TRANSCRIPT
www.brac.net
BRAC Microfinance Programme
www.brac.net
Dabi
• Average Loan Size - $225
• Loan Term – 1 year
• Repayment Mechanism – Equal weekly/monthly installments
• More than 97% of borrowers are women who are serviced in groups, but there is no joint liability obligation
• Loans are mostly used for small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade
www.brac.net
www.brac.net
Progoti
• Average Loan Size – $2,050
• Loan Term – 12/18 months
• Repayment Mechanism – Equal monthly installments
• Borrowers are individually catered and the loans are typically used to finance working capital for shops, agricultural businesses and small manufacturing
www.brac.net
www.brac.net
Top-up Loans
• Introduced in 2010 for both Dabi and Progoti borrowers to provide greater flexibility
• Allows borrowers with good repayment behaviour to top-up an existing loan
• Available to borrowers who have repaid at least 50% of the existing loan on time
• Maximum top-up amount is 50% of original disbursed amount
www.brac.net
Migration Loan
• Targets people migrating overseas for work
• Covers cost of obtaining work overseas (recruiter fees), travel and travel document costs
• Average Loan Size - $1,915
• Repayment Mechanism – 12/18 unequal monthly installments.
• Till date – $34.5m have been disbursed to 18,000 migrant workers.
www.brac.net
www.brac.net
www.brac.net
Savings
• Regular Passbook Savings
• Monthly Deposit Scheme
• Double Deposit Scheme
• Fixed Deposit Scheme
www.brac.net
www.brac.net
BRAC Microfinance at a Glance Bangladesh
ParticularsAs of October
2012
Loan Portfolio: $ 715 million
Savings: $ 286 million
Members: 6.02 million
Borrowers: 4.42 million
Average Monthly Disbursement: $ 103.7 million
Staff: 17,988
www.brac.net
www.brac.net
Industry Position (As of October 2012)
Particulars BRAC ASAGrameen
Bank BURO
Bangladesh
Portfolio: (Million)
$ 715 $ 683 $ 973 $ 113
Savings: (Million)
$ 286 $ 188 $ 1,441 $ 36
Borrowers: (Million)
4.42 4.27 6.61 0.86
Branch Offices:
2,359 3,047 2,567 629
www.brac.net
Human Resource Management
Set up an internal HR unit that is working to:
– Standardize performance assessments
– Improve talent identification and management through setting up a management pipeline
– Improve workplace environment
– Mentor new female staff
– Improve grievance management practices
www.brac.net
Capacity Development
• Much greater investment in training of staff
• Shift in focus from technical to managerial skills training
• More emphasis on soft skills development of staff at all levels
• Greater coordination between performance assessment, talent management and training
www.brac.net
Strengthening Internal Controls
• Branch accounts staff separated from microfinance and placed under Finance and Accounts Division in late 2009
• Strengthened the monitoring units to ensure more regular and thorough monitoring of branches
• Comprehensive branch reviews carried out by independent teams to look at qualitative aspects
• For the worst performing branches, we have started a system of independent loan adjudicators who verify and approve every loan prior to disbursement
www.brac.net
Financial Literacy and Consumer Protection
• Working with BRAC Development Institute to design and implement financial literacy projects
– Piloting basic financial literacy awareness building through popular theatre
– Working with a social communication agency to design mass media outreach programmes
• Adopted an employee code of conduct
• Working to improve the quality of staff-client interface
www.brac.net
Trend: BRAC MicrofinanceBangladesh
Particulars 2009 2010 20112012
(October)
Portfolio: (Million)
$ 537 $ 534 $ 644 $ 715
Savings: (Million)
$ 224 $ 243 $ 272 $ 286
Disbursement: (Million)
$ 922 $ 899 $ 1,052 $ 1,037
PAR (>30 days)
9.9% 10.3% 7.9% 6.9%
Operating Self Sufficiency
116.4% 118.6% 110.8% 128.0%
www.brac.net
BRAC International Microfinance at a Glance
CountryPortfolio
(Million)Members Borrowers
Avg. Monthly
Disbursement
(Million)
Branch
Offices
Pakistan $ 9.18 87,528 77,927 $ 1.53 96
Sri Lanka $ 8.71 108,181 62,973 $ 1.57 89
Tanzania $ 20.46 136,278 108,238 $ 3.94 112
Uganda $ 19.36 156,286 124,306 $ 3.61 130
Sierra Leone $ 2.69 25,807 21,521 $ 0.41 43
Liberia $ 3.18 32,625 23,391 $ 0.53 30
www.brac.net
Priorities in 2013
• Bangladesh
– Scale up financial literacy and consumer protection projects
– Pilot savings collection through mobile money platforms
• International
– Focus on strengthening capacity of staff at all levels
– Reducing the dependence on Bangladeshi staff and accelerate promotion of national staff into management positions
– Strengthen internal controls
www.brac.net
Thank You