microfinance presentation for board final 2013
TRANSCRIPT
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BRAC Microfinance Programme
www.brac.net
Outline
• Update on 2013 performance• Innovation
– New financial products and services– Financial inclusion and integration– Research and information systems
• Upcoming initiatives– “One BRAC”– Innovation Fund for Digital Financial Services
www.brac.net
Description of loan productsAverage loan size
Loan term Repayment mechanism
Major uses of loans
Dabi $275 12 months Equal weekly/monthly installments
Small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade
Progoti $2,200 12 or 18 months
Equal monthly installments
Working capital for shops, agricultural businesses and small manufacturing
Migration loan
$2,300 12, 18, or 24 months
First month no installment, Increasingly over time
Financing outgoing migrants’ costs, migrants’ families well being
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Dabi52%
Progoti43%
Migration Loan5%
Portfolio Distribution
Dabi92%
Progoti7% Migration Loan
1%
Borrower Distribution
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Savings
• Regular Passbook Savings• Monthly Deposit Scheme• Double Deposit Scheme • Fixed Deposit Scheme• Monthly Profit Scheme
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Savings portfolio distributionDouble Deposit
16%Fixed
Deposit <1%Monthly Deposit
11%
Monthly Profit <1%
Passbook Sav-ings 72%
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Microfinance at a Glance Bangladesh
Particulars As of October 2013
Loan Portfolio: $ 894 million
Savings: $ 349 million
Members: 5.72 million
Borrowers: 4.38 million
Average Monthly Disbursement: $127 million
Staff: 17,000
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Trend: BRAC MicrofinanceBangladesh
Particulars 2010 2011 2012 2013(as of Oct)
Portfolio (Mil) $ 534 $ 644 $773 $894
Savings (Mill) $ 243 $ 272 $ 320 $349
Disbursement (Mil) $ 899 $ 1,052 $1,250 $1,270
PAR (>30 days) 10.3% 7.9% 5.9% 6.5%
Operating self sufficiency 118.6% 110.8% 128.3% 135.6%
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De-posits39%
Equity30%
Bor-rowing
31%
Sources of Fund
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Microfinance at a Glance BRAC International
Portfolio(USD, mil)
Members Borrowers Avg. Monthly disbursement
(USD, mil)
Branch Offices
Pakistan 8.1 65,000 58,000 1.6 78
Sri Lanka 9.2 81,000 68,000 1.3 87
Tanzania 20 131,000 101,000 3.8 112
Uganda 22 161,000 127,000 4.5 130
Sierra Leone
2.8 26,000 20,000 0.48 29
Liberia 2.3 25,000 13,000 0.38 25
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Innovation
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Capacity for research and development
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New products and services
• Medical loan• Mobile money-based special savings
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Integration and inclusion
• Partnership with the Center for Rehabilitation of the Paralyzed
• Skills training for village organization members’ children
• Youth savings product for members of kishori clubs (Adolescent Development Programme)
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Research and information
• Understanding clients’ behavior and needs– Financial diaries– MIS-based analyses to be followed by field
studies (with Cambridge University)• Improving data systems through increased
GIS information and cross-program sharing initiatives
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Dinajpur Chehelgaji community resources map
Mapping BRAC’s presence at the grassroots
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Plans for 2014 in Bangladesh
• Micro-pensions• Financial education and client protection• BRAC Innovation Fund for Digital
Financial Services
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Thank You