SEEP Annual Conference 2013Partnerships and Cross-Sector Approaches

MFI’s in a Changing Landscape: Survival of the

Fittest?Philip Brown, Citi MicrofinanceNandini Harihareswara, USAID

Abrar Mir, UBL PakistanJesse Fripp, Enclude

Mobile TechnologyNovember 6th, 9am-10:30am

Panel Participants

• Philip Brown, MD Risk, Citi Microfinance• Nandini Harihareswara, Team Lead – Strategy

and Operations, USAID Mobile Money Division • Abrar Mir, Group Head & EVP, Branchless

Banking UBL/Omni• Moderator: Jesse Fripp, MD, Enclude

SEEP Annual Conference 2013Partnerships and Cross-Sector Approaches

Alternative Delivery Channels and Microfinance

• Even with the advent of microfinance, 2.5 billion people remain unbanked.

• At the same time, nearly 70% of unbanked households own a mobile phone.

• Over 200 mobile money services being deployed in emerging markets.

• As of 2011, 195 million microfinance clients• For first time since 1997, growth in outreach between 2010-2011

contracted by 10 million clients• Mobile money emerged as part of an ongoing trend to push

banking beyond branches, which has major implications for financial inclusion.

SEEP Annual Conference 2013Partnerships and Cross-Sector Approaches

Four major mobile money platform business models have developed

Mobile money models

Bank-engaged

Business line of a bank

Agent aggregator

Third party financial services provider

Non-bank backed

MNO-backed mobile money platform

Savings services offered within

regulatory framework

Can perform transactions but

cannot take deposits alone

Different versions of mobile money businesses are emerging around the world, depending on regulatory frameworks and the extent to which businesses can

offer financial services

All models include…

SEEP Annual Conference 2013Partnerships and Cross-Sector Approaches

Technology Distribution Network

Products Partnerships

6Copyright Enclude 2013

Keeping an Edge: What will it take in the current microfinance context?

39 MFAs from 33 countries, representing 3,730 MFIs, serving 90 million clients with approximately US$ 63 billion in loans and US$ 14 billion in deposits

Emergence of New TechnologiesMFAs’ actions: Policy advocacy

Researching the feasibility of mobile banking and e-money

Facilitating partnerships, negotiating technology solutions on behalf of members

0%

29%

29%

43%

How can MFI’s most effectively stay relevant in an increasingly complex and rapidly evolving

landscape?

Cross-tab label

1. Transformation to regulated institution,

2. Mergers/Acquisitions with larger MFIs and/or banks,

3. Partner with Telcos as agents, or

4. None of the above?

N = 7

0%

0%

0%

0%

How can MFI’s innovate at the pace needed to contend with new entrants?

Cross-tab label

1. Enhance customer-centered non-credit product and services (insurance, savings, remittances),

2. Move to fully branchless delivery models,

3. Enhance segmentation specialization and data analytics tools (scoring, etc), or

4. All of the above?

N = 0

0%

0%

0%

0%

0%

What are the principle barriers to innovation , both intra-organizational and inter-

organizational?

Cross-tab label

1. Lack of funding/investment

2. Diversified, increasingly niche client needs/demands

3. Regulation

4. Competition

5. Other?

N = 0