Microfinance for Bankers and Investors_1 ppt

[...]... Table 2.1) And even in rich countries, low-income neighborhoods are underserved These patterns apply to many countries In Mexico, Colombia, and Brazil, studies show that between 65 and 85 percent of urban households lack any deposit account in a formal financial institution.4 Comparable figures for the United States and Spain were 10 percent and 2 percent, respectively 14 • Microfinance for Bankers and Investors... low-income people turn to informal sources of finance, as they have for centuries Not all informal lenders are menacing, criminal loan sharks ACCION team member Steve Barth noticed that in his experience in Thailand, they were frequently aunties who owned small beauty parlors And the most common forms of informal finance begin with friends and family, like the rotating credit and savings clubs found on... informal, their motivation is presumed to be avoid- The BOP Market Up Close (and Personal) • 5 ance of the costs of formality In this view, informals are seen as shirkers who do not pull their weight in society and compete unfairly with upstanding formal businesses Delia would be angry and bewildered to hear talk like that For her, informality is simply the life she knows Today Delia thinks of herself as... high-level body formed to spur governments, the private sector, and others to more vigorous action to broaden the reach of financial services Visa Inc and ACCION, each represented on the UN Advisors panel, took up the challenge of communicating to the private sector bankers, investors, and supporting companies—about the opportunities Visa and ACCION provided financial support, and the Center for Financial... necessary to build a commercial infrastructure for BOP markets: • Improve access through distribution and communications systems • Create buying power with financial access and income generation • Devise local solutions through targeted R&D and grassroots innovation • Shape aspirations through consumer education and sustainable development 10 • Microfinance for Bankers and Investors Neither Prahalad nor de Soto... companies are touted in the highest business circles as savvy and successful and valued and trusted by their low-income customers Finally, imagine that for these companies, reducing global poverty goes hand in hand with profitable business operations and strong market valuation This book argues that through inclusive finance, companies can make money and help solve the global problem of poverty By inclusive... employees The mom and pop shop and the small farmer are both part of the informal sector Their enterprises are generally not registered formally with the government They exist to satisfy immediate economic needs Some economists regard informality as a choice They assume that people can choose to be formal, keep proper books, register their businesses, and pay taxes If they “decide” to be informal, their... rates Fourth, she gained permanent access to finance, which gave her the courage to plan and invest because she could count on accessing a loan when she needed it, as long as she paid it back faithfully And finally, she 6 • Microfinance for Bankers and Investors had the experience of being trusted and valued by a formal institution She had gone from invisible to included Xavier Hulene, a caniço (cane... savings accounts, bank loans, and branch accounts and the population of various countries demonstrates this In Spain, a highly banked country, there are two deposit accounts per adult, and in Austria there are three But in the Philippines there is only one savings account for every 3 adults, and in Kenya the ratio is one for every 14 Perhaps that explains why merry-go-rounds—informal savings clubs among... earn a living, and no one to help her Her husband had abandoned her for another woman, taking with him the proceeds from selling their market stall Delia and some women friends formed a group to get a loan from what is now Mibanco, Peru’s leading microfinance bank They borrowed as much as they dared, having nothing more to offer as security than each other’s group solidarity Delia’s first and probably . Environment 95 11 . Credit Bureaus and Credit Scoring 10 3 12 . Last-Mile Technologies 11 1 13 . The Technological Base: Payment Systems and Banking Software 12 0 14 . Building the Market for Investing.