Scaling Up Microfinance: Framework for Discussion

This presentation discusses scaling up issues in microfinance. It states that microfinance can be made available to more number of poor people by increasing the number of service points at which they can utilize financial services. The presentation outlines the characteristics of an ideal service point:

• Designed with client segment(s) in mind;
• Affordable and convenient for that segment;
• Fits with their cultural, educational context;
• Offers products that they need;
• Makes money for the institution.

The presentation further identifies the following channels that can act as service points:

• Microfinance institution (MFI) branches, MFI loan officer;
• Bank branches, bank agents, bank automated teller machines (ATMs);
• Retailers and MFIs acting as agents of the bank.

It states that for achieving scale:

• MFIs need to increase the number of service points;
• Banks need to improve the ability of the points to serve the poor;
• Partnerships need to increase partnership-based service points to reach more poor people.

Finally, the presentation makes the following recommendations for scaling up:

• Innovating MFI expansion e.g. using the Franchisee model;
• Using bank infrastructure to serve the poor;
• Breaking down the value chain to scale up microfinance;
• Partnering with retail organizations to serve the poor.