The Single Biggest Challenge for Microfinance
This note identifies training and capacity building as significant challenges for the microfinance sector. With no regular supply of trained manpower, MFIs are forced to rely on ad hoc in-house training methods which yield poor results.
The note identifies supply and demand side requirements to enhance capacity building in microfinance. These include:
- High quality classroom theory and onsite follow-up;
- Training manuals and modules suitable to nascent as well as mature MFIs;
- MFIs’ involvement in training;
- Senior and middle management training needs;
- Appropriate staff selection for training;
- Incorporation of training into HR management and staff retention systems.
The note states that MFIs need to view training and capacity building as an investment. Institutions that support or fund training should re-evaluate the same in terms of impact it has on MFIs rather than numbers of attendees. Give the sheer scale of requirement and the demand for quality professionals from government/regulatory authorities as well as equity and debt investors, training needs to be more creative and effective. Finally, India can leverage its technology resources to deliver distance or e-learning to help capacity building.
