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A BI-MONTHLY NEWSLETTER WHICH DISSEMINATES INFORMATION ON IMPROVING ACCESS TO FINANCIAL SERVICES JANUARY 2010 | ISSUE No. 30
IFC's SME Banking Knowledge Guide
By Ghada O. Teima, Neil Philip Ramsden, Melina Laura Mirmulstein, IFC
PAYMENT SYSTEMS AND
REMITTANCES
The Decade's 12 Greatest Develop-
IFC recently published, in partnership with the Governments of the Netherlands, ments in Payments. Paying with Plastic
Norway and Japan, a new guide to SME Banking � `The SME Banking Knowledge Guide.' author David S. Evans has compiled a
The guide is set in the context of ongoing interest on the part of the private sector in the list of the greatest developments in the
Small and Medium (SME) sector, and explores, amongst other things, why SMEs payments business over the last decade.
represent important potential clients for banks and what challenges financiers have faced (more on page 7)
in the past in meeting their demands. It then goes on to set out some of the techniques
successful SME banks have used to overcome these challenges, illustrating these points by INCLUSIVE FINANCIAL SYSTEMS
showcasing examples from banks in both developing and developed markets.
2009 Microscope Index. EIU-IFC-
This article provides a brief synopsis of the full report, which is available at IADB index and global analysis of the
http://www.ifc.org/smebanking. microfinance business environment in
55 countries. (more on page 11)
HOW TO PROFITABLY SERVE THE SME MARKET
Can SMEs be banked profitably, and is the market today an attractive one? How do NONBANK FINANCIAL INSTITUTIONS
banks overcome the challenges and capture the opportunities offered by the SME (LEASING, HOUSING FINANCE
segment, particularly in developing countries? What is the difference between SME INSURANCE)
lending and SME banking? How can banks successfully expand their SME banking International Housing Finance
operations? Program. Annual housing finance two-
week program from The Wharton
This article is a synopsis of the SME Banking Knowledge Guide that addresses the
School of the University of
previous questions by synthesizing IFC lessons learned and by outlining leading success
Pennsylvania. (more on page 16)
factors for profitable SME banking operations. It provides practical steps that bankers in
the developing world can follow to implement a robust SME banking strategy. Through
CREDIT REPORTING & COLLATERAL
detailed advice in this guide, IFC shows how financial services providers can profitably
REGISTRIES
develop or expand their SME operations and increase access to financial services for these
IFC, Swiss Government to expand
economically important SMEs.
access to Finance in Uzbekistan.
International Finance Corporation
(more on page 2)
(IFC) is partnering with the Swiss
government in launching a three-year
project. (more on page 18)
Measuring Access to Financial Services
By Nataliya Mylenko, CGAP
AccessFinance is published by the
Financial inclusion--providing access to a broad range of financial services for all--
Financial & Private Sector Development
has gained prominence in the past few years as a policy objective for national Vice Presidency of the World Bank Group
policymakers, multilateral institutions, and others in the development field. The United
Editors: Bikki Randhawa, Leila Search
Nations designated 2005 the International Year of Microcredit, adopting the goal of
Layout/Production: Aichin Lim Jones
building inclusive financial systems. In 2009, the G-20 committed "to support the safe
and sound spread of new modes of financial service delivery capable of reaching the poor Editorial Committee: Massimo Cirasino,
Maria Teresa Chimienti, Shalini
and, building on the example of micro finance, will scale up the successful models of Sankaranarayanan, Vijay Kalavakonda,
small and medium-sized enterprise (SME) financing." Brazil, India, Malaysia and a Alejandro Alvarez de la Campa
number of other countries have adopted financial inclusion as a core policy objective and
For subscription, please visit us online at
implemented initiatives to improve access to financial services in their countries. AccessFinance.
(more on page 6)
For comments/suggestions, please send to
accessfinance@worldbank.org.
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 2
SME Banking Knowledge Guide the SME sector. For these banks, unmet Describing these trends, one bank
(continued from page 1) SME demand for financial services has explains, "SMEs represent 10 percent of our
become an indicator of opportunity to portfolio numbers, but they generate 50
THE OPPORTUNITY expand their market share and increase percent of our banking income."
Fostering a dynamic SME landscape is profits.
seen as a priority amongst economic Many banks now report that they ENGAGING THE SME MARKET
development goals, in both developed and perceive significant opportunities in the Banks looking to enter the market or
emerging economies. SMEs are a primary SME sector. Survey data from multiple expand their SME operations will be able to
driver for job creation and GDP growth. studies show that rather than overlooking or draw from the lessons of other banks'
They greatly contribute to economic avoiding the market, banks have begun to experience to date. These lessons apply to
diversification and social stability and they target SMEs as a profitable segment. For operations in five strategic areas: (1)
play an important role for private sector example, a recent survey of 91 banks in 45 strategy, SME focus and execution
development. But SME development also developed and developing countries � Bank capabilities; (2) market segmentation,
represents a major and difficult challenge. Financing for SMEs around the World2 � products and services; (3) sales culture and
SMEs typically face more severe constraints found that these banks overwhelmingly delivery channels; (4) credit risk
to growth than large companies, their lack of perceived the SME sector as a large market management; and (5) IT and MIS.
critical size resulting in reduced access to with good prospects FIVE STRATEGIC AREAS FORM THE
markets, skills, and capital. FOUNDATION FOR SME BANKING
Having developed a strategic focus on the
sector and applied new banking models, PERFORMANCE
TYPICAL BUSINESS LANDSCAPE IN
banks are reporting income growth rates
EMERGING ECONOMIES
and returns on assets in SME banking that
exceed those of their overall banking
operations. Data collected in IFC's 2007
study, `Benchmarking SME Banking
Practices in OECD and Emerging Markets'
illustrate such cases of SME banking revenue
generation and profitability. The study
profiled 11 "good practice" banks from
OECD and emerging markets, and received
data, from a number of these banks, on
income and ROAs for operations in the
SMEs, particularly in developing (low- small enterprise (`SE') and medium
and medium-income1) countries, have enterprise (`ME') segments. The two figures
Source: IFC SME Banking CHECK Diagnostic Toolkit
historically lacked access to financial below illustrate that SME banking
products and services. Microfinance operations for these banks have been
institutions have emerged to serve the growing rapidly and are profitable.
smallest of these enterprises, while banking
BENCHMARKING BANKS GENERALLY REPORT HIGHER ROAS FOR SME BANKING THAN
institutions have typically concentrated on
FOR BANK OPERATIONS AS A WHOLE
large corporations. SMEs fall between these
two markets where there is a finance gap
commonly described as the "missing ROAs for panel banks
middle." However, in recent years, this has 6% ROA-Bank
begun to change. SME banking, as an ROA-SME
5%
industry, is growing. Banks are now
demonstrating that the SME segment can be
4%
served profitably provided it is properly
understood. 3%
The SME market has been perceived in
the past by banks as risky, costly, and 2%
difficult to serve. However, mounting
evidence suggests that banks are finding 1%
effective solutions to challenges such as
0%
determining credit risk and lowering
Bank M1 Bank M2 Bank S1 Bank S2 Bank S3 Bank S
operating costs, and are profitably serving
ME segment SE segment
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 3
SME Banking Knowledge Guide following figure provides a condensed driven business model to serve the small end
(continued from page 2) overview of the key activities within each of the SME spectrum in the United States.
stage of the banking value chain in the This model is one reason why Wells Fargo is
Before putting these lessons to use, context of serving SMEs, i.e., the "SME now the number one small business lender
however, banks need to follow a process for banking value chain." in the country.
market entry that begins with understanding
2- Developing Products and Services
the specific opportunity in the SME sector STEPS TO EXCELLENCE
and ends with developing a strategy and Banks that are moving toward excellence
1- Understanding the SME Market
implementation plan. Two tools that in developing products and services for
These banks that most effectively serve
facilitate this process are a market SMEs take different approaches, but seem to
SMEs usually have a strategic focus on the
assessment and an operational diagnostic. A share the same attitude. Specifically, they
sector at the highest levels of bank decision
market assessment is concerned with tend to take a holistic view of the bank's role
making. When senior management
determining the size and nature of the in meeting the needs of the SME client,
champions the strategic importance of the
opportunity as well as the competitive realizing that lending is only the tip of the
SME sector, banks are able to justify up-
landscape. To identify strengths and iceberg in terms of what banks can offer.
front investments in understanding it. For
weaknesses, and help lay out the One of Australia's top banks serving SMEs
example, ICICI Bank (profiled in greater
implementation plan, banks can use an has successfully formalized this attitude in
detail in the full report) determined that
operational diagnostic such as IFC's SME its "total customer value" model, whereby it
SMEs were central to the future of India's
Banking CHECK Diagnostic Toolkit. The assesses and can measure the complete value
economy, and to the bank. It strategically
CHECK evaluates operations in the five of its relationship with an SME client across
separated a banking unit with a mandate to
strategic areas of SME banking. all products and services. Similarly, ICICI
KEY ACTIVITIES AT EACH OF THE FIVE STAGES OF THE SME BANKING VALUE CHAIN
Risk management
Understand Develop Acquire and Serve Manage
the products and screen SME SME information and
SME market services clients clients knowledge
� Define the SME sector � Design and bundle � Market product and � Meet the needs of � Model and manage
� Research SME needs lending and non- service offering to existing clients risks using portfolio
and preferences lending products clients � Cultivate new business data
� Sub-segment the � Ensure profitability of � Build a growing and through cross-selling � Use current customer
market product offering diversified portfolio � Monitor loans data to adapt service
� Develop SME-specific � Distinguish profitable approaches
� Use teams organized
lending technologies from unprofitable for front and back-end � Analyze and respond
prospective clients servicing to profitability data at
segment, product and
client level
To frame the discussion of how banks serve SMEs and subsequently invested Bank in India refers to "complete
approach the challenge of serving SMEs, we heavily in understanding the industries relationship value" when discussing its
adopt a standard banking value chain where Indian SMEs were most present. It product and service offering to the SME
framework consisting of five discrete stages sorted through 165 industries to identify 12 sector.
and one cross-cutting task. The five stages priority industries at a national level. Then In designing and selecting a product
of this banking value chain are (1) ICICI worked to develop deeper expertise in offering, banks demonstrating excellence are
understanding the market, (2) developing serving SMEs in these industries. keen to ensure that SME-tailored products
products and services, (3) acquiring and When Wells Fargo (also profiled in the are cost-effective and are aware of the point
screening clients, (4) serving clients, and (5) full report) decided to focus on serving small at which the reward for providing a service
managing information and knowledge. business in the United States, it started by is no longer worth the investment. Leading
Cutting across each of these five stages is the carefully learning from its current portfolio. banks offer standardized small business loan
ongoing and critical task of risk While this may have slowed the early growth products with clear guidelines for
management. At each stage of the value of its small business portfolio, the insights it qualification, such as a minimum number of
chain, there are actions and considerations gained from this deliberate observation of its years in business. Such guidelines save time
particularly relevant to the SME sector. The clients helped lay the foundation for its data- and money in loan processing, and the
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 4
SME Banking Knowledge Guide connections with existing clients. For "institutionalizing" ways to convey customer
(continued from page 3) example, business developers at a bank in worth without investing additional labor in
design also ensures the profitability of the Ghana take a "portfolio approach" by individual SMEs and (2) further refining
product by limiting exposure to excessive targeting entire groups of SME suppliers and service segmentation. Going further, banks
credit risk. distributors of large multinationals in the can reconcile the tradeoff between service
bank's corporate portfolio. Working from and efficiency by (3) moving SME
3- Acquiring and Screening SME the inside out (see figure below) generates operations from a product orientation to a
Clients
momentum on which business developers customer process orientation.
Acquiring can build as they reach new prospects that
5- Managing Information and
Banks and industry experts report that lack an existing connection to the bank. Knowledge
one of the most cost-effective ways to reach Screening Excellence in managing information and
new clients is through existing clients1.
Banks demonstrating excellence at knowledge is demonstrated when
Based on this principle, banks moving
screening for profitable client relationships information is directly linked with improved
toward excellence have found ways to
are committed to overcoming information operations, at all levels of an organization.
structure their approach to customer
asymmetry as a means to gain market share. In other words, the information for key
acquisition to maximize quick (and
These banks see finding new ways to decisions must be available, and the staff
inexpensive) gains generated from the
approve loans as a key to their competitive must know how to use it. This can be
current portfolio, starting inward and
advantage. They effectively employ proxies accomplished by working backwards from
moving outward in focus.
for missing information, such as data the targeted improvement to the data to be
In banks that have separated sales and collected on non-credit clients' transaction collected.
service, this requires strategic coordination behavior, or qualitative information on the Some investments in knowledge
between business development and firm and its owners. In addition, they development take a long time to pay
relationship management functions. When determine how to combine and weight data dividends. When Wells Fargo started what
a bank can effectively identify prospective collected through multiple methods, based is now the number one small business
SME clients in the existing portfolio, upon factors such as a firm size or exposure. lending operation in the United States. It
relationship managers (RMs) may be best Some banks have even addressed the lack of spent a number of years conservatively
positioned to cross sell to these clients, information bureaus by working to develop growing its portfolio, with a focus on
including retail customers that also new rating agencies or negotiating new SME collecting the data it would need to
own/manage SMEs. To ensure this capacity, scoring techniques with existing bureaus4. determine statistical relationships. This
branches should be equipped as one-stop
4- Serving SME Clients meant identifying early on which data would
shops that offer the full range of the bank's
be useful and then patiently collecting and
products. RMs may also be able to identify Excellence in serving SME clients means
analyzing it. Eventually, it had developed
leads through client referrals. Business ensuring that clients feel valued, regardless
statistical models that gave it a competitive
developers are then able to follow up on of their size, while also ensuring the cost to
edge for years on end. This did not end the
these leads, as well as leads identified serve matches the client's value to the bank.
learning process, however. Looking back
through SME prospects' supply-chain This includes (1) finding and
today, its head of small business banking
remarks, "We used to depend almost
COST-EFFECTIVE OUTREACH CAN INVOLVE STARTING WITH PROSPECTIVE CLIENTS exclusively on statistical models. Now our
CLOSEST TO THE BANK loan officers are directly reviewing more of
the data."
Business Credit Risk Management
Cold prospects
development Cutting across each of the previous five
Linked to clients stages is the ongoing and critical task of risk
in supply chain
management. Credit risk management has
attained unique prominence in discussions
Client referrals
of SME banking because one of the primary
Current barriers to serving SMEs has been the actual
retail clients or perceived risk of default. The graph
below shows the common approaches for
risk management in the different stages of
Current
SME clients
the value chain.
Relationship
management
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 5
SME Banking Knowledge Guide
(continued from page 4)
Risk management
Understand Develop Acquire and Serve Manage
the products and screen SME SME information and
SME market services clients clients knowledge
Approaches � Quantify risks in � Develop loan � Lend to current � Dedicate staff to � Establish
to managing target market by pricing models that clients first, spot signs of SME centralized teams
credit risk leveraging existing match client risk learning from default early and to monitor loan data
research and other profile portfolio information directly engage with for risks and early
bank data where � Incorporate � Use internal rating SME to minimize warning signs, and
possible innovative forms of and scoring losses to incorporate data
� Sub-segment the collateral, such as methods to assess � Provide advisory into improved credit
SME market by risk accounts receivable loans/clients services to assist policies
profile, and target � Prioritize role of � Use transparent SMEs in cash flow � Use portfolio data
according to bank non-lending external data such management to customize
risk appetite products in as credit bureau models for
� Enhance predictive establishing reports statistical credit
capabilities by customer scoring
� Separate sales
gathering relationship and from credit
information on local providing predictive approval for more
SME success data rigorous
factors underwriting
Approaches � Inform pricing and � Use sophisticated � Focus customer � Dedicate � Enhance
to managing operational but standardized acquisition on processes and profitability
risk of approach by products to clients "close to" the staff to SME analysis
excessive understanding level minimize transaction current portfolio segment to capabilities to
cost to serve and nature of unmet costs � Separate business streamline disaggregate
SME demand, � Increase the overall development from operations revenue and costs
including service value of each SME relationship � Use direct by key units
preferences client by offering management for channels like (branch, product,
� Segment the and bundling a wide efficiency branches and call client)
market in order to variety of products � Use automated centers to reduce � Learn from and
identify and limit and services screening relationship apply cost-saving
effects of cost processes to management cost innovations
drivers linked to reduce underwriting � Adjust level of discovered at
SME characteristics costs personal service branches
to SME size or
value
IS THERE ANY FORMULA FOR SUCCESS? IFC SME banking CHECK Diagnostic makes a series of high level
While there is no single formula for SME Toolkit (the CHECK) �as an in depth recommendations about areas for
banking success, there are common success assessment of a client bank's SME banking improvement. Success at SME banking
factors and good practices that banks can operations. In addition, IFC has also requires a bank to develop its own approach
draw upon. The experience of banks serving developed an online survey tool that in response to its specific opportunities and
SMEs along each stage of the value chain benchmarks a client's SME banking capacities, but in the end, banking
points to a number of emerging lessons for operations against a peer group of banks in performance ultimately depends on revenue
banks that want to strategically engage the emerging markets. The survey aims to generation (greater income), asset quality
SME market. This has led IFC, over time, to situate the client against its peers across a (lower risks), and operating efficiency (lower
define its own framework � set out in the range of benchmark indicators, and then costs).
Footnotes
1. The World Bank defines low-income countries as those with gross national incomes (GNI) per capita of less than $935; lower-middle with
GNI/capita of $936�3,705, upper-middle $3,706�11,455; and high-income countries $11,456 and above. For more info, please see:
www.worldbank.org/data/countryclass/classgroups.htm
2. Beck, Demirg��-Kunt, and Mart�nez Per�a (2008), referred to occasionally in text as the Around the World survey
3. In IFC's SME Banking Benchmarking Web Survey, the top 3 responses to the question of the most important client acquisition sources referred
in some way to existing clients.
4. IFC (2007) Benchmarking SME Banking Practices in OECD and Emerging Markets
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 6
Measuring Access to Financial FIGURE 1. DEVELOPING COUNTRIES HAVE A THIRD THE DEPOSITS PER PERSON OF
Services (continued from page 1) DEVELOPED COUNTRIES
Substantial resources are dedicated to
improving financial access and the need to
assess effectiveness of implemented
programs and measure results is an ever
present agenda item at every discussion on
the subject. At the international level there is
a demand for comparable cross-country data
on access and use of financial services to
track progress and set priorities. To address
this need the World Bank collected the first
set of indicators of financial access through a
survey of bank regulators in countries
around the world in 2005 (Beck, Demirguc-
Kunt, Martinez Peria, 2007), updated these
indictors for selected countries in 2008
("Banking the Poor", 2008) and rolled out an
annual survey starting in 2009 under the
name Financial Access implemented by
FIGURE 2. DEVELOPING COUNTRIES HAVE A QUARTER OF THE LOANS PER PERSON OF
CGAP with the first report published in DEVELOPED COUNTRIES
October 2009.
Financial Access 2009 is based on a
survey of financial regulators, usually central
banks, in 139 countries. The survey
collected statistics on the number of deposit
and loan accounts and retail locations for
banks and regulated nonbank financial
institutions. The report estimates that 2.7
billion people or 70 percent of adult
population in developing countries do not
use financial services from regulated
financial institutions. The gap in the
availability and use of financial services
between developed and developing countries
is staggering. On average, the number of
deposit accounts per adult in developing
countries is about 1/3 the number of
deposits per person in developed countries and transfers to accounts and introduction stories about overindebted borrowers hit
(figure 1). The deposits in developing of tiered "know your customer" offer great media headlines around the world. Be it
countries are also larger in relation to promise in expanding access to deposit credit cards in the U.S. or microloans in
income than in developed countries services. Financial Access 2009 finds that India the message often is that easy credit in
indicating that mostly high-income only a small number of countries the pre-crisis years resulted in too much
individuals are able to benefit from deposit experimented with these approaches and borrowing leaving customers with debt they
services in regulated financial institutions. there is still much to learn on how to could not repay. Without more granular
Without access to deposit accounts low implement them effectively. data it is hard to support or contradict this
income individuals rely on other means to statement. Financial Access 2009 shows that
The difference between developed and
save which are less efficient, less safe, and loans to individuals account for only 13
developing countries is even larger in term
often costly. percent of GDP in developing countries on
of the use of credit services in banks. The
A number of policies, including requiring number of loans per average adult in average, compared to 37 percent in
financial institutions to offer basic accounts developed countries is four times larger than developed countries. The vast majority of
with low fees and no minimum balances, the number of loans per adult in developing the poor in developing countries do not
requirement to link government payment countries (figure 2). Over the past year have access to formal credit.
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 7
PAGE 2
PAGE 2
Measuring Access to Financial enable basic transactions. But to take opportunity to extend financial services to
Services (continued from page 6) advantage of this opportunity a country rural and remote areas.
needs a solid payments infrastructure which
Distance poses one of the greatest is often missing. The number of point-of- GOING FORWARD
challenges in expanding access. In sale terminals per 100,000 adults in The next round of the Financial Access
developed countries, there are three times developed countries is 12 times the number survey is scheduled to start in February of
more bank branches per person than in in developing countries. Improvements in 2010. The survey will update statistics and
developing countries (figure 3). Technology payments infrastructure, technological focus on select policies for financial
offers great promise � for example by innovations such as cell phone banking, and inclusion.
banking through agents, using existing retail effective partnerships with large retail
networks such as shops or gas stations to This effort is only a small part of a
networks including postal system offer an broader set of initiatives implemented by
international organizations and country
FIGURE 3. DEVELOPING COUNTRIES LACK ACCESS POINTS TO DELIVER FINANCIAL authorities. A growing number of countries
SERVICES now include financial access questions in
their national household surveys. A number
of countries conduct regular surveys of
financial institutions which ask questions on
financial access. More comprehensive data
will help to evaluate policies and assess
progress. An effort to standardize a core set
of indicators and survey questions will
facilitate comparisons across countries and
time.
Financial Access Report and data can be
downloaded at www.cgap.org/financial
indicators
PAYMENT SYSTEMS
NEWS How the ACH System in the U.S. Is RECENT PUBLICATIONS
Visa Launches "I Go with Visa Debit" - A Encouraging Electronic Payments Statistics on Payment and Settlement
Social Media Campaign. Visa has Innovation. A major factor in the greening Systems in Selected Countries - Figures for
introduced "I Go with Visa Debit" for of the payments industry in the U.S. has 2008. This is an annual publication that
consumers in Brazil and Mexico - "an online been the growth of the Automated Clearing provides data on payments and payment
campaign to educate young adults on why House (ACH) system for directly debiting systems in the CPSS countries. This version
debit is faster, more convenient and secure and crediting depository accounts. of the statistical update contains data for
than cash". Payment New. January 14, 2010. Pymnts.com, December 22, 2009. 2008 and earlier years, and includes detailed
Charge! A Credit Card Company Returns Payments: The Lever of Bank tables for each individual country as well as
to Its Roots. The title of best performer in Profitability. The global financial crisis has a number of comparative tables. Bank for
the Dow Jones Industrial Average in 2009, made all of us revisit the basics of banking. International Settlements, Committee on
which went to American Express, raises A better understanding of the importance of Payment and Settlement Systems. December
questions. The Economist. January 7, 2010. payments to a bank's overall health can help 2009.
bankers manage customers' behavior for Interbank Lending, Credit Risk Premia
The Decade's 12 Greatest Developments
greater long-term profit. USBanker. and Collateral. This report studies the
in Payments. Paying with Plastic author
December 2009. functioning of secured and unsecured inter-
David S. Evans has compiled a list of the
greatest developments in the payments bank markets in the presence of credit risk.
business over the last decade. David The model generates empirical predictions
identified 12. Pymnts.com. January 5, 2010. that are in line with developments during
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 8
Payment Systems (continued from page 7) UPCOMING EVENTS Summit Middle East will cover key issues
World Cards & Payments Summit 2010. and opportunities in the region. Dubai,
the 2007-2009 financial crises. European This event brings together over 250 senior UAE. March 22-23, 2010.
Central Bank, Working Paper No. 1107, by F. executives representing world players in the Payments 2010. Rapidly evolving
Heider and M. Hoerova. November 2009. cards and retail payments industry. technological advances in products and
Financial Infrastructure: Building Access Discussions, case studies and best practices services are creating the need for more
through Transparent and Stable Financial will be highlighted in this three day world oversight. This conference will equip
Systems. A new report from IFC and the conference. Dubai, UAE. February 1-3, participants with the tools and information
World Bank maps financial intermediation 2010. that are vital for all organizations--whether
systems and the size of the financial systems 2010 Payments Summit. This 2.5-day as a provider or end-user of payment
market, provides an expanded data index for meeting will focus on exciting new trends services-- to strike the proper balance
measuring financial infrastructure, and and projects that are accelerating the between innovation and risk management.
identifies reforms. IFC, The World Bank. widespread acceptance, usage and Organized by NACHA. Seattle, WA. April
September 2009. application of contactless and NFC mobile 25-28, 2010
Report and Recommendations of The payments technology for transportation and SWIFT Regional Conference Africa.
Cross-border Bank Resolution Group. The general retail payment applications. Johannesburg, South Africa. May 4-6, 2010.
report prepared by the Cross-border Bank Organized by Smart Card Alliance. Salt Lake
Mobile Money Transfer Africa. Africa is
Resolution Group of the Basel Committee City, UT. February 23-25, 2010.
currently recognized as the most significant
sets out ten recommendations that reflect SWIFT Regional Conference Middle hub for mobile money activity. MMT Africa
the lessons from the recent financial crisis East. Dubai, UAE. March 1-3, 2010. is a must attend event for anyone with an
and seek to improve the resolution of a International Payments Summit. Now in interest in this rapidly evolving market.
failing financial institution that has cross- its 18th year, International Payments attracts Nairobi, Kenya. May 4-7, 2010.
border activities. Bank for International 500+ senior executives from around the Payment China 2010. Bringing together
Settlements. September 2009. globe, including banks, corporations, executive officials, payments decision-
How Do Different Models of Foreign regulatory authorities, new payments makers, experts from commercial banks,
Exchange Settlement Influence The Risks providers, technology, and infrastructure central banks, banking regulators, service
and Benefits of Global Liquidity and service providers. The Royal Lancaster providers, associations and corporate
Management? Large, international banking Hotel, London W2. March 8-11, 2010. treasury areas worldwide, this event intends
groups have sought to centralise their cross- Mobile Money Transfer Americas. The to narrow the existing gaps between the
currency liquidity management: liquidity region is quickly becoming fertile ground for demand for payment and settlement services
shortages in one currency are financed using mobile financial services to flourish. MMT and address the technology and risk
liquidity surpluses in another currency. The Americas will bring together the region's management. Beijing, China. May 10-11,
nature of risks to financial stability emerging first pioneers, who will give insights into 2010.
from global liquidity management depends how they planned and launched their
on how these foreign exchange transactions services into this previously untapped PAST EVENTS
settle. Bank of England Working Paper No. market. Cancun, Mexico. March 8-11, 2010. Prepaid Cards Summit 2009. This event
374, by J. Schanz. September 2009. focused on the dynamic and competitive
Central and Eastern European Card
Interchange Fees and Payment Card Markets. CEE Card Markets is an prepaid market. Leading industry experts on
Networks: Economics, Industry established conference that covers all aspects market analysis informed participants on
Developments, and Policy Issues. In many relating to the card markets in the CEE best practices and new opportunities.
countries around the world, electronic card- region, such as major advances in NFC, Organized by VRL Prepaid Government in
based payments have been replacing older RFID technologies, and mobile payments, as association with Mastercard. Rome, Italy.
types of payments at a rapid rate. The well as the progress of the SEPA November 12-13, 2009.
increased use of electronic payment infrastructure. Organized by smi. Budapest, Western Hemisphere Forum Payments
methods has generated a number of public Hungary. March 16-17, 2010. Week 2009. The annual meeting of central
policy debates. This paper is intended to banks and securities commissions from
Prepaid Cards Summit Middle East.
provide background for understanding the Latin America and the Caribbean, with
Middle East has recently experienced a
interchange fee debate. The Federal Reserve participation of observers from other
dramatic growth in the number of salary
Board, Financial and Economic Discussion regions. Organized by the World Bank, in
cards being used. With plans underway for a
Series No. 23, by R. A. Prager, M. D. cooperation with the Bank for International
regional single currency and regulations
Manuszak, E. K. Kiser, and R. Borzekowski. Settlements and CEMLA. Montevideo,
continually evolving, companies need to
2009. Uruguay. November 10-13, 2009.
ensure they keep abreast of development in
this fast moving market. Prepaid Card
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 9
Payment Systems (continued from page 8) issues and new thinking in how to develop a provides high quality solutions in the low-
profitable, customer-focused payments value payment market.
The Changing Retail Payments strategy. Published by Henry Stewart Payment News This website presents the
Landscape: What Role for Central Banks? Publications. latest news on the Payment System industry.
This conference brought together three
SPEED "Settlements, Payments, E-money
principal audiences � industry participants,
policy makers, and academics � for an
& E-trading Development" is a new REMITTANCES
quarterly journal from Central Banking
exchange of views on the changing retail
Publications which focuses on policy NEWS
payments landscape and central bank
developments affecting financial Western Union and Travelex to Extend
payments policies. Organized by the Federal
infrastructures at the national and Money-Transfer Service to Japan. The
Reserve Bank of Kansas City. Kansas City,
international levels. Western Union Company and Travelex have
MO. November 9-10, 2009.
agreed to offer money transfer services in
Smart Cards in Government 2009. As LINKS
Japan after Japan's new Financial Settlement
part of a continuing partnership, the CTST World Bank Payment Systems Act is implemented by June 2010. Earth
conference is produced by the Smart Card Development Group For more than 12 years Times, January 12, 2010
Alliance as the official annual meeting of the the World Bank has been paying increasing
Alliance. Over 120 speakers covered a range Remittances Seen Growing as Global
attention to payment system development,
of topics including contactless payment, Crisis Eases. Remittances from Kenyans in
and has provided various forms of assistance
identity management, physical and logical the diaspora are steadying up with strong
to over 100 countries.
access security, government-issued indications of a more promising growth in
Bank for International Settlements The 2010 as the global economic crisis seems to
credentialing, mobile payments, NFC, and
Bank for International Settlements (BIS) is be bottoming up. Business Daily, January 7,
new emerging technologies that will be
an international organization which fosters 2010.
reshaping the smart card industry in the
international monetary and financial
future. Washington, DC. October 27-30, Philippine Remittance Growth to `Peak,'
cooperation and serves as a bank for central
2009. Banks Set to Lower Fees. Money sent home
banks.
MENA Microfinance Forum 2009. The by the 9 million Filipinos working abroad
Western Hemisphere Payment & makes up about a 10th of the $167 billion
conference, organized by Uniglobal
Securities Settlement Forum The Western economy. Bloomberg, December 2, 2009.
Research, discussed questions which still
Hemisphere Payments and Securities Update December 15, 2009.
remain unanswered such as: When and how
Clearance and Settlement Initiative (WHI)
will the legal framework be changed? What Banks Ink Deal for Cheaper Remittance
has become a regional forum to discuss
kind of opportunities in Microfinance will Services. The Bangko Sentral ng Pilipinas
relevant issues in the field of payments and
be available? What new products will be (BSP) has signed a memorandum of
securities clearance and settlement.
developed? How fast will improvements be agreement (MOA) with bank associations to
seen? Amman, Jordan. October 26-27, 2009. CIS-PI Commonwealth of Independent lower the cost of money transfer services by
States Payments and Securities Settlement as much as P922 million a year. ABS-CBN
Mobile Money Transfer. The MMT
Initiative aims to assess payments and News, December 2009.
conference drew on the experiences of the
securities settlement systems in the
people who have got "their hands dirty" MasterCard Expands Utility of
Countries belonging to the CIS with a view
launching and marketing MMT programs to MoneySend Platform. MasterCard has
to improve their safety, efficiency and
millions of customers. Dubai, U.A.E. announced that starting in 2010
integrity.
October 26-27, 2009. MasterCard's financial institutions will have
SWIFT The Society for Worldwide the capability to offer MasterCard
NEWSLETTERS Interbank Financial Telecommunication cardholders money transfers from any
Dialogue. The Voice of the SWIFT provides the proprietary communications MasterCard or Maestro card to any other
Community. platform for the exchange of financial MasterCard or Maestro card. Payment News,
information to over 8,300 customers in November 17, 2009.
International Banking Systems IBS
more than 208 countries.
Journal provides news, research and analysis
covering banking operations and systems CGAP The Consultative Group for RECENT PUBLICATIONS
internationally. In addition to the monthly Assisting the Poor aims to help build South-South Remittances: Importance of
IBS Journal and CFS Journal, reports, case efficient and equitable local financial the Costa Rica-Nicaragua Corridor. the
studies and directories are also available markets that serve all poor people with study of remittances between developing
online. convenient and affordable financial services. countries (i.e. South-South remittance
Eurogiro Network Through its corridor) has only recently begun to attract
Journal of Payments Strategy & Systems
community of postal organizations, banks the attention of academics and aid
publishes peer-reviewed articles and case
and payment service providers, Eurogiro organizations. This Report is the first study
studies analyzing best practice, emerging
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 10
Remittances (continued from page 9) Remittances in Times of Financial year's Forum addressed the key issues facing
Instability: Impact of the Financial Crisis on the regional remittance markets. Organized
on remittance senders and recipients from Remittances to Latin America and the by the International Fund for Agricultural
Costa Rica to Nicaragua. Multilateral Caribbean. The global financial crisis has Development (IFAD). Tunis, Tunisia.
Investment Fund (MIF), Inter-American brought with it a new set of challenges October 22-23, 2009.
Development Bank (IDB), by R. Monge confronting migrant workers and the Worker's Remittances. Creating New
Gonz�lez and O. C�spedes Torres. December contributions they make to their family Markets Opportunities. ICBI's second
2009. members back home. This document annual conference on Workers' Remittances
Migration and Development Brief 11: A provides an overview of significant trends brought together 40+ leading experts in the
Better-than-Expected Outcome for affecting remittances and their impact on field of remittances to address a variety of
Migration and Remittance Flows in 2009, families, communities and national "hot topics". Rome, Italy. July 2-3, 2009.
but Significant Risks Ahead. Newly available economies throughout the LAC region. Money Transfer Moscow 2009. This one-
data show that officially recorded remittance Remittances Program Multilateral day conference was the first ever held on
flows to developing countries reached $338 Investment Fund (MIF), Inter-American remittances in Eastern Europe and the CIS.
billion in 2008. A recovery in migration and Development Bank (IDB). 2009. Delegates from money transfer companies,
remittance flows in 2010 and 2011 is banks and regulators took part in a one day
expected. The World Bank, by D. Ratha, S. UPCOMING EVENTS program that will address the key issues in
Mohapatra and A. Silwal. November 2009. Remittances and Financial Inclusion the remittance world. Organized by IAMTN.
Conference. The UK Remittances Task Moscow, Russia. June 30, 2009.
Outlook for Remittance Flows 2009-2011:
Force and the Financial Inclusion Taskforce
Remittances Expected to Fall by 7-10
Percent in 2009. In line with a recent
have been collaborating to consider the risk NEWSLETTERS
of financial exclusion amongst migrant Migrant Remittances Newsletter
downward revision in the World Bank's
groups and the opportunities to use Sponsored by the U.K. Department for
forecast of global economic growth, the
remittance services as a gateway to financial International Development (DFID) and the
Migration and Remittances Team of the
inclusion for this group. This conference is U.S. Agency for International Development
World Bank has also lowered its forecasts
co-sponsored by HM Treasury, the (USAID), and produced by The QED
for remittance flows to developing countries
Department for International Development, Group.
to -7.3 percent in 2009 from the earlier
the UK Remittances Task Force, the
forecast of -5 percent. The World Bank, by Migration for Development Facilitated by
Financial Inclusion Taskforce and the
D. Ratha, S. Mohapatra and A. Silwal. July the EC-UN Joint Migration and
Payments Council. London, UK. February 9,
2009. Development Initiative (JMDI).
2010.
Remittances and Natural Disasters - Ex- Money Transfer Newsletter Maintained
Money Transfer Dubai 2010. Delegates
post Response and Contribution to Ex-ante by the International Association of Money
from money transfer companies, banks and
Preparedness. This paper analyzes macro Transfer Networks.
regulators will take part in a one day
and micro-economic evidence which suggest
program that will address the key issues in
a positive role of remittances in preparing LINKS
the remittance world. Organized by IAMTN.
households against natural disasters and in Remittance Prices Worldwide The World
Dubai, UAE. March 22, 2010.
coping with the loss afterwards. The World Bank Group Database provides data on the
Bank, by S. Mohapatra, G. Joseph, and D. Money Transfer & Migrant Remittances - cost of sending and receiving small amounts
Ratha. June 2009. In the New Financial Landscape - Where Do of money from one country to another
the Opportunities Lie? Organized by ICBI. (Available in English, Arabic, Chinese,
Remittances, Liquidity Constraints and
TBC, Barcelona, Spain. June 2010. French, Italian, Portuguese, Russian and
Human Capital Investments in Ecuador.
Over the last decade Ecuador has Spanish). New corridors and features
PAST EVENTS available (September 2009).
experienced a strong increase in financial
International Conference on Remit-
transfers from migrated workers. This paper Global Remittance Working Group. The
tances. The Conference represented the
investigates how remittances via trans- Core Global Remittances Working Group
output of an intense activity that the World
national networks affect human capital comprises representatives from the World
Bank and the G8 have undertaken during
investments and facilitate households in Bank Group and interested G8 authorities,
the last year in the framework of the G8
consumption smoothing by reducing and is chaired by the World Bank-IFC Vice
Global Remittances Working Group
vulnerability to economic shocks. World President for Financial and Private Sector
(GRWG). Organized by the WB and MAE.
Development (UK) No. 37, by C. Calero, A. S. Development. Launched in January 2010,
Rome, Italy, November 9, 2009.
Bedi, and R. Sparrow. June 2009. this website informs about the structure and
Global Forum on Remittances 2009. As the activities of the G8 Global Remittance
global attention shifts towards Africa, this Working Group.
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 11
Remittances (continued from page 10) RemittanceGateway.org This website is money may be tight in the waning
meant for those interested the field of recession, but this is still a nation of
National Remittance Prices Comparison migration and development. It is specifically 100,000 bank branches. Time. January 11,
Databases geared towards migrant remittances, and 2010.
provides news, insights, and contributions As Microfinance Grows in India, So Do
These databases cover national
from leading international experts. Its Rivals, Small Credit Lines Were
remittance markets and fully comply with
the World Bank official requirements for Supposed to Trim the Practice of High-
National Remittance Prices Comparison INCLUSIVE FINANCIAL SYSTEMS Interest Loans in Rural Areas, but
Databases. Moneylenders Flourish. The practice of
Italy: www.mandasoldiacasa.it (Italian) NEWS making tiny loans to poor people, or
US Government to Support $25 million microfinance, was supposed to help drive
Other National Remittance Prices
in Bank Loans to SMEs. As a result of the traditional village moneylenders from
Databases. These databases cover national
remittance markets; their main features International financial crisis which hit rural India. Instead, traditional
differ among them and are not necessarily Mongolia hard in the last month of 2008, moneylenders, who typically charge high
consistent with the methodology of the bank credit in Mongolia and around the interest rates, are thriving, even in areas
World Bank Group database. world tightened more than ever. Already, most heavily targeted by microfinance,
Australia and New Zealand:
business loans in Mongolia had which was begun as a way to help combat
www.sendmoneypacific.org historically been perilous and expensive. poverty by granting the poor access to
The U.S. Agency for International capital to start businesses. Muhammad
France: www.envoidargent.org (French)
Development (USAID), Xac Bank, and Yunus, the Bangladeshi founder of
Germany: www.geldtransfair.de (German) Khan Bank signed an agreement to microfinance, won a Nobel Peace Prize.
Mexico: www.profeco.gob.mx/envio/ support up to US$25million in guaranteed Wall Street Journal. December 15, 2009.
envio.asp (Spanish) loans to SME's. UB Post. January 18, 2010.
Netherlands: www.geldnaarhuis.nl (Dutch) Microfinance Credit Bubbles and Self RECENT PUBLICATIONS
Norway: www.sendepenger.no Regulation. Is there a microfinance bubble 2009 Microscope Index. This report
UK: www.sendmoneyhome.org and in India? Can self-regulation help prevent outlines the findings of in-depth analysis of
www.moneymove.org it? Directors of leading Indian MFIs, Vijay the microfinance business environment in
Mahajan of BASIX and P.N. Vasudevan of 55 countries. The index that underlies this
MIF The Multilateral Investment Fund of
Equitas share their views on whether such report allows countries and regions to be
The Inter-American Development Bank
a bubble exists, as well as what Indian compared across three broad categories:
(IDB) seeks to promote inclusive growth in
regulatory framework, investment climate
Latin America through private sector MFIs are doing to prevent one from
and institutional development. The study
development. The MIF recognizes the happening. Daniel Rozas and Sanjay Sinha
uses a methodology that has been employed
impact of remittances on development, and provide an update on the level of
for the last two years in a microfinance
works for making money transfers cheaper saturation in the Indian microfinance
report on Latin America and the Caribbean,
and safer. market, and discuss their thoughts on and is being piloted for the first time on a
DFID. The Department for International whether self-regulation by Indian MFIs global basis. Conducted by the Economist
Development is the UK Government can be effective at controlling overlending. intelligence Unit (EIU), with support from
Agency for international cooperation. DFID Microfinance Focus.January 10, 2010. the Multilateral Investment Fund, part of the
enjoys an important role in the field of Can Microfinance Make It in America? Inter-American Development Bank group,
remittances. Thirty years ago Muhammad Yunus, the the Corporaci�n Andina de Fomento, and
Inter-American Dialogue. The founder of the Grameen franchise, started IFC. EIU, MIF, IFC. October 2009.
Remittances and Development Program of lending small sums to poor entrepreneurs SME Banking Knowledge Guide. IFC's
Inter-American Dialogue seeks to encourage in Bangladesh to help them grow from a Global SME Banking Program developed a
remittances as a tool for development subsistence living to a livelihood. His knowledge guide to disseminate information
throughout Latin America and the great discovery was that even with few on best practices to financial institutions
Caribbean. assets, these entrepreneurs repaid on time. considering or currently engaged in banking
Mondato Mondato Limited is an Irish- Grameen and microfinance have since to SMEs. The guide synthesizes IFC lessons
based, international value transfer portal become financial staples of the developing learned and shares key success factors for
that offers a consumer search function to world, but by coming to the U.S. Grameen profitable SME banking operations. It is
enable customers to find options for money primarily a technical publication intended
is taking on a different sort of challenge:
transfers that best suit their needs. for bank directors, managers, and staff in
one of the planet's richest countries. Yes,
developing economies. It is also a useful tool
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 12
Inclusive Financial Systems tradeoffs therefore arise when selecting specific. MIX Data Brief No. 3,
(continued from page 11) contracting mechanisms, level of Microfinance Information Exchange
commercialization, rigor of regulation, and (MIX). September 2009.
for policymakers and other financial sector the extent of competition. Meaningful
IFAD's Rural Finance Policy. Through
actors who seek to better understand the interventions in microfinance will require
essentials of SME Finance. The SME this updated policy, IFAD reconfirms its
making deliberate choices - and thus
Banking Knowledge Guide draws widely commitment to improved ways of
embracing and weighing tradeoffs carefully.
from existing research and literature as well Robert Cull, Asli Demirg��-Kunt, and supporting and developing rural finance
as from numerous primary interviews with Jonathan Morduch. World Bank Policy systems. Having largely discarded the old
SME banking experts and practitioners Research Working Paper No. 5086. October paradigm of providing credit lines for
worldwide. It supports financial institutions 2009. targeted, subsidized lending, IFAD has
in making informed choices by sharing
Half the World is Unbanked. This note
shifted its focus in rural finance to the
challenges, opportunities, and effective development of diverse, viable financial
discusses the state of financial services for
practices in SME banking operational service providers that increase the long-
the world's poor. Over the past quarter
models from across the globe and through term access of rural poor people to a wide
century, the microfinance movement has
practical examples of SME banking provided range of financial services. International
propelled a global expansion of financial
by a number of featured financial Fund for Agriculture Development (IFAD).
services for the world's poor. The
institutions. International Finance August 2009.
Microcredit Summit Campaign, a leading
Corporation. October 2009.
advocacy group, counted 154 million clients Institutional Analysis to explain the
Can Microfinance Reduce Economic world-wide at the end of 2008. That is Success of Moroccan Microfinance
Insecurity and Poverty? By How Much and impressive, but it is just a start relative to the Institutions. The objective of the research is
How? The paper suggests that, rather than unmet demand. Experts agree that unmet to identify controllable institutional factors
through its narrow, direct financial impact, demand for finance is large, but the exact which can be introduced in regulation to
microfinance may prove to be more potent number (or even a rough but credible enable Microfinance to succeed in a country.
in reducing insecurity and poverty through number) has been hard to pin down, with The authors used a case study approach
its indirect, broader impact conducing to a estimates ranging from half a billion people combined with a little bit of correlation
more egalitarian initial endowment to three billion. Estimates reveal that 2.5 analysis. The case study approach is the
distribution that is necessary for the "take- billion adults worldwide do not have a most adapted to studying small samples in
off" of an equitable growth process. The savings or credit account with either a more detail. The success of Microfinance is
paper begins by examining the distinctive traditional (regulated bank) or alternative linked to population density, smallness of a
roles of micro credit, micro savings, and financial institution (such as a microfinance country's geographical size and its poverty as
micro insurance programs in dealing with institution). Nearly 90% of the financially well as the amount of international donor
poverty and insecurity, and highlights the un-served live in Asia, Africa, the Middle funds it has received. The availability of oil
complementariness that exists among these East and Latin America. Financial Access exports as revenues may lead to a delay in
programs and how this complementariness Initiative Framing Note. October 2009. developing microfinance. Establishing a
can be used to overcome the weaknesses of specific legal framework for Microfinance,
Consumption, Commercial or Mortgage
the individual programs. DESA Working such as in Morocco, may help foster the
Loans: Does it Matter for MFIs in Latin
Paper. United Nations Department of growth of Microfinance. By Virginie Allaire,
America? Microfinance institutions (MFIs)
Economic and Social Affairs. October 2009. are not all alike � they are different sizes, Arvind Ashta, Laurence Attuel-Mendes,
Microfinance Tradeoffs: Regulation, have different missions, serve different client Karuna Krishnaswamy, Presented at The
Competition, and Financing. This paper groups, and can offer different products. First European Research Conference on
describes important tradeoffs that And increased maturation and competition Microfinance, Brussels, 2-4 June 2009.
microfinance practitioners, donors, and in many microfinance markets have only Evaluation of Danish Support for
regulators navigate. Drawing evidence from accelerated this last distinction regarding Financial Services in Tanzania. The
large, global surveys of microfinance product type. The product spectrum at the evaluation covers Danish support to the
institutions, the authors find a basic tension end of the market has moved beyond the financial sector in Tanzania from 2003 to
between meeting social goals and quintessential microenterprise loan to a 2008. The overall objectives of the evaluation
maximizing financial performance. For wider variety of products. Previous research are to assess the outcomes achieved from the
example, non-profit microfinance on this area has already shown that MFIs Danish support to financial services in
institutions make far smaller loans on from Latin American and the Caribbean Tanzania during that period and to distil key
average and serve more women as a fraction (LAC) are very diverse in terms of the lessons from the Danish support with regard
of customers than do commercialized
credit products that they offer, and that to strategies and approaches to support to
microfinance banks, but their costs per financial services. The Danish assistance has
these differences are often country
dollar lent are also much higher. Potential supported a bank (providing financial
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 13
Inclusive Financial Systems The 2010 Global Microfinance in the region. Taught in French. Dakar,
(continued from page 12) Investment Congress. ACI and PlaNet Senegal. November 9-13, 2009.
Finance host the 3rd annual Global 2nd Microfinance and Technology
services to households, local savings and Microfinance Investment Congress. The Summit. Organized by PlaNet Finance, the
credit cooperatives as well as small and 2009 Congress attracted over 250 industry summit created a platform to meet and
medium enterprises); an institution leaders from investment banks, MIVs, MFIs, dialogue in order to improve the use of new
(primarily aiming at supporting small and and NGOs from over 43 different countries technologies in microfinance. This
medium sized farmers and agro-businesses) around the world � making it a truly global conference gathered over 250 industry
and finally a joint donor basket fund that forum for microfinance stakeholders. This leaders from the Technology,
provides support to the financial sector, in conference will present in-depth analysis of Telecommunications, Money Transfer and
particular micro-credit institutions, in order current market trends, evaluate Banking industries. Marrakesh, Morocco.
to improve the services towards micro, small microfinance investment opportunities, and November 5-6, 2009.
and medium enterprises and poor best practices for achieving sustainable
households. Ministry of Foreign Affairs, African Microfinance Transparency
growth with microfinance investments. New
Denmark/Oxford Policy Management. (AMT) 2009 Microfinance Investor's Fair.
York City, NY. May 24 - 26, 2010.
August 2009. The fair was open to African MFIs that have
Microfinance Centre (MFC) Regional had a rating or performance evaluation with
Access to Micro-Savings for Remote Conference. MFC is a grass-root network of a recognized rating agency and microfinance
Rural India. This note discusses how 110 member institutions that play an active investors active in Africa. The Investor's
innovative modes of savings products like role in shaping the microfinance industry in Fair alternated between a series of speed
money market mutual funds can be used to the ECA region. Members range from dating sessions between the MFIs and the
cater to the need of rural households in banks, non-governmental organizations, investors, along with presentations relating
India. Such financial instruments can be social and commercial investors, to to the African microfinance sector and the
used for planning and investment which can development institutions and international notion of transparency and investments.
contribute in many ways to enhance their PVOs. Mark your calendar for the next Nairobi, Kenya. October 21-22, 2009.
security by building capital for consumption regional conference, details to be posted.
and investments at the same time provide 2nd International Cooperative Dialogue
May 26-28, 2010. Astana, Kazakhstan
liquidity to meet emergencies. IFMR Trust, � "Development and Finance of MSMEs-
Technical Note. 2009 Challenges in Times of Crisis." Organized by
PAST EVENTS
DGRV, The ZGV, in cooperation with DEG
Microfinance Investments in Asia
UPCOMING EVENTS mbH. The 2nd International Cooperative
Conference. Hosted by Standard Chartered
Dialogue increased the understanding of
3rd Microfinance Investment Summit. and Hanson Wade, this senior level
financial institutions and policymakers for
C5's 3rd Microfinance Investment Summit conference brought central banks & policy
the problems and needs of MSMEs. Also the
follows it's London summit, held in October makers, commercial banks & asset
event promoted a cross-national exchange of
2009. C5's Microfinance summits allow managers, private and institutional
experience. October 19-23, 2009.
participants to meet, network, and investors, multilateral investors, foundations
participate in discussions. Participants & family offices to shape the future of the C5's 2nd Annual Microfinance
include executive management and other microfinance market in Asia. In addition to Investment Summit. C5's Second Annual
senior leaders from private and public sector the latest case studies, opportunities and Microfinance Investment Summit provided
professionals. March 10-11, 2010. Geneva, project results, participants were able to a unique international platform for genuine
Switzerland. develop and network with hundreds of interaction between MFIs and many other
international and regional contacts. January key industry stakeholders. Panel included
Africa-Middle East Regional Microcredit
26-27, 2010. Singapore. more than 50 key industry speakers and also
Summit. The Microcredit Summit
featured central figures from institutional
Campaign and the Association of Developing Inclusive Financial Systems:
and private investors, the donor community
Microfinance Institutions of Kenya (AMFI) CGAP Course for Funders of Microfinance.
and other experts from around the world.
will co-organize the Africa - Middle East CGAP hosted a training course for
October 6-7, 2009. London, UK.
Regional Microcredit Summit. More than microfinance funders that are new or recent
2,000 delegate from over 40 countries will to microfinance. The course gave Rural Microfinance Conference:
join Nobel Prize Laureate Muhammad participants knowledge of the broader Strategies for Reaching the Underserved.
Yunus which will be the largest microfinance landscape and current topics, The conference brought together
microfinance gathering ever held in Africa as well as the nuts and bolts of how to practitioners in the Mexican credit union
and the Middle East. April 7-10, 2010. effectively fund different kinds of movement and donor agencies worldwide to
Nairobi, Kenya. interventions. In addition, it offered discuss the key role of microfinance in
organized visits to microfinance institutions fighting poverty. It showcased rural credit
union outreach efforts adaptable to other
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 14
Inclusive Financial Systems of the development of the microfinance Finance and Private Sector Research. The
sector. World Bank Finance and Private Sector
(continued from page 13)
Women's World Banking. E-newsletter research has just been brought together in
regions and provided a forum to discuss new
produced by The Women's World Banking one team. This reflects the centrality of
approaches for serving economically
focusing on its publications, awards and finance to private sector development and
disadvantaged and underserved populations.
events. vice versa and the fact that large parts of
The conference was a collaborative effort
both sub-disciplines revolve around the
between World Council of Credit Unions
LINKS behavior and performance of firms. This
(WOCCU) and the Mexican Ministry of
Financial Access Initiative. The Financial website is maintained by the World Bank's
Agriculture, Livestock, Rural Development,
Access Initiative is a consortium of leading Development Research Group.
Fishing and Food (SAGARPA). September
30 � October 1, 2009. Mexico City, Mexico. development economists focused on Finscope. A FinMark Trust initiative is
substantially expanding access to quality the most comprehensive national household
NEWSLETTERS financial services for low-income survey focused on the financial services
individuals. needs and usage across the entire South and
EMN Newsletter. European Microfinance
Network (EMN) produces a quarterly e- ACCION. ACCION International is a Southern African population.
newsletter that contains the latest news on private, nonprofit organization with the Global Development Research Center.
the sector and information on EMN mission of giving people the financial tools Virtual Library on Microcredit. Articles and
activities and events, policy developments, they need � microenterprise loans, business links to the principle organizations active in
member news and profiles, and feature training and other financial services � to the field of microfinance.
articles on topics relevant to microfinance. work their way out of poverty.
Micro-Credit Ratings International Ltd
InSight Bulletin. As short, frequent, one- IPA - Innovations for Poverty Action. (M-CRIL). M-CRIL produces ratings of
topic bulletins, the ACCION InSight series Develop innovative solutions to poverty and microfinance institutions in Asia.
highlights ACCION's policy viewpoints and policy problems worldwide. Disseminate
Microfinance Gateway. Information for
ongoing research in the microfinance field. results of successful evaluations to
and about the microfinance industry,
development practitioners and
INSME news. IN Small and Medium including research and publications,
policymakers.
Enterprises news is a monthly newsletter by specialized resource centers, organization
the INSME Secretariat about its current International Finance Corporation � and consultant profiles, and the latest news,
activities and issues related to innovation SME. This site provides an overview of how events, and job opportunities in
and technology transfer for SMEs. IFC supports small and medium-sized microfinance.
enterprises (SMEs) through investments and
Microfinance Capital Markets Update. Is MicroSave. This website offers practical
advisory work. Promoting the growth of
produced and edited by CGAP and the guidance in the form of research papers,
SMEs in developing countries is an
Microfinance Information eXchange (the briefing notes, training toolkits and other
important part of our private sector
MIX), and it is dedicated to microfinance resources on market-led microfinance.
development mission.
capital markets news. Planet Finance. The mission of Planet
CGAP. Building Financial Systems for
Microcredit Summit Campaign Finance is to support microfinance
the Poor. CGAP is a consortium of 28 public
Countdown 2005. A newsletter on programs in countries with operations of
and private development agencies working
microcredit best practices issued by the Planet Finance.
together to expand access to financial
Microcredit Summit Campaign. Rural Finance Learning Centre. This is a
services for the poor in developing
Microinsurance Focus. MicroInsurance website dedicated to providing access to the
countries.
Focus is managed by the CGAP Working best materials for capacity building in the
Development Gateway. This site includes
Group on Microinsurance. field of rural finance.
resources on the provision of financial
MicroLINKS Connections. A monthly The Microfinance Information eXchange
services to entrepreneurs and micro business
publication by USAID. This newsletter is (MIX). The MIX aims to promote
in developing countries.
up-to-date information on the information exchange in the microfinance
European Microfinance Network (EMN).
microenterprise work USAID Missions and industry. The MIX Market strives to
The EMN supports the development of
partners are doing across the world. facilitate exchange and investment flows,
microfinance organisations through the
The MicroBanking Bulletin. MIX promote transparency and improve
dissemination of good practices and by
Benchmarking source for the microfinance reporting standards in the microfinance
improving the regulatory frameworks for
industry used by investors, donors and other industry.
micro finance and self-employment and
service providers to facilitate greater The Rating Fund. The Microfinance
micro enterprises at the European Union
standardization and a better understanding Rating and Assessment Fund. This website is
and Member State levels.
maintained by The Inter-American
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 15
lessors, lessees, small and medium
Inclusive Financial Systems paid out in the event of a wind storm of a
enterprises, investors, banks, international
certain category, or an earthquake
(continued from page 14) financial institutions, development partners,
registering a certain magnitude on the
Development Bank (IDB), The Consultative and legal and accounting firms.
Richter scale. International Finance
Group to Assist the Poor (CGAP) and The International Finance Corporation, World
Corporation. December 2, 2009.
European Union. Bank Group. October 2009.
Philippine Farmers Weather Storm. The
The SEEP Network. The Small Enterprise The Landscape of Microinsurance in
Philippines has been hit by four typhoons in
Education and Promotion Network provide Africa. This briefing note covers the
less than a month. Tens of thousands of
access to recent documents, programs, landscape of microinsurance, including the
farmers have lost their livelihoods, and
working groups. number of microinsured, outreach and
poverty is now rife in what is supposed to be
World Council of Credit Unions. the country's food basket. In the past small penetration by product, outreach of non-life
WOCCU is a representative organization farmers have had no insurance against crop products, who is doing the insuring, depth
and a platform for knowledge exchange and failure. However, a new typhoon product of outreach, getting pmicroinsurance into
development for credit unions worldwide. which uses a trigger based on the strength of the households of the poor, and survey
the wind and distance from the farmer is results for why every poor person doesn't
Women's World Banking. The WWB
one of the first weather insurance products buy microinsurance. Microinsurance
network aims to create the possibility for a
designed for the poor that uses satellite data. Innovation Facility, Briefing Note,
low income woman to build her business
Al Jazeera. November 5, 2009. International Labour Organization. October
and assets, improve her living conditions,
2009.
keep her family well-fed and healthy,
educate her children, develop respect at RECENT PUBLICATIONS Microinsurance: A Safety Net with Too
home and in her community, and secure a The Risk of Relying on Reputational Many Holes. This paper contains a detailed
political voice. Capital: A Case Study of the 2007 Failure of discussion of challenges facing the
New Century Financial. The quality of microinsurance market. While there has
newly originated subprime mortgages had been some recent innovation in the
NONBANK FINANCIAL microinsurance sector, it is a market that has
been visibly deteriorating for some time
INSTITUTIONS (LEASING, before the window for such loans was shut experienced relatively slow growth
HOUSING FINANCE, INSURANCE) in 2007. Nevertheless, a bankruptcy court's compared to the microfinance sector in
directed ex post examination of New general. The article notes that
NEWS microinsurance has been difficult to market
Century Financial, one of the largest
Why The World's Poor Refuse Insurance. originators of subprime mortgages, to the poor partly due to a lack of
It's been more than 30 years since discovered no change, over time, in how that understanding on behalf of potential clients,
microfinance began its fantastic rise, firm went about its business. A contribution but also because of badly designed products
spreading billions of dollars in credit to of this paper is its elaboration of the choices and "a shortage of localized risk
hundreds of millions of overlooked and incentives faced by the various types of management knowledge among providers."
borrowers around the world. Insurance is institutions involved in those linked Other challenges are also discussed, but the
the next big promise of financial services for processes of origination and securitisation. paper argues that partnerships between
the poor. But there aren't many takers. In What is perplexing is that risk exposures NGOs, insurers, microfinance institutions
this article Jonathan Murdoch says it's were accepted by investing firms that had and community organizations may be most
because it asks people to decide in advance the wherewithal and knowledge to successful because NGOs tend to be more in
which of the many risks they face they appreciate the overall paucity of due touch with the client base, while insurers
should hedge. Time. September 21, 2009. diligence in the loan origination processes. have the actuarial skills that enable them to
IFC Helps Expand Access to Natural This observation, in turn, points to the construct a viable contract, calculate
Disaster Insurance for Emerging Market conclusion that the subprime episode is a premiums and address pricing issues.
Farmers. IFC, in partnership with the case in which reputational capital, a Knowledge at Wharton. September 2009.
European Commission and the Netherlands' presumptively effective motivator of market Community-Based Housing Finance
Ministry of Foreign Affairs, launched a discipline, was not an effective incentive Initiatives. This report examines one of the
program to help farmers and others in device. BIS Working Papers No 294. main innovations and trends in community-
developing countries more easily access December 2009. based housing finance initiatives - the
insurance for natural disasters to protect Leasing Development Guide for Community Mortgage Programme in
themselves from weather-related risks. The Emerging Economies. This new guide Philippines. The Community Mortgage
Global Index Insurance Facility is an index- identifies key policy issues on leasing Programme in Philippines is an innovative
based insurance scheme that insures against development, examining the approach of financing scheme that aims to realize the
certain catastrophic events, depending on current and past projects. It is a reference dreams of housing ownership among the
their severity. For example, insurance will be manual for all stakeholders including lowest income sector of the society and to
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 16
NonBank Financial Institutions UPCOMING EVENTS Management and Research (IFMR). The
(continued from page 15) 1st Jordanian Exhibition and Conference objective of the conference was to undertake
on Capital Leasing. First conference in a a nuanced stock taking exercise on the status
series on capital leasing, this exhibition and of microinsurance in India, with a special
help informal settlers to gain security of land
conference is open to representatives from focus on states with poorer HDI, where the
tenure and housing tenure. The programme
local, Arab, and international companies vulnerability of the population is higher.
was launched in 1988 and has evolved into a
interested in offering their services in local December 10-11, 2009. New Delhi, India.
flagship programme of the Philippines
government in low income housing. This and Arab markets. Participants include � 5th International Microinsurance
report presents the details of the European Union (EU), United Nations Conference. Providing health insurance to
Community Mortgage Programme, assesses Development Program (UNDP), the poor, Linking microfinance and
its performance as a housing finance International Finance Corporation (IFC), microinsurance, The African
programme for the poor and examines the and United States Agency for International microinsurance experience, scientific track �
implementation problems. It also discusses Development (USAID). Amman, Jordan. Economic analysis of microinsurance
the replicability of the Community February 15-16, 2010. markets. Senegal. November 3-5, 2009.
Mortgage Programme in other countries Microinsurance Summit 2010. Equipment Leasing and Finance
facing the similar housing problems. UN Distribution remains the major challenge of Association's (ELFA) 48th Annual
Habitat. July 2009. delivering insurance products to the world. Convention. The convention, themed
Booms and Busts in Housing Markets. How do you distribute more products to "Connecting to the Future," the program is
This study looks at real estate price booms more people and remain profitable while designed to help members understand, plan
and busts in industrialized countries. It doing so? This summit will include for and benefit from the new equipment
identifies major and persistent deviations presentations, panel discussions and leasing and finance marketplace. The
from long term trends for 18 countries and roundtable discussions, and networking. program had three full days of educational
estimates the probabilities of their Attendees include an array of speakers from sessions and networking, and included a
occurrence using a Random Effects Panel the leading global insurers and reinsurers, newly added valuable feature, the Funding
Probit model over the period 1980-2007. It MFIs, aid agencies, NGOs and development Source Connection. San Diego, California,
finds that 1) most recent housing booms banks. London, UK. February 23-25, 2010 USA. October 18-20, 2009.
have been very persistent and of a significant International Housing Finance Program. Mortgage & Housing Finance Market
magnitude; 2) there appears to be a strong This annual housing finance two-week Implementation for Emerging Economies.
correlation between the persistence and program from The Wharton School of the This course was intended for public or
magnitude of booms and subsequent busts; University of Pennsylvania provides the best private sector official tasked with the
3) economic costs (in terms of GDP losses available in-depth review of international responsibility of promoting and regulating
during the post-boom phase) depend best practices in housing finance. It presents their housing and mortgage banking
significantly on the magnitude and duration a variety of tools and helps you understand industries, implementing an MBS program
of the boom and money and credit how to use them. The program is useful for or simply increasing their home ownership
developments during that period; 4) a private sector bankers and for public sector rates will benefit from this all encompassing
number of policy variables, including short policy makers. Participants come from course. The course also integrated Islamic
term interest rates, local and global money private housing finance institutions, lending practices. It was designed to provide
and credit developments, and the incidence government finance agencies, academia and the necessary elements of an effective
of mortgage market deregulation affect international development agencies from housing and mortgage finance system
significantly the probability of experiencing both emerging and advanced economies. implementation plan. Targeted specifically
booms and busts; and 5) the model is quite Philadelphia, Pennsylvania. June 7-19, 2010. to developing country scenarios, it will took
successful in identifying booms and busts the participant from the initial steps of
early on. European Central Bank. Working PAST EVENTS required legislation in banking and real
Paper Series No. 1071. July 2009. National Conference on the Status of property on through primary and secondary
Unidroit's Preparation of a Model Law on Microinsurance in India. UNDP, as part of market development and their integration
Leasing: the Crossing of New Frontiers in its mandate to promote inclusive growth into a holistic capital market program.
the Making of Uniform Law. Uniform Law through access to financial services� International Law Institute, Washington
Review of Model Law on Leasing including including microinsurance, organized a DC. September 14-18, 2009.
updates, uses, and adoption of the Model National Conference on the Status of
Law internationally. MJ Stanford. Microinsurance in India, in collaboration NEWSLETTERS
UNIDROIT. 2009. with Academic and Policy Centers- the FIC. A Monthly newsletter from
Centre for Insurance and Risk Management Financial Institutions Consulting, Inc.
(CIRM) and Centre for Micro Finance Global News. A monthly newsletter
(CMF) at the Institute for Financial issued by Planet Finance.
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 17
NonBank Financial Institutions Development Gateway. This site includes bank financial institutions, such as insurance
(continued from page 16) resources on the provision of financial companies, mortgage providers, and
services to entrepreneurs and micro business pension funds which are critically important
Housing Finance Information Network for mobilizing savings and providing
in developing countries.
Web portal. IFC/World Bank, Wharton market-based safety nets.
School of the University of Pennsylvania DGRV. Deutscher Genossenschafts- und
Raiffeisenverband e.V. (German Co- World Council of Credit Unions.
Web portal that is leading global source of
operative and Raiffeisen Confederation). WOCCU is a representative organization
information on housing finance providing
This is the website of the national apex and a platform for knowledge exchange and
trusted information on housing finance and
organization of the German co-operative development for credit unions worldwide.
support the development of the sector.
sector, which has experience in building and World Savings Bank Institute. WSBI is
Innovation Flash. Innovation Newsletter
supporting cooperative systems in many one of the largest international banking
prepared by ILO Microinsurance Innovation
East European Countries and CIS, Latin associations and the only global
Facility.
America, Africa and Asia. representative of savings and retail banks. It
INSME news. IN Small and Medium works closely with international financial
Finance and Private Sector Research. The
Enterprises news is a monthly newsletter by institutions and donor agencies and
World Bank Finance and Private Sector
the INSME Secretariat about its current facilitates banking projects to develop
research has just been brought together in
activities and issues related to innovation world-wide financial sector.
one team. This reflects the centrality of
and technology transfer for SMEs.
finance to private sector development and
Insurance Insider. Insider Publishing Ltd vice versa and the fact that large parts of CREDIT REPORTING
is an independent financial publisher that both sub-disciplines revolve around the
publishes The Insurance Insider since 1996. behavior and performance of firms. This NEWS
Monthly newsletter with exclusive coverage website is maintained by the World Bank's Egypt's credit bureau to launch scoring
of the London and International Development Research Group. service. Egypt's i-Score credit bureau will
(re)insurance markets.
FinMark Trust aims to promote and launch credit-scoring services in January in
MicroInsurance Times. A newsletter support policy and institutional a move aimed at bolstering consumer
(currently in pilot phase) from MicroCapital development towards the objective of lending and access to credit in a largely cash
covering microinsurance briefs, news, increasing access to financial services by the economy, the bureau's managing director
interviews and events. un- and under-banked of southern Africa said. "Using the bureau's scores allows
Microensure. Quarterly newsletter from (South Africa, Botswana, Lesotho, Swaziland banks and other lenders to provide more
MicroEnsure, an insurance intermediary and Namibia). credit while keeping default rates at
dedicated to serving the poor throughout the Good and Bad Practices in relatively lower levels," Mohamed Refaat,
developing world with an affordable and Microinsurance. This site hosts a series of managing director of i-Score, told Reuters.
appropriate range of insurance products. case studies developed by the ILO's Social He said that research indicated default rates
Microinsurance Focus Notes. These notes Finance Programme on behalf of the CGAP dropped by around 40 percent when lenders
are based on the book Protecting the Poor: A Working Group on Microinsurance. use bureaus' scores. ArabFinance. December
Microinsurance Compendium, published on 27, 2009.
Microinsurance Network. The
behalf of the Microinsurance Network Microinsurance Network is a member-based Abu Dhabi Bank signs up to credit
(formerly known as CGAP Working Group network of donor organisations, multilateral bureau. Abu Dhabi Islamic Bank has agreed
for Microinsurance), the International agencies, insurance and social protection to pass on its clients' payment records to
Labour Organization (ILO) and the Munich providers, policymakers and academics national credit bureau Emcredit in return
Re Foundation. aiming to promote the development and for information regarding creditworthiness
proliferation of insurance products for low- for financing activities, a statement said.
LINKS income persons. Microinsurance Network's Arabian Business.com. December 23, 2009.
Financial Access Initiative. The Financial Stocktaking Initiative website provides a Uganda: Over 100,000 Register With
Access Initiative is a consortium of leading clearinghouse for ongoing impact New Credit Bureau. Uganda's Credit
development economists focused on assessments on microinsurance. Reference Bureau has hit the critical 100,000
substantially expanding access to quality borrowers mark and indications are the
The SEEP Network. The Small Enterprise
financial services for low-income figure will keep rising as it becomes an
Education and Promotion Network provide
individuals. integral part of the country's banking
access to recent documents, programs,
International Finance Corporation � working groups. system. Compuscan Information
Global Financial Markets. This site provides Technologies, the firm that offers the
World Bank Non Bank Financial
an overview of how IFC non bank financial service, is trying to get banks to properly
Institutions. World Bank group for
institutions through investments and identify their customers using biometrics for
promoting the healthy development of non-
advisory work.
ACCESSFINANCE | JANUARY 2010 | ISSUE No. 30 PAGE 18
Credit Reporting (continued from page 17) great importance in terms of global crisis accuracy, integrity and direct dispute
when economic policy makers in Serbia, provisions. Webinar. January 21, 2010, at 2 �
final use by the credit bureau. allAfrica.com, faced with a pronounced deficit in balance 3 pm EST.
December 21, 2009. of payments of the country, as one of 13th Annual DBA International
Azerbaijan to Adopt Bill on Credit economic policy measures aimed at Conference. International networking
Bureaus in 2010. The Central Bank of improving the balance of payment position, platform for professionals working in the
Azerbaijan (CBA) with consulting assistance implement the measure of controlled debt buying industry, issuers and collection.
of the International Finance Corporation reduction of private demand. Journal of Features vendor exhibits. February 9 -11,
(IFC) has completed drafting the Bill on Applied Quantitative Methods. December 2010. Las Vegas, Nevada.
Credit Bureaus. 2009.
4th Annual Microfinance Forum 2010:
Rashad Orujev, the director of the CBA Optimal Consumer Credit Bureau Confronting Crisis & Change. Uni-Global
Credit Institutions Supervision Department, Market Structure in Singapore: Theory and organized annual microfinance forum that
says that the Bill is ready and will be Evidence. The impetus for this report is the discusses the evidence of the final impact of
submitted soon for inter-department co- Monetary Authority of Singapore's (MAS) credit crunch and the turmoil changes on
ordination. "I think that the Bill on Credit recent mandate that consumer credit the Microfinance industry, with a look at the
Bureaus will be passed in Azerbaijan next information be reported to one private role of credit reporting. February 18-19,
year", he said. Caspian Business News. credit bureau and not others. This paper 2010. Istanbul, Turkey.
December 18, 2009. examines the relationship between the
Microfinance and New Technologies
market structure and regulatory framework
IFC, Swiss Government to expand access Summit 2010. Organized by Planet Finance,
of a nation's credit information sharing
to Finance in Uzbekistan. International the conference brings together MFI
system, and the performance of its financial
Finance Corporation (IFC) is partnering practitioners, technology providers and
sector. The objective of this paper is to
with the Swiss government in launching a credit risk management providers to discuss
identify the most likely consequences of the
three-year project to strengthen financial systems challenges faced by microfinance
MAS mandate on consumer credit reporting
market infrastructure and improve access to institutions worldwide, opportunities using
upon Singaporean borrowers, lenders, and
finance for small enterprises and population new technologies, and strategic priorities
the national economy. For the case of
in Uzbekistan. The loan information going forward. Marrakech, Morocco. March
Singapore, this paper examines whether the
exchange will provide access to borrowing to 11-12, 2010.
decision to mandate the reporting of
more people and SMEs under a three-year, Vision 2010. Experian organized annual
consumer credit information from large data
$2.4-million project financed by conference that brings together attendees
furnishers to just one private credit bureau
Switzerland's State Secretariat for Economic representing various segments of the
and not all authorized consumer credit
Affairs (SECO). AllBusiness, UzReport. financial services industry including credit
bureaus, private or public, will subsequently
December 10, 2009. unions, collections, utilities,
impact the evolution of the credit
information system. This paper find that this telecommunications, technology, insurance,
RECENT PUBLICATIONS automotive, manufacturing, mortgage, e-
decision will shape the terrain of
A Model of Credit Bureau in Serbia - commerce, government, and banks of all
competition in ways that are detrimental to
Instrument for Preserving Stability of the sizes. Vision 2010 is especially relevant for
the growth and evolution of Singapore's
Banking Sector in Conditions of the Global industry executives, risk managers, credit
financial services sector and its overall
Economic Crisis. This paper presents the officers and managers, collections and
economic performance. PERC. May 2009.
characteristics of the banking system in business development managers, lending
Serbia before and during the global financial managers, portfolio executives, analytical
UPCOMING EVENTS
crisis. The model of the credit bureau in and modeling professionals, statisticians,
Guidelines for Compliance in Consumer
Serbia which, according to its technical fraud professionals and customer
Credit Reporting - A Metro 2 Webinar. The
characteristics and the level of business relationship managers. Phoenix, Arizona.
federal banking agencies (OCC, Board,
performance, represents the original May 2-5, 2010.
FDIC, OTS, NCUA) and the FTC
solution is analyzed. Its implementation, in
recently published final rules to implement 14th Annual National Collections &
conjunction with other control mechanisms,
the accuracy and integrity and direct dispute Credit Risk Conference. Industry sponsored
has provided the stability of the banking
provisions . The reporting of data in a way event targeting senior-level officials from
sector in terms of crisis. Consequently, the
that meets industry and legal standards credit granting institutions, collection
control of liquidity in the banking sector is
remains therefore an essential core risk agencies, debt brokers, buyers and resellers,
achieved as well as the control of the
management function for financial loan services, collection law firms, solutions
expansion of credit activities, with the
institutions. This CDIA webinar provides providers and scoring companies. March 21-
maintenance of population and economy
instruction of the use of the Metro 2 format 23, 2010. Miami, Florida.
indebtedness at optimal level, which is of
in compliance with new rules surrounding
ACCESSFINANCE OCTOBER 2009 ISSUE No. 30
ACCESSFINANCE ||JANUARY 2010 | |ISSUE No. 30 PAGE 19
PAGE 19
Credit Reporting (continued from page 18) enforcement across 178 countries and PAST EVENTS
selected cities at the subnational and International Bar Association's Annual
regional level. Conference. A session led by Insolvency,
PAST EVENTS IFC Azerbaijan-Central Asia Financial Restructuring and Creditors' Rights Section
2nd World Credit Congress and Markets Infrastructure Advisory Services (Lead) and North American Regional
Exhibition. The Global Summit for Credit Project provides updated information on Forum will focus on credit crisis - another
and Collections Professionals. The World IFC's regional financial market program for year in: causes, impact, culpability and the
Credit Congress & Exhibition is an Central Asia, including a component on future. Madrid, Spain. October 4-9, 2009.
international event designed to strengthen credit reporting.
the credit culture and to promote new LINKS
Western Hemisphere Credit Reporting
information, to explore advances in Initiative. World Bank-led initiative to IFC/World Bank � Secured Lending. The
technology by associating them to the credit describe and assess credit and loan reporting joint FIAS/IFC advisory services in secured
and collections industry in the world. systems in the Latin America and Caribbean lending supporting the development of a
Dublin, Ireland. November 24-25, 2009. region, and develop improvement strategies well-functioning secured lending framework
International Telecom Forum 2009: and action plans using a standard through a delivery model that focuses on
Seeking profitable opportunities in a methodology. harmonizing laws, building electronic
downturn. Two-day event organized by registries, streamlining registration
Experian, discussing market trends, future processes, and eliminating unnecessary
Collateral Registries/ Secured paperwork.
challenges and solutions that will help
companies beat the competition after the
Lending World Bank Global Insolvency Law
current financial crisis, with an emphasis on Database (GILD). World Bank developed
NEWS
telecommunications, technological advances Principles and Guidelines for Effective
including mobile banking, risk management, To Improving Financial Infrastructure
Insolvency and Creditor Rights Systems
debt management and fraud prevention, and Facilitate Leasing Finance �
(Principles). The Principles represent an
amongst others. Noordwijk aan Zee, The International Symposium on Lease
international consensus on best practices in
Netherlands, October 1-2, 2009. Registration Held in Beijing. The
insolvency and creditor rights (ICR) and
International Symposium on Lease
Forum Scoring 2009. Day long workshop constitute the standard for benchmarking
Registration was held in Beijing on January
discussing the new developments in scoring the effectiveness of ICR systems.
14th, 2010, as co-sponsored by People's
models and their application in lending Additionally on the site find the Reports on
Bank of China (PBOC, the central bank) and
processes. Organized by Buro de Credito, the Observance of Standards and Codes
World Bank IFC Advisory Services in China.
Mexico. Mexico City, Mexico. September 30, (ROSCs) which provide a template, based on
In the opening remarks, Mr. Zhu Min,
2009. the World Bank's Principles, to help
Deputy Governor of PBOC said that
countries evaluate their own insolvency and
building up the financial infrastructure is a
NEWSLETTERS debtor-creditor relations systems.
fundamental function of PBOC. The credit
ViewPoints. Bi-monthly publication by reporting system, accounts receivables UNCITRAL � Working Group VI.
Fair Isaac Corporation. registry and lease registry that were United Nations Commission on
Caribbean Panorama. Quarterly established recently have been playing International Trade Law. This working
newsletter published by IFC Advisory important roles in the country's economic group covers Secured Transactions.
Services in Latin America & the Caribbean development. FinancialNews.com.cn. EBRD � Secured Transactions � EBRD's
in collaboration with the Canadian January 10, 2010 Secured Transactions Project, includes data,
International Development Agency (CIDA). publications, core legal text, projects &
Zambia: Abolish laws delaying business
Volume 1, July, 2009. registration-Government urged. The developments.
Volume 2, October, 2009. committee on getting credit, under Zambia's Corporate Registers Forum � The
Private Sector Development Reform Corporate Registers Forum (CRF) is an
LINKS Programme (PSDP), chaired by Mildred international not for profit organization for
Financial Infrastructure � Credit Stevenson, is considering including all administrators of corporate and securities
Bureaus. This website contains the latest commercial and other institutions in the registers.
news on the sector, publications and more operationalization of the Credit Reference International Association of Commercial
related to credit bureaus and IFC's work Bureau to enable all lenders to have access to Administrators (IACA) � Professional
around the world. full information about potential clients. It is association for government administrators
Doing Business provides objective also suggesting the creation of a unified of business organization and secured
measures of business regulations and their collateral registry. Lusaka Times. December transaction record systems.
22, 2009.