Rhyne E. Microfinance for Bankers and Investors: Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid

McGraw-Hill, 2009. – 352 p. – ISBN: 0071624066, 0071713654, 9780071624060, 9780071713658What promise did Sequoia Capitalrecognize in SKS microfinance (India)that it had also seen in Apple, Oracle, andGoogle?Why would Vodafone help distributemoney via cell phones for millionsof Kenyans?How did a Mexican retailer createa financial-services empire, Banco Azteca,that would serve eight million borrowers infive years?From its origins as a nonprofit povertyalleviation strategy, microfinance has becomea viable business model for providing financialservices to the poor in ways that allow forboth social responsibility and profit, even inthe midst of economic turmoil.Longtime microfinance expert ElisabethRhyne and her team guide readers throughthe landscape of financial-inclusion opportunities,providing lessons from companiesaround the world that are leading the wayin earning profits while addressing globalpoverty.Microfinance for Bankers and Investors reveals:Changes in the market allowingfor increased private investmentin microfinanceNew technologies and deliverychannels that reduce costs forsmall transactionsProven ways to overcome the uniquechallenges of serving customersat the bottom of the pyramidInnovative products for grassrootsfinance, such as mobile phonebanking and microinsuranceThe extraordinary social value andbusiness sustainability of microfinanceMicrofinance for Bankers and Investors breaksnew ground by showing how microfinanceattracts top organizations to engage indouble and triple bottom-line businessactivities. With deep insight and clear vision,it examines the unique opportunities andchallenges of providing financial services forlow-income people.Inclusive finance gives companies the prospectof aligning social values with long-termbusiness strategies. Microfinance for Bankersand Investors offers the facts and insights youneed to enter this fast-growing market withconfidence.Understanding Clients, the Market, and the Opportunities
The BOP Market Up Close (and Personal)
Who Serves the BOP Market-and Who Doesn't?
Four Critical Challenges in the BOP Market
Products for the BOP Market
Three Products: Insurance, Housing Finance, and Remittances
Models and Corporate Choices
Corporate Choices
Commercial Banks as Microlenders
Partners at the Last Mile: Retailers, Banking Agents, and Insurance Companies
Models of Financing Inclusive Finance
The Emerging Industry of Inclusive Finance
Building the Infrastructure for Inclusive Finance: The Enabling Environment
Credit Bureaus and Credit Scoring
Last-Mile Technologies
The Technological Base: Payment Systems and Banking Software
Building the Market for Investing in Microfinance
Socially Responsible Returns
Approaches to Social Responsibility
Client Protection and Proconsumer Inclusive Finance
Measuring the Social Bottom Line
Cases I Banking Models
ICICI Bank: Shaping Inclusive Finance in India
Citigroup Fosters Commercial Relationships with Microfinance Institutions
Banco Pichincha and the Service Company Model
Banco Bradesco: Twenty-First Century Postal Banking
Cases II New Players: Retailers, Insurers, and Telecoms
Banco Azteca: A Retailer Surprises Mexico's Financial Giants
Vodafone: A Bold Move into Financial Services for Kenya's Poor
G-Cash: Filipinos Text Their Way to Mobile Banking
Cases III Industry Developers
Visa: SocialBenefit Systems That Benefit Everyone
Temenos: Creating Core Banking Systems for Microfinance
Creditinfo: First Credit Bureau in Kazakhastan
Cases IV Financing Models
MF Analytics and Citibank: The Securitization of BRAC Loans
Credit Suisse: Bringing Compartamos to the Market with a Successful IPO
Sequoia Capital: Private Equity and Indian Microfinance
Cases V Social Responsibility
ANZ Bank: If the Mountain Will Not Come to Us, Then We Must Go to the Mountain
Equity Bank Goes to Schools
Triodos Bank and the Global Reporting InitiativeEndnotes