Dan,
Thanks for responding to the group. I have two reactions.
First, I think we need to be clear about the ends and means here. Fintech may represent a growing phenomenon, but it is still the means. Fintech or not, the central question remains: 'is this deal good for clients?'
Second, among those who have the influence to shape the industry, who is asking the question 'is this deal good for clients?' Your statement, "how we as a sector react to these changes will affect what kind of sector we're likely to have in the years to come" seems an unrealistic framing. When voices called out Compartamos' IPO, which enriched managers and Accion without trickling down to borrowers, did it reshape the evolving microfinance industry? My read is that it did not. Financial interests have proven larger than the moral suasion of a handful of vocal practitioners. On its face, the Opportunity International deal seems to remind us of that.
Sean
Sent via phone-pls excuse brevity and misspellings
Dan,
Thanks for responding to the group. I have two reactions.
First, I think we need to be clear about the ends and means here. Fintech may represent a growing phenomenon, but it is still the means. Fintech or not, the central question remains: 'is this deal good for clients?'
Second, among those who have the influence to shape the industry, who is asking the question 'is this deal good for clients?' Your statement, "how we as a sector react to these changes will affect what kind of sector we're likely to have in the years to come" seems an unrealistic framing. When voices called out Compartamos' IPO, which enriched managers and Accion without trickling down to borrowers, did it reshape the evolving microfinance industry? My read is that it did not. Financial interests have proven larger than the moral suasion of a handful of vocal practitioners. On its face, the Opportunity International deal seems to remind us of that. If you and others believe otherwise, how will
Sean
On Thu, Jun 23, 2016 at 9:18 AM, danrozas@yahoo.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:I wholeheartedly second Chuck's call for a wider discussion.
The article authored by Gabriela Erice and myself takes quite a different perspective from Chuck, but it is also packed with data -- so that you can make up your own mind. We may draw different conclusions, but one area where we agree is in recognizing that this deal could well prove to be a major milestone in the sector.The joint publication of the two articles by Next Billion is a coincidence, but it's also a meeting of the minds. We were both surprised at how little this issue has been discussed, and believed that what was missing was more information. It was through Next Billion that we learned that we were working on this independently, but we agreed not to share information until publication, so as to come to wholly independent conclusions. You can see the results for yourself.Our goal is not debate for its own sake, but we also don't have the luxury of ignoring the potential impact that will come from fintech, as it makes inroads into the sector. How we as a sector react to these changes will affect what kind of sector we're likely to have in the years to come.What do you think? What is YOUR vision for the fintech? Make your voice heard -- on the blog, on linked in, on twitter.Daniel Rozas
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Sent via phone-pls excuse brevity and misspellings
Posted by: Sean Kline <seankline@alumni.lse.ac.uk>
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