Good to see this once very very active group getting re-activated.
What we need are new models to achieve financial inclusion and not new types of institutions. We already have a plethora of institution types, some of them more successful than others, some of them resembling each other more than they look distinct, and some on the verge of becoming obscure. In terms of operating models, we have the Grameen/ JLG, we have the SHG and we have the individual lending. All of these are focused on lending, and not on financial inclusion. All of them appeal to certain income segment somewhere in the middle-poor segment, and does not work effectively for the segment below this sweetspot.
At Grameen Foundation, we have been noodling with and experimenting with what this new model may look like, which will have a more universal appeal (in terms of client segment) and drive a complete suite of financial services and not just lending. It is built on the local intelligence, trust and human connect, (a key success factor for SHG and JLG) and digital technology and insights from behavioral economics.to drive adoption. In terms of business model, we are looking at a Social Business approach, something that Prof Yunus has been passionately advocating for around the world in last decade.
Happy to share more if there are others who are interested in joining hands to ideate and collaborate.
best regards
Prabhat
Sent by
Prabhat LabhCEOGrameen Foundation India
On Thursday, July 23, 2020, 12:20:22 AM GMT+5:30, Smita Premchander smitapremchander@gmail.com [MicrofinancePractice] <microfinancepractice@yahoogroups.com> wrote:
Agree with Malcolm. We have a pretty diversified Microfinance industry, with institutional forms ranging from SHGs and JLGs, to MFIs, Small Finance Banks, and refinance schemes for the SHG and MFI models.
Cooperatives are rapidly losing ground to.producer companies. And collectives are rapidly losing ground to investor led company Non Banking Finance Companies.
It would be more efficient and effective to attend to the many policy needs of the current institutions than revamp the structure.
Especially in COVID 19 times, MF sector needs support, not an overhaul.
Regards,
Smita
On Wed, Jul 22, 2020, 8:36 PM MALCOLM HARPER malcolm.harper@btinternet.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:
Hmmmm, interesting, but India is rather better at launching politically popular high profile anti-poverty innovations than at working steadily to improve what's there already. Many Indian MFIs are becoming banks, maybe better to accelerate and facilitate that process (without politicising or weakening the fundamental strengths of what's there already) than to make bold new initiatives.On Wednesday, 22 July 2020, 13:59:06 BST, Jami Solli jamisolli@gmail.com [MicrofinancePractice] <microfinancepractice@yahoogroups.com> wrote:
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