Microfinance Practice: Re: [MFP] The microfinance delusion: who really wins?

Dear Chuck,

The article may have provided, yet again, the challenges of micro credit institutions. But by continuing to take such narrow view of the sector, it has reinforced ignorance and limited view of our industry's work- ignoring what savings groups, SHGs, coops, value chain finance, mobile operators, many banks, central banks, community housing finance, community currencies, climate community finance and a whole host of actors are doing in the sector. Should we self indulge and continue to appreciate reinforcement of such a narrow understanding in the sector and public perception?

Perhaps we are our worst enemies, for the world has changed around us and such articles end up doing a huge disservice rather than help. If markets so play out, then suboptimal micro credit institutions will lose out to other actors and players. Fact remains, everyone needs a wide range of financial services to manage their financial lives. Wish our articles highlight what should be can be done rather than a sweeping and generic poke at the sector conflating good, bad, and ugly.

Regards,

Thanks
Anuj

Sent from my iPhone

On Jun 12, 2015, at 11:29 PM, Chuck Waterfield waterfield@microfin.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:

The writers might be more enlightened if the industry were more enlighted. The industry is still 90% credit, because that's where the profit is.

Most MFIs see microsavings are too expensive to manage.

Microinsurance is generally nothing but an add-on fee for micro-credit.

We talk about other services, but we put our money and effort into expanding our credit product expansion.

It would be useful to see some figures for what we believe to be:

* number of people with micro-credit
* number of people with TRUE VOLUNTARY micro-savings (and it would be nice to see the numbers for ACTIVE savings accounts)
* number of people with voluntary insurance that does more than just guarantee their micro-loan

Does anyone have a source for those numbers? By country? Regionally? Globally?

Chuck Waterfield

On Jun 12, 2015, at 8:14 PM, DeanMMahon@aol.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:

Yes, the article at first seems to be is somewhat persuasive.

However, the title cites microfinance, but the author only speaks of micocredit. I would have thought that, by now, writers and practitiioners would be more enlightened.

Dean Mahon

In a message dated 6/12/2015 7:26:25 P.M. Eastern Daylight Time, MicrofinancePractice@yahoogroups.com writes:

A well-written article, and quite persuasive.

http://www.theguardian.com/global-development-professionals-network/2015/jun/10/the-microfinance-delusion-who-really-wins

The microfinance delusion: who really wins?