A Project of TAKING E-FINANCE TO THE POOR Building Commercial Bank Linkages with Microfinance Institutions in Africa Financing for Development Conference Monterrey, Mexico March 2002
The Need: Address the global economic divide Mainstream the economic poor Overcome failed policies Integrate formal, informal, global and economies The Answer: Communications access provides vital information for economic activity Technology applications brings digital dividend to the productive poor Open Communications – New Hope
First Step - Building the compatibility base - …so players in the financial market place can exchange information, and understand each other BANK Set standards for – information database management communications Apply technology – a critical component to open flows Open the door for E-Finance
Create linkages between banks and MFIs - Priorities Leverage capital resources Improve client loan disbursement and collection systems Increase client services menu Connect microentrepreneurs to market places Create a virtual network of small entrepreneurs, suppliers and buyers Transform MFIs into financial services conduits BANK
Use technology - to reduce the operating cost of lending to the productive poor. Modern equipment è Credit referencing è Card technology è E-Commerce è Software solutions
Donors ( wholesaling institution) CLIENTS Credit Reference Bureau Service Centers/ CashPoints MFIs Investors Governments E-Finance - Links the existing markets in a new relationship… …to provide virtual services to the informal sector… …and bring the digital dividend to Africa. National MFI/Bank Associations Market Rate of Interest Cash distribution & Collection Intermediaries retail institutions Systems & Procedures Membership Standards BANK