2. MABS Microfinance Basics Course MABS Technical Resource Specialists Training and Accreditation Program

3. Introduction Human resource is one of the most important assets of an organization. Qualified and well-trained staff is key to achieving the goals and objectives of an organization.

4. What is training? Organized learning designed to properly equip people in their jobs and improve their performance. Intervention aimed at developing or enhancing knowledge, attitudes and skills (KAS) in a particular area. Training can be done either in a classroom and/or through actual field experience with a mentor.

5. Why train? To improve performance at individual, unit and over all bank level. To upgrade the skills/competencies of individuals to enable them to undertake new jobs effectively To contribute to an individual’s personal growth We train because there is a deficiency or an expected deficiency due to changes in plans, personnel or policies & procedures.

6. Why focus on account officers? Account officers are a vital link between the bank and its target-clientele – the microentrepreneurs. Account officers have the crucial task of generating, evaluating, recommending and monitoring loan accounts. Account officers are therefore the bank’s profit- generating centers.

7. The Microfinance Basics Course Objectives: Make the account officers fully understand their role, duties and responsibilities in the microfinance loan process Explain the role of rural banks as financial intermediaries and as microfinance providers Explain why MF best practices and principles are important to incorporate in microfinance product design.

8. The Microfinance Basics Course Objectives: Evaluate if a loan applicant can qualify for a microfinance loan based on the client eligibility criteria set by the bank Evaluate if a loan applicant can qualify for a loan on the basis of an analysis of character and reputation as a borrower Evaluate if a loan applicant can demonstrate capacity-to-pay on the basis of existing business activity as reflected in the cash flow

9. The Microfinance Basics Course Understand the basic concepts of zero tolerance against delinquency ;know and apply the ways to prevent and remedy delinquency

10. The Microfinance Basics Course Participants: New and old account officers, senior account officers for promotion as MFU supervisors, and would-be credit committee members

11. The Microfinance Basics Course Learning Modules:  The Role of the Account Officers in the Microfinance Loan Process  Basic Concepts of Financial Intermediation and Microfinance  Microfinance Best Practice and Principles  Client Selection using Character & Risk (CIBI) and Repayment (Cash Flow) Analysis  Zero Tolerance against Delinquency

12. The Microfinance Basics Course Duration: In-house Training Ideally four (4) days, delivered within a 4- week period or a span of one month (i.e. all Fridays or Saturdays of a month)

13. The Microfinance Basic Course Training Design: Flow and Methodologies First ModuleSecond Module First Part Second Module Second Part Third Module Training ComponentClassroom Training on Basic Concepts of Financial Intermediation and Microfinance, MF Best Practices and Principles, Bank’s MF Loan Product Policies and Procedures Classroom Training on Client Selection with focus on Character/Risk Analysis Classroom Training on Client Selection with Focus on Repayment Capacity (Cash Flow) Analysis Classroom Training on Zero Tolerance against Delinquency Field ApplicationField ObservationField Observation and Application Field Observation Monitoring & Evaluation Assessment & Debriefing Expected Output/Results Trainee’s narrative report on Results of Field Observation Training Evaluation Form Trainee submits accomplished CIBI forms done on clients of Senior AO Training Evaluation Form Trainee submits accomplished Cash Flow Form/Worksheets done on clients of Senior AO Training Evaluation Form Trainee submits narrative report on Field Experience doing delinquency management with a Senior AO

14. When to Conduct the Microfinance Basics Course The complete Microfinance Basics Course must be given to all newly-hired account officers –The training must be given to the trainee- AO during his/her first month in the bank Deliver the training course on a per module basis within a 4-week period. Classroom Application Diagnostic Correction

15. Evaluating Effectiveness of Training Course Evaluation of the training program is necessary to yield information both for the trainor and the trainee. Trainor  indicates whether stated objectives are met or not  highlights unclear points  identifies trainees experiencing difficulty  improves or enhances teaching strategy Trainee  indicates that progress is being made or not  help to diagnose strengths and difficulties  helps distinguish relevant from irrelevant points  gives knowledge of results

16. Evaluating Effectiveness of Training Course Measures of Training Effectiveness Level 1: Satisfaction - measures how the participants liked the course content, method of training delivery, training materials, method of facilitation Level 2: Learnings - measures changes in core knowledge (improvement or deterioration as a result of undergoing the training course)

17. Evaluating Effectiveness of Training Course Measures of Training Effectiveness Level 3: Change in Behavior - measures how the participants actually apply techniques learned during the training in actual operation Level 4: Return on Investment - measures return on training investment by the bank in the form of improved outreach and portfolio quality – ergo, increased profitability and sustainability of microfinance operations