My first job as a summer intern for MFTransparency has been to research the market in Malawi in preparation for the Transparent Pricing Initiative in Malawi, the first project launch of the enabling APR & EIR Program, on August 31st. Through my research I have learned many things, but none more poignant than how poor and underdeveloped the majority of Malawi is.
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Malawi: A Country in Need of Microfinance
July 23rd, 2010Bolivia Transparency Part 4: How MFTransparency’s Pricing Data Complements Current Regulation
June 25th, 2010In my series of Bolivia posts so far, I have shared insights on several positive aspects of pricing transparency in the Bolivian microfinance industry. In today’s post, I’d like to highlight how MFTransparency’s pricing data will complement the Bolivian microfinance regulation and transparency efforts already underway.
Bolivia Transparency Part 3: Transparency in Loan Contracts & Publicity
June 24th, 2010Today, I’d like to continue my previous post on interest rate disclosure to clients and the general public, and share some insights on transparency in loan contracts and publicity.
While interest rates are freely negotiated between both parties, the loan contracts have to include several pricing details. As a minimum requirement, the contract has to specify the:
- loan amount
- details of all financial charges
- whether the interest rate is fixed or variable and its value at disbursement
- the periodic interest rate and the corresponding annual rate (TEAC)
- the method used to calculate the balances of the financial operation, as well as the calculation method of any financial charges
- the amount of credit service charge and cumulative total of payments, as well as the penal interest to be applied in case of default
- any insurance fees if applicable
- The contract also has to include the corresponding repayment schedule.
- In the case of variable interest rates, the loan contract must specify the variation and how the reference rate will be applied.
Bolivia Transparency Part 2: Interest Rate Disclosure to Clients & the Public
June 23rd, 2010There are several positive mechanisms in place to facilitate interest rate disclosure to microfinance clients and the general public. Our recent trip to Bolivia was a wonderful opportunity to see firsthand how a range of legal requirements play out in practice.
Bolivia Transparency Part 1: Pricing Strategies & Challenges
June 21st, 2010As promised in my last blog post on the Bolivia launch, I’d like to share some insights on the regulatory framework in Bolivia and outstanding transparency efforts we learned about during our initial trip to Bolivia where we recently launched the Transparent Pricing Initiative. Over the next few days I’ll be providing a series of posts to tell you a bit about what we’ve discovered. In this first part, I’ll focus on pricing strategies in Bolivia as well as challenges associated with current pricing practices and general challenges currently perceived in the local microfinance community.
Total Cost of Credit vs. APR
June 16th, 2010Often when we talk about reporting the “true cost” of loans we are asked why it isn’t enough to simply tell borrowers the “total cost” of their loan—in other words, the total amount of interest they will pay over the life of the loan. At first glance this can seem like an obvious solution, but in reality it’s a deceptive way of thinking about loan price.
To see why, consider the following loans, all for the same amount:
Azerbaijan Data Launch and Webinar
June 4th, 2010by Jessica Haeussler and Michael Tucci
How do banks and MFIs in Azerbaijan respond when asked to report their interest and fees publicly in a common APR or EIR format?
How does the shape of the price curve for Azerbaijan differ from other countries?
What factors seem to be driving prices in Azerbaijan?
How much variation is there in price for loans of similar size, and how might transparency change prices over time?
These are some of the questions that were explored during MFTransparency’s Webinar to highlight the launch of pricing data for the Azerbaijani microfinance market. On June 1st, Azerbaijan’s microfinance community took a definitive step towards pricing transparency and market efficiency, as 10 of the largest MFIs had their pricing data displayed publicly on MFTransparency.org. We here at MFTransparency would like to congratulate Azerbaijan on this important step forward and for their commitment to providing straightforward pricing information for their clients and other stakeholders. Additionally, we would like to extend our gratitude to the Azerbaijan Microfinance Association (AMFA) for their cooperation and coordination of the Transparency Initiative as well as to KfW, who funded our work in the Azerbaijan market.
Pricing Transparency Launch in Bolivia
May 20th, 2010
Chuck Waterfield, CEO & President of MFTransparency; Fernando Prado, Secretario Ejecutivo of ASOFIN; Nestor Castro, Gerente of FINRURAL; signing MFTransparency’s Endorsement Statement at the transparency workshop in La Paz, Bolivia.
Last week, we officially launched our Transparent Pricing Initiative in Bolivia, sponsored by the Ford Foundation and MicroNed. This project launch in our third Latin American country has been a great success and we’re excited about the widespread support from the diverse Bolivian microfinance community!
Stakeholders from the entire spectrum of the local microfinance industry joined us in the launch of the Transparent Pricing Initiative in Bolivia. The two local microfinance networks ASOFIN and FINRURAL are our strategic implementation partners in this effort and we are very pleased to announce that all their member institutions attended our events in La Paz and Santa Cruz. In La Paz, 71 participants attended our workshop on May 4th, including representatives from the vast majority of MFIs, among them Banco Los Andes ProCredit, Banco Sol, Banco FIE, CRECER, PRODEM and ProMujer, downscaling banks such as Banco Unión and Banca Minorista del Banco de Crédito BCP, as well as the Central Bank of Bolivia (BCB) and the Supervisory Authority of the Financial System (ASFI). Also in attendance were investors including Oikocredit, LOCFUND, Bolivian Investments Management and Alphamundi Group, and other industry stakeholders such as the Corporación Andina de Fomento (CAF), World Vision, Fundación PROFIN, Consultora IMPACTO, CONFIE, AFIN, and representatives of the local media.
Ecuadorian Innovations in Regulating Pricing Transparency
May 17th, 2010As I mentioned in my last blog post, I would like to share some insights on Ecuador’s regulatory framework for the microfinance sector and advances in the area of transparency.
Regulations that Support Transparency in Pricing
Ecuador’s regulatory framework already includes several mechanisms for facilitating transparency in pricing. For instance, financial institutions can only charge interest on the remaining balance of a loan, which effectively outlaws flat interest rates. Moreover, regulated institutions are no longer allowed to charge fees. Both these aspects make loan pricing more transparent, allowing borrowers to better understand what they are paying and to compare between the different products available to them. In all marketing materials, financial institutions are required to specify the nominal and effective annual interest rate, the frequency of interest payments and the loan term (Regulación No. 153 del Directorio del Banco Central del Ecuador). The regulation also establishes that all product documentation has to clearly specify the loan amount, term, payment frequency and the nominal and effective annual interest rate. The formulas to calculate these figures are defined in the regulation as well.
What Does the Data Tell Us?
February 4th, 2010We have looked at the correlation between loan size and portfolio yield on several occasions and noticed that the shape of the curve closely follows that of loan size and operating expenses. For several markets, these country graphs suggest that a number of MFIs are making yields above the market average in a given loan-size category. Are these MFIs also more profitable than MFIs with yields closer to the market curve? We would expect operating expenses to be higher in rural areas. Do MFIs serving rural areas have higher yields than those operating in urban areas so as to cover these higher cost? Are they less profitable in terms of ROE? And are MFIs less profitable in those markets with relatively higher operating expenses as compared to other markets? Let’s look at three relatively large microfinance sectors in different regions: Russia, Mexico and India.
Transparent Pricing Initiative in Kenya
February 8th, 2010by Jordan Filko
Jambo! I would like to share a bit in this post about recent work in Kenya, where I spent three weeks in January with Alexandra Fiorillo (Vice President, MFTransparency) continuing the data collection process for MFTransparency’s Transparent Pricing Initiative in Kenya. Kenya is the first African country where we have implemented the Initiative and we’ve been continuing the work we began in October, when we hosted a training session in Nairobi during the Social Performance Task Force workshop. This trip has been hugely successful! I’m excited to report back and share some of the highlights of our time in Kenya.
We focused our first week in Kenya having meetings with organizations that support the local microfinance industry. The Association of Microfinance Institutions of Kenya (AMFI) has supported our work from the beginning of the Kenya project and we were happy to visit their offices to update them on our progress. As hosts of the 2010 Africa/Middle East Regional Microcredit Summit, AMFI invited us to host a session at the Summit where we will officially announce the results of the MFTransparency Kenya Initiative. Our partnership with AMFI has helped us to access the leading MFIs, communicate our message throughout the industry and ensure that there is support for our work from within the Kenyan microfinance market. We are very excited about the Microcredit Summit and sharing the results of our project there!
Thoughts on MIX Relaunch
February 17th, 2010
At the end of last year, the MIX (Microfinance Information Exchange) relaunched their website with the help of the MasterCard Foundation (click here for their official press release). For those familiar with the MIX, you’ll know that they have implemented some major changes in the last few months culminating in this relaunch. All in all, I’m very impressed with the new look and more importantly, the increased functionality of the website.
The data from the MIX has been an invaluable resource for us here at MicroFinance Transparency. Before tackling in-country operations, background research is essential, and the MIX market offers a great platform from which to gain a broad swath of information about MFIs and other microfinance stakeholders. I tend to use the MIX mainly for gathering information on MFIs, so with this in mind I’ll offer a brief review of some of my favorite features:
Microfinance and Disaster Relief in Haiti
February 5th, 2010by Noah Simpson
January’s 7.0 magnitude earthquake that decimated the Haitian capital of Port-au-Prince and surrounding areas has been a hard trial for one of the world’s poorest nations. Amid reports that the death toll has surpassed 200,000, aid continues to arrive in Port-au-Prince. The Haitian infrastructure is severely damaged, and homes, businesses, and many other structures have collapsed or become unusable. In the face of such conditions, relief and rebuilding will clearly be a long process with no clear-cut solution. However, microfinance in Haiti may just provide an important part of recovery. Microfinance Focus reports that Grameen Foundation USA has announced plans to create a short-term and long-term recovery plan in Haiti based on their previous experiences in Haiti and Indonesia, and those of Grameen Bank in Bangladesh. Provision of loans after crises such as this is essential to economic rebuilding of any nation, and increased access to microcredit will be essential as the country looks forward. In the short-term, Haiti’s largest MFI, Fonkoze, reports they “cannot reopen without cash liquidity, security and employees. Also needed are internet connectivity, fuel, transportation for employees, etc.” As Fonkoze and other large organizations in Haiti are supported in the coming weeks and months, they will be able to assist the disaster-stricken nation in its move toward rebuilding by assisting its microentrepreneurs. This support will be essential for the years of rebuilding and development ahead.
The Case for Pricing Transparency
February 9th, 2010We are proud to announce that our very own Jessica Haeussler has an article on pricing transparency published in the most recent MicroBanking Bulletin. Please go here to read it. The MicroBanking Bulletin (MBB) is the “premier benchmarking source for the microfinance industry. The industry commentary, analysis and benchmarks are widely used by investors, donors, MFI managers, and service providers to facilitate greater standardization and a better understanding of developments in the microfinance sector.”
Here is a taste of her article, but please follow this link to see the full text in the Bulletin. You won’t be disappointed:
After decades of innovation and experimentation, microfinance sectors worldwide have achieved impressive successes. The microfinance community has joined efforts to achieve worldwide public recognition of microfinance as an effective and sustainable bottom-up approach to economic empowerment and consumption smoothing. The past years have seen equally strong efforts to provide a business case for microfinance, attract investors and access the global capital markets. As a result, the global microfinance industry has achieved a considerable record of transparency on financial performance. The true price of microcredit products, however, has never been accurately reported. As a double-bottom line industry that emerged to provide a low-cost alternative to the moneylenders, microfinance today is an industry where non-transparent pricing is common. Yet pricing transparency is critical in the market- based economy, as it promotes efficiency, healthy competition, innovation and affordable prices for millions of clients. For financial markets to develop sustainably and prosper, transparency is indispensable.
My Inspiration for Microfinance was Born in Haiti
February 10th, 2010
All around the world, our thoughts are with the Haitian people, as they work together to overcome yet another tragic situation. The Haitian proverb – beyond mountains, more mountains – has been so poignantly true for them.
I know Haiti. I lived in Haiti for three years, and though that was a long time ago, I still find myself slipping into Haitian Creole on occasion. The language — like the country and people – stays with you.
Twenty-five years ago, in 1985, I took a job to start up a microfinance program in Haiti. Actually, the word microfinance didn’t yet exist. This was the pioneering days, when we were exploring ways to help the self-employed poor to increase their incomes and create jobs. We found that business loans were an excellent vehicle to do just that. We were inspired at the resourcefulness and appreciation shown by our clients. We were humbled by the conscientiousness with which they paid back their loans.
What Does the Data Tell Us? (Part 2)
February 15th, 2010In my last post, I examined data for Russia, Mexico and India, three large microfinance markets in different regions. We looked at the correlation between portfolio yield and loan size and discussed interest rates and profitability for MFIs with different focuses in terms of rural/urban populations and share of female clients. Comparing these markets, we observed a much broader range of yields in the Russian and Mexican market as compared to the Indian market.
How about operating expenses? It may be interesting to note that operating expenses are particularly high in Mexico, given that the cost of transportation, communication as well as salaries are higher than in many other countries and among the highest in Latin America. This is reflected in the median operating expense ratio reported by the MIX, which is 61.45% in Mexico, 16.21% in Russia and 11.12% in India. Looking at the median for only those MFIs with an ROA > 0 (sustainable), the median for the Mexican market is 48%, while it is 15% for Russia and 11% for India. From these numbers we can conclude that the median operating expense ratio for Mexican MFIs in considerably higher than for Indian MFIs, which could explain the higher market curve (yield) for Mexico. We might expect Mexican MFIs to be less profitable due to their higher operating costs, yet the analysis suggests pretty high ROEs. Could this be the result of an opaque pricing environment? What other factors could explain these findings? Will enhanced pricing transparency have an impact on this, as it promotes healthy consumer choice and competition among institutions?
Indian Interest Rate Caps and Transparency
February 19th, 2010by Noah Simpson
According to a recent report by MicroCapital, a new bill introduced in the Indian parliament would remove the existing cap on microloan interest rates. This has important implications for transparency, and provides a unique opportunity to examine the effects of rate caps on microfinance.
Setting an interest rate cap has been advocated as a means of client protection, but often it can end up harming those it seeks to protect. Due to the higher interest rates that are traditionally associated with smaller loans, the poorest clients who seek these loans often are left without access to credit when interest rate caps are implemented. This is because the smallest microloans become less appealing to MFIs seeking financial sustainability. In other words, MFIs have trouble affording smaller loans when the cap on rates is set below the interest rate needed to make those loan products sustainable. Efficiency and market penetration have been shown to decrease in the presence of loan rate caps (see a presentation by CGAP’s Richard Rosenberg on this topic here), and the poorest people bare the brunt of this problem. In addition, pricing often becomes less transparent in the presence of these caps because MFIs often add-on additional fees and charges to attempt to achieve sustainable products. Thus, despite noble intentions interest rate caps contribute to unhealthy microfinance markets.
Twitter “Chat” on Microfinance
February 22nd, 2010#mifimon (Microfinance Mondays) is a biweekly Twitter discussion group that aims to host an exchange ideas about issues relevant to the microfinance industry. Every Monday, for about two hours, a group of tweeters interested in microfinance discusses a wide range of topics such as Microfinance and Technology, Women and Microfinance, and many more. The challenge, however, is that all posts are constrained by twitter’s 140 characters limit.
Last week’s #mifimon topic was “Microfinance and Higher Education” featuring a panel discussion led by MFTransparency’s President and CEO, Chuck Waterfield (twitter: @chuckwaterfield), also a faculty member at Columbia University. Chuck’s course at Columbia is titled “Planning a Microfinance Institution” and focuses on business planning, decision making and financial modeling that underlies the successful launch and operation of an MFI. MFTransparency’s Vice President, Alexandra Fiorillo (twitter: @alexfiorillo), also participated in the discussion.
Calculating Interest Rates with Excel
February 24th, 2010by Tim Langeman
Chuck Waterfield and Alexandra Fiorillo, MFTransparency‘s CEO and VP respectively, have been doing many presentations about how interest rates can be calculated using our excel tool, but we haven’t yet featured a story on our blog about our data collection process and our corresponding excel tool. Although technical, interest rate calculations are really at the heart of MFTransparency‘s mission and calculating accurate interest rates is vital to providing transparent pricing data. So today, I would like to give you a brief demonstration of the IRR and XIRR Excel functions, as a way to provide background for the techniques we’ve used to automate interest rate calculations on our web site.
For those of you less familiar with excel, this spreadsheet software offers numerous formulas allowing quick and easy calculations within each spreadsheet. As it is particularly geared towards financial use, there are ready made formulas specifically meant for calculating interest rates. The most basic (but still powerful) calculation is the internal rate of return. Read the rest of this entry »
Calculating Interest Rates Using Newton’s Method
March 5th, 2010by Tim Langeman
In a previous blog post, I described how to use a spreadsheet like Microsoft Excel to calculate interest rates. Again, interest rate calculations are at the core of MFTransparency‘s ability to provide accurate data that can be compared across various products offered by numerous MFIs. In the last post we looked at Excel’s IRR and XIRR functions and concluded that XIRR is more accurate because it takes into account the actual payment dates of the loan and thus allows us to calculate annualized interest rates even with irregular repayment schedules.
But for the more technical among us, I realize that even this may not be sufficient. Today I’m going to demonstrate how to write a computer program that is as accurate as Excel 2007′s XIRR function. This article is likely to be of less broad interest, but it provides transparency into how we will calculate interest rates for future data collection trips; and it may be useful for MFIs that wish to automate interest rate calculations for a larger data set than can be handled with Excel.
Mobile Banking and the Future of Transparency
March 9th, 2010by Noah Simpson
Mobile banking is defining modern microfinance. Within the space of a few short years it has exploded to become a hot-button issue in the microfinance community, especially because of its potential to reach the unbanked. CGAP’s Technology Blog has covered the emergence of branchless banking extensively, and several of its recent posts have been written on the topic. In view of mobile banking’s extensive influence, it seems fitting to reflect upon the benefits and challenges it holds for consumer protection in general and for transparency in particular.
On many levels, mobile banking is great for consumers. It is allowing many traditionally unbanked people to have remote access to banking services and puts some power in the hands of the consumer. Additionally, when middlemen are taken out of the picture there is less fraud and mishandling of money. Finally, and perhaps most importantly, mobile banking tends to be cheaper than traditional banking. Some barriers exist, such as obtaining a phone in the first place, but banking-capable phones are rapidly dropping in price (e.g. Vodafone’s new phone under $15US, featured in a Technology Blog post). Despite the barriers, the declining costs of mobile banking is allowing greater financial inclusion.
Transparency at the Consumer Level
March 15th, 2010I visited AlSol, a Mexican NGO MFI serving women in mainly rural and indigenous communities in the State of Chiapas, several months ago. Together with one of AlSol’s loan officers and two tsotsil-speaking trainers I visited a solidarity group of women entrepreneurs in the community of Zinacantán, near San Cristóbal de las Casas. AlSol’s training program is targeted at illiterate women entrepreneurs below and just above the poverty line. It was fascinating to be part of the participatory training and see how openly the group of women discussed topics such as debt management, business development, and preventive health practices with the trainers. Their secret of success? They work with the trainer’s guides developed by Freedom From Hunger and adapt the details of each training session to the Chiapas context.
MFTransparency Blog RSS feed
February 26th, 2010Just wanted to share a quick note with our blog readers that MFTransparency has added an RSS feature to this blog. Check it out here, or look for the link in the bar to the right of these blog posts! By adding our RSS feed to your personal blog feed, RSS reader, or your website, you can receive automatic updates about MFTransparency‘s most recent blog posts. To subscribe to this (or any other) RSS feed, simply click on the link and choose to follow us with your favorite RSS reader, via e-mail, or select the XML feed. To unsubscribe, simply remove our feed from your RSS reader list.
Enjoy!
Transparency, India, Gandhi, and the Seven Deadly Social Sins
March 11th, 2010A few weeks ago I made an unplanned and very interesting trip to India. MFTransparency had no plans of working in India this year, but a broad group of stakeholders in the India microfinance industry had been discussing the need for pricing transparency and then invited us to come and meet with them. We met and heard them describe their desire to transition to transparent prices and their need to have our team help to facilitate that transition. We connected quickly, brought together by shared commitment to treat people fairly. Plans for implementation are now moving forward rapidly.
When beginning dialogue about pricing transparency in a given country, our experience in the past year has been consistently positive. The need to correct this problem is evident in most countries, but working with the national industry to determine the steps forward has moved especially fast in India. MFIs in India are currently making a strong effort to independently practice pricing transparency .
I was both intrigued and inspired by this. And though my trip was just a few days long, I did find opportunity to go and visit Gandhi’s memorial. I’ve always been greatly inspired by Gandhi’s views of how we should live and how we should address the problems we confront in the world, but I had never had opportunity to visit his memorial. Many people were congregated around Gandhi’s memorial, mostly Indians and many of them children, all expressing their solemn respect.
New Research from World Bank Highlights Tradeoffs in Microfinance
March 19th, 2010Asli Demirguc-Kunt, a chief economist at the World Bank, recently posted an article entitled “Microfinance: Dream versus Reality”. Her post provides an overview of the tough tradeoffs faced by microfinance institutions: between serving the poorest clients and achieving financial sustainability (and profitability). I highly suggest reading it, as it provides a synopsis of recent World Bank research and conclusions on the state of microfinance markets, including analysis using data culled from the MIX. The economists stress that their findings highlight the sometimes white-washed and downplayed tension between “meeting social goals and maximizing commercial success.” They conclude that “reaching the very poor with small-scale services remains a tough business and often entails charging high fees or depending on steady subsidies.”
To summarize in my own words, they point out the difficulty of simultaneously meeting 3 goals: commercial sustainability, financial access for the poorest, and reasonable rates (as illustrated by the graphic below). Any one side of the triangle connects two of these goals, but leaves the other behind.
Interest Rate Transparency in Brazil: Addressing Cultural Questions
March 30th, 2010by Martin Hadsell do Nascimento
Brazilians, as I’ve learned from having lived in the Northeast of the country over the past several months, love credit. Common are the signs sitting in most São Paulo storefronts that advertise the interest rate of products by the “vez”. The number of “vezes” or “aprestações” is the number of months across which the full price of a product can be divided, giving the consumer the number of installments in which one is allowed to pay for a good that can range from a car to a cellular phone to a t-shirt to a plate of beans and rice. Given the strictly monthly nature of such installment plans, perhaps it is logical that the interest rates associated with the purchases be denominated in monthly terms. However, when applied to Brazil’s microfinance industry, denoting prices in familiar monthly terms may also hide important factors that influence the true price of the loan.
Bringing the Transparent Pricing Initiative to South America
April 11th, 2010Hola from Quito! I have recently moved to Ecuador, where I’m currently organizing the preparations for our South America projects. Peru was the first country where we kicked off our Transparent Pricing Initiative in early 2009. This year, we’ll bring the Initiative to Ecuador, Bolivia, Colombia and Argentina. Our 2010 South America projects are sponsored by the Ford Foundation, and in the case of Bolivia also by MicroNed.
As part of the MFTransparency Transparent Pricing Initiative we will host a series of workshops in Ecuador and Bolivia in late April and early May. The first workshop will take place in Quito on April 27th, followed by the same event in Ambato and Guayaquil on April 28th and 29th, respectively. Our team will then travel to Bolivia and host workshops in La Paz on May 4th and 6th and in Santa Cruz de la Sierra on May 5th. At these events Chuck Waterfield, Founder and CEO of MFTransparency and Alexandra Fiorillo, Vice President of the organization, will share with key stakeholders of the local microfinance sectors the new industry standard for calculating interest rates for microcredit products. We’ll also explain how each MFI can actively participate in our Transparency Initiative and benefit directly from our Bolivian and Ecuadorian Market Data.
No Place Like Home
April 25th, 2010I find myself at home this weekend – Lancaster, PA. This is the first time I’ve been home in three weeks, and I’ll be leaving Monday morning for another two weeks. My latest trip took me completely around the globe – US to London to Nairobi (for the Microcredit Summit). From Nairobi I flew to Dubai and Delhi, to launch the India Pricing Transparency Initiative. I was scheduled to fly back via Frankfurt, but the volcano changed those plans. So instead I flew from Delhi to Bangkok to Tokyo to NY to DC.
Explaining the Price Curve
May 14th, 2010If you have perused our data, you may have noticed the market average curve present on all our country graphs. This curve is so fundamental to MFTransparency that its characteristic downward slope is even represented in our logo. This is the curve relating interest rates to loan size, and it is extremely important in analyzing the price of microloan products. The recent New York Times article highlighted the high price that some MFIs charge in order to reap big financial gains from the poor. But it’s important to have a deeper understanding of this phenomenon: high prices don’t always mean big profits; the reason for high interest rates is more complex than this, as highlighted in this recent blog post from Elisabeth Rhyne at the Center for Financial Inclusion at ACCION International. The curve that MFTransparency uses to analyze loan rates is key in understanding pricing in microfinance. This blog post provides an overview of some of the informational materials that MFTransparency has come up with in order to help others understand pricing in microfinance.
MFTransparency at the Microcredit Summit in Nairobi, Kenya
May 10th, 2010by Jordan Filko
Last month I attended the 2010 Africa-Middle East Regional Microcredit Summit in Nairobi, Kenya to represent MFTransparency along with Chuck Waterfield and Alex Fiorillo. As my first Microcredit Summit, this was an exciting event for me.
My role at the Summit was primarily to man the MFTransparency exhibition space, explaining our work to curious passersby and distributing materials on our upcoming projects. Although unfortunately my posting at the booth meant that I had to miss Chuck’s presentation on the panel “Transparency in Interest Rate Pricing and Other Efforts Toward Consumer Protection,” I think it may have been one of the best ways to experience the event. Many thanks are due to Murray Gardiner and Temenos for their help in arranging this great exhibition space for us. It was my pleasure to meet Murray, an MFTransparency Board member, for the first time and to witness firsthand how ready our Board members are to jump in when needed to actively support us.
Warm Welcome in Ecuador for Pricing Transparency Initiative
May 12th, 2010
I have just returned from a two-week trip to launch the Transparent Pricing Initiative in Ecuador and Bolivia. I am happy to report that the launch was successful in both countries. The Initiatives in South America are funded by the Ford Foundation to promote fair and transparent pricing in the microfinance industry in Argentina, Bolivia, Colombia and Ecuador. As my job with MFTransparency primarily involves managing the South America work, the launch of our Initiative in the first two countries this year was an exciting experience for me. I also finally got the chance to meet our Board member María Sara Jijon who has been incredibly supportive and a great inspiration. In Ecuador, the local microfinance network Red Financiera Rural (RFR) is our strategic implementation partner and we greatly appreciate their support in this Initiative.
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