1. sofi From small credit to microfinance or how to develop financial diversity

2. From small credit to microfinance Brigitte Maas (DMI, Germany) Udo Bauer (Nordhand, City of Dortmund) Christian Baier (Socius, Berlin) Christophe Guene (SOFI, Brussels) Berlin, 27 April 2007

3. sofi The vicious circle ! Strong selection Control & process High cost (High risk) Stronger selection More control & process Loss of reputation Higher costs (increase of credit ceilings) Higher risk Lower outreach = Process control system Low institutional risk Legitimacy through procedures Low output

4. sofi The virtuous circle ? High access Open process High trust Low cost Low risk High (social) innovation = Outcome target system Legitimacy through efficiency High institutional uncertainty High (quality) output

5. sofi Forms of Social Capital Mutual Trust, Friendship, Dependencies, Beliefs, Values, Information, Know-how, Solidarity, Confidence...... anything that binds people to each other The Challenge: how to detect it, how to build on it, how to nurture it ?

6. sofi sofi money & banking for Society Rue de Cureghem, 41-43 B-1000 Brussels, Belgium Tel +32-(0)2-762 14 31 contact@sofi.be www.sofi.be