1. 1 Development of Microfinance Associations as Apex Institutions Abuja, Nigeria January 18 th, 2011

2. Importance of Microfinance Associations 70+ microfinance associations 2

3. Importance of Microfinance Associations 70+ microfinance associations 60 million microentrepreneurs affiliated 3

4. Importance of Microfinance Associations 70+ microfinance associations 60 million microentrepreneurs affiliated Almost all are connected through the SEEP Global Network of Networks 4

5. 5 Mission Connecting practitioners in a Global Learning Community Vision A Sustainable Income in Every Household

6. 6 Values Member-Driven Practitioner-Based Sustainable Transparent Innovative Inclusive

7. Importance of Microfinance Associations 70+ microfinance associations 60 million microentrepreneurs affiliated Almost all are connected through the SEEP Global Network of Networks. Associations can promote and guide entire microfinance industries. 7

8. Areas of Network Effectiveness Governance Operations Human Resources Financial Viability Service Delivery External Relations

9. Areas of Network Effectiveness Governance Operations Human Resources Financial Viability Service Delivery External Relations

10. 10 Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives. External Relations

11. 11 External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders. Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives. External Relations

12. 12 External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders. Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives. Credibility-The association is recognized as an important and capable representative of the microfinance sector and effectively advocates on behalf of its members. External Relations

13. 13 External Communications-The association has a clear communications strategy that effectively targets a diverse range of microfinance stakeholders. Contacts-The association works with a diverse range of microfinance industry stakeholders to achieve its organizational objectives. Credibility-The association is recognized as an important and capable representative of the microfinance sector and effectively advocates on behalf of its members. External Relations

14. Areas of Network Effectiveness Governance Operations Human Resources Financial Viability Service Delivery External Relations

15. 15 Market Responsiveness-The association is market oriented and responsive to changing conditions. Service Delivery

16. 16 “$2 a day” Emphasis: incomes are low “$2 a day” Emphasis: incomes are low Findings: incomes are low incomes are irregular incomes are unpredictable Expanded Product Lines

17. 17 Expanded Product Lines NEEDPRODUCT Helping poor households with day-to-day cash flow management Savings of any value at any time with ready access

18. 18 Expanded Product Lines NEEDPRODUCT Helping poor households with day-to-day cash flow management Savings of any value at any time with ready access Helping them borrow for all uses Tiny loans quickly, when needed and repaid in small, possibly irregular installments

19. 19 Expanded Product Lines NEEDPRODUCT Helping poor households with day-to-day cash flow management Savings of any value at any time with ready access Helping them borrow for all uses Tiny loans quickly, when needed and repaid in small, possibly irregular installments Helping them build savings over the long term Structured opportunities for long term savings

20. 20 Expanded Product Lines NEEDPRODUCT Helping poor households with day-to-day cash flow management Savings of any value at any time with ready access Helping them borrow for all uses Tiny loans quickly, when needed and repaid in small, possibly irregular installments Helping them build savings over the long term Structured opportunities for long term savings Helping them manage risks Insurance products

21. 21 Expanded Product Lines NEEDPRODUCT Helping poor households with day-to-day cash flow management Savings of any value at any time with ready access Helping them borrow for all uses Tiny loans quickly, when needed and repaid in small, possibly irregular installments Helping them build savings over the long term Structured opportunities for long term savings Helping them manage risks Insurance products

22. 22 Expanded Product Lines 18 million small savers Average < US$200 Bank Rakyat Indonesia Loans Savings US$ Millions

23. 23 Member Focus-The association is driven by the needs and demands of its members. Market Responsiveness-The association is market oriented and responsive to changing conditions. Service Delivery

24. 24 Member Focus-The association is driven by the needs and demands of its members. Service Mix-The association's core services are well designed and reflect its comparative advantage. Market Responsiveness-The association is market oriented and responsive to changing conditions. Service Delivery Service Mix-The association's core services are well designed and reflect its comparative advantage.

25. 25 Financial Administration - Financial administration processes are transparent and provide the necessary level of control to ensure that resources are used efficiently and for their intended purpose. Financial Planning - Financial planning is an integral part of short- and long-term organizational plans, and appropriate financial performance measures are used to set goals and monitor performance. Financial Performance - Earned income, institutional reserves, operating efficiencies are strong and show positive trends Financial Viability

26. 26 Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus- oriented systems. Governance

27. 27 Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus- oriented systems. Board of Directors-Each association has a board of directors that is accountable to its membership and provides effective leadership in fulfilling the association's mission. Governance

28. 28 Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice. Democratic Participation- The association has a participatory decision-making process governed by transparent and consensus- oriented systems. Board of Directors-Each association has a board of directors that is accountable to its membership and provides effective leadership in fulfilling the association's mission. Governance Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.

29. 29 “Doing Bad by Doing Good? Theft and Abuse by Lenders in Inadequately Regulated Microfinance Markets” Catherine Duggan Harvard Business School Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.

30. 30 1.Avoidance of Over-Indebtedness 2.Transparent and Responsible Pricing 3.Appropriate Collections Practices 4.Ethical Staff Behavior 5.Mechanisms for Redress of Grievances 6.Privacy of Client Data SMART Campaign Membership- Association membership is representative of the market and is defined and held accountable by common standards of performance and practice.

31. Defining and Measuring Ultimate Impact 31

32. Statement of Success A vibrant and inclusive financial sectors providing appropriate services to poor and low-income people A strong, sustainable association that provides demand driven products to their member base; 32 A strong, sustainable association that provides demand driven products to their member base; A range of healthy, sustainable microfinance institutions that offer a wide range of quality services to clients at competitive prices; A strong, sustainable association that provides demand driven products to their member base; A range of healthy, sustainable microfinance institutions that offer a wide range of quality services to clients at competitive prices; A transparent business environment that ensures fair competition and protection for consumers.

33. 33 Association Performance

34. 34 Member Results

35. 35 Industry Quality

36. 36 Industry Quality

37. 37 SEEP Documents for Nigeria Savings Groups Steps in Advocacy Planning: A workbook for Microfinance Associations Effective Governance: A toolkit for Microfinance Association Boards Performing a State of the Sector Analysis: A Guide for Microfinance Associations Investment Readiness and Microfinance Associations: Bridging the Financing Gap Measuring Financial Performance: Practitioners guide for Microfinance Associations Donor Strategies for Advancing Social Performance through Microfinance Associations Promoting Credit Bureaus: The Role of Microfinance Associations Product Costing and Performance Analysis: A toolkit for Analyzing Associations’ Service Offerings Managing Your Association’s Brand: The Strategic Importance of Integrated Marketing Communications Training Strategies: A Technical Note for Microfinance Associations How to Promote Industry Innovation: A Technical Note for Microfinance Associations

38. 38 Thank You!