1. contact@e-mfp.eu www.e-mfp.eu Mission To expand the economic assets, participation, and power of low-income women and their households by helping them access financial services, knowledge, and markets Network Largest network in microfinance, built over 30 years 40 microfinance providers 28 countries: 8 in Africa, 8 in LAC, 6 in Asia, 6 in EMENA 24+ million active clients, 80% women $5.5 billion in outstanding loan portfolio; $2.6 billion in deposits Average loan size of $1,200 Women’s World Banking

2. contact@e-mfp.eu www.e-mfp.eu Generally sufficient capital in the sector, WWB is concerned about the quality of that capital Recent CGAP research shows that while local currency lending is increasing, MIV debt investments are still 69% hard currency. MIV average loan tenor is just under 3 years but most other funding is 1 to 2 years Recent WWB research indicates a strong link between capital providers and institutions’ ability to remain mission focused For the first time in its history, WWB is making direct investments in network members, “putting principles into practice”

3. contact@e-mfp.eu www.e-mfp.eu Debt MFIs need capital that is: long-term, 3 to 5 years or longer depending on the product offering (housing loans); local currency; fixed-rate, unsecured transparent in pricing; and standardized for reporting and covenants Increasingly foreign investors are recognizing this and offering better terms; WWB would like to see increasing alignment on this issue

4. contact@e-mfp.eu www.e-mfp.eu Equity MFIs need equity capital that: Is patient (minimum 5 to 7 year horizon) Achieves goals through mission alignment Outreach to poor, especially women Provision of full suite of financial products Invests in market research, impact studies and staff training Provides resources beyond financial support Good governance Connects the MFI with technical assistance and best practices Can advocate at the regulator and industry level Strengthens leadership’s commitment to the mission

5. contact@e-mfp.eu www.e-mfp.eu WWB is concerned that equity investors rely too readily on standard models for success for commercial finance Not focused on serving women Increasing average loan size Overly reliant on collateral Singular focus on loan officer productivity (at expense of client relationships) Cutting expenses without considering long-term effect (market research, impact studies, financial education/business development, gender diversity investments) ≠ pro-poor strategies WWB believes building a growth strategy based on traditional MFI principles of investing in the poor, especially women, and knowing your customer can achieve comparable financial returns