Qualities of a Good Microfinance Supervisor1 Qualities of a Good MFU Supervisor

Qualities of a Good Microfinance Supervisor2 Importance of MFU Supervisor’s Role The supervisor is key to a successful MF operation. -Bring the bank’s MF activities to a profitable & sustainable level in a shorter period of time. -Expand outreach to serve more micro business operators -Prevent or lessen the incidence of fraud. A dynamic and effective supervisor can: -Motivate the staff to work well together and achieve greater productivity; and

Qualities of a Good Microfinance Supervisor3 Duties & Responsibilities of the Supervisor Supervising and monitoring the daily activities of the AOs Responsible for: meeting the microfinance loan and deposit targets set by the Branch Manager or the bank’s management Reviewing and endorsing to the Credit Committee loans for approval, restructuring, and legal action (if any) Ensuring 100% on-time collection of loan installment payments by the AOs Submission of MF reports to management Developing and maintaining a harmonious working relationship among the MF staff Training the MF staff

Qualities of a Good Microfinance Supervisor4 Regular Activities of an MFU Supervisor Review completed CI/BI and cash flow analysis for completeness and accuracy Review each AO’s collection performance DAILY Provide each AO the list of accounts with installments due for the day Help AOs in following-up clients with missed payments Review documents of loans scheduled for release Re-orient clients on bank policies immediately before loan release

Qualities of a Good Microfinance Supervisor5 Regular Activities of an MFU Supervisor WEEKLY Select, at random, at least 5 client folders for visitation, validation, and client feedback Accompany each AO for: –Continuous job coaching; –Ensuring proper interviews and thorough conduct of CI/BI Participate in MF credit committee meetings Meet with the AOs to: –Review accomplishments of each AO and the MF unit against work plans –Review problem accounts (if any) and actions to be taken –Discuss other issues & problems and actions to be taken Update the manager on the activities, accomplishments and problems of the MFU

Qualities of a Good Microfinance Supervisor6 Do’s and Don’ts of an MFU Supervisor DO’s Know your bank and all its products and services Be very knowledgeable about the MF product. Be ready to answer questions AOs and clients may ask. Closely monitor the daily activities of AOs Strictly enforce among the AOs the rules and procedures for handling cash Visit clients regularly and get feedbacks from them Know the status of collection of each AO Take timely action on clients who miss payments Be patient in training and coaching the AOs Occasionally, join each of the AOs in the field to observe their activities for ensuring that the proper procedures are being followed

Qualities of a Good Microfinance Supervisor7 Do’s and Don’ts of an MFU Supervisor DON’Ts Don’t just rely on verbal instructions to AOs about their collection targets for the day. It is better for them to have list of the accounts with installments due for the day which they can refer to. Don’t hide from the branch manager any operational problems such as missed payments, client’s needs, etc, Don’t encourage deviations from, or short-cuts in, the procedures for CI/BI, cash flow analysis and loan documentation