The Womens Market Access to Finance for Women Mayada ElZoghbi, Banyan Global

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The Womens Market Access to Finance for
Women Mayada El-Zoghbi, Banyan Global
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Introduction

• Women-owned consulting firm
• Based in New York City
• Work focuses on integrating a business/private
  sector model discipline to international
  development
• Four practice areas
• Microfinance
• Health
• Enterprise development
• Financial Sector development

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Research Background

• Sponsored by the Gender Entrepreneurship Markets
  (GEM) division of the International Finance
  Corporation
• Started in 2006
• Completed global research study on access to
  finance for women
• Goal
• To uncover models and cases of successful
• institutions that reach the womens market

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Research Methodology

• Research Methods
• Internet research
• Interviews with experts for referrals
• Phone interviews
• Site visits
• Selection Goals
• Select different types of models
• Banks, Greenfield banks, Government Programs,
  NGO-MFIs, NGOs, BDS Organizations
• Select across regions of the world
• Asia, Africa (Sub-Saharan), Central Eastern
  Europe, Latin America Caribbean, Middle East
  and North Africa, North America, Western Europe,
  Australia, NZ
• Include both SME finance and MF

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Definition of Success

• Significant scale
• High levels of outreach to female clients
• Sustainable or on the path to sustainable
  program models
• Institutional performance - did not measure
  impact at the client level

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Research Findings

• Data
• Regional Differences
• Access to Finance
• Female Participation Rates
• Commitment
• Business Size
• Outreach Methods

Hard to find Large regional differences in
quantity quality of best practice programs
Rooted in appropriate policy initiatives and
donor funding Vary across programs and regions
Required to making it happen Has implications
on the method of outreach Multiple ways to reach
female entrepreneurs
HOW
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Data

• Significant amount of information on MF industry
• Very limited information or consolidated source
  of data on SME finance
• Often data is not disaggregated by gender
• Little data on size of womens market available

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Regional Differences

• Asia outperforms all regions with regard to scale
  and outreach to women
• Developing world ? more MF
• Developed world ? more SME finance models
• Very little MF or SME models in Middle East and
  CEE
• Regional distribution

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Access to Finance

• Rooted in appropriate policy initiatives and
  donor funding
• Countries with deep orientation and focus on
  women had laws or policies that encouraged this
• Examples UK, Canada
• Many of the highlighted MFIs were started with
  donor funding

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Female Participation Rates

• Vary across programs and regions
• What is good female participation in one
  region/country is different from what is good in
  another
• SME finance programs have much lower female
  participation rates than MFIs

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Commitment

• HOW to MAKE it HAPPEN
• All of the organizations profiled made a
  concerted effort to reach the womens market
• Reaching female clients is not automatic

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Business Size
HOW to MAKE it HAPPEN
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Outreach Methods

• HOW to MAKE it HAPPEN
• Appropriate marketing and outreach
• Appropriate products
• Staff sensitization
• Women on the board, management and staff
• Appropriate customer service

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• CASE STUDIES

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BANCO NACIONAL DE COSTA RICA-DESARROLLO (BNCR)

• SME Finance program created in 1999
• Agreement with the National Institute of Women
• Links female clients to non-financial support for
  growing their businesses
• Experimented with a womens loan fund, found
  womens needs better met by customer service and
  capacity-building,
• Only commercial bank in Central America region
  with focus on women
• Portfolio growth 576,000 to 31 M since
  inception of program

Female Clients 69 micro loans 25 at SME
level
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• Introduced Women in Business (WIB) Program in
  2003
• Works with media to advertise positive images of
  female entrepreneurs
• Supports and sponsors organizations that promote
  womens entrepreneurship
• Achieves this by sensitizing staff on differences
  between male and female business-owners

• WIBs key services include
• Advice on navigating the banks products and
  services
• Delivery of presentations, workshops and seminars
  to women
• Introducing women to a Relationship Manager
• Networking opportunities and interactive events
• Research related to issues experienced by women
  in business
• Web pages, brochures and personal consultations
  addressing issues such as starting a business,
  marketing and building a website

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Fondacion Zakoura Morocco

• Leads the Middle East and North Africa (MENA)
  region in womens economic empowerment through
  financial services
• Largest MFI in MENA
• 83 female participation rate
• Half of top management are women
• High emphasis on building the communication
  skills of loan officers key to reaching women
• 2005 Indicators
• ROA 13.85
• ROE 26.53
• PAR 0.37

• Varied products to serve the needs of poor women
• Group loans
• Individual loans
• Housing loans
• Infrastructure loans (water and electricity hook
  up, telephone)

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THANK YOU Mayada El-Zoghbi E-mail
melzoghbi_at_banyanglobal.com
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For More Information

• Meaghan Smith, Managing Partner
• Telephone [phone]
• E-mail msmith_at_gmi-ny.com