Microfinance Overview The Experience of ACCION International Rosalind Copisarow Senior Vice Presiden

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Microfinance Overview The Experience of ACCION
International Rosalind CopisarowSenior Vice
PresidentIstanbul, December 12, 2005
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Overview of ACCION

• Pioneering microlending for more than 40 years
• Leading voice in microfinance best practices
  regulatory policy
• Staff of over 60 microfinance experts -
  one of largest in the world
• ACCION Network world renowned microfinance
  institutions

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ACCIONs Services

• Extending debt and equity financing to MFIs
• Helping commercial banks launch MF operations
• Providing direct technical support
• Creating microfinance boutique banks
• Converting NGOs into regulated institutions
• Advising governments on microfinance policy /
  training regulators in microfinance

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ACCIONs Approach

• Selective partnerships within each country
  /region
• Long-term relationships with MFIs
• Frequent accompanying investment
• Combined strategic and operational advice
  /support services
• Access to ACCION Partner Network / best practices

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Where ACCION Works
30 Affiliates in 22 countries, plus U.S.
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Trends in Microfinance

• Credit methodology
• Groups/village lending Individual loans
• Credit terms
• 50 25,000 loan sizes
• Products and Services
• Enterprise Credit Consumer credit,
  leasing, savings, insurance, remittances, etc.
• Geographic outreach
• Mainly urban urban plus rural

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How is Microfinance Different fromSME and
Consumer Lending?

• Specific client market
• Large outreach/scale
• Branch staff close to clients
• Tailored products and services
• Specialized credit policies and procedures
• Intensive use of technology
• Distinctive organizational structure requirements
• Specific risk characteristics

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How Have MFI Players Evolved?
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MFI Players Today
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Evolution of Funders and Service Providers

• Donors
• Lenders
• Investors
• Rating Agencies
• Credit Bureaus
• Regulators and Supervisors
• Consultants in MF Strategy, Products, Technology

• Donors

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The Way Forward Partnership Banking

• Use of partnerships, cost-sharing arrangements
  and other legal forms, to achieve optimal
• Source of loan officers
• Ownership of branches
• Back office processing
• Provision of capital
• Acceptance of risk
• Responsibility for product development

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Next Steps

• ACCION is committed to supporting Turkeys
  banking sector to engage in microfinance on an
  ethical but business basis
• We will be presenting a number of alternative
  options to commercial banks this week, with a
  view to entering into a long-term partnership
  agreement
• We look forward to bringing global best practices
  to Turkey and offering its banks both social and
  financial returns