1. MFI’s in a Changing
Landscape: Survival of the
Fittest?
Philip Brown, Citi Microfinance
Nandini Harihareswara, USAID
Abrar Mir, UBL Pakistan
Jesse Fripp, Enclude
Mobile Technology
November 6th, 9am-10:30am
SEEP Annual Conference 2013
Partnerships and Cross-Sector Approaches

2. Panel Participants
• Philip Brown, MD Risk, Citi Microfinance
• Nandini Harihareswara, Team Lead – Strategy
and Operations, USAID Mobile Money Division
• Abrar Mir, Group Head & EVP, Branchless
Banking UBL/Omni
• Moderator: Jesse Fripp, MD, Enclude
SEEP Annual Conference 2013
Partnerships and Cross-Sector Approaches

3. Alternative Delivery Channels and
Microfinance
• Even with the advent of microfinance, 2.5 billion people
remain unbanked.
• At the same time, nearly 70% of unbanked households
own a mobile phone.
• Over 200 mobile money services being deployed in
emerging markets.
• As of 2011, 195 million microfinance clients
• For first time since 1997, growth in outreach between
2010-2011 contracted by 10 million clients
• Mobile money emerged as part of an ongoing trend to
push banking beyond branches, which has major
implications for financial inclusion.
SEEP Annual Conference 2013
Partnerships and Cross-Sector Approaches

4. Four major mobile money platform
business models have developed
Different versions of mobile
money businesses are emerging
around the world, depending on
regulatory frameworks and the
extent to which businesses can
offer financial services
Savings services
offered within
regulatory framework
Business line of a
bank
Bank-engaged
Agent aggregator
Third party
financial services
provider
Mobile money
models
Non-bank backed
Can perform
transactions but
cannot take deposits
alone
MNO-backed
mobile money
platform

5. All models include…
Technology
Distribution Network
Products
Partnerships
SEEP Annual Conference 2013
Partnerships and Cross-Sector Approaches

6. Keeping an Edge: What will it take in the
current microfinance context?
39 MFAs from 33 countries, representing 3,730 MFIs, serving 90 million clients with
approximately US$ 63 billion in loans and US$ 14 billion in deposits
Emergence of New
Technologies
MFAs’ actions:
 Policy advocacy
 Researching the
feasibility of mobile
banking and e-money
 Facilitating
partnerships,
negotiating technology
solutions on behalf of
members
Copyright Enclude 2013
6

7. How can MFI’s most effectively stay relevant in
an increasingly complex and rapidly evolving
landscape?
1. Transformation to regulated institution,
43%
2. Mergers/Acquisitions with larger MFIs and/or banks,
29%
3. Partner with Telcos as agents, or
29%
4. None of the above?
0%
N=7
Cross-tab label

8. How can MFI’s innovate at the pace needed to
contend with new entrants?
1. Enhance customer-centered non-credit product and services
(insurance, savings, remittances),
0%
2. Move to fully branchless delivery models,
0%
3. Enhance segmentation specialization and data analytics tools
(scoring, etc), or
0%
4. All of the above?
0%
N=0
Cross-tab label

9. What are the principle barriers to innovation ,
both intra-organizational and interorganizational?
1. Lack of funding/investment
0%
2. Diversified, increasingly niche client needs/demands
0%
3. Regulation
0%
4. Competition
0%
5. Other?
0%
N=0
Cross-tab label