I found an interesting Kiva Blog today with various related links. It's from a three part series on microfinance. I'm looking forward to seeing the third part, which is on microinsurance. (I hope I don't miss it...)
Kiva and FAI are partnering to bring you a three week educational series on the different facets of microfinance! We will explore the differences between microcredit, microsavings, and microinsurance in hopes of giving you, our community, a better depth of understanding of the sometimes complicated world of microfinance! The full versions of these articles and the series are available on the
FAI website. Stay tuned this month to read the whole series!
For more information on the importance of microsavings and how they occur on the ground you can watch this video series in which Stuart Rutherford, co-author of Portfolios of the Poor and founder of SafeSave Bangladesh, discusses important factors in the design of savings (and other financial) products for the poor.
The information on Portfolios of the Poor and the video series were both quite interesting.
Portfolios of the Poor: How the World's Poor Live on $2 a DayStuart Rutherford on Portfolios of the Poor: Four-Part Video SeriesThere was also a virtual conference about the book, which I haven't read much of yet, but it looks interesting too.
Portfolios of the Poor Virtual ConferenceDay 1: Understanding How Poor People Manage their Money – Lessons from “Portfolios of the Poor”
1. How do poor people meet the challenges of managing their money? What mechanisms do they use?
2. What are the three needs that drive financial behaviour of the poor? This discussion will examine
1. managing basics;
2. coping with risk and
3. raising lump sums
3. Why do microfinance institutions (MFIs) play such a small role in poor people’s efforts to manage their money?
Day 2: Designing Financial Services for the Poor – Lessons from “Portfolios of the Poor”
1. What are the four key factors in the design of financial services for the poor
1. Reliability
2. Convenience
3. Flexibility
4. Structure
2. How should MFIs respond to the three basic types of financial services needed by the poor to:
1. manage money on a day-to-day basis;
2. build savings over time; and
3. borrow money for a wide variety of purposes?
3. Do interest rates matter?
4. Does this type of market research really matter for MFIs?
All of this reminded me of some of the many services our MFIs offer besides just loans. I think they are providing some amazing services out there, and it's exciting to be a small part of that.
