Tag «microfinance»

Damage investing?

As impact investors, we need to be careful at some of unwanted but serious consequences of our investments that can go fully against the initial intentions. Take investing in Microfinance for instance. The social bottom line is financial inclusion, i.e helping undeserved segment get access to better financial services including credit. If, as investors, we keep pushing money in saturated markets, then the underlying MFIs will keep deploying credit, probably lending in less stringent and …

Microfinance investing: what to do when facing a (likely) saturated market?

One of the most tense situation an investor in microfinance and financial services face is when looking at an opportunity in a market that is overheating. On one hand you have your prospect or client requiring a large line of credit, and on the other hand, you have been reading those reports that the market is almost fully saturated. And the situation of course is further form being all black, otherwise the decision would be …

Assessing a Microfinance Institution: what to look for in group meetings?

I just came back from India where I visited some current clients and prospects, mostly from the Microfinance space. The industry in India is evolving quickly, and I have hard time catching up even if I try to visit the country once every two months. One constant thing however is the Joint Liability Group (JLG) meetings, whereby a group of five women guarantee each others’ loans. They are quite similar from one institution to another but …