MICROCAPITAL STORY: New book entitled “Microfinance for Bankers and Investors, Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid” by Elisabeth Rhyne released by McGraw-Hill

Publishing company McGraw-Hill Professional has released “Microfinance for Bankers and Investors” by Elisabeth Ryne, managing director of the Center for Financial Inclusion at ACCION International. The book explores the challenges of profitably delivering credit, savings, insurance, and remittance services tailored to serve the so-called bottom of the pyramid (BOP), the four billion people in the world who live on less than USD 3,000 per year. The book offers sixteen in-depth case studies, on ventures by companies such as Citibank, Visa, and Sequoia Capital, exploring successful solutions in product design, last-mile delivery to remote villages and urban slums, and technological innovations that reduce costs and provide new means of payment and remittance to populations previously tied to a cash economy.

“Microfinance for Bankers and Investors” educates potential microfinance investors in three ways: by reviewing authoritative research that demonstrates the investment opportunity; by analyzing success stories from around the world; and by identifying best practices. The book details:

The social value and business sustainability of microfinance
Changes in the market that allow for increased private investment in microfinance
New technologies and delivery channels that reduce costs for small transactions
Innovative products for grassroots finance, such as mobile phone banking and microinsurance
Proven ways to overcome the unique challenges of serving customers at the bottom of the pyramid

No book reviews on “Microfinance for Bankers and Investors” were available for this story.

Elisabeth Rhyne is the author/co-author of four previous books on microfinance, including “Mainstreaming Microfinance” (Kumarian Press, 2001), “The Commercialization of Microfinance: Balancing Business and Development” (Stylus Publishing, 2002) and “The New World of Microenterprise Finance: Building Healthy Financial Institutions for the Poor” (Stylus Publishing, 1994). Ms. Rhyne was director of the Office of Microenterprise Development at the U.S. Agency for International Development (USAID) from 1994 to 1998, where she developed and led USAID’s Microenterprise Initiative. Her microfinance experience includes eight years living in Africa (Kenya and Mozambique), consulting on microfinance policy and operations for governments, international organizations and microfinance institutions. Ms. Rhyne holds a master’s and Ph.D. in public policy from Harvard University and a bachelor’s degree in history and humanities from Stanford University.

According to its website, since 1998, ACCION affiliated programs have made USD 23.4 billion in micro loans to more than 7.7 million people, with a historical repayment rate of over 97 percent. As of December 31, 2008 ACCION and its partners had 3.74 million active clients, representing a total loan portfolio of USD 3.57 billion. As of the same date ACCION and its partners had over 800,000 client savings accounts representing approximately USD 1.3 million in deposits. The most recent information for ACCION International on the MIX Market, the microfinance information clearinghouse, is from 2002. Per the company’s audited 2007 financial statements, as of December 2007 ACCION had total assets of approximately USD 353 million, total equity of approximately USD 334 million, and total revenues of approximately USD 20 million. ACCION International was recently awarded the Juscelino Kubitschek Award by the Inter-American Development Bank (IDB) for its contributions in the field of economics and finance. To read a MicroCapital story about the award, click here.