MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Technology Blog Reviews Lessons Learned from Branchless Banking in Brazil

The CGAP Technology Blog, operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Kabir Kumar and Yanina Seltzer that reviews branchless banking in Brazil, whereby agents such as retailers and post offices serve as links between banks and customers. The article is the first of a planned series that examines the state of branchless banking in different countries.

MICROCAPITAL BRIEF: PlaNet Finance, Oliver Wyman Publish Report on Mobile Technology Providing Access to Finance Beyond Simple Payments

PlaNet Finance, a France-based non-governmental organization (NGO) with the mission of developing microfinance, and Oliver Wyman, a US-based management consulting company, have published a joint report exploring the ability of mobile technology to provide access to a wide range of financial products beyond simple mobile payments. Sponsored by the Bill and Melinda Gates Foundation, a US-based private foundation, the report examines distribution strategies and “second-generation” mobile microfinance products piloted in West Africa and Southeast Asia.

MICROCAPITAL BRIEF: Book by Massachusetts Institute of Technology (MIT) Economist Robert M Townsend, “Financial Systems in Developing Economies”, Uses Thailand As Case Study for Analyzing Finance Policies

Massachusetts Institute of Technology (MIT) Economist Robert M Townsend offers a framework for evaluating the impact of various financial policies in emerging economies in his new book, Financial Systems in Developing Economies.  

MICROCAPITAL BRIEF: Kredits Receives $4.5m Investment From Danish Investment Vehicle Sophia to Develop New Microfinance Technology

Kredits, a US-based company that specializes in microfinance technology solutions, recently announced that it received an investment of USD 4.5 million from Danish investment vehicle, Sophia, to develop unspecified new technologies for the microfinance sector and expand its global presence. Don Eggert, CEO and co-founder of Kredits expressed his enthusiasm for the partnership with Sophia, saying, “We are excited about our partnership with Shailendra Robin Patel, founder of Sophia ApS, who helped build Saxo Bank into one of the world’s leading online financial institutions.

MICROCAPITAL BRIEF: Mobile Technology as an Alternative Channel for Foreign Aid Delivery May Increase Access to Finance

Recent developments in mobile technology, including biometric identification and point-of-sale devices, are being considered as alternatives to current foreign aid delivery mechanisms. The possible shift towards electronic transfers of foreign aid comes at a time of rising concern regarding its delivery methods and effectiveness.

MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Directs Microfinance Banks to Adopt Technology and Shared Service Platforms, Hints at New Microfinance Policy Framework

The Central Bank of Nigeria (CBN) recently mandated that microfinance banks (MFBs) adopt information technology infrastructure and utilize shared service providers—organizations that provide services such as cash processing and currency sorting for multiple banks—by June 2011 as concerns over struggling MFBs persist. CBN reportedly will offer financial assistance to MFBs to facilitate compliance with the directive. Use of the shared service platforms is also expected to help MFBs reduce operating expenses.

MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Study Indicates High Density, Advanced Technology, Larger Profits in Philippine Banking Sector

According to a report from the Malaya Business Insight, a Philippine newspaper,  a study by Dr Johnny Noe E Ravalo of Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, offered a range of data on the banking sector in the Philippines including that the bank density is 8.6 banks per 1,000 square kilometers, at least five banking offices exist in every municipality or city, there are approximately 10,700 persons per banking office, 207 microfinance banks exist nationwide and the largest concentration of banks (32 percent) occurs in the capital. The actual report by Dr Ravalo is not available online.

MICROCAPITAL BRIEF: Microinsurance Network Reviews 2010 Work on Performance Indicators, Technology, Standards Development

The Microinsurance Network, a member-based platform of approximately 60 organizations interested in advancing the development and distribution of insurance products for low-income households, has recently released an overview of its 2010 activities. These include the development and publication of 11 social performance indicators by the Performance Indicators Working Group; the launch of the Microinsurance Technology Inventory, an online database that provides insight into the use of technology for microinsurance; and enhancement of the organization’s website.

MICROCAPITAL EVENT: Africa Information and Communications Technology Exhibition & Conference (AITEC) Banking & Mobile Money – Common Market for Eastern and Southern Africa (COMESA), Nairobi, Kenya, March 2-3, 2011

Event Name: AITEC Banking & Mobile Money COMESA, 2011

Event Date: March 2 – March 3, 2011

Event Location: Kenyatta International Conference Centre, Nairobi, Kenya

MICROCAPITAL EVENT: National Bank for Agriculture and Rural Development (NABARD) and Siddaganga Institute of Technology Host National Seminar on Microfinance and Sustainable Livelihood Promotions in India, Karnataka, India, December 15–16, 2010

Event Name: National Seminar on Microfinance and Sustainable Livelihood Promotions in India

Event Date: December 15 – December 16, 2010

Event Location: Karnataka, India

MICROCAPITAL BRIEF: At Clinton Global Initiative, Omidyar Network Commits to Investing $55m in Technology that Supports Government Transparency and Financial Access through Mobile Technology

The Omidyar Network, a United States-based socially responsible investment firm, announced at the recent sixth annual meeting of the Clinton Global Initiative that it would invest USD 55 million in technological innovations that promote government transparency and economic empowerment.

MICROCAPITAL BRIEF: Grameen Foundation Partners with Sungard Global Services to Support Mifos Technology Platform

Grameen Foundation, a US-based nonprofit, recently announced it is partnering with SunGard, a global software and technology company, which will provide a dedicated team of technology and consulting professionals from its Global Services business unit to provide support to Grameen’s Mifos technology team and users.

MICROCAPITAL BRIEF: Vijay Pratap Singh, Co-founder and CEO of Ekgaon Technologies, Discusses the Future of Information and Communication Technology (ICT) in Microfinance Institutions (MFIs)

Mr Vijay Pratap Singh, co-founder and CEO of Indian information and communication technology (ICT) provider Ekgaon Technologies, recently was interviewed by microfinance news website, MicrofinanceFocus.com concerning the impact of ICT on microfinance. Mr Singh claims that up to now, new technology has been “reluctantly received” and “half-heartedly implemented” by microfinance institutions (MFIs). Of impediments to progress, he notes that some MFIs have been unwilling to modify operational models to accommodate the new technologies. More importantly, he claims that MFIs are unable to utilize the full potential of ICT because they are unwilling to invest in operational efficiency, specifically in human resources.

MICROCAPITAL BRIEF: ThoughtWorks to Provide Software Services in Support of The Grameen Foundation’s Mifos Microfinance Technology Platform

ThoughtWorks, a global technology company based in the US state of Illinois, has announced that it will provide software engineering services for The Grameen Foundation’s Mifos Platform, a software platform launched in 2006.

MICROCAPITAL BRIEF: Massachusetts Institute of Technology (MIT) Press Releases “The Economics of Microfinance,” Second Edition, By Beatriz Armendriz and Jonathan Morduch

The Massachusetts Institute of Technology (MIT) Press has released the second edition of “The Economics of Microfinance,” by Beatriz Armendriz and Jonathan Morduch. The first edition, published in 2007, provided an overview of microfinance by addressing a range of issues, including lessons from informal markets, savings and insurance, the role of women, the place of subsidies, impact measurement and management incentives. It endeavored to integrated theory with empirical data, citing studies from Asia, Africa and Latin America and introducing ideas about asymmetric information, principal-agent theory and household decision-making in the context of microfinance.

MICROCAPITAL BRIEF: PesaPot and RedCloud Partner to Bring Mobile Technology Platform to Microfinance Institutions (MFIs) in Kenya

PesaPot – a technology company headquartered in Nairobi, Kenya – has announced a partnership with RedCloud – a technology platform that offers access to financial services over the internet – to provide mobile technology to the microfinance sector in Kenya. The alliance will provide microfinance institutions (MFIs) with technology that is intended to both improve the efficiency of their operations as well as reduce costs.

MICROCAPITAL EVENT: CGAP (Consultative Group to Assist the Poor) and Grameen Foundation Virtual Conference: Getting Past the Technology Hurdles at Microfinance Institutions (MFIs)

Event Name: CGAP and Grameen Foundation Virtual Conference: Getting Past the Technology Hurdles at MFIs

MICROCAPITAL BRIEF: Microinsurance Network Technology Working Group to Launch Online Microinsurance Technology Inventory

The Microinsurance Network Technology Working Group, a branch of the Microinsurance Network that focuses on technology as a means of increasing access to insurance in developing countries, is launching an online microinsurance technology inventory.