This is a summary of a report presented by Laura Hemrika and Christoph Pausch; published by the European Microfinance Platform (e-MFP); March 2019; 92 pages available at:
http://www.european-microfinance-week.eu/_dbfiles/lacentrale_files/1000/1085/e-MFPrapport-2018-web.pdf
European Microfinance Week 2018 featured 450 attendees from 69 countries discussing a wide range of topics, focusing on “digital inclusive finance.” This included how to expand and improve financial services for low-income customers in developing countries while protecting customer interests.
During the session titled “Financial Inclusion through Technology: The Investor Perspective,” Radhika Shroff of Accion argued that fintech (financial technology) can enhance financial inclusion in low-income and rural areas as well as serving more generally to improve “Operational efficiency to drive down costs in MFIs [microfinance institutions].”
The presentation “Preventing Overindebtedness in Cambodia: Can Self-regulation Work?” covered the high rate of growth in the Cambodian market. This growth has resulted in MFIs competing for customers so vigorously that 41 percent of microloans issued during 2018 were for refinancing other loans. Incofin’s Dina Pons explained how a group of Cambodian and international organizations, in response to this risk, has developed a “dashboard” that helps stakeholders monitor the health of microlenders’ portfolios.
The proceedings also included the presentation of the European Microfinance Award. A video portion of the ceremony showed how the 2017 winner, Mexico’s Cooperativa de Ahorro y Préstamo Tosepantomin, used its prize of EUR 100,000 (USD 123,000) to further its work in low-cost housing. The cooperative helped more than 1,000 additional households invest “microcredits into sustainable technologies.” Advans Cote d’Ivoire won the 2018 award for its work on digital financial inclusion for cocoa farmers.
In closing the event, Laura Hemrika, the Chairwoman of e-MFP, argued that fintech companies and MFIs have great potential for synergy. Fintech firms can benefit from the expertise MFIs have serving low-income customers in a responsible way, and MFIs can work to fear fintech less and leverage it more.
By Tiannah Steele, Research Associate
This notice is part of a sponsored series on European Microfinance Week, which is held annually by e-MFP, a Luxembourg-based network with over 130 members. The next iteration will take place from November 20 through November 22, 2019. MicroCapital has been engaged to cover the event on-site since 2012.
Sources and Additional Resources
European Microfinance Platform publication
http://www.european-microfinance-week.eu/_dbfiles/lacentrale_files/1000/1085/e-MFPrapport-2018-web.pdf
SPECIAL REPORT: A Model from Cambodia for Preventing Overheating – Not Just Multiple Lending; to be Presented at European Microfinance Week; November 14-16, 2018
https://www.microcapital.org/special-report-a-model-from-cambodia-for-preventing-overheating-not-just-multiple-lending-to-be-presented-at-european-microfinance-week-november-14-16-2018/
SPECIAL REPORT: Advans Cote d’Ivoire Wins $113k European Microfinance Award for Inclusive Finance Through Technology
https://www.microcapital.org/special-report-advans-cote-divoire-wins-113k-european-microfinance-award-for-inclusive-finance-through-technology/
SPECIAL REPORT: Cooperativa de Ahorro y Préstamo Tosepantomin (Mexico), Winner of the 2017 European Microfinance Award
https://www.microcapital.org/special-report-cooperativa-de-ahorro-y-prestamo-tosepantomin-mexico-winner-2017-european-microfinance-award/
MicroCapital coverage of European Microfinance Week Since 2012
https://www.microcapital.org/category/european-microfinance-week/
European Microfinance Platform (e-MFP) information on European Microfinance Week 2018
http://www.e-mfp.eu/european-microfinance-week-2018/information
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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