Published by WAM NY Marketing Committee
By Himalayan News Service, August 29,2013, as seen on The Himalayan Times
KATHMANDU: To provide end users micro funds at a lower interest rate, the central bank governor has urged microfinance institutions to consider downsizing their operational expense.
“Microfinance institutions need to look into ways to bring down expenses so that the interest paid by the beneficiaries can be minimised from the current level which is above 25 per cent,” said governor of Nepal Rastra Bank (NRB) Dr Yubaraj Khatiwada, during the launch of the ‘Risk Management Toolkit for Microfinance Institutions’, here, today.
The toolkit, launched by Standard Chartered Bank Nepal (SCBNL) and Rural Microfinance Development Center (RMDC) in technical collaboration with MicroSave India, covers the details of credit, operational, financial and strategic risk management and comprises modules to test the individual institution’s risk exposure.
Continue reading HERE
Posted by WAM NY Marketing Committee
By Jeandie O. Galolo, Friday, August 30, 2013, as seen on Sun.Star Cebu
TO MAKE loans even more accessible, a lending company has taken its services online.
Lenddo, a microfinance social networking firm, is a startup company that provides its clients with easy access to loans through its website, lenddo.com.ph.
It was founded by Jeff Stewart and Richard Eldridge in 2011 “to help the emerging middle class use their social connections in building their creditworthiness and access to local financial services.”
Lenddo Philippines director for sales and marketing Erika Aquino said the accessibility of loans depends on a person’s creditworthiness and they determine it by the social networks an applicant is using.
Aquino said that before Lenddo members are granted loans, they need to connect their system to their active Facebook, LinkedIn, Twitter, Yahoo, or Gmail account.
She said the company’s data scientists will work on an algorithm to determine a person’s creditworthiness and will assign each member a credit score or a “LenddoScore.”
Aquino said the score will depend on how often the borrower uses his social network account. The people connected to the member can also affect his ratings as they will also vouch on the person’s credibility.
Continue Reading HERE
Posted by WAM NY Marketing Committee
By Caspar van Vark, Tuesday 11 December 2012 , as seen on The Guardian,
Having a bank account and credit card seems normal to many people, but for more than 2.5 billion people in the developing world, it is almost unimaginable. Excluded from the formal financial sector, they have no access to savings or current accounts, credit or other basic types of financial services.
Ending this exclusion has long been seen as a way of lifting the poorest people out of poverty. Microfinance took off around 30 years ago with the launch of Grameen Bank in Bangladesh, founded by the banker, economist and Nobel peace prize winner Muhammad Yunus, and was based originally on the idea of providing small loans to poor people to enable them to invest in their own livelihoods.
The concept of microfinance has gained widespread support among policymakers, and been lauded for its potential to transform lives. But it has also come under closer scrutiny in recent years, with some questions raised about the effectiveness of microloans in particular as a way of combating poverty. A Guardian roundtable discussion, held in association with Barclays, provided an opportunity to debate these issues, examining the role of microfinance as we move towards a post-2015 development agenda and addressing some fundamental questions about its purpose, the forms it should take, and how it can be scaled up.
Continue Reading HERE.
WAM NY Marketing Committee.