The New Microfinance Handbook: A Financial Market System Perspective

by Joanna Ledgerwood, Julie Earne, Candace Nelson, World Bank Staff (Contribution by)

Overview

The New Microfinance Handbook takes a market systems approach to financial inclusion, oriented by client needs. Framing the book with the client as the central element recognizes the emerging awareness that financial needs of the poor are many and are provided by multiple market players beyond the scope of any single institutional form. The book explores the fundamentals of this expanded view through examining client needs (demand), products and providers (supply), and the support systems required to increase financial access to the poor with a focus on operational support, rules and regulations, infrastructure and delivery channels, information, and funding. _x000D_ _x000D_ The objective of the New Microfinance Handbook is to provide a strategic guide to help assess the financial service needs of the poor and to determine how a diversified financial sector can address these needs. The New Microfinance Handbook takes a different approach from the original Microfinance Handbook. Rather than write from the “institutional” perspective (supply driven), this time we consider first and foremost the clients and their needs (demand side) and how the market can better meet their needs. The result is a book which is less of a “how-to” guide but rather a description of financial markets and how they work, or do not work, in serving the needs of the poor—and what is needed to improve the market. The book aims to facilitate access to and usage of financial products and services that genuinely meet the many needs of the poor through various sustainable financial service providers.

Product Details

ISBN-13:	9780821389287
Publisher:	World Bank Publications
Publication date:	02/12/2013
Sold by:	Barnes & Noble
Format:	eBook
File size:	8 MB

Table of Contents

Foreword xv

Preface xvii

Acknowledgments xix

About the Authors xxi

Abbreviations xxiii

Introduction 1

Part 1 Understanding Demand and the Financial Ecosystem 13

Chapter 1 The Evolving Financial Landscape Joanna Ledgerwood Alan Gibson 15

Chapter 2 Clients Stuart Rutherford Daryl Collins Susan Johnson 49

Chapter 3 The Role of Government and Industry in Financial Inclusion Stefan Staschen Candace Nelson 71

Chapter 4 The Role of Donors in Financial Inclusion Mayada El-Zoghbi Barbara Gähwiler 97

Chapter 5 Measuring Financial Inclusion and Assessing Impact Joanna Ledgerwood 113

Part 2 Financial Service Providers 147

Chapter 6 Community-Based Providers Candace Nelson 149

Chapter 7 Institutional Providers Joanna Ledgerwood 171

Part 3 Financial Services and Delivery Channels 197

Chapter 8 Savings Services Joanna Ledgerwood 199

Chapter 9 Credit Joanna Ledgerwood Julie Earne 213

Chapter 10 Agricultural Finance Calvin Miller 231

Chapter 11 Insurance Craig Churchill 249

Chapter 12 Payment Services and Delivery Channels Joyce Lehman Joanna Ledgerwood 271

Chapter 13 Beyond Products: Building Integrated Customer Experiences on Mobile Phones Ignacio Mas 299

Part 4 Institutional Management for Scale and Sustainability 319

Chapter 14 Monitoring and Managing Financial and Social Performance Joanna Ledgerwood Geraldine O'Keeffe InesArevalo 321

Chapter 15 Governance and Managing Operations Peter McConaghy 351

Part 5 Supporting Financial Inclusion 377

Chapter 16 Funding Julie Earne Lisa Sherk 379

Chapter 17 Regulation Kate Lauer Stefan Staschen 413

Chapter 18 Infrastructure and Outsourced Support Services Geraldine O'Keeffe Julie Earne Joakim Vincze Peter McConaghy 437

Chapter 19 Building Inclusive Financial Markets David Ferrand 459

Index 479

Boxes

1.1 A Market This Big Needs Many Types of Providers 5

1.2 Latest Findings from Randomized Evaluations of Microfinance 6

1.1 From Microfinance to Financial Inclusion 17

1.2 Youth Financial Services: An Opportunity for the Future 18

1.3 Gambian Family Structure and Impact on Financial Behavior and Demand 19

1.4 The Financial Service Needs of the Poor in Mexico 21

1.5 Reaching the Poorest: Lessons from the Graduation Model 22

1.6 Religion and Caste in India 23

1.7 The Embeddedness of Financial Service Use in Gender Norms in Kenya 24

1.8 Understanding the Financial Market System 28

1.9 The Range of Providers in Sub-Saharan Africa 30

1.10 Savings-Led Financial Services in Bangladesh 31

1.11 Key Rules and Supporting Functions for Savings Services 33

1.12 Formal and Informal Rules 34

1.13 Understanding Informal Rules through Financial Landscapes 35

1.14 Potential of Mobile Banking 42

1.15 New Branchless Banking Business Models 43

2.1 Income Volatility, Week-by-Week and Year-by-Year 53

2.2 Cash Flow Management Given Volatile Seasonal Income 55

2.3 Ramna's Top-Ups 56

2.4 Enayet's Foot 57

2.5 Building a Home Little by Little 60