Role of an Apex Institution towards

building the capacities of MFIs in India

A FWWB Presentation
Vision and Mission

 Vision: A society based on equity and social

justice where women are active partners in
holistic development.

 Mission: Providing financial and capacity

building services to organizations promoting
livelihoods and self reliance of poor women
FWWB - Focus
 Primary focus of FWWB is Institution Building
and Sector Development.
 Identifying & nurturing those organizations
which has a clear mandate of serving the poor
women who are excluded by Financial
Institutions .
 Building the capacities of community based
organizations to ensure gender mainstreaming.
FWWB - Strategy

 FWWB strategy- CB support with Loan

 Funding Strategy has been in form of Loan and
Grant Support (Capacity Building, Operational
Deficit of new initiatives and Support during
disaster)
FWWB’S OUTREACH
 Cumulative:
 Loan fund of 4750.5 million INR
 Reached to more than 1.03 million women of low
income households
 341 NGO/MFIs partners
 Current:
 Rs.1746.23 million outstanding
 112 NGO/MFIs in 14 states
 Portfolio - State wise Breakup
(as on September 30, 2007)

Portfolio
Region No of Outreach Outstanding (Million
Partners INR)

SOUTH 38 362,800 1122.10

EAST 40 119,200 404.88

WEST 34 61,400 219.25

TOTAL 112 543,400 1746.23

Trends in Partners’ Growth
6

5
No of partners

G P to ID
3
ID to B ig

0
2005 2006 2007

years

Category wise capacity building inputs provided :

General Partners: Basics of accounting, Financial analysis (ratio analysis),MIS

and exposure to best practices

ID Partners: Strategic Business Planning, Portfolio Risk Management,

Capital re-structuring, Strategic Positioning Product, Statutory Auditor’s training
Trends in MF
 In last 3 years FWWB’s focus has been to reach the
unreached/underserved regions for geographic spread of
sustainable micro finance.
 There is an emerging trend of startup MF organizations
managed by professionals which are more focused in their
goals and have a potential to scale up fast
 However in underserved regions the startup organizations lack
capability and adequate capital to manage mf operations.
 In the initial years the learning curve is not very steep and in
the initial years the rate of scaling up is very slow.
 So as our strategy we would like to nurture such partners
through focused and intense capacity development and loan
assistance.
Capacity Building Inputs
 Capacity Building  3 years (2004- Sept.07)  53.1
million INR.
 Technical trainings
 Exposure visits
 Workshops/summits/conferences
 TAV (Technical Assistance Visits).
 Infrastructure Support
 Micro-insurance linkages
 LEAD (Livelihood & Enterprise Development) Program
Rationale - Innovation Project
 Effective innovation  direct impact 
reduction of poverty  resulting to  improved
quality of life.
 Innovation in terms of:
 Product

 Methodology – delivery model.

 Approach
Innovation Project (contd…)

 8 organizations supported in span of 3 years

 Fund outlay of 7.2 million INR
 Issues addressed:
 Food security & sustainable Income generation.
 Skill training and income generation
 Empowering adolescent girls of minority community through education
and skill enhancement.
 Emergency health fund – social security net.
 Elimination of bonded child labor through bridge course
 Microenterprise promotion by community using locally available
resources.
FWWB- Niche

 FWWB’s comparative advantage lies in

demonstrated ability to identify small promising
MFIs, develop them with funding and Technical,
assistance and graduate them to a stage where
they have the systems and the capacity to
become a sustainable financial institution.
(CGAP)
 New Initiative - LEAD
Operational Model

LEAD
PO
PO PO

PO

Training,
Raw material Procurement
Allied Support Services

Financial Support LEAD LEAD Market Linkage Support,

Product Design,
PO PO Certification

• LEAD – Livelihood and enterprise development

• PO – Partner Organizations
Next Step - LEAD
 Good response from partner organizations – LEAD
fills a gap not fulfilled by present product offering.
 Plan to regularize LEAD from the current pilot status.
 Requirement to create long term relationship because
of prolong gestation period of enterprise promotion
activities.
FWWB – Current Focus
 Research linked Micro Finance interventions  developing a
distinct North-East strategy  considering unique challenges &
opportunities.
 Issues related to Urban Micro Finance - FWWB to organize
National consultation to understand urban microfinance in its
myriad forms.
 FWWB encourages partner organizations to offer other
financial services like:
 Micro-insurance schemes -
 Pension plans,
 Enterprise loans,
 Livelihood promotion,
 Education loans,
 Home renovation/ improvement loans.
THANK YOU!