Course objective:
The Course is designed for any organization planning to adopt best management practices for microfinance program. The course covers the various elements and aspects of best management practices on how to run a successful microfinance program.
Course audience:
Management and officers of micro-finance institutions, finance managers and credit officers.
Course Contents:
MICRO FINANCE INSTITUTIONAL IMAGE AND PHILOSOPHY
- Corporate Image – What Is It?
- Why Do We Need To Care About Image?
- Barriers To Achieving ‘Desired’ Image
CAUSES OF MICROFINANCE INSTITUTIONAL FAILURES
- Weak credit control
- Systemic and systematic fraud
- Loss of focus – management/ownership driven
- Methodological flaws in credit technology
- Design flaws in the conception of the institution itself
- Government intervention
- Bad governance & regulation
- Lack of a Compliance Culture
- Weak governance at Higher Office/board level
- External specific factors
- Credit risk
- Global financial turbulence
- Credit lines dried up
- Internal specific factors
- High portfolio at risk (PAR)
- Incompetent Management/ board
- Poor mix of investment portfolio
- Weak capacity or inadequate training
BEST PRACTICE PRINCIPLES OF MICRO ENTERPRISE LENDING
- Micro lending and its significant problems
- The effects of micro lending at the national level, on small and micro enterprises as well as MFIs
- Basic principles and best practices in microfinance
- Policies and procedures of micro finances
- Organizational structure and job description of credit officers
- Repayment issues
- Assessment of potential borrowers Loans and security
TECHNOLOGICAL INTEGRATION DEVELOPMENTS AND BEST PRACTICE
- Introduction to ICT based Microfinance Services
- Importance of Technological Integration for Best Practice
- Offering Mobile Financial Services
- Development of Computer and ICT Skilled Human Resources and Physical facilities
MICROFINANCE BEST PRACTICE GUIDE IN CLIENT RELATIONSHIP MANAGEMENT
- Client Protection Principles
- Avoidance of Over-Indebtedness
- Transparent and Responsible Pricing
- Appropriate Collections Practices
- Ethical Staff Behavior
- Mechanisms for Redress of Grievances
- Privacy of Client Data
- Avoid conflict of interest
