Various agencies working to alleviate poverty had come to a general consensus that pure charity was not a sustainable alternative, as the world population exceeded 7 billion by the end of 2011. In the lack of venture capital and angel investors in developing markets, Microfinance (MF) was one of the most promising instruments in the fight against poverty. MF institutions tended to focus on micro-lending, providing small loans to micro-entrepreneurs from which interest could be earned. This case details the problems and challenges that Microfinance institutions faced a decade into the new millennium.
The rise of mobile technology is a vital subject as it guaranteed options that are innovative. The case scenario illustrates mobile financial services, comprising Safaricom’s M-Pesa along with M Kesho offerings, and focuses on Experian's MicroAnalytics (EMA) unit, created to serve the financial services sector in developing countries. EMA developed an advanced system to enable financial service providers (clients) to serve their customers with a distributed, branchless, "mobile only" version. After a successful pilot study in the Philippines, EMA created new customer in addition to a mobile banking platform that offered the potential of expanding mobile cash to other financial services and geographic sections.
PUBLICATION DATE: March 01, 2013 PRODUCT #: GS83-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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