Microfinance Presentation 2013

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BRAC Microfinance Programme

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Outline

• Update on 2013 performance

• Innovation– New financial products and services– Financial inclusion and integration– Research and information systems

• Upcoming initiatives– “One BRAC”– Innovation Fund for Digital Financial Services

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Description of loan productsAverage loan size

Loan term Repayment mechanism

Major uses of loans

Dabi $275 12 months Equal weekly/monthly installments

Small operations in poultry, livestock, vegetable cultivation, handicrafts and rural trade

Progoti $2,200 12 or 18 months

Equal monthly installments

Working capital for shops, agricultural businesses and small manufacturing

Migration loan

$2,300 12, 18, or 24 months

First month no installment, Increasingly over time

Financing outgoing migrants’ costs, migrants’ families well being

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Savings

• Regular Passbook Savings

• Monthly Deposit Scheme

• Double Deposit Scheme

• Fixed Deposit Scheme

• Monthly Profit Scheme

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Savings portfolio distribution

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Microfinance at a Glance Bangladesh

ParticularsAs of October

2013

Loan Portfolio: $ 894 million

Savings: $ 349 million

Members: 5.72 million

Borrowers: 4.38 million

Average Monthly Disbursement: $127 million

Staff: 17,000

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Trend: BRAC MicrofinanceBangladesh

Particulars 2010 2011 20122013

(as of Oct)

Portfolio (Mil) $ 534 $ 644 $773 $894

Savings (Mill) $ 243 $ 272 $ 320 $349

Disbursement (Mil)

$ 899 $ 1,052 $1,250 $1,270

PAR (>30 days) 10.3% 7.9% 5.9% 6.5%

Operating self sufficiency

118.6% 110.8% 128.3% 135.6%

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Microfinance at a Glance BRAC International

Portfolio(USD, mil)

Members Borrowers Avg. Monthly disbursement

(USD, mil)

Branch Offices

Pakistan 8.1 65,000 58,000 1.6 78

Sri Lanka 9.2 81,000 68,000 1.3 87

Tanzania 20 131,000 101,000 3.8 112

Uganda 22 161,000 127,000 4.5 130

Sierra Leone

2.8 26,000 20,000 0.48 29

Liberia 2.3 25,000 13,000 0.38 25

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Innovation

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Capacity for research and development

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New products and services

• Medical loan

• Mobile money-based special savings

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Integration and inclusion

• Partnership with the Center for Rehabilitation of the Paralyzed

• Skills training for village organization members’ children

• Youth savings product for members of kishori clubs (Adolescent Development Programme)

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Research and information

• Understanding clients’ behavior and needs– Financial diaries– MIS-based analyses to be followed by field

studies (with Cambridge University)

• Improving data systems through increased GIS information and cross-program sharing initiatives

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Dinajpur Chehelgaji community resources map

Mapping BRAC’s presence at the grassroots

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Plans for 2014 in Bangladesh

• Micro-pensions

• Financial education and client protection

• BRAC Innovation Fund for Digital Financial Services

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Thank You