Best practices guide for microfinance institutions active in remittances
Global experience of microfinance institutions active in remittances included in Best Practices Guide
Worldwide, microfinance institutions (MFIs) work on the development of products linked to international remittances. Challenges are encountered that impede scaling up and cross-selling remittances to MFI's existing loans and savings clients. This BEST PRACTICES GUIDE FOR MFIs ACTIVE IN REMITTANCES is based on the experience of pioneers in the area. It provides concrete guidance and ready to use training material for MFIs who want to become successful in leveraging the benefits of remittances for their clients and the institution. It is a product of e-MFP's Remittances Action Group.
Currently, many MFIs have become pay-out agents for remittances (or money transfers), either in direct relation with a Money Transfer Organisation (MTO) or as a sub-agent via a local bank. However, only a small number of MFIs are well-advanced in remittance products that are linked to loans and savings.
This Best Practices Guide is based on practical experiences and lessons learned by 8 MFIs in Latin America, West-Africa and Asia and illustrated with concrete examples. Detailed descriptions of the products and approaches of the MFIs are also included. The Guide demonstrates –from a practical and hands-on perspective– how pioneering MFIs are leveraging on remittances. For example, by promoting and making it easy for migrants and their families to open savings accounts or repay loans from remittance income.
The Best Practices Guide can be used by management of MFIs as self-study material or as a basis for training material for MFI workshops or classroom courses. It offers an overview of all dimensions which need to be addressed in order to be successful in remittances:
• Business Models and Partnerships for Remittances
• Client Needs and Products Linked to Remittances
• Marketing and Communication of Remittance-linked Products
• MFI Operations and Remittances
• IT Systems for Remittances
• Regulation of Remittances
The production of this Guide has been made possible by the active participation of ACEP (Senegal), ADOPEM (Dominican Republic), ASKI (Philippines), CAMIDE (Mali), FONKOZE (Haiti), PAMECAS (Senegal), RTC Coonecta (Ecuador) and Union Financière Mutualist de Louga (Senegal). Moreover, it would not have been possible without the support and contributions from ACRA-CCS (Italy), ADA (Luxembourg) and IFAD (Italy). PHB Development facilitated and produced the Best Practices Guide in collaboration with the e-MFP Remittances Action Group.
For more information about the Best Practices Guide contact Alexa Sanchez (firstname.lastname@example.org) or Niamh Watters (email@example.com). For printed copies please contact Niamh Watters (firstname.lastname@example.org)