[TC-I Call to Action]: Total Immersion Programme in Finance and Development Summer Internships

The Centre for Development Finance (CDF) announces some very exciting internship opportunities for this summer.  If you’re looking for something more long term, word has it that CDF will likely be releasing postings for BoP related full time positions in the coming weeks… check back for more information!

Total Immersion Programme in Finance and Development (TIP/FD) – Summer 2009

CDF invites internship applications for the Summer 2009 IFMR “Total Immersion Program in Finance and Development (TIP/FD).”

Description of the program follows and application requirements follow below and in this CDF TIP document, and to apply please use the following link.

The TIP F/D provides undergraduate and graduate students interested in microfinance, development finance, and economic development an opportunity to gain hands-on experience in working on issues relating to access to financial services for urban and rural poor in a developing country. Interns will participate in a structured, two-week course directed by leading researchers, IFMR Centre Research Associates, and practitioners from the Indian government, microfinance institutions (MFIs), and NGOs. The course will be followed by eight weeks of work on a CDF projects which will consist of either field-based research, policy/sector wide studies or data analysis.  Past interns have completed stand-alone projects or worked to initiate, implement, and scale-up existing projects or pilots at the Centre.

The list of summer internship projects can be found online here and in this CDF Project Descriptions document. Interns may also be placed on another of CDF’s ongoing projects.

Internships are unpaid, although CDF will assist with housing and food or provide a small stipend of up to Rs 10,000/month toward living expenses. All interns are encouraged to obtain funding to cover international travel and personal expenses during the internship period.

This year, the TIP/FD will take place between June 8 and August 14, 2009. Applications will be accepted until April 15, 2009, although we encourage interested applicants to apply as soon as possible to ensure the best matching of interests and skills.

Positions of Particular Interest to the TCI Readership: Continue reading

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Why you should CARE about microinsurance

We have written about microinsurance before, including SKS’s Vikram Akula’s decision to develop a product for his customers. Now, Bajaj-Allianz and CARE India will be developing a product of their own. In an interesting partnership between the charity and a commercial company, this venture will aim to help individuals substantially improve livelihoods through the safety net insurance can provide. On Allianz’s site there is a great interview with RN Mohanty, Chief Operating Officer, CARE India, speaking to this new partnership. Here is an excerpt:

The biggest challenge was definitely educating people that risk protection is an important part of their lives. We do this because we want to inculcate a culture of savings with the community, not just insuring for the time being. The general mindset in rural India is that unless you get something out of it immediately it is not worth investing. If you look at our client list, close to 90 percent are first-time insurers.

The rest of the interview can be read here.

[TC-I Call to Action]: Programme Head, Centre for Micro Finance

Lakshmi Krishnan of the Centre for Micro Finance, IFMR writes to us about a new opening in the organization.   This is particularly exciting for anyone interested in microfinance, research, and traveling throughout India.  Several classmates in graduate school had worked with IFMR and came away with good experiences after participating in breakthrough research.

IFMR CMF is now hiring a Programme Head in Chennai to manage a portfolio of 4-6 projects with a variety of partners. Read about the IFMR CMF Programme Head position for further information and contact information.

Evaluating social returns on microfinance

Whether you are an individual investor, an institutional fund, or a microfinance organization, the issue of returns on social investment is always a concern.  The difference is usually in the approach that each stakeholder may take in measuring these returns.  The Grameen Foundation made a major stride in the effort to create an evaluation framework by releasing guidelines to evaluate social returns to investments.

As of 2006, socially-focused investors in the U.S. had channeled more than $663 million into microfinance. Most of these investors choose microfinance because they expect financial as well as social returns related to reducing poverty. Until recently, however, there were few tools to help them track how well their investments were achieving their goal of improving the lives of microfinance clients and how those “returns” compared to industry-wide performance benchmarks.

When I read about a new set of guidelines, I imagined some complex framework, or a laundry list of things to look for.  Instead, the guidelines are quite short and simple.  Maybe even the measurement of social returns follows Occam’s razor!

The guidelines are just a first step – some of the questions may need a little more teasing out.  For example,  a question listed for institutional investors to ask: How effective are the MFIs at alleviating poverty?  Investors may want a more elaborated approach in terms of what “effective” means.  At the same time, the strength of these guidelines is that they are flexible and realize that social investments, even in a field like microfinance, can vary.  Along with GF’s previous initiative, the Progress out of Poverty Index, which tracks microfinance institutions’ track records with poverty alleviation, the evaluation guidelines are a welcome development in the world of performance indices.

Round 2 with CGAP’s Gautam Ivatury

The ThinkChange India staff is committed to providing our readers with interviews with people we believe are at the brink of something special but have for the most part been overlooked by the mainstream media. Readers will be able to see other conversations under our TC-I Changemakers tag.

This week, Vinay sat down (over the phone) with Gautam Ivatury of the global microfinance center CGAP, which works to expand poor people’s access to financial services. Such services include but are not limited to microcredit and branchless banking. This interview is a follow up to one conducted on May 4, 2008, which you can read here.

Vinay Ganti: Could you please review yourself on the following topics, which we discussed in our last conversation?

  • Reaching beyond MFIs:

Gautam Ivatury: This still continues to be a major focus of CGAP’s mission. Across all of CGAP’s work we continue to look for ways to partner with a range of institutions and providers, including but not limited to MFIs, to be able to massively expand financial services for poor people.

GI: With regard to branchless banking, we set out to accomplish a number of goals. Overall we have been happy with the results of CGAP’s work in this area over the last six months, despite the fact that it has taken longer than expected for our project partners (in countries like Pakistan, Kenya, Mongolia, South Africa and elsewhere) to roll-out the branchless banking channels we helped design and finance.

Since our last talk, CGAP has expanded its policy and regulatory diagnostic work in branchless banking. New markets analyzed have included Colombia, Argentina and Indonesia, and we’ve continued to maintain close dialogue with the Reserve Bank of India and regulators elsewhere.

Also, the actual awareness of mobile banking in the field, i.e. what is and how it can work, has increased dramatically in the past. Last May we co-organized the first major annual event on “Mobile Money” for the unbanked in Cairo with the GSM Association (the industry body for the world’s 700+ mobile operators), IFC and DFID. That event got more than 500 paid attendees, most from private industry. And this week at the GSM World Congress in Barcelona, GSMA and other private sector players will announce additional activities in the space. DFID announced its new FAST program to encourage branchless banking this week. Initiatives like these are critical to get widespread adoption of the concept and to achieve scale. Moreover, major consulting and research outfits like Aite, Monitor and McKinsey have started research and published reports on the topic.

At the same time, our seven branchless banking projects have been slower to launch than we all expected two years ago. There have been some notable achievements — our Philippines partner has entered three new rural provinces and signed up about 80,000 new mobile banking clients, and Telenor bought 51 percent of Tameer Bank (our partner in Pakistan) to jumpstart its mobile banking initiatives. But in general the implementation of mobile / branchless banking has been slower than anticipated.

VG: Why do you think this is? Continue reading

Transfer money after the beep

Here is an interesting approach to the technological hurdles of mobile banking. Called Cashnxt, this venture in Kerala, uses high-pitched sounds via mobile phones to encrypt and decrypt the secure data needed to perform a financial transaction. An article on ReadWriteWeb, explains it as such:

As a customer, if you and a vendor are a member of the Cashnxt network, you can conduct transactions using your mobile phones. The merchant dials CashNxt’s IVR number, enters their PIN and transaction amount, and then hears a high pitch sound on their mobile phone. The customer does the same – calls the IVR number, enters their PIN and hears a high pitch sound. The two phones are then brought together, held close enough for CashNxt to encrypt and decrypt the sounds. 

Go after the jump to see a youtube video of the process:

Continue reading

Checking in on CGAP and Branchless Banking

When I heard that Gautam Ivatury of CGAP would be at NYU’s “From Innovation to Impact” Conference, I thought it would be a great time to follow up with my previous interview with him.  While he did not have time to talk today, we are going to schedule a follow up soon.  Nevertheless, I was able to listen to his presentation on what CGAP has been doing to help move the market to be more amenable to branchless or mobile banking.

Here are a couple highlights from his talk, but stay tuned for a more in depth interview in the coming weeks.

  • The most interesting point raised was the importance of centering the business plan around the potential agents.  In essence, branchless banking would operate in the same way people currently refill their cell phones throughout India.  A shopkeeper, authorized by a bank or cell phone company to accept withdrawals and deposits, would receive an SMS or some other communication from a customer’s phone and then either accept the deposit or disburse cash.  Ivatury emphasized that such models have only been successful when it is designed to ensure that it is profitable and worthwhile for these agents themselves — a point, while obvious, can be easily overlooked by a major player.
  • Ivatury also commented on the process of actually “moving the market” — or getting the greater financial community on board and outlined the process as such:
    1. Research and Information — first find the data that must be presented
    2. Synthesis — analyze the data in a way that is clear and concise
    3. Communicate — get mainstream media, like the Economist or Financial Times, to pick it up
    4. Influence — once major players are aware, bring them together through events to persuade them to adopt it
    5. Market Changes