Microfinance associations provide value to microfinance institutions (MFIs) in several ways: 1) They conduct research to inform the sector and provide MFIs with broader context and perspectives beyond their individual operations. 2) They develop broad-based knowledge of the sector to help stakeholders such as investors and governments and help streamline information. 3) They create a non-political forum for dialogue among members to educate the public and increase credibility and acceptance of microfinance products and services.

1. VALUE OF MICROFINANCE NETWORKS
TO BE PRESENTED AT THE GLOBAL MICROCREDIT
SUMIMIT
BY
DR. JENNIFER N. RIRIA, PHD, MBS,
ICON / HP
NOV 14TH - 16TH 2011

2. MICROFINANCE ASSOCIATIONS VALUE ADD
TO MFIS
1. Research To inform on the status of
the sector.
Provides broader context in their
operating environments. Individual
institutions do not have the
resources or time to carry out sector
research, hence their perspectives on
broader issues are missed out.
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3. 2. Broad Based Knowledge of the sector
enables the associating stakeholders,
in the sector including investors and
Governments to be well informed on:
a. Causes and approaches to reduced
inefficiencies in the sector
b. Streamline and standardize
information from one centre that
is useful to all stakeholders.
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4. c. Provide useful correlated data that
provides credibility in argument for
issues in the sector.
d. Acceptable data from the centre is a
basis for approaches that are of value to
all members of the industry e.g social
performance Management, Risk
Management, e.t.c
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5. MICROFINANCE ASSOCIATIONS VALUE ADD TO MFIS
(Continued)
• Provides opportunities for lateral learning and
• Enhances sector positioning and voice.
• Accurate perspective of the sector, through
acceptable correlate data, facilitates up-take of
new developments that enhance provision
financial services to clients.
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6. MICROFINANCE ASSOCIATIONS VALUE ADD TO MFIS (Continued)
3. Creates a non-political forum for
dialogue among members and carry on
publicity for the purposes of educating
the public with regard to the scope
importance and activities of the
microfinance industry.
Visibility translates into credibility and
acceptance of the products and
services provided in the sector.
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7. 4. Has the capacity to develop a
sustainable Microfinance industry
which can outline the supply of donor
funding and shift reliance to local and
international financial markets for
funding regardless of the institutional
form.
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8. 5. Lobbies for policy articulation and
change – hence providing a viable
regulatory framework as a platform for
microfinance operation.
6. Promotes best practices and global
changes that have positive impact on
the industry as a whole.
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9. 7. Maintains close co-ordination and liaison
with the Government Ministries and
agencies including the Central banks, and
all other financial institutions,
development partners and other
organizations for realizing the ultimate
aim of Microfinance industry.
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10. 8. To constantly co-ordinate the review
of procedural, legal, technical,
administrative or professional
developments in the Microfinance
industry, and attempts to coordinate
collective approach to these for the
benefit of the industry.
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11. THANK YOU
DR. JENNIFER N. RIRIA, PHD, MBS, ICON/HP