Microfinance Institution Network Models

Date Published: 
Apr 2006
Chemonics International

Identifying common traits among various microfinance network models

This report summarizes findings from the research that studied different international models of successful microfinance networks, and identified common criteria among networks. The research examined nine models of networks in Uganda, Nigeria, Kenya, South Africa, Bolivia, the Philippines, India, Azerbaijan, and the Arab World.

The data revealed that the majority of networks and associations are registered as either non government organizations (NGOs) or non profit organizations (NPOs). Findings include:

  • Four of the models studied have MFIs as members, while the others include international organizations and professionals in the field;
  • Most associations surveyed are managed by a board with a combination of employees, secretariat or executive staff;
  • Donors' grants, membership fees and occasional service fees are the main funding sources of networks;
  • Networks’' dependency on funds and grants raises questions about their sustainability;
  • Most networks had the primary objectives of advocacy and adoption of best practices, and the secondary objectives of linkages and regulation;
  • Networks’ main activities included capacity building, networking and communication.