Dear colleagues
Thank you for this invitation… and we look forward to take part in the discussion.
Indeed, the current Corona emergency is expected to have the greatest challenge especially to communities with majority leading vulnerable livelihoods. That would also have high implications on operations of institutions working closely with such communities. Financial service providers like MFIs would be among the institutions to bear highest risks. MFIs have different experiences…. Specifically on saving services, early observations suggest that those institutions who have been very active on supporting rural and urban people through their flexible saving services have built positive public image. Indeed, saving collection has slowed down, mainly because many businesses (and income generation) have slowed down. For some MFIs such innovative saving mobilization initiatives as (Susu-type) door-to-door collections have to be stopped, to limit contacts especially at businesses, markets where many people gather. As expected, saving withdrawal has been increasing, as households want to stock some consumption items in this uncertain moment. Some saving clients who committed for ‘’time deposit’’ also withdrew their money, before the contractual time, and foregoing the potential higher saving interest rate that could be enjoyed if original contract was to be maintained. In fact, it was found out, that some savers withdrew their savings, panicking about the uncertain future, and expecting that the MFIs could as well collapse. Yet easy access to their saving deposits is said to be appreciated by clients, who now can cope better from their vulnerable circumstances. … Some MFIs are also demonstrating their commitment to their social objectives by actively implementing health related directions, and supporting their clients. Such MFIs have already distributed soap, alcohols, sanitizers, etc to field offices, and created awareness on Corona for those who come to group meetings, or MFI office, knowing that such clients have very limited or no other opportunity to get awareness on this emergency.
But some of us still do not have access to the new book (The Future of Microfinance). Is it not possible to get a copy??
Dear colleagues
Thank you for this invitation… and we look forward to take part in the discussion.
Indeed, the current Corona emergency is expected to have the greatest challenge especially to communities with majority leading vulnerable livelihoods. That would also have high implications on operations of institutions working closely with such communities. Financial service providers like MFIs would be among the institutions to bear highest risks. MFIs have different experiences…. Specifically on saving services, early observations suggest that those institutions who have been very active on supporting rural and urban people through their flexible saving services have built positive public image. Indeed, saving collection has slowed down, mainly because many businesses (and income generation) have slowed down. For some MFIs such innovative saving mobilization initiatives as (Susu-type) door-to-door collections have to be stopped, to limit contacts especially at businesses, markets where many people gather. As expected, saving withdrawal has been increasing, as households want to stock some consumption items in this uncertain moment. Some saving clients who committed for ‘’time deposit’’ also withdrew their money, before the contractual time, and foregoing the potential higher saving interest rate that could be enjoyed if original contract was to be maintained. In fact, it was found out, that some savers withdrew their savings, panicking about the uncertain future, and expecting that the MFIs could as well collapse. Yet easy access to their saving deposits is said to be appreciated by clients, who now can cope better from their vulnerable circumstances. … Some MFIs are also demonstrating their commitment to their social objectives by actively implementing health related directions, and supporting their clients. Such MFIs have already distributed soap, alcohols, sanitizers, etc to field offices, and created awareness on Corona for those who come to group meetings, or MFI office, knowing that such clients have very limited or no other opportunity to get awareness on this emergency.
But some of us still do not have access to the new book (The Future of Microfinance). Is it not possible to get a copy??
Getaneh (getanehg2002@yahoo.com)