As the microfinance industry grows and becomes more complex, governance plays an increasingly important role in managing sound institutions and preventing crises. Corporate governance provides the framework through which an institution’s diverse stakeholders—investors, board members, management, and employees—set the strategic vision, monitor performance, and manage risks. An institution’s governance structure helps mediate the interests of various stakeholders and protects the long-term health of the institution.
Good governance can help an institution fulfill its mission, increase efficiency, and improve its ability to attract customers and investors. New products, markets, providers, and financing strategies require a clear strategic vision and decision-making guidelines, agreed on by the institution’s various stakeholders. Managing the diverse objectives, expectations, and roles of investors, board members, management, and staff can be challenging, but institutions that invest in strong governance structures and processes will be better placed to navigate today’s complex operating environment.
What can you find in this Topic Hub?
Curated by FinDev editors, this Topic Hub offers you access to key resources contributed by organizations around the world who work on the topic of governance for microfinance institutions and financial inclusion. Our latest blogs and publications on this topic are featured here (in the Resources Tab above), and you can find a collection of papers, case studies and guides to explore further. When there are upcoming webinars, events and recent news on this topic, they will be featured in the Topic Hub as well, so make sure to come back regularly for the latest on this topic. Finally, we’ve selected some key additional resources, which are listed on the right here, where you can learn even more about this topic.
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Scale2Save partners FINCA and Centenary Bank in Uganda go from competition to cooperation, sharing service-distribution infrastructure for the benefit of end-user low-income customers.
More radical organizational change - in the form of self-management - is needed to solve microfinance’s optimization problem.