Experts from Vietnam, Laos, the Philippines, Georgia, Tajikistan, SriLanka and the Netherlands have shared their expertise to helpvulnerable people to have access to microfinance at a recent conferencein Hanoi, according to local newspaper.
The microfinancesector in Vietnam is still developing at a healthy pace. Not only is thesector still growing, but the microfinance institutions of Vietnam areincreasingly looking for better ways to reach marginalised and poorcommunities.
According to Sebastian Dinjens, director ofINFI, an exchange network or microfinance professional across the Asia,the sector is looking for ways to reach more clients that may bedifficult to access.
“But to be able to do that, they need toprofessionalise more on Social Performance Management, and design theirproducts to fit specifically with the needs of marginalised people,”the Vietnam Investment Review quoted Dinjens as saying at theconference “Balance in microfinance - seeking harmony between social andfinancial performance”.
The February 24-25 conference aims toequip the development projects and microfinance institutions with SocialPerformance Management and seeking for the balance in theirmicrofinance practice.
The Social Performance Managementstandards respond to an industry concern that institutions have lostfocus on their clients.
Most institutions claim to improveclient welfare, but for the last two decades many institutions havefocused more on financial sustainability than on the needs of clients.Many of these institutions are driven by financial outcomes because theyonly manage financial performance.
Institutions with asocial purpose must also manage their social performance. By definingand promoting strong SPM, these Standards contribute to refocusinginstitutions on the client.
Therefore, the introduction and applying of SPM is a solution for these issues.
INFI is an exchange network for microfinance professionals acrossAsia. The initiative was started by international organisation MCNV thathas been working in development in Vietnam for 45 years.
There is a lot of experience in Vietnam and across Asia on how to reachmarginalized groups more effectively. The key is to get that expertisefrom all over the world and use it to enrich the Vietnamese microfinancesector.
Many of the organisations in Vietnam are workingwith people with a low level of education, sometimes even not entirelyliterate.
These groups often live in rural areas whereagriculture is the main market. Increasing trade with other countries iscreating many opportunities, but these people lack the capital toproduce on a scale that can serve the market.
Dinjens explains that what he often sees is that these people are very able to manage their finances on a small scale.
“Theyspend, produce and save money just like anybody, and often can create aregular income to help them survive. But what they are able to save isoften not enough to invest in their own business. This is wheremicrofinance services can help. By giving these people a loan for theirbusiness, they can invest to grow their business without too much risk.But it requires microfinance organisations to be knowledgeable about theneeds of their clients, and willing to invest in the small businessesof rural Vietnamese,” he said.-VNA
The microfinancesector in Vietnam is still developing at a healthy pace. Not only is thesector still growing, but the microfinance institutions of Vietnam areincreasingly looking for better ways to reach marginalised and poorcommunities.
According to Sebastian Dinjens, director ofINFI, an exchange network or microfinance professional across the Asia,the sector is looking for ways to reach more clients that may bedifficult to access.
“But to be able to do that, they need toprofessionalise more on Social Performance Management, and design theirproducts to fit specifically with the needs of marginalised people,”the Vietnam Investment Review quoted Dinjens as saying at theconference “Balance in microfinance - seeking harmony between social andfinancial performance”.
The February 24-25 conference aims toequip the development projects and microfinance institutions with SocialPerformance Management and seeking for the balance in theirmicrofinance practice.
The Social Performance Managementstandards respond to an industry concern that institutions have lostfocus on their clients.
Most institutions claim to improveclient welfare, but for the last two decades many institutions havefocused more on financial sustainability than on the needs of clients.Many of these institutions are driven by financial outcomes because theyonly manage financial performance.
Institutions with asocial purpose must also manage their social performance. By definingand promoting strong SPM, these Standards contribute to refocusinginstitutions on the client.
Therefore, the introduction and applying of SPM is a solution for these issues.
INFI is an exchange network for microfinance professionals acrossAsia. The initiative was started by international organisation MCNV thathas been working in development in Vietnam for 45 years.
There is a lot of experience in Vietnam and across Asia on how to reachmarginalized groups more effectively. The key is to get that expertisefrom all over the world and use it to enrich the Vietnamese microfinancesector.
Many of the organisations in Vietnam are workingwith people with a low level of education, sometimes even not entirelyliterate.
These groups often live in rural areas whereagriculture is the main market. Increasing trade with other countries iscreating many opportunities, but these people lack the capital toproduce on a scale that can serve the market.
Dinjens explains that what he often sees is that these people are very able to manage their finances on a small scale.
“Theyspend, produce and save money just like anybody, and often can create aregular income to help them survive. But what they are able to save isoften not enough to invest in their own business. This is wheremicrofinance services can help. By giving these people a loan for theirbusiness, they can invest to grow their business without too much risk.But it requires microfinance organisations to be knowledgeable about theneeds of their clients, and willing to invest in the small businessesof rural Vietnamese,” he said.-VNA
