Microfinance Initiative
| What is it? |
A group of Young Global Leaders (YGLs) are developing a paper called “Eight Business Model Breakthroughs for Microfinance”, which aims to challenge conventional wisdom and paradigms in the industry, and highlight issues that need to be addressed in order for the industry to achieve scale and efficiency. The key areas of focus include payment systems, mobile phones, automated credit underwriting, information technology, new channels of distribution, new products, leveraging the mainstream financial system and creating a supportive policy environment. The paper will include case studies in each of these areas.  |
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How does it work? |
Once the paper is finished, the YGL community can become a voice stressing the breakthroughs and advocating the microfinance industry in order to create public awareness and engage the private sector and entrepreneurs in further developing the industry. The paper aims to become a catalyst for specific microfinance projects and promote a conducive regulatory environment. |
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What has been achieved so far? |
The draft “Eight Business Model Breakthroughs for Microfinance” paper was presented to a group of microfinance experts in New York in October 2006, during a workshop. Recommendations were included and the policy paper was reviewed. Owing to the Microfinance task force, projects in the area of information technology have already started.Two specific projects are being developed by Salesforce.com and by SunGard. |
| Next steps? |
The final paper is presented at the Young Global Leaders Annual Summit 2007 in Dalian, People’s Republic of China. |
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Unique value of the YGL contribution: |
The YGLs bring an outsider view to an industry that has great potential but lacks scale and efficiencies to grow exponentially. |
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How can you help make it happen? |
The group is looking for a senior writer to turn the material currently collected into a finished paper, a commitment of approximately three weeks’ time. |
| Task Force Champions |
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| Who to contact? |
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| More information: |
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