Microfinance jobs for beginners

The microfinance sector is growing, and so are opportunities for those interested in building a career by helping the poor access financial services on equitable terms. But, starting in microfinance can be daunting since the maturation of this industry has lead to greater competition for jobs and demand for advanced skills. Jobseekers may also be overwhelmed by the different types of “nonprofit” and commercial “for-profit” entities that serve the working poor. The Mix Market, an online platform for microfinance stakeholders, currently lists 1,337 microfinance institutions along with hundreds of organizations that fund and support their mission. The PlaNet Finance Group reckons that more than 10,000 MFIs serve an estimated 150 million people globally. Due to the grassroots nature of microfinance, the bulk of jobs are situated in the field and are staffed by local hires. But there are opportunities for people everywhere to contribute, whether it be with a microfinance institution, international network or service provider. Microfinance institutions These are the financial institutions that directly lend to micro-borrowers and are predominantly staffed by local hires in developing countries. Many of these institutions are not banks, although they may hold client savings and offer additional financial products. MFIs can be for-profit corporations, such as Equity Bank in Kenya or NGOs like the Bangladesh Rural Advancment Committee, which provides health and educational services along with microloans. Generally, there are two types of entry-level positions at an MFI: loan officer and support personnel. Loan officers The position of loan officer may be the most important in the microfinance community since loan officers are in direct contact with borrowers. “If the loan officer goes, so do the clients,” as one MFI executive director put it. The role of loan officer includes screening loan applicants, attending peer group meetings to collect repayments, training, and managing delinquencies. MFIs put a great deal of time and money into training their loan officers and their opportunities for advancement to more senior positions. Loan officers typically work from a branch office and frequently travel to visit clients. A secondary school or college degree is usually a requirement. This position might be a good start for those who enjoy customer service, understand group dynamics and prefer an independent work environment. Support personnel These positions require specialized skills in areas such as accounting, finance, information technology and human resources management to support the lending activities of an MFI and raise financial capital. A college degree, professional certification or master’s degree is usually a prerequisite. Support personnel can work out of a branch office or headquarters. A support personnel role may be a good fit for those transitioning from another field and have the aforementioned skills in information technology. International networks These are organizations that fund and provide technical assistance to MFIs. The major networks based in the United States and Europe include New York-based Women’s World Banking, Chicago-based Opportunity International, the Washington-based Grameen Foundation and Foundation for International Community Assistance International, Boston-based Accion International, Seattle-based Unitus, as well as Paris-based PlaNet Finance and Eclof International, which is headquartered in Geneva. Microfinance networks offer job opportunities in the field or at headquarters for either local hires or foreign country nationals. Network organizations have different models of “membership” that range from partnerships, as is the case with the Grameen Foundation, to wholly-owned subsidiaries, as with Finca International. Starting new MFIs, known as “green fielding,” is becoming rare, however, due to the volume of institutions that already exist. Network portfolios may also be focused on particular regions of the world and clients. For example, New York-based Pro Mujer concentrates its microfinance services to women in Latin America. Networks fund their activities through a variety of sources including donors and capital markets, and they are typically structured as foundations. Program assistant or officer Program assistants and officers perform a range of tasks including project management, administration, and technical assistance and evaluation. Serving as such a “jack of all trades” can be a career starter at network organizations. It requires at least a college degree focusing on business, economics, development or international relations and some practical field experience abroad. Program assistants typically work as “back office” support to MFI partners in the field while program officers have increased responsibilities that may include overseeing projects or funding and travel into the field. Foreign language proficiency can be a crucial skill for either position. The most in-demand languages include French, Spanish and Arabic, but also niche languages such as Pashto and Dari. Technical experts As microfinance evolves, desired skill sets are becoming more specialized to include financial analysis, market intelligence, human resources and portfolio management. These positions usually require a graduate degree plus two to 10 years of work experience. Commercial banking experience is especially in demand as is some exposure to development work in the field. Fundraisers Fundraising from individuals and institutions is usually handled by a donor development team whose members have at least a few years of donor campaign experiences, even at the most junior level. When fundraising from commercial sources, networks have a capital markets team that put together debt and equity deals. Many networks also access grants, which requires a staff of proposal writers. Aside from the big networks, an array of investors and donors mainly provide financing for MFIs such as the International Finance Corp., U.S. Agency for International Devevlopment, Blue Orchard, Kiva.org, Calvert Foundation and the Bill & Melinda Gates Foundation. These institutions tend to have small staffs (6-50 personnel) of experienced professionals that deal with microfinance, and occasionally hire specialized advisors to assist their MFI partners. Service providers This broad category includes consultants, auditors and researchers. Large development consulting firms such as DAI and Chemonics International provide advice and implement the “macro” side of microfinance, wich includes developing credit bureaus and financial training for the MFI industry. Smaller advisory organizations such as Microsave work directly with MFIs. Specialized rating agencies like MicroRate and PlaNet Rating help bring transparency to the global microfinance industry through auditing and evaluations, and they mainly hire experienced microfinance professionals. Those interested in policy or research may want to consider positions at organizations such as Consultative Group to Assist the Poor, Financial Sector Deepening and the Small Enterprise Education and Promotion Network, which seek mainly analysts and project managers for permanent or contracted positions. There are also opportunities to volunteer or work on short-term contracts for MFIs and international networks. Either is a good way to get hands-on exposure and may lead to a full-time position. Two fellowship opportunities in the field include Kiva.org and Finca. An array of Web sites offer job listings and useful information on microfinance. Devex allows you access microfinance news, search for jobs and post a profile that is searchable for many employers. Idealist.org provides an extensive jobs list and information about nonprofits around the world, including microfinance organizations. Microfinance Gateway is the largest source for news and jobs specifically on microfinance, and Microfinancejobs.com posts mainly job openings in developing countries. Read more microfinance career advice: - How to Become a ‘Banker to the Poor’ - A Business School Focuses on the Poor - Tourism Industry Veteran Leaps to International Microfinance - Microfinance Careers at FINCA International - Kiva Fellows Connect Online Lenders with Borrowers Read more career advice articles.