Microfinance Strategy primarily provides consulting services to banks and institutions involved in MSME finance. Additionally, Microfinance Strategy experts advise international organisations, second-tier financial institutions, state entities and regulatory agencies on policy and structural issues. Finally, Microfinance Strategy offers due diligence and related consulting services to private and public investors.
Microfinance Strategy experts advise microfinance institutions, commercial banks, regulatory agencies, governments and international financial institutions to solve complex problems, develop innovative approaches and design long-term strategies. Their experience and expertise spans a wide range of industries and geographies, providing a valuable basis for evaluating market dynamics, the political and regulatory context and organisational strengths and weaknesses. Microfinance Strategy experts can draw on this understanding to design high-impact strategies and define measurable results for clients.
Members of their management team and advisory board have strategy consulting backgrounds with reputed organisations like McKinsey & Co. and Gemini Consulting (now part of CapGemini).
Strategy Implementation, Capacity Building and Institutional Strengthening
Microfinance Strategy can assist client institutions in strategy implementation, strengthening systems and processes, and building capabilities and competencies.
In the context of financial services and specifically MSME finance, this can include the reengineering of credit processes and methodologies; the reinforcement of risk management tools and internal controls; reform of organisational structures and incentive systems; selection and training of staff; the profitability analysis of both products and branches; and product design and development.
Crisis Management, Restructuring and Turnaround
Microfinance Strategy offers critical assistance to microfinance institutions that are underperforming, in crisis or in need of making step-change improvements. Clients can be the institutions themselves, investors or other associated parties. Their experts work alongside the management team to first stabilize and strengthen operations and then to develop and implement appropriate growth and/or profitability enhancement strategies.
In terms of financial institutions, a major focus in crisis situations is on credit portfolio restructuring – including the reengineering of credit operations; credit risk and portfolio quality management mechanisms; back office functions and internal controls (including MIS); incentive programmes; loan collection systems; and loan recovery / workout processes.
Microfinance Strategy experts boast an impressive track record in crisis management and troubleshooting – including the restructuring of MSME credit operations in various CIS and Eastern European countries from the mid-nineties onwards (including several EBRD partner banks). Microfinance Strategy is currently executing several restructuring and credit risk management projects in the region with leading microfinance institutions in the region as consultant to EFSE, KfW and other organisations.
Mergers and Acquisitions
The highly fragmented state of the microfinance industry in several mature markets makes a consolidation process within or across markets inevitable over time.
Microfinance Strategy can carry out the pre-merger strategic evaluation and due diligence of M&A candidates; help clients in formulating an appropriate consolidation strategy; and accompany the post-merger process in operational, cultural and strategic aspects.
Our IT experts have worked with different financial services information systems; developed or customised existing systems for leading microfinance institutions or commercial banks operating in the microfinance sector; advised both first tier and second tier microfinance institutions; and designed and developed new management information systems for the microfinance industry.
In addition to designing a cost-effective IT strategy taking into account operational and reporting requirements, our IT experts can manage the entire process of selecting, developing and customising management information systems. Microfinance Strategy consultants can train IT personnel, establish ‘best-practice’ guidelines, track system performance post-implementation, and accompany local staff in the further development and adaptation of the system. In the context of credit risk management, Microfinance Strategy experts review the quality of information available through existing MIS reports and recommend necessary changes to provide credit and collection departments with appropriate reports to help improve credit quality across the institution.
Last but not least, Microfinance Strategy experts can select appropriate hardware for the operational requirements of the specific institution.
Project Management and Backstopping
Project management and backstopping are key factors in determining the success of often complex projects.
The Microfinance Strategy team brings a wealth of experience in project management and backstopping roles, ranging from long-term projects for multilateral organisations – such as the EBRD’s Russia Small Business Fund and the Inter-American Development Bank’s Global Microfinance Programme in Ecuador – to short-term strategy projects for leading multinational companies in a variety of industries and sectors.
Where is Microfinance Strategy