Fall 2008

Dear WWB Supporters and Friends

The full impact of the current food, fuel and, now financial, crises on microfinance providers and their clients is yet to be fully understood. MFI operating and financial performance remains strong, yet there is increasing evidence that increased borrowing costs and tighter liquidity will almost certainly affect their growth. The microfinance providers in the WWB network are closely monitoring the impacts on their clients’ businesses and households, while WWB works with them to ensure their continued access to finance even in these difficult circumstances.

Similarly, the WWB Leadership Team and I have been meeting weekly to monitor the impact of the markets on our ability to deliver on our commitment to deepen the WWB network members’ impact on low-income clients. While the market turmoil has unquestionably affected our current and future fundraising plans, the good news is that we have 70% of our 2008 funding goal and 50% of our 2009 goal in hand or committed. The tough part is going to be making up the balance.

The huge downturn in the markets led us to reconsider our plans for the WWB 2008 Annual Benefit. Instead of a formal dinner on November 13th, we have decided to hold a reception to honor the generosity of those who have helped us create lasting change in the lives of women around the world. For those who have already purchased tickets for the 2008 Annual Benefit, your tickets will be honored at the 2009 Annual Benefit, and you are also invited to attend the November reception. This will be an opportunity to meet WWB's board members, leaders of our network member microfinance providers, and other like-minded individuals in our community. To RSVP for the reception, please email Stephanie Waxman.

The economy and its effect on global philanthropy was very much on the minds of the world leaders, corporate and non-profit executives, and investors who attended the 2008 Clinton Global Initiative Annual Meeting in New York City at the end of September. WWB was honored to be invited to join a Mega-Commitment to Action to explore the potential of mobile banking to expand the benefits of microfinance to a greater number of the world’s poor. As many of you know, MFIs have had little success in using mobile phones as part of their growth or outreach strategies, largely because of the difficulties in finding a technology that works across geographies or achieves scale. At the CGI, I was honored to share the stage with former President Bill Clinton for the announcement of our commitment, “Using Technology to Reach the Next Billion,” which aims to study MFI readiness to successfully provide banking to the world’s “unbanked,” and develop best practices to help MFIs overcome the obstacles that currently exist. I also spoke on the Information and Poverty panel at the CGI, which explored how innovation in information and communication technologies has created unique opportunities to change the face of global poverty. Learn more about WWB’s commitment at the CGI.

In media news, I was quoted in a recent article by Dan Gross that ran in both Newsweek and Slate magazines, focusing on how subprime lending—which has been the subject of much negative coverage in the U.S.—can actually be a good thing when applied to the world’s poor. Read the PDF article, “Cheap loans at insanely high rates? Give us more.” I was also quoted in a Dow Jones’ article about the Campaign for Client Protection in Microfinance – a new project dedicated to developing client protection standards for the microfinance industry. Read the article, “Microfinance Groups Put Focus on Industry Standards.”

I was honored this month to be one of the first blog posters on the website MicroPlace.com, founded by my friend Tracey Pettengill Turner for people who are interested in socially responsible investing opportunities in microfinance. You can read my posting “Achieving the Double Bottom Line,” on the trend of commercialization.

Last month I spoke at the Banking on Women Conference in London, which focused on the potential of women as an untapped global market that needs to receive more attention from banks and financial institutions. With women starting or running successful businesses, taking on the family finance role, and living longer than men, it makes sense for them to start getting the recognition and attention they deserve from money lending institutions. While WWB has known and honored this for some time, it was good to be surrounded by like-minded men and women from all areas of the finance world who are committed to empowering women. I also traveled to Paraguay with several of my team members to attend the Inter-American Development Bank’s annual Microfinance Forum. This is the premiere gathering of bankers and microfinance practitioners from all over Latin America interested in advancing the sector regionally.

To make this dialogue more interactive please note our new feature: a space below for you to comment on my letter or anything else of interest on the WWB website. I look forward to hearing from you.

Warm Regards,
Mary Ellen Iskenderian