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Relationship Management

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Women’s World Banking works directly with our network members to help them increase outreach, efficiency and profitability. Essential to this goal is WWB’s staff of relationship managers; experienced microfinance professionals who serve as the primary point of contact with network members, relationship managers analyze network members’ operations, financial health, policy context and competitive environment in order to help them prioritize needs, formulate strategy and implement change. For microfinance institutions (MFIs) in the early stages of development, WWB works in a labor intensive, hands-on way to build basic operational and organizational capacity. For those organizations that have achieved a high level of institutional capacity, we offer more specialized technical services.

WWB’s relationship managers work to build strong ties to our individual network members, maintaining and strengthening the “trusted advisor” role upon which all other services to the institution are based. Relationship managers’ areas of engagement are described below.

Strategic Planning

WWB provides a strategic review and diagnosis service for network members—assessing challenges the organization may face, identifying needs, adding market perspectives and sharing best practices from across the network and the industry. Annually, WWB’s relationship managers work to develop a joint action plan with network members, and provide ongoing strategic advice.

Service Delivery

The relationship manager helps prioritize network member needs, and lays the groundwork for WWB inputs, which include product development, capital markets or funding assistance, marketing and customer insight, and leadership development.

Brokering Relationships

Relationship managers also act as brokers of relationships, helping network members access external knowledge as well as financial and non-financial resources. In addition, we maintain historical and current knowledge of the competitive environment in which each network member operates, and help establish connections with financial and industry leaders in each country. WWB also coordinates peer-to-peer exchanges to foster learning from and collaboration with peers globally, particularly other network members.

Governance and Organizational Effectiveness

WWB helps MFIs strengthen their board and management structure by sharing best practices and developing self-assessment and performance monitoring tools, then working with management to implement necessary changes. WWB also helps MFIs build capacity by developing a comprehensive human resources strategy, and by facilitating management development and training programs for managers.

Bank Entry into Microfinance

WWB has been a pioneer in promoting the entry of commercial banks into the microfinance sector. Recognizing that banks possess many strengths that are needed in the microfinance sector—large distribution networks, multiple product offerings, and strong management information systems—WWB in 1999 began researching the obstacles to bank entry into microfinance. WWB brought together senior bank managers and microfinance institution managers in a learning exchange, and in 2001, formed the Global Network for Banking Innovation (GNBI). These 16 retailers and 8 wholesalers and specialized institutions from 14 countries were chosen because of their innovative approaches to microfinance as well as their willingness to share their experiences and practices. By sharing new innovations in the microfinance sector and learning about serving low-income customers directly from practitioners and industry experts, the GNBI has been at the forefront of the effort to attract commercial banks and other non-traditional participants to the microfinance sector. GNBI members are a diverse group, ranging from commercial giants like Citi, Deutsche Bank and ICICI Bank, India’s second-largest bank, to Financiera Interfisa, a finance company in Paraguay. Each GNBI member is a solid, respected, regulated institution committed to increasing the access of low-income clients to financial products and services. GNBI members have proven that microfinance is profitable, and that banks and MFIs have innovations and lessons to share with each other.

In 2006, GNBI retailers from 11 countries extended US$ 10 billion in microcredit to more than 10 million low-income people worldwide. The average loan size was US$ 990 and the average savings account is US$ 191. Forums hosted by the GNBI make an impact on the industry by providing concrete opportunities for members to join forces to influence financial sector policies. In June of 2007, WWB and the Ministry of Foreign Affairs of the Netherlands hosted the fourth annual meeting of the GNBI, in The Hague. The meeting convened more than 80 banking executives and microfinance experts from 15 countries to share innovations and best practices in providing financial services to microentrepreneurs.

WWB’s Expansion Strategy: India

It is estimated that in India 75 million households live below or just above the poverty line, and that more than 80 percent of these are unable to access credit at reasonable rates. Although more than 1,000 microfinance institutions exist countrywide to make loans of less than US$ 200—generally using the group loan model—there remain a great number of microentrepreneurs who need larger loans but are unable to obtain them. WWB is filling this gap by reaching entrepreneurs who seek microenterprise loans of US$ 200 to 3000 and are not currently served by banks or MFIs.

In 2007, WWB prioritized expansion within countries that have large, low-income populations and underdeveloped microfinance sectors. India is a natural site for this expansion strategy because of our long history of work there building the capacity of our current Indian network members, which are recognized as leaders in the sector. Deploying our expertise in introducing individual lending programs, WWB’s India expansion has forged new partnerships with financial service providers that previously offered only group lending or are looking to enter the microfinance sector. Once the platform for individual loans has been developed, we will also help assess demand for additional products including housing loans, savings and pensions.

Through this expanded work in India, WWB will assist financial institutions in better understanding the needs of individual lending customers, particularly those in urban areas. The vast majority of microfinance loans in India are designed to reach the rural poor, yet more than 20 million low-income entrepreneurs live in urban India, and few have access to financial services. WWB’s strategy also emphasizes product integration—ensuring that capacity is built within the institution in order to deliver expanded product offerings.

Through our expansion in India, WWB will increase the number of low-income entrepreneurs who have access to financial services, and improve the capacity of financial institutions to offer services to millions of potential individual loan customers.

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