Strengthen the capacity of the microfinance sector to extend financial inclusion to the poorest and most vulnerable members of their communities.
2 billion people worldwide are unbanked. Without access to the formal financial system, people are left to transact in ways that are often risky, wasteful, and inconvenient. Financial inclusion is an important driver of economic growth and poverty alleviation.
It is expensive to reach the unbanked, to understand their needs and develop relevant and affordable financial products and services. The competitive positions of Microfinance Institutions are constantly being challenged with regulatory and policy changes, new entrants to the market, expanding business outreach and new product offerings to clients. Intense competition puts pressure on Microfinance Institutions to focus heavily on financial performance, potentially at the cost of managing their social performance.
To meet these challenges and secure their position in the market, Microfinance Institutions need to ensure that the capacity and efforts of their staff are directed towards achieving the goals and mission of the organisation. Building staff capacity allows Microfinance Institutions to achieve their financial and social objectives, maintaining client trust and achieving operational sustainability.