Author: Mariel Vincent Rapisura

Delinquency is one of the major challenges that wholesalers face. The course enables participants to understand delinquency by tracing its causes and costs from various perspectives. Workshops will be conducted to teach wholesalers on how to measure delinquency using international standards and financial indicators. The course will discuss prescribed report formats integrated in the organization’s information system to track important information for decision-making. Aside from these, the course also includes topics on risk management, principles and methods of collection, and incentive schemes for delinquency crises. The course will also present research results of the most common delinquency problems that MFIs face, and how successful MFIs have addressed these problems.

Excellent customer care is essential to the rapidly changing landscape of the microfinance industry. Amidst the increasing number of microfinance players, providing clients with utmost care play a key role in the success of the organization. The course will start with understanding customer care and why there is a need to invest in it. The challenges of customer service and the strategic dimensions to undertake it will also be presented in this course. Participants will explore the role of the microfinance institution in crafting and sustaining delightful customer care for their operation. The course extends the process of customer care not only to the clients of the microfinance institutions but to the employees as well. In order to effectively deliver products and services to retain clients, the institution must have systematic and efficient strategies of motivating their employees. Customer care emphasizes the sustainability of a program through a thorough measurement of customer service levels provided by an institution. In addition, this course will also discuss how to take advantage of technology in order to develop and improve customer care. To end the course, industry research and practices on customer care and product and service delivery will also be shared with the participants.

Conflict is natural and common phenomenon in social interaction. Every person and organization faces conflict. There are positive and negative outcomes of conflict. What makes conflict negative or positive is the way in which it is handled. The course introduces different theories of conflict and different perspectives used to understand and assess conflict. The training course also examines the nature of conflict as it occurs in organizations, how conflict can function both destructively and constructively in that context. In addition, various approaches to managing conflict would also be discussed. The differences between negotiation and mediation would also be discussed, as well as the use of communication skills to minimize and even prevent conflict. At the end of the course, the participants are expected to be able to gain skills to be able to manage conflict effectively.

Most microfinance institutions turn to automation to solve their bookkeeping system problems. However, most software providers do not have enough background in microfinance, therefore, software designs are not attuned to the needs of microfinance institutions. Off the shelf software, on the other hand, do not have the required flexibility to adapt to policy and changes in operations. The color-coded bookkeeping system is an alternative bookkeeping system specifically designed for microfinance institutions. The system, once installed and diligently applied, will enable microfinance institutions produce aging of loans on a daily basis; strengthen internal controls; and measure the performance of loan officers, branches and the institution as a whole. The scheme follows a color-coded technique that guides management in crafting required reports that are necessary in making well-informed decisions.

Most commercial financing institutions use asset-based or project-based lending since their target clients are those that have collateral and are able to craft business plans. However, microfinance clients neither have the assets nor the skills to qualify loans from traditional commercial funding sources. Thus, microfinance uses character and cash flow as the basis for extending loans to them. The course enables participants to assess current client selection processes; articulate the principles of microfinance as guide for client selection; practice the use of cash flow and credit and background investigation; modify loan application forms to capture essential information that could be used to evaluate a client’s character; and identify policy gaps to improve client selection and retention. The course hopes to improve the portfolio quality of microfinance institutions and at the same time provide better and more efficient financial services to their clients.

Outreach is important in achieving the dual mission of a microfinance institution, social mission and financial sustainability. Forming centers are crucial for microfinance institutions (MFIs) practicing group methodology. In addition, loan application form is crucial to assess the character of a potential microfinance client. The training on center formation and loan application form teaches microfinance managers and staff on the importance of proper client selection in the provision of microfinance products and services. The course aims to show how proper administration of client selection procedures affects different aspects of an organization’s performance. In this course, a brief introduction on the fundamentals and methodologies of microfinance will be presented to provide the participants with a background on microfinance clients and the impact of microfinance in their lives. The different lending approaches will also be discussed, with emphasis on character and capacity-based lending. Participants will be given tips on area selection, center formation and client selection, particularly through analysis of the loan application form. The training also provides a venue for microfinance practitioners to share their experiences on opening new areas and selecting new clients.

An important means to address delinquency is through proper client selection. Cash flow and credit and background investigation are techniques use to select clients properly. This course provides an in-depth discussion of two aspects of character and capacity-based lending: cash flow analysis and credit and background investigation (CI/BI). The provision of microloans relies on these in approving loan applications because microentrepreneurs have little or no collateral, and the cost of collateral registration usually exceeds the amount of the loan. The course emphasizes the importance of client selection procedures in sustaining MFI operations. Many microfinance institutions face delinquency problems when inadequate attention is given to client selection. The training is participatory, with exercises on cash flow analysis and simulations of CI/BI interviews. Participants will also be given tips for collection, client monitoring and follow-up.

The business planning for microenterprises course is designed to improve the management skills of microentrepreneurs. The course enables microenterprises to craft their own vision and mission; assess the external environment where they work; identify and evaluate opportunities; improve delivery of products and services; craft a personal financial plan; and learn techniques in marketing their products and services. The training approach employed is attuned to the capacity of most microentrepreneurs to absorb new learnings. The business planning process also render microenterprises ways and means to access cheaper suppliers; access funds; link with other markets; and negotiation. At the end of the course, participants will have their own business plans that they could readily implement.

With the success of the provision of credit among the poor, the utilization of credit for adequate income and employment generation is a cause of concern for most of microfinance stakeholders. It has been observed that microenterprises need an enormous range of services, not just financial. This course is designed for microfinance institutions who are exploring the possibility of providing business development services (BDS) to their clients. BDS is for MFIs who wish to assist their clients in improving the performance of their enterprises, their access to markets, and their ability to compete. The course discusses the situation of microenterprises in the Philippines and the core principles of microenterprise development. Existing business development services in the market will be presented, along with current market needs based on research results. The training also assesses the institutional readiness of MFIs for business development services. Participants are expected to learn the different types of business services they can provide, and the different ways of identifying commercially viable solutions and designing appropriate BDS interventions.

Branch viability is the capacity of a branch to sustain its operations and continuously create value for the organization and its clients. The branch viability course discusses the standards for assessing branch viability, including indicators for measuring the performance of staff members and of the organization as a whole. The course includes sessions on basic financial analysis and financial management that are necessary both for assessing the feasibility of opening new branches and improving the performance of current branches. The training approach is largely participative, allowing knowledge-sharing between participants on the challenges they are facing in their organizations. Towards the end of the course, the necessary steps toward sustainability will be discussed, with recommendations and specific action points for the participating organizations.