Dhaka, Bangladesh April 29, 2024 - The Microcredit Regulatory Authority (MRA) and International Finance Corporation (IFC) organized a seminar this week aimed at sharing insights from their recent Microfinance Sector Development Diagnostic study.
Conducted by FinValue Advisors under the auspices of MRA and IFC, the study delves into two critical components: Digital Transformation and Housing Microfinance (HMF). These components assess the current landscape of digital initiatives and housing microfinance endeavors within the sector. Moreover, the study illuminates the industry's appetite for change, a crucial aspect in propelling sectoral development and modernization.
Over 25 Microfinance Institutions (MFI) spanning diverse categories, participated in the diagnostic process alongside key government stakeholders and private sector institutions. The collaborative effort focused on pinpointing institutional readiness, evaluating existing regulatory frameworks, gauging market infrastructure viability, assessing consumer readiness, and estimating the requisite financial investments for digital transformation and housing microfinance initiatives.
This seminar marks a significant stride towards fostering collaboration and knowledge exchange within the microfinance landscape, ultimately paving the way for a more inclusive and digitally empowered financial ecosystem.
Martin Holtmann, IFC's Country Manager for Bangladesh, Bhutan, and Nepal said "Microfinance has been an important part of the development journey of Bangladesh. As our economy transitions from Least Developed Country (LDC) status to the next level, the Microfinance industry can continue to play a crucial role. This is right time for all stakeholders to discuss the key reforms and capacity building that need to be implemented to transition and support the country's growing economy. IFC is here to support modernization of the sector, enable MRA and MFIs to build their own capabilities, introduce modern governance and solid risk management practices, and leverage technology."
The roadmap laid out by the study is a guide for stakeholders to create a strong housing microfinance portfolio, giving members the chance to build secure futures by owning homes. To make digital transformation and housing microfinance work on a larger scale, a supportive environment across regulations, infrastructure, and institutions is needed. This roadmap brings together the IFC, MRA, MFIs, and others to take meaningful steps that truly benefit microfinance consumers.
About MRA
The Microcredit Regulatory Authority is the central body to monitor and supervise microfinance operations of non-governmental organizations of the People's Republic of Bangladesh under the Financial Institutions Division, Ministry of Finance. The regulator's ambit is to ensure transparency and accountability in the sector while furthering financial inclusion in Bangladesh. Within the MRA's jurisdiction, a total of 731 MFIs are actively engaged in providing microcredit services to an impressive 40.86 million individuals. For more information, visit www.mra.gov.bd
About FinValue Advisors
FinValue Advisors Pvt. Ltd. is a policy and strategy advisory partner for governments, bilateral and multilateral funding institutions, and financial service providers, particularly focusing on inclusive finance. The team collaborates with stakeholders in emerging countries to design evidence-based policy and market-based interventions aimed at enhancing the financial well-being of underserved communities, with a specific emphasis on women, youth, and MSMEs. For more information, visit www.finvalue.org
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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