Annual Report 2007 Women’s World Banking
Our vision is to improve the economic status of poor families in developing countries by unleashing the power inherent in women. We believe that when a woman is given the tools to develop a small business, build assets, and protect against catastrophic loss, she is empowered to change her life and that of her family. Drawing on our global diversity, resources and experience, WWB helps to strengthen our network of microfinance
Vision
organizations and banks, all of whom share our commitment to helping poor women access financial services and information. Women’s World Banking was established in 1979 to be a voice and change agent for poor women entrepreneurs. Our goal is to continue to build a network of strong financial institutions around the world and to ensure that the rapidly changing field of microfinance focuses on women as clients, innovators and leaders.
Contents Letter from the President Letter from the Board Chair WWB History About WWB The WWB Network Products and Technical Assistance Capital Markets and Financial Advisory Network and Relationship Management Women’s Leadership and Knowledge Sharing Clients of the WWB Network WWB Board Members Financial Statements Funding Partners and Supporters
Credits Vice President Global Resources and Communications: Sarita Gupta Senior Editor: Julie Slama Editor: Robert McNeill Design: Kari Litzmann Photography: Diane Bondareff Photo Editor: Rodney Gracia
2 3 4 6 8 12 18 24 30 34 36 38 40
Letter from the President
My first full year as president and CEO of Women’s World Banking coincided with a time of massive change in the microfinance industry. The year 2007 saw remarkable growth in the number of clients served by microfinance providers, and the entry of many new participants and investors. At WWB we spent a large part of the year strategizing as to how we must grow and adapt to meet the changing needs of our partner institutions. We also took time to reflect on what it means to be a network. According to research recently published by the Stanford Social Innovation Review, “networks of long-term, trust-based partnerships consistently achieve more sustainable mission impact than do organizations that try to do everything by themselves.” But to drive home the relevance of a network, an analogy might be apt. So, let me tell you about honey bees. A beehive is a complex community of different types of bees, each with a unique role to play, making the whole far greater than the sum of the parts. Similarly, a network functions best when many parts unite under a single mission, marshal resources, and assist each other toward a common goal. WWB network members share products and process
Mary Ellen Iskenderian
innovations, learn from each other, and hold each other accountable for results. The honey bee is not born knowing how to make honey; the younger bees are taught by the more experienced ones. A network likewise has to ensure that all members share a common mission and each has the capacity to deliver on its promise. A beehive is also a symbol of industry and cooperation. An individual bee in her lifetime only produces one-twelfth of a teaspoon of honey. Yet in the aggregate, bees worldwide produce more than two billion pounds of honey every year. The transformative power of microfinance is founded on women, because as each goes about her business, incremental though it may seem, she is also contributing to the health and well-being of her family and her community, helping to achieve lasting social and economic change. We have used the honeycomb motif in this annual report to visually tie together the various parts of the WWB network. In the following pages you will marvel at our network of microfinance providers who collectively lent more than one billion dollars in 2007—in small sums averaging less than US$ 500. They served 11 million poor microentrepreneurs, 75 percent of whom were women. WWB’s bank partners provided services to an additional 10 million clients. You will learn how the WWB global team provides technical advice, financial products and services, and training to our network members. You will meet the visionary women and men who conceived of Women’s World Banking three decades ago, as well as those who are leading WWB into the 21st century. You will also meet women like Mukarram Othman Asad of Jordan and Oyunchimeg Dendev of Mongolia, hard at work building their businesses. I invite you to read about our accomplishments of the past year, and learn how we are bringing about economic and social changes through our network of self-determined organizations, bound by a common vision of a world where every poor woman has the economic access, participation and power that is rightfully hers.
Letter from the Board Chair Mercedes Canalda
It is with great pleasure that I, on behalf of the other Board members, share with you WWB’s accomplishments in 2007. There are three in particular that I want to mention. The WWB network has expanded this year by welcoming two new members, Enda InterArabe (Tunisia) and Spandana (India). The addition of Enda enlarges WWB’s footprint in the Middle East, a region where microfinance is crucial for fostering women’s empowerment. Spandana is the largest women-led microfinance organization in the world, and ranks sixth in the 2007 Mix Market list of the world’s Top 100 Microfinance Institutions by Outreach. Additionally, the WWB Board approved the creation of an equity fund to finance the growth of network members who are transforming into regulated financial institutions. WWB has been a trusted advisor to these members for many years, and they are now asking WWB to continue its engagement as a “shareholder of conscience.” The fund will allow WWB to support its members in making the significant transition to become regulated organizations while maintaining their mission to serve low-income entrepreneurs, especially women. Finally, I am pleased to report that 2007 was a prosperous and strong year for WWB. In the past year, WWB doubled the contributions received from its worldwide base of supporters, a true vote of confidence in the organization. For WWB, this past year was also one of assessment, reflection and strategizing in order to build a stronger, more focused organization. This will allow WWB to increase its impact through a greater understanding of how to best deliver financial products and services to women. Simply put, a stronger organization leads to a stronger network, which will ultimately help reach more poor women entrepreneurs who are seeking to lift themselves and their families out of poverty. As the founder and president of Banco ADOPEM, the largest microfinance institution in the Dominican Republic, I know firsthand the important role that WWB plays in the microfinance industry. While every country faces its own unique set of challenges, there are also commonalities among microfinance institutions globally. By sharing knowledge and innovations, facilitating partnerships or developing institutional capacity, WWB helps us prepare for the future and grow in a sustainable way. WWB seeks to be the preeminent voice for women in microfinance. The other Board members and I are confident that WWB is well positioned to achieve this goal.
WWB History
T
he idea for Women’s World Banking was conceived
By the start of 2007, the global microfinance industry had
during the first United Nations World Conference
crossed a major threshold, reaching 100 million clients
on Women, held in Mexico City in 1975. At this
with financial services. Interest in microfinance continues
meeting, ten visionary women from five continents
to grow, and the general public and mainstream media
articulated a simple but innovative concept: that providing
are increasingly recognizing WWB’s central premise: that
small loans and other financial services to poor women
when given access to financial services and information,
entrepreneurs could be a major force in the global fight
poor women are reliable borrowers and dynamic
against poverty.
entrepreneurs, whose economic empowerment leads to
Women’s World Banking was founded in 1976 under
higher standards of living across entire communities.
the leadership of Michaela Walsh, who became the organization’s first President. In 1979, WWB was registered in the Netherlands as an international non-profit organization with the objective of providing poor women entrepreneurs with the capital and information necessary to build viable businesses. WWB’s founding Board of Directors consisted of eminent women leaders from a diverse range of cultures. During WWB’s pioneering first decade, we helped our network members evolve from fledgling grassroots organizations to rank among the top-performing microfinance institutions worldwide. In 1990, Nancy Barry became WWB’s second President. Over the next 16 years, Nancy spearheaded the successful expansion of the WWB network to include major banks, recognizing their potential as innovators in extending the reach of financial services to low-income populations. Mary Ellen Iskenderian, WWB’s President since 2006, is a leading voice for women’s leadership and participation in microfinance. She is also a strong advocate for greater partnership between mainstream investors and the microfinance industry, and for responsible bank entry into this rapidly expanding sector.
Michaela Walsh, founding WWB President; Mary Ellen Iskenderian, WWB President; Ela Bhatt, former WWB Board Chair; and Nancy Barry, former WWB President, at WWB’s Celebration of Women’s Leadership, November 9, 2007, in New York City.
Alumni Spotlight: Ela Bhatt Chair of the Board of Trustees 1988-1998 In November 2007, WWB honored Ela Bhatt for her commitment to women and microfinance and her leadership of WWB. In 1972, Ms. Bhatt, an Ahmedabad lawyer, took a radical step to improve the status of poor women workers. She helped a group of undocumented women laborers from the slums of Ahmedabad organize and form their own labor union— SEWA, which is now the largest trade union in the world. In 1974, to provide banking services to SEWA members, she founded SEWA Bank, one of the pioneering institutions of the microcredit movement. In 2007 after more than 30 years of fighting for the rights of poor women, she was named a founding member of “The Elders,” the historic group of world leaders and visionary thinkers convened by Nelson Mandela, Graça Machel and Desmond Tutu.
WWB has a long history of vision-
in the banking industry as Kenya’s first woman man-
Vice Chair of Citigroup and also served WWB as
ary women and men as board
ager of Barclays Bank. Ms. Okelo was a founder of the
a member of the Board of Trustees from 2003 to 2006.
members and staff. We would like
Kenya Women Finance Trust, and a pioneer in the creation
Ellen Johnson-Sirleaf, the
to introduce you to a few of them
of one of the most successful private schools in Africa.
current President of Liberia,
here. Michaela Walsh, WWB’s
Esther Ocloo, WWB’s first Chair
served on the WWB Board of
founding President, began her ca-
of the Board, from 1979 to 1985,
Trustees from 1992 to 1998, and
reer as the first woman partner of Boettcher & Company,
was the first woman to receive the
is Africa’s first elected female
and the first woman manager
Africa Prize for Leadership for her
head of state and Liberia’s first
of Merrill Lynch International.
creative solutions to the problems
elected female President. Gail Harrity, Chair of the
Nancy Barry, President of
of poverty, hunger and the distri-
FWWB/USA Board, became involved with WWB 30 years
WWB from 1990 to 2006, was
bution of wealth. A leader since the time of Ghana’s inde-
ago as a volunteer while attending the Yale School of
an executive at the World Bank,
pendence, Ms. Ocloo was the founder and first President
Management. She is currently the Chief Operating Officer
responsible for that organi-
of the business association Feder-
of the Philadelphia Museum of Art, and in 2002 was the
zation’s entrance into small enterprise lending. As
ation of Ghana Industries. Beatriz
first Eisenhower Fellow to go to
President of WWB, Ms. Barry was
Harretche, the second Chair
China. Ann Dunham Soetoro
twice named to Forbes’ list of
of the WWB Board, was the first
was WWB’s coordinator for policy
the 100 Most Powerful Women.
woman executive at the Inter-
research from 1993 to 1994, after
Mary Okelo, WWB’s Executive
American
Bank
years of working with the poor in
Vice President from 1990 to 1992,
in 1967. Stanley Fisher, Governor of the Bank of
Asia. She is more famously known
broke barriers of male dominance
Israel, was the Chief Economist at the World Bank,
as the mother of US presidential candidate Barack Obama.
Development
About WWB
W
omen’s World Banking is a global network
The WWB network is supported by a global team
of 54 microfinance providers and banks,
that works closely with our member institutions to
working in 30 countries to bring financial
develop innovative business strategies, strengthen
services and information to low-income entrepreneurs.
their organizations, and create products that best meet
The network serves 11 million clients directly, and
the needs of the poor in the communities they serve.
another 10 million indirectly through our bank partners
Based in New York City, WWB’s global team consists of
and others. WWB’s microfinance experts work hand-
40 microfinance professionals who deliver expertise in
in-hand with our network members to provide a range
serving the women’s market through product design and
of ongoing, carefully designed technical and advisory
distribution, access to capital markets, organizational
services and to actively promote the exchange of best
effectiveness, and peer-to-peer learning.
practices. During the past three decades, this global
WWB’s Global Network for Banking Innovation (GNBI) is
partnership has enabled many of our network institutions
a network of 24 major banks and regulated microfinance
to evolve from donor-dependent, philanthropic initiatives
institutions formed in 2001 to spur innovation in banking
to self-sustaining financial institutions offering credit,
strategies and in the development of products and
savings, insurance and other essential products and
services for the growing microfinance sector. The GNBI
services to millions of microentrepreneurs, the majority
advocates for policies that encourage bank entry into
of them women. In this partnership, network members
microfinance, and shares best practices and knowledge
are free to make their own decisions and reach their own
that will enable its members to better meet the financial
conclusions; WWB believes that self-determined, locally
needs of low-income clients.
controlled organizations know their markets best and are the real agents of change.
Why Microfinance and Women?
Microfinance, the provision of basic financial services to the poor, is a proven means of combating poverty. By providing loans, savings and insurance, microfinance institutions (MFIs) help poor entrepreneurs create and grow small businesses that sustain families and communities. In many parts of the world, being poor is synonymous with being female. Women are denied access to economic assets, power and participation in much greater numbers than men, and are less likely to earn a regular paycheck. Yet evidence shows that when women earn, they invest more of their profits than men in improving the lives of their children and families. To remain an effective poverty alleviation tool, microfinance must remain focused on women as clients, leaders and innovators. WWB
MFIs
Women Clients
Families and communities
Forbes Magazine’s List of the World’s Top 50 Microfinance Institutions WWB is proud to note that ten of its network members have been named to Forbes’ first-ever list of the world’s top 50 microfinance institutions, released in December 2007. The list, chosen from a field of 641 reporting microfinance providers, was prepared by the Microfinance Information eXchange under the direction of Forbes magazine. Rank Name
Country
1. ASA
Bangladesh
4. Fundación Mundial de la Mujer Bucaramanga
Colombia
8. Association Al Amana
Morocco
9. Fundación Mundo Mujer Popayán
Colombia
10. Fundación WWB
Colombia
32. MI-BOSPO
Bosnia and Herzegovina
34. Kashf Foundation
Pakistan
35. Shakti Foundation for Disadvantaged Women
Bangladesh
36. Enda Inter-Arabe
Tunisia
41. Caja Municipal de Ahorro y Crédito de Arequipa Peru
the WWB Network
21 20
11 12
9
Global Network for Banking Innovation (GNBI) Members (24)
17
8
16
1
Africa Microfinance Network (AFMIN) HEadquarters - BÉnin
Total Network Members
7 6 10
WWB Core Network Members (30)
54
Bolivia 1 Fondo Financiero Privado, FIE 2 Fundación Boliviana para el Desarrollo de la Mujer (FUNBODEM)
Paraguay 15 Financiera Grupo Interfisa
Chile 4 Bandesarrollo Microempresas 5 Santander Banefe
Key
*
Mexico 13 FinComún 14 Grupo Financiero Banorte
Brazil 3 Banco da Família
18 19
14 13
WWB Headquarters - New York City
Latin America and the Caribbean
2 15 3
4 5
Colombia 6 Corporación Mundial de la Mujer (CMM) Bogotá 7 Corporación Mundial de la Mujer (CMM) Medellín 8 Fundación Mundial de la Mujer (FMM) Bucaramanga 9 Fundación Mundo Mujer (FMM) Popayán 10 Fundación WWB (FWWB) Colombia Dominican Republic 11 Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) 12 Banco ADEMI
Peru 16 Caja Municipal de Ahorro y Credito de Arequipa (CMAC Arequipa) 17 Banco de la Microempresa (Mibanco)
North America USA 18 Citi Foundation 19 Deutsche Bank Microcredit Development Fund 20 ShoreBank Corporation 21 World Council of Credit Unions (WOCCU)
Africa BÉnin 22 Association d’Entraide des Femmes (ASSEF) 23 Association pour la Promotion et l’Appui au Développement des MicroEntreprises (PADME)
Burundi 24 Caisse Coopérative d’Epargne et de Crédit Mutuel (CECM) The Gambia 25 Gambia Women’s Finance Association (GAWFA) Kenya 26 Equity Bank 27 Kenya Post Office Savings Bank 28 Kenya Women Finance Trust (KWFT) Uganda 29 Finance Trust
Middle East and North Africa Jordan 30 Microfund for Women (MFW) Morocco 31 Al Amana Tunisia 32 Enda Inter-Arabe
$467
8.2 million
9.2 million
Average Loan Size of WWB Core Network
Number of Savers Served by WWB Core Network
Number of Borrowers Served by WWB Core Network
Europe Bosnia and Herzegovina 33 MI-BOSPO THe Netherlands 34 Triodos Bank Russia 35 Russian Women’s Microfinance Network (RWMN) Switzerland 36 BlueOrchard Finance
Asia Bangladesh 37 ASA 38 Delta Life Insurance Company 39 Shakti Foundation for Disadvantaged Women India 40 Friends of Women’s World Banking (FWWB) 41 ICICI Bank 42 SEWA Bank 43 SHARE Microfin 44 Spandana
Indonesia 45 Bank Rakyat Indonesia (BRI) Mongolia 46 XacBank 35
Pakistan 47 Kashf Foundation
34 36
Philippines 48 Center for Agriculture and Rural Development (CARD) 49 Negros Women for Tomorrow Foundation (NWTF) Sri Lanka 50 Janashakthi 51 National Development Bank of Sri Lanka (NDB) 52 Sarvodaya Economic Enterprises Development Services (SEEDS)
46
33 32 31
30 47 40 42
25 22 23
*
29 28 27 24 26
Thailand 53 Bank for Agriculture and Agricultural Cooperatives (BAAC) 54 Government Savings Bank of Thailand (GSB)
44 43 41 50 51 52
39 38 37 53 54
48 49
45
64 percent
$1.4 Billion
8.8 million
Percentage of Women Board Members in the WWB Core Network
Gross Loan Portfolio of WWB Core Network
Number of Women Clients Served by the WWB Core Network
The Value of a Network [Rather than] advocate for a specific method of microfinance, WWB relies on its partners’ values to ensure adherence to the network’s shared vision while encouraging network members to tailor their methods to local contexts and client needs. 10
“The Networked Nonprofit,” Stanford Social Innovation Review, Spring 2008
WWB Network Member Leaders: In Their Own Words
“[WWB] creates linkages between local and international institutions by fostering partnerships, common vision and mission.” —Humaira Islam, Founder and Executive Director, Shakti Foundation for Disadvantaged Women (Bangladesh) “WWB enabled us to operate within our prevailing culture and existing laws, but brought us technology and knowledge that we would not have otherwise.” —Mercedes Canalda, President, Banco ADOPEM (Dominican Republic) “We like to think that we are leaning on WWB—and you are always there for us.” —Mathias Katamba, Chief Executive Officer, Finance Trust (Uganda) “[WWB] made ASA visible, otherwise no one would have known us.” —Shafiqual Haque Choudhury, President, ASA (Bangladesh)
11
Creating New Ways of Banking for the Poor Products and Technical Assistance
M
ore than 30 years ago, microfinance began with the simple idea of lending small amounts of money to groups of low-income entrepreneurs, the majority of them women. As the industry and its clients have matured, microfinance institutions (MFIs) have offered a broader array of products to better serve the needs of existing clients, and to reach new clients. Drawing on our many years of experience in product innovation, WWB continues to help our member institutions introduce new products such as individual lending, savings, housing loans and insurance. We also advise them in the process of formalizing to become regulated financial institutions, and help them to access local and international capital to fuel growth. WWB understands that financial products are not “one size fits all.” Women, as caregivers responsible for the health and security of their families, have different financial needs than men. Broadening the range of financial products available to low-income women enables microfinance providers to fulfill a dual mission: grow profitably and continue to alleviate poverty at the same time. 12
Individual Lending Individual lending, as distinguished from traditional group lending, allows for larger, more flexible loans for growth-oriented clients and enables MFIs to reach new clients and diversify their lending portfolios. WWB assists our network members in designing and implementing individual lending products, which include WWB’s credit risk scoring methodology. Savings Savings products help the poor to build assets and achieve long-term goals, autonomy and financial security. Because women are typically responsible for saving in low-income households, products must be designed to meet their specific financial needs, motivations and behavior. WWB guides our member institutions in the design and implementation of savings products.
Rural Finance Rural finance, in particular agricultural lending, is still relatively uncharted territory for development finance globally. Lack of infrastructure, distant markets, inadequate farming techniques, volatile prices and unpredictable weather increase the risks and costs of expanding financial services into rural areas. MFIs interested in targeting small farmers also face challenges in understanding the variable cash flow of rural households, and estimating their repayment capacity. WWB works with our member institutions to expand sustainably into rural markets. Housing Loans Home ownership is unattainable for most of the poor, but is seen as very important to old age security—a home is not just a valuable asset but a means to generate rental income. Because women
“[My husband] is very sick and I started thinking, if he dies, and me with these five kids, I can manage because at least I get a little income from renting.” —WWB network member client
are more likely to be widowed or left without assets in a divorce, home ownership is especially important for them. WWB is working with our network members to introduce housing and home-improvement loans, which traditionally have been unavailable to lowincome women.
Spotlight: Housing Colombia In 2007 WWB worked with two Colombian network members, CMM Bogotá and CMM Medellín, to implement housing loan programs. In Colombia, as throughout the world, the poor
Health Insurance While some MFIs provide a range of insurance products, the majority still offer only life and disability insurance. Only three percent of microinsurance policies worldwide cover healthcare. Insurance to cover childbirth is almost non-existent. WWB is working with our network members to help them collaborate with insurance companies to design cost effective health microinsurance.
build or improve their homes incrementally. For this reason, WWB worked with CMM Bogotá and CMM
Formalization Formalization—also known as transformation—is the process by which MFIs convert from non-profit organizations to regulated financial institutions. Although most MFIs were founded in response to the inability of the formal financial services sector to serve low-income clients, there is an unmistakable trend towards formalization in today’s rapidly growing microfinance industry. Formalization fuels growth by giving MFIs increased access to commercial funding. It also enables product diversification, allowing MFIs to mobilize client deposits and offer savings products that in most countries can be offered only by regulated financial institutions.
helping develop housing loan products and implement lending methodologies, WWB assisted both Colombian
Medellín to introduce home improvement loans geared to the repayment capacities of low-income clients. Loan amounts range from US$ 3,000 to 5,000 and cover home expansion and home improvement, including access to water, electricity and sewage systems. In addition to helping improve the standard of living and economic situation of poor families, home improvement loans are a strategic advantage for MFIs. Consistent with the long-term sustainability goals of the WWB network, home improvement loans give participating MFIs an opportunity to develop and strengthen client relationships, diversify their loan portfolios, and differentiate themselves from their competitors. In addition to institutions with the development of lending manuals and policies for housing loans, and with the training of loan officers. WWB will continue to advise both CMM Bogotá and CMM Medellín to ensure successful delivery of housing loans to low-income entrepreneurs. A client, pictured below, used her housing loan to make improvements on her rental property.
Approximately one-third of WWB network members are formalized financial institutions, with another third intending to transform within the next three years. WWB supports our network members that choose to formalize by providing advice, technical assistance, and in certain cases, equity investments.
13
Spotlight: Building Assets Kashf Foundation, Pakistan Kashf Foundation, established in 1996 and a WWB network member since 2001, provides microfinance services across 22 districts of Pakistan. Of its 300,000 clients, 96 percent are women and 87 percent have disposable incomes of less than US$ 2 per day. Originally, Kashf offered basic passbook savings accounts; however, the product was underutilized, and average balances in the accounts remained low. In 2007, Kashf requested WWB’s support in redesigning its savings products. WWB conducted market research to understand Kashf clients’ savings patterns and desires. WWB found that, like women globally, Pakistanis save for lifecycle events such as the birth, education and marriage of children, health emergencies, and housing. While men tend to put money into their businesses, women are more likely to save because of their gender roles as caretakers as well as the need to mitigate risks, including being widowed or divorced. WWB’s research also determined specific attributes that Pakistani women would welcome, such as branch proximity, which is especially important in a society where women’s mobility is restricted. Another desirable attribute is confidentiality: women do not want to make savings deposits at group loan meetings, lest they be pressured to share with neighbors or family. Women want assets they can call their own; a confidential savings account gives them a measure of security and autonomy.
WWB concluded that low-income women in Pakistan are prodigious savers—but that flexibility is extremely important to them. Kashf clients like the idea of commitment savings accounts in which they deposit a set amount for a predetermined time period and goal, such as children’s education. With WWB’s help, Kashf has developed these and other savings products—some of which potentially have a matching component—that meet women’s needs for flexibility, confidentiality and convenience.
Photo: Matthieu Paley, Kashf Foundation 14
The Financial Services Provider of Choice for Women The majority of the world’s poor are women, who support themselves and their families through small entrepreneurial activities in manufacturing or services. In order to more effectively serve these clients, as well as to counteract the trend of declining percentage of women borrowers and leaders within the industry, WWB has built a comprehensive strategy for ensuring that our network members become the “financial services provider of choice for women” in their respective markets. First, WWB helps our member institutions to design and implement products and marketing strategies to both maximize impact on household finances and empower women. We also work with network members to ensure that staff and leadership reflect the diversity of each organization’s client base, including strong representation of women at all organizational levels. WWB’s deep understanding of the women’s market is based on original gender research on the ways in which women’s roles and responsibilities impact spending, saving and investment decisions in lowincome households. This research is done with two goals in mind—improving the competitiveness of our network members and improving their impact on the clients they serve. The foundation for this work is WWB’s groundbreaking series of gender studies, which have led to product modifications including: •
• •
Simplified loan paperwork and borrowing requirements, which take into account women’s lower literacy rates in many countries; Financial products focused on women’s lifecycle needs, including maternity; Changes in the design of MFI branches to accommodate women with small children;
•
Housing loans in which women must be placed on the property title for the household to receive the loan.
A Changing Marketplace In the early days of the microfinance industry, the primary focus of microfinance institutions was to build strong credit operations. In recent years, however, organizations face increasingly fierce competition and client demand for diversified products. In this changing marketplace, MFIs have begun to recognize that they can benefit from marketing techniques traditionally employed in the private sector. Marketing allows MFIs to both retain existing clients and reach new ones. Additionally, WWB has found that marketing can be a powerful tool to encourage and empower businesswomen. Two marketing
strategies are particularly important in this effort: branding and customer care. Branding WWB has pioneered work in developing brand positions that honor women as entrepreneurs and acknowledge women’s contribution to households and economies. Women-focused brands publicly recognize businesswomen’s efforts, raising their status in their communities, and differentiate MFIs in their respective markets. Witnessing the highly positive response of women clients to these campaigns, WWB believes that social marketing can be a major step toward the empowerment of women through microfinance. According to Arije al Amad, General Manager of Microfund for Women, which launched a women-focused brand in Jordan, “Women tell 15
Spotlight: Expanding Access for Rural Clients
Banco ADOPEM, Dominican Republic An estimated 75 percent of the world’s poor live in rural areas; however, the majority have little or no access to financial services. Recognizing this need, WWB partnered with Banco ADOPEM to design a rural lending product. ADOPEM has a country-wide network of 21 branches serving more than 60,000 clients, a portfolio outstanding of US$ 21 million, and several types of credit and savings products. Entering the rural market, however, requires new assessment methodologies to understand and mitigate agricultural risks; ADOPEM asked for WWB’s assistance in meeting this challenge. WWB and ADOPEM assessed three agricultural regions to determine the area with the highest potential for success in this pilot program. The region surrounding the town of La Vega was chosen because the majority of farms there are small or medium-sized, the soil is rich and flat, and 30 percent of farmers have access to irrigation. The town is also linked to local and international markets. Together, ADOPEM and WWB developed an instrument for assessing the credit risk of individual farmers, and designed an appropriate loan product. ADOPEM is now expanding its rural loan product to secondary cities, those with populations of less than 50,000 and strong links to rural areas. Financial services, when they do exist in rural areas, are targeted mostly to men, who grow the crops that generate cash. Women, on the other hand, tend to grow crops or raise animals for household consumption. In order to develop of rural finance approaches that benefit women, WWB will conduct a gender study in the Dominican Republic. WWB also intends to expand our rural finance work to
Photo: Angeli Kolhatkar 16
other network members.
us: ‘You empowered us by having this campaign.’ They are proud. Microfund makes them feel they are important.”
Products and Technical assistance Highlights
Customer Delight Microfinance providers have long been aware that their customers are their greatest asset. To satisfy customers, an institution must meet their expectations and serve their needs. To truly delight customers, however, an institution has to exceed their expectations. Treating customers with respect, giving them the information necessary to make informed decisions, and providing branch environments conducive to their needs can affect their choice of financial services provider. The principle of respect is very important for lowincome women, as often they are encountering a formal financial institution for the first time. WWB’s quantitative research into customer satisfaction has helped our member institutions provide superior customer service.
In 2007, Women’s World Banking:
Gender Sensitization Front line staff often have the same entrenched gender attitudes as the communities they serve; for example, they may limit loan amounts given to women because they feel that women are not good at business. Sensitization training is critical to internalizing a women-focused brand position. WWB conducts gender sensitization with our network members, either as discrete training sessions or embedded in customer service training.
• Assisted 13 network members in diversifying their financial products to reach more microentrepreneurs; • Introduced individual lending at Shakti (Bangladesh), GAWFA (The Gambia), CECM (Burundi) and Muthoot (India); • Improved individual lending capability at Kashf (Pakistan), SHARE (India), and MFW (Jordan); • Conducted pioneering research with Kashf (Pakistan) to understand clients’ savings patterns and product preferences; • Rolled out voluntary savings product at PADME (Bénin); • Piloted health microinsurance, including maternity, with MFW (Jordan); • Designed a rural lending program with Banco ADOPEM (Dominican Republic); • Conducted feasibility study for CMM Bogotá and CMM Medellín on becoming regulated banking institutions. As a result, the two institutions decided to merge their operations to become one entity and apply for a banking license in December 2007.
17
Achieving the Double Bottom Line Capital Markets and Financial Advisory
T
he remarkable growth of the microfinance industry has been fueled by the increased participation of a wide array of financial service providers and investors. In the past, the primary constraint on the growth of microfinance institutions (MFIs) was insufficient access to funding. Increasingly, MFIs worldwide have generated compelling financial returns serving the low-income market, making them attractive to investors. Today, one of the industry’s key challenges is placing the influx of funds into investment-ready MFIs. Over the past two years, the average loan portfolio of WWB network members grew by nearly 40 percent. To enable this growth, WWB provides advisory and brokering services to help MFIs develop diversified sources of commercial funds, identify appropriate
investment partners, and negotiate with these investors to achieve optimal terms.
Tapping the Capital Markets WWB works with network members who are navigating the local and international capital markets on funding strategy, capital structure analysis, and evaluating the merits and feasibility of proposed capital markets deals. Throughout this work, we emphasize the value of the capital markets as a source of large amounts of longterm capital on competitive terms and as a means of developing a new investor base. In 2001, WWB’s Microfinance and the Capital Markets Conference was the first industry forum catering both to MFIs seeking capital and knowledge of financial markets, and to international investors
“Forums like [WWB’s Microfinance and the Capital Markets Conference] help investors and MFIs develop an essential tool for building successful partnerships: a common language.” 18
—Mary Ellen Iskenderian, WWB President
seeking industry insights and ways of investing in microfinance. In addition to this annual conference in New York, WWB also holds smaller, regional capital markets workshops. In May 2007, WWB delivered a three-day capital markets workshop in Karachi, Pakistan at the request of the Pakistan Microfinance Network. The conference included staff from leading MFIs in Pakistan and Afghanistan, as well as other microfinance professionals from both countries.
Managing Financial Risk By their nature, banks and MFIs must take risks. Well-run financial institutions understand, monitor, and mitigate these risks. WWB works with network members to quantify and manage the financial risks faced by MFIs, including liquidity, interest rate and foreign exchange risks, to ensure that MFIs remain sustainable and profitable institutions into the future, serving their clients’ borrowing and savings needs. Approximately 70 percent of all external capital currently lent to MFIs is denominated in hard currency, which—if left unhedged—will burden MFIs with significant foreign exchange risk. When
African Financial Risk Management Conference In April, Citi and WWB partnered with the Association of Microfinance Institutions of Uganda (AMFIU) to deliver a workshop on financial risk management for MFIs in Kampala, Uganda. The workshop focused on helping East African MFIs develop clear financial risk management strategies and systems in order to sustain profitability and increase access to commercial capital. Topics included liquidity management, a board ALCO (Asset Liability Committee) simulation, and interest rate management. Participants included 30 microfinance practitioners from 15 regulated and unregulated MFIs in Uganda, Kenya and Tanzania, as well as representatives from the microfinance division of the Bank of Uganda. The Kampala event was the seventh workshop delivered through the Citi/WWB partnership. The workshop used WWB’s stepby-step practical guide, Toolkit for Developing Financial Risk Management Policy. 19
Financial Advisory: FUNBODEM, Bolivia Microfinance in Bolivia is a competitive industry: favorable legislation, combined with a high poverty rate (64 percent) and a large informal labor sector, make it a favorable climate for financial institutions offering small loans to entrepreneurs. WWB’s Bolivian network member, FUNBODEM (Fundación Boliviana para el Desarrollo de la Mujer), is based in Santa Cruz, the country’s largest and most commercially prosperous city. FUNBODEM is rare among Bolivian microfinance institutions in its focus on serving women clients. In 2006, WWB’s assistance in strategic planning, reorganization and staff training helped FUNBODEM achieve portfolio growth of 35 percent—an impressive figure given the organization’s niche clientele and relatively small size vis-à-vis the highly competitive microfinance environment in and around Santa Cruz. However, it was clear that in order to continue its expansion in 2007 and beyond, FUNBODEM would need to access additional funding from commercial investors. In 2007, WWB worked closely with FUNBODEM to secure commercial funding from international investors. After meeting many potential investors at WWB’s Microfinance and the Capital Markets Conference, FUNBODEM began negotiations with a microfinance fund based in Maryland. WWB staff assisted FUNBODEM in reviewing the loan agreement and advised the management team on negotiation strategies. In August 2007, FUNBODEM and the investor closed the three-year, US$ 750,000 loan. Later in 2007, WWB worked to put in place a WWB loan guarantee in order to secure FUNBODEM’s first commercial loan with a local Bolivian bank. We expect this transaction to close during the second quarter of 2008. With WWB’s continued strategic and organizational assistance, FUNBODEM grew by 50 percent in 2007; our brokering work provided funding to support this expansion. FUNBODEM opened two new branches in 2007, and plans to continue its expansion by opening branches in other Bolivian provinces where there is a substantial unmet demand for microfinance services. WWB will continue to support FUNBODEM with strategic advice, staff training and branch expansion.
an MFI borrows in a hard currency (such as the US dollar or the euro) but lends to its clients in local currency, the resulting currency mismatch means that the institution’s earnings are subject to the risk of exchange rate movements.
20
In 2004, Women’s World Banking published one of the first papers calling attention to the inherent risks of hard currency borrowing by MFIs. The paper recommends a number of foreign exchange risk mitigation strategies and provides an overview of foreign exchange volatility, an explanation of
the mechanics of this risk, and descriptions of certain hedging strategies. Our subsequent paper in October 2007, From Dollar to Dinar: the Rise of Local Currency Lending and Hedging in Microfinance, highlights innovations both by international investors in creating mechanisms for lending in local currency to MFIs, and by MFIs who increasingly are using hedges to mitigate risk exposure. Recognizing that few MFIs have formal risk management policies, WWB developed a workshop and electronic course for understanding financial risk
management. The workshop teaches MFI managers to focus on asset and liability management, and to think holistically about product development. In 2005, WWB and Citi began to host these risk management workshops. By the end of 2007, a total of 213 participants from 105 MFIs had been trained. Because the demand for this training was greater than could be accommodated, WWB extended its financial risk management initiative by introducing a trainingof-trainers workshop. Created for trainers from microfinance networks, non-profit training institutions and consultants, the workshop teaches participants to use WWB/Citi-developed tools to help MFIs build financial risk management systems. In 2007, the first two training-of-trainers workshops were delivered in partnership with policy networks Sa-Dhan and Small Enterprise Education and Promotion, in Delhi, India and Washington, DC, respectively.
Brokering and Advisory WWB offers a loan guarantee program to improve MFIs’ access to local commercial bank loans. In 2007, WWB expanded this program to accommodate larger guarantee amounts and longer tenors and renewed guarantees on improved terms for two network members. Also in 2007, WWB helped mobilize loans for six network members of approximately US$ 7 million in local currency funding. WWB also formed a strategic collaboration with Morgan Stanley, which—despite turbulent markets—succeeded in arranging US$ 15 million in local currency funding for two WWB network members. This new funding was significant not only because of the large loan sizes and local currency denomination, but also because the process signaled new investor interest in microfinance from a Morgan Stanley Investment Managementmanaged Emerging Markets Debt Fund.
Spotlight: WWB Conference WWB’s Fifth Annual Global Capital Markets Conference More than 200 attendees took part in WWB’s capital markets conference, co-hosted by the Goldman Sachs Global Markets Institute, which took place January 16 to 17, 2007, in New York City. The conference, Microfinance and the Capital Markets: a Global Exchange, brought
together international investors, microfinance managers and other industry practitioners to focus on capacity building for MFIs in the capital markets and make new funding connections between MFIs and international investors. “The event was a tremendous success,” said Mary Ellen Iskenderian, President and CEO of WWB. “Microfinance practitioners significantly increased their knowledge of the capital markets and of the requirements of institutional investors, and investors learned a great deal about the feasibility—and risks—of the microfinance investment class. Once quite separate, these two worlds are rapidly coming together as the growth of microfinance attracts large amounts of investment capital.” Suzanne Nora Johnson, former Chair of Goldman Sachs’ Global Markets Institute and member of the FWWB Board of Directors, opened the conference, calling on participants to remember that women hold the key to alleviating poverty. The first day featured presentations on the development and current state of the capital markets, and on the process of rolling out capital markets transactions for MFIs. On the second day, participants put these lessons into practice with a mock “bond road show,” in which four MFIs presented bond transaction proposals to a panel of high-level institutional investors. “The exercise,” wrote The Wall Street Journal, “was designed to train small companies from different parts of the world in how to pitch their cases to investors. MFIs, for the first time, have to learn how to secure money from local and global investors. They are polishing their skills in presenting key factors about their organizations, management structures, growth strategies and even the risks they face.” Following the mock bond road show, the investor panel gave critiques of the presentations, offering valuable insight into the perspectives of institutional investors. “We hope that this event has fostered deeper communication between the worlds of investment capital and microfinance,” said Ms. Iskenderian in her closing remarks. “Now let us take what we’ve learned on Wall Street and put it into practice to help MFIs better serve low-income entrepreneurs.” Photo: Marc Brown 21
Spotlight: WWB Programs Expanded Loan Guarantee Program WWB’s original mission was to “eliminate one of the most pervasive forms of discrimination against women in the developed and developing world: the denial of equal access to credit markets.” One of the primary means of delivering on this mission was WWB’s loan guarantee program, begun in 1980. The first loan guarantee was to FWWB Colombia. The loan guarantee program continues to be an effective way of supporting women’s economic empowerment. The current program helps to make local capital available to microfinance institutions (MFIs) through a guarantee mechanism wherein WWB issues a standby letter of credit backed by a US investment grade bank to a commercial bank in the MFI’s local market. The local bank, in turn, provides at least twice the amount of the guarantee to the MFI in the form of a local currency loan. The program thus enables WWB network members to obtain substantially larger lines of credit in local currency at minimal cost. WWB’s loan guarantee program is also an effective way to collaborate with other microfinance industry players; a “syndicated” loan guarantee from several investors, including WWB, can make an even larger amount of credit available to MFIs.
In 2007, the WWB Board approved modifications to the loan guarantee program, more than doubling the maximum loan guarantee size to US$ 500,000 and extending the maximum tenor of the guarantee from one to two years. WWB’s loan guarantee program is competitively priced relative to other loan guarantees and is an effective tool for helping our member institutions diversify their funding and build credit records in their local markets.
22
Investing in the Mission WWB’s longstanding commitment to expanding the assets, participation and power of lowincome women is more significant than ever, as the microfinance sector matures and our network members face new tensions between their social mission and commercial objectives. In order to maximize growth potential and offer new products, namely savings, a number of WWB network members are transforming into private, regulated financial institutions. As they become privately owned institutions, they will need to raise equity from external shareholders. WWB staff helps our network members analyze their institutional objectives and long-term capital structure goals, advising them on ensuring alignment of investor objectives with their microfinance priorities, and targeting a “double bottom line”—both social and financial returns. We also offer MFIs assistance in preparing business plans, coordinating investor meetings, and reviewing key legal investment documents. In 2007, the WWB Board of Trustees approved the launch of an equity fund to enable WWB to provide equity capital to qualifying network members that have transformed or are transforming into regulated financial institutions. The WWB Microfinance Equity Fund will help these member institutions to grow and diversify their financial services to clients. In many cases, the fund will allow WWB to secure seats on the boards of these institutions, in order to be a voice of conscience in support of their continued focus on serving the poor, especially women.
Capital Markets and Financial Advisory Highlights In 2007, Women’s World Banking: • Renewed two loan guarantees for members on improved terms, resulting in greater access to local currency capital for their expansion (both guarantees are leveraged three times by the respective local banks); • Helped mobilize loans for six members that resulted in approximately US$ 7 million in new local currency funding; • Formed a strategic collaboration with Morgan Stanley to provide local currency funding for nine network members. While turbulent credit market conditions prevented the transaction’s close, Morgan Stanley and WWB arranged alternative local currency financing for two MFIs totaling US$ 15 million equivalent; • Trained MFI managers in financial risk management, including four training events in collaboration with Citi (in Africa, India, Latin America, and Washington, DC); • Introduced two training-of-trainers workshops, partnering with policy networks Sa-Dahn in India and SEEP in Washington, DC, allowing the workshop to be delivered by certified financial risk management trainers globally.
23
Working Together to Build Strong Institutions Network and Relationship Management
W
omens 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.
“[WWB] brought wisdom, guidance, counseling and provided a platform for new global ideas. Please allow us to call on you in the next steps of our transformation because you have wisdom and deep insight into related issues.” 24
—WWB network member
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 nonfinancial 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.
Policy Advising and Advocacy
Spotlight: Accelerating Growth Banco da Família, Brazil A member of the WWB network since 2003, Banco da Família was founded in 1998 with the mission of alleviating poverty in the city of Lages, in southern Brazil. Growth of microfinance in Brazil has been slow compared to the growth of the sector globally. Microfinance reaches fewer than 300,000 Brazilian households, but 59 million live below the poverty line. WWB’s advisory services helped Banco da Família recognize the importance of growth for institutional sustainability, and develop growth strategies as part of its five year plan. Once the Board and management had committed to the goal of expansion, WWB helped the institution address the question of how to grow, and to design a new organizational structure to support this growth. One barrier
WWB uses its power as a network to convene stakeholders and build consensus on policy changes that will remove barriers to the provision of financial services to the poor. WWB has worked with network leaders and other key actors to yield concrete policy change in countries as diverse as Colombia, Russia, India, the Philippines, Kenya and Uganda.
to reaching new clients was the institution’s requirement that every loan applicant have multiple guarantors.
Policy spotlight: Kenya
had more than doubled.
Lobbying the Government for Clear Regulations on Formalization
WWB continues to advise Banco da Família to ensure the success of its new strategic plan. We also are helping
While supporting the formalization process of network member KWFT (Kenya), WWB was able to add its voice to those of leading Kenyan MFIs in urging government officials to approve and publish the regulations that guide Kenyan MFIs in formalization. Although the Kenya Microfinance Sector Bill became law in 2006, the guidelines for compliance remained unclear. In 2007, WWB helped draft an agreement for the Central Bank and the Permanent Secretary of the Ministry of Finance to ensure that the needed regulations for formalization would be approved and published. WWB’s global perspective, expertise and credibility in helping network members to formalize were important assets in this process.
WWB arranged a knowledge exchange visit for Banco da Família’s general manager and credit manager to our Colombian network member CMM Medellín, where they gained hands-on experience in credit analysis and loan recovery. With WWB’s assistance, Banco da Família implemented a pilot program to offer loans of US$ 250 without guarantors. WWB also worked with the organization to train credit analysts and middle managers, and to improve credit technology. By
the end of 2007, Banco da Família’s clientele
the organization develop its internal capacity and systems to absorb a projected 20,000 additional clients. Banco da Família plans to continue its expansion, and is working with WWB on strategies for extending its operations throughout southern Brazil.
25
Spotlight: Partnership with FelAban The Latin American Federation of Banks (FELABAN) is a leading regional banking network of more than 600 commercial banks and institutions. In 2003, WWB and FELABAN signed a strategic alliance to promote the entry of Latin American banks into microfinance. The alliance is actively supported by the expertise and resources of WWB’s GNBI and core network, and promotes national and regional seminars, publications, and learning exchanges to share innovations and best practices. As a result, a number of new
retailers and wholesalers are now providing savings, wholesale credit lines, and other basic financial services to underserved populations throughout Latin America. More than 400 bankers have participated in WWB-FELABAN workshops, meetings and seminars. In 2007, WWB, FELABAN and the Mexican Bankers’ Association co-hosted a forum for representatives of 40 Mexican banks interested in entering the microfinance market. Also in 2007, WWB and FELABAN co-hosted with the Inter-American Development Bank and the Association of Banking Supervisors in Latin America a Regional Seminar on Regulation and Supervision in Microfinance. At the seminar, the Economist Intelligence Unit launched the Microscope on the Microfinance Business Environment in Latin America, a ratings scorecard that measures the microfinance business environment in 15 Latin American countries. WWB is using the knowledge gained through this partnership in other regions of the world to promote responsible bank entry into microfinance.
26
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 lowincome 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. Country Profile: India
WWB’s Expansion Strategy 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
Individual Lending at Muthoot FinCorp, India In 2007, WWB began a strategic partnership with Muthoot Fincorp, South India’s leading NBFC (non-banking financial company), which sought WWB’s support in implementing microloans in its branches. This lending methodology, known as appraisal-based or individual lending, targets the “missing middle”—the great number of low-income entrepreneurs seeking loans larger than those available to the poorest entrepreneurs through group lending microfinance institutions, but who are not served by banks. Based on our successful work introducing individual loans with WWB network members in the region, WWB helped Muthoot understand the needs of these potential clients and design appropriate loan products. Before its partnership with WWB, Muthoot’s primary product was loans made against gold collateral, which are mainly used for consumption or emergency purposes rather than to finance business growth. Muthoot’s new individual loan product is based on cash flow analysis, and targets clients who have an enterprise that is capable of paying for household expenses and generating sufficient profit to reinvest in the business. By meeting the large, untapped demand for individual loans by low-income entrepreneurs throughout India, Muthoot will have a significant impact on poverty alleviation in India. As with the introduction of other new products, WWB supports its member institutions and strategic partners in both designing and implementing individual lending. Institutions offering this product often face significant challenges in implementation, which requires adjusting organizational structure and culture, hiring better-educated staff and upgrading management skills. WWB assisted Muthoot throughout the design and implementation process, which included: conducting customer research, designing the product and building institutional capacity; developing a pilot program; training management to deliver the product; and monitoring and evaluating the program.
27
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.
Spotlight: Strengthening Women-Led Institutions
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.
enterprises, housing and emergencies, as well as savings and insurance. Janashakthi also provides maternal/
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.
WWB Welcomes New Network Members In 2007, WWB gained two new network members: Enda Inter-Arabe in Tunisia and Spandana in India. Enda inter-arabe Enda Inter-Arabe began granting microloans in Tunisia in 1995 as well as supporting clients with non-financial services. Enda offers group and individual loans and has recently introduced several new products including an education loan, a home improvement loan and a livestock rearing loan. Enda is the only MFI in Tunisia to follow internationally recognized microfinance best practices. 28
Janashakthi in Sri Lanka The Women’s Development Federation, commonly known as Janashakthi (“people’s power”), is a womenled, grassroots organization operating in the Hambantota district of Sri Lanka, one of the county’s poorest and least developed regions. Founded in 1989, and a WWB network member since 1999, Janashakthi serves more than 60,000 poor, mostly rural women clients, providing loans for agricultural production, small-scale natal nutrition programs, child care, elder care, and other social services. Janashakthi’s structure is unique among MFIs—its leadership is composed of its own clients. Elected through a democratic process starting at the village level, these women leaders have no formal financial training but are accomplished microentrepreneurs. Living and working alongside Janashakthi’s other clients gives the leadership unprecedented insight into the needs of both the organization and its clientele. By developing managers and board members from clients, Janashakthi simultaneously promotes women’s leadership and economic empowerment. In 2002, the Janashakthi’s portfolio at risk peaked at more than 42 percent, seriously threatening its future. In response, WWB worked with Janashakthi to craft an innovative strategy for delinquency management. WWB’s global experience in process development, tools, and monitoring complemented Janashakthi’s knowledge and vision. The partnership resulted in the design of a successful strategy to significantly improve portfolio quality, leading to the reduction of portfolio at risk to just 5 percent in 2005.
In 2007, WWB continued its work with Janashakthi by delivering a training program to the board on roles and responsibilities, resulting in amendments to the organization’s by-laws. WWB also began an analysis in preparation for forthcoming work with Janashakthi on improving organizational effectiveness.
Enda has reached more than 96,000 clients, 80 percent of whom are women, and has lent more than US$ 135 million in loans with an average loan size of US$ 350. “Microfinance is relatively new in the Arab world. But microfinance institutions in Latin America and Asia have much longer experience. We wanted to join the WWB network because we wanted to share with them and learn from them.” —Essma Ben Hamida, Co-Director of Enda Inter-Arabe Spandana Spandana is the largest microfinance institution in India in terms of active borrowers, and the second largest in portfolio outstanding, US$ 90 million. Spandana is also the largest women-led microfinance organization in the world, reaching nearly 1 million borrowers. It currently operates 350 branches; 96.5 percent of its clients are women. Spandana was founded in 1992 as a society promoting women and children’s health, nutrition, food security, irrigation and other non-financial activities, and began its microfinance operations in 1998. Spandana currently provides its clients a diversified and flexible set of six micro-business loan products as well as health and education loans and insurance. Spandana’s average loan size is US$ 98. “We do not want to reinvent things; rather we look at and analyze the experiences of others. We believe that we get this opportunity from our association with WWB.” —Padmaja Reddy, Managing Director of Spandana
Network and Relationship Management Highlights In 2007, Women’s World Banking: • Supported CECM (Burundi) in evaluating the capacity of its management information systems to support organizational growth; • Assisted GAWFA (The Gambia) to establish a board governance committee; • Continued work with the boards of FWWB India and NWFT (Philippines) to develop board succession initiatives; • Enhanced performance management systems in three network members—FWWB India, Finance Trust (Uganda) and GAWFA (The Gambia)—to improve their ability to implement expansion strategies and reach their growth targets; • Helped the Africa Microfinance Network to develop key elements of its strategic plan, including a new financing strategy, and provided support for its annual conference; • Held a training with the Pakistan Microfinance Network for microfinance managers on strategies for accessing commercial funds; • Provided strategies for successful bank entry into microfinance for the Mexican Bankers Association in conjunction with the Federation of Latin American Banks, Inter-American Development Bank and Andean Finance Corporation.
29
Unleashing the Power Inherent in women Women’s Leadership and Knowledge Sharing
W
hile the microfinance industry has witnessed enormous growth and international attention in the last decade, there has been a discouraging downward trend in the percentage of women in management and leadership. WWB is committed to maintaining women’s leadership in the industry and building the next generation of leaders. WWB’s Women’s Leadership Development Program works to advance women microfinance leaders globally—because women leaders make powerful role models for the women clients they serve and because WWB is committed to the empowerment of women. In many parts of the world, women in positions of authority are a relatively new phenomenon, and the
obstacles women executives face can be formidable. In order to sharpen their leadership skills and teach them how to be stronger, more effective leaders in their organizations, WWB brings women microfinance managers together for a five-day, highly participatory leadership development course. The Women in Leadership Workshop, co-designed with the University of Pennsylvania’s Wharton Center for Leadership and Change Management, provides an opportunity for these women to analyze their impact and develop leadership goals. Participants in the program are also given access to WWB’s highly acclaimed best practice workshops, policy forums, and global exchanges designed to give women leaders an opportunity to build international networks.
“It was truly an honor and a privilege for me to speak to the outstanding group of women that you assembled. I was inspired by what they do, what they represent to us around the world and by their great questions. Bravo to WWB for putting together such a great program.” 30
—Carla Harris, Managing Director, Morgan Stanley Investment Management, Presenter, 2007 Women in Leadership Workshop
Strategic Alliances To maximize its impact, WWB enters into strategic alliances with key partners. The mutually beneficial relationship can enable WWB to better provide a needed product or service to our network members and allow the collaborating partner to fulfill its corporate social responsibility mission. One key alliance for WWB is with the University of Pennsylvania’s Wharton Center for Leadership and Change Management. Concerned with the decreasing number of women managers in microfinance institutions, WWB began a Women’s Leadership Program in 2006. The centerpiece of the program is an annual workshop, co-branded with Wharton, to teach leadership skills to mid and senior-level women managers from WWB’s core network members. Wharton faculty helped design the curriculum and leads the five-day workshop. Other strategic alliances for WWB include Citi, ING, White & Case, and FELABAN.
Spotlight: Women in Leadership Workshop Shazia Kamal: In Her Own Words Shazia Kamal of Kashf Foundation (Pakistan) was the recipient of a 2007 Financial Women’s Association Women’s Leadership Award. As a result, she attended WWB’s second annual Women in Leadership Workshop in July 2007. Ten months later, she describes how she has used the lessons learned. Since I attended the workshop, a lot has changed both in terms of the political landscape of my country as well as for Kashf in Karachi. From 8 branches under my management in July 2007, we grew to 22 units, increasing outreach by 300 percent with 29,000 clients by year end! This was a marathon job with enormous challenges as the political situation created unrest and made it harder for us to operate. We experienced higher than usual turnover and retaining female staff became an even bigger challenge. I was convinced after taking the workshop that networking and constant interaction will really attract and retain women staff. I have made it a point to visit and discuss issues with women on a one-to-one basis, as well as gather them once a month to chat over a cup of tea. I also make it a point to do a cross learning exercise and tell them about shared experiences in other areas. The women managers have become very close to me and more committed to Kashf as well. This was surely an outcome of the WWB workshop which loosened my management style and contributed to my personal development. I have become more tolerant, more patient. My biggest accomplishment has been the development of a particular branch manager, who joined my team in 2006 and has become the first female area manager in Karachi. I am committed to developing our women to be strong role models in a community that considers women weak and helpless—I want to remove this myth forever in the minds and hearts of our people.
Women must see other
women who are active in society; otherwise they remain in the shadow of men. Women leaders provide a role model. 31
Network Learning Workshops WWB workshops provide immediate and interactive exposure to timely issues in microfinance. These workshops bring together network members to exchange lessons learned; WWB experts in product services also participate. Workshop topics—including product diversification, financial risk management, rural finance and micropensions—are based on demand from the network members. The workshops are designed to support and enhance performance improvement among participating network members and usually are integrated with technical assistance in product development. WWB workshops provide network members with valuable exposure to other leaders in microfinance, opportunities to be showcased, learning and networking opportunities, global perspectives and, where relevant, performance improvement support.
Peer-to-Peer Exchanges On-site peer-to-peer exchanges are powerful and practical means by which microfinance practitioners can learn directly from their peers through visits to their institutions. WWB brokers these exchanges between network members seeking practical knowledge on specific topics and other network members or industry players recognized as leaders on those topics. This hands-on approach plays a vital role in educating our network members about the newest innovations in microfinance.
2007 Workshop Highlights 9 workshops, 679 participants. 100% of attendees rated the workshop at least 4 on a scale of 5. Workshop
Who
Why
Capital Markets Forum January 16 to 18, 2007
5th annual forum, co-hosted with Goldman Sachs Number of Participants: 183
Help network members learn about and access commercial capital
Rural Finance Workshop February 21 to 23, 2007
Workshop on Rural Finance: Strategies to Offer Sustainable Services Number of Participants: 73 from 18 countries
Sharing of best practice and innovations amongst providers, value chain players, agricultural input dealers and banks
Negotiating Access to Commercial Funding and the Capital Markets May 10 to 12, 2007
Training co-hosted with the Pakistan Microfinance Network, held in Karachi, Pakistan Number of Participants: 29
Enhance understanding of local and international capital markets, and learn strategies for accessing commercial funds
Mexican Bankers Forum May 17, 2007
El Camino al Exito: Responder a las Necesidades de la Mayoria, co-sponsored with ABM, CAF, IDB-MIF, FOMIN and FELABAN Number of Participants: 103
Change the way Mexican banks think about the microfinance market, and build ties with industry leaders in Latin America
GNBI Meeting June 18 to 19, 2007
4th annual meeting of the Global Network for Banking Innovation in Microfinance Number of Participants: 90
Highlight innovations in microfinance that have led to an increased numbers of clients, product offerings while lowering the costs for commercial banks
Women in Leadership Workshop July 16 to 20, 2007
2nd annual workshop, co-sponsored by the Wharton Center for Leadership and Change Management and Accenture Number of Participants: 33
Build and develop the present and future generation of women leaders in the WWB network
Supervision and Regulation in Microfinance Foro October 2, 2007
Forum co-hosted with ASBA, CAF, FELABAN and IDB Number of Participants: 133
Increase understanding between bank regulators and microfinance practitioners on appropriate regulatory regimes for microfinance
Improving MFI Strategic Positioning through Competitive Analysis October 4 to 6, 2007
Training co-hosted with FWWB India, held in Kolkata, India Number of Participants: 17
Provide high performing Indian MFIs with the necessary tools and frameworks to secure successful long-term growth
Financial Risk Management Training April 11 to 13, 2007 (Uganda)
Co-hosted with Citi. African Financial Risk Management Conference presented in partnership with the Association of Microfinance Institutions in Uganda, held in Kampala, Number of Participants: 30;
Leverage the Citi/WWB FRM workshop by teaching trainers from microfinance networks or non-profit training institutions
June 20 to 22, 2007 (India) October 29 to 31, 2007 (USA) 32
Training-of-trainers, delivered in partnership with Sa-Dhan, in Delhi, India, and SEEP in Washington, DC, Number of Participants: 34
2007 Exchanges Highlights
Publications
7 exchanges involving 11 network members and 8 non-network members.
WWB publications are a primary component of knowledge sharing both within the network and with the entire industry. WWB publications disseminate the experiences and practices of WWB network members, enabling them to learn from each other’s work. These are produced in collaboration with the WWB global team, distilling their expertise and research and sharing innovative products and services with our network members to help them better serve their clients.
Exchange
Who
Why
Formalization Exchange: Morocco to Peru March 11 to 16, 2007
Three Moroccan microfinance institutions, Al Amana, FONDEP, and Zokoura to institutions including Credito de Arequipa in Peru
For the Moroccan MFIs, who serve over 80 percent of the microfinance sector in their country, to explore the feasibility of becoming regulated institutions
Training Exchange: Brazil to Colombia April 2 to 20, 2007
A new central branch manager and credit manager from Banco da Família (Brazil) to CMM Medellín (Colombia)
Have firsthand experience on the role and skills of credit analyst as well as branch manager
Operations Exchange: Bangladesh to Pakistan July 2 to 4, 2007
Shakti (Bangladesh) to Kashf (Pakistan)
Learn about the introduction of individual lending
Bankers Exchange: South Africa to Colombia September 4 to 6, 2007
Wizzit Bank (South Africa) to Banco Caja Social and FMM Bucaramanga (Colombia)
Understand the potential for mobile phone banking in the Colombian context
Product Innovations Exchange: Uganda to Ghana November 12 to 15, 2007
Finance Trust (Uganda) to microfinance institutions in Ghana
Study different approaches on mobilizing savings
Women’s Leadership Exchange: Bogotá, Colombia December 10 to 12, 2007
Seven participants of the Women’s Leadership Development Program from ADOPEM (Dominican Republic), FinComún (Mexico) and CMM Bogotá (Colombia)
Provide access to a broad range of learning and exposure opportunities within and beyond the WWB network
Women’s Leadership Exchange: Dominican Republic December 14 to 15, 2007
Seven participants of the Women’s Leadership Development Program from ADOPEM (Dominican Republic), FinComún (Mexico) and CMM Bogotá (Colombia)
Provide access to a broad range of learning and exposure opportunities within and beyond the WWB network
2007 Publications include: How-to Guides Introducing Voluntary Savings (English, French) Focus Notes From Dollar to Dinar: the Rise of Local Currency Lending and Hedging in Microfinance Rural Finance for Small Farmers: An Integrated Approach Reports Marketing for Microfinance Building Human Resources Capacity: Developing Competencies for Microfinance Institutions Innovation Briefs Governance Structure Factsheet Banorte Innovation Brief (Spanish) Citigroup Innovation Brief (Spanish)
“I really appreciated hearing superb technical presentations coming from Asia and Latin America which are out of the scope of our normal business for myself and my African colleagues.” —Participant, WWB workshop on rural finance, 2007
33
Clients of the WWB Network Client Spotlight: MukaRram OTHMAN Asad Microfund for Women, Jordan Mukarram Othman Asad of Amman, Jordan has been doing needlework for 20 years. Although highly talented at embroidery, Mukarram could rarely afford materials, and so her work remained no more than an occasional hobby. Then she heard about Microfund for Women (MFW). A member of the WWB network based in Amman, MFW invited Mukarram to join a solidarity loan group in the Nazzal district. Since then she has taken out seven loans ranging from 200 to 600 JD (US$ 280 to 860) and can now buy the materials needed to operate and grow her embroidery business. Mukarram enjoys the support of her solidarity group, and is encouraged by MFW to participate in exhibitions such as the JARA Street Market and Dead Sea Exhibition. Such forums have helped her expand her client list, based primarily on referrals, to include buyers in the United States. Her work is arduous—it can take a week to embroider a pillowcase—but Mukarram’s business has enabled her to educate her daughter, now a third-year student at Jordan’s Hashemite University. Mukarram attributes this and other improvements in her family’s circumstances to her business and the support she has received from MFW.
34
“It is very hard to get loans in the countryside from big banks, there are so many rules and forms. Every day I thank the Lord first and then [Banco ADOPEM].” —Tempora Maldez de Santo
Tempora Maldez de Santo
Following these events, Tempora and her family moved to
helped too, but without the investment capital needed to
the city of Santo Domingo, where she learned about the
rent a vending stall, hire additional labor, or make essential
Banco ADOPEM, Dominican Republic
financial services she could receive from WWB network
purchases such as bulk materials and motorized sewing
member Banco ADOPEM. With her business acumen and
machines, Dendev’s business could not grow.
An outspoken woman
an initial loan from ADOPEM, Tempora was able to start
and holder of the family
a grocery business. She has since taken out a series of
purse strings, Tempora
loans totaling 80,000 pesos (US$ 2,400), and her business
Maldez de Santo of the
is now flourishing. She has been able to provide for her
Dominican Republic is
family, expand her business, and afford essential home
the proprietor of a small
improvements such as a cement roof. In addition to
grocery store in one of the poorest neighborhoods in the
receiving loans, Tempora has benefitted from Banco
city of Santo Domingo. Although her husband works as a
ADOPEM’s financial literacy courses. In the future, with
construction worker, it is mainly Tempora who provides
continued support from ADOPEM, Tempora plans to open
for the needs of their small children; she is also the saver
a hardware store and employ her husband.
in the household. Tempora gives her husband spending money—but requires him to give her back any that remains unspent.
Oyunchimeg Dendev
After five years of struggling, Dendev heard about a financial institution called XacBank, a member of WWB’s Global Network for Banking Innovation, that was making small loans to low-income entrepreneurs. In 2001 Dendev received a loan of MNT 200,000 (about US$ 160) from XacBank and bought a second manual sewing machine and materials. She repaid this loan and took out another to buy two motorized sewing machines. Since then she has received 13 loans, most recently a loan of MNT 5 million (about US$ 4,000), as well as essential guidance on business practices from XacBank advisors.
XacBank, Mongolia
Today her family rents five stalls in the market to sell
Tempora arrived in the city five years ago from the
Oyunchimeg Dendev is a
their products, as well as imported shirts and ties. During
countryside, where she had been a small coffee farmer
seamstress and mother
high-demand seasons Dendev’s daily sales can reach
under increasingly difficult conditions. She had been
of five in Ulan Bator,
MNT 1 million (about US$ 800). At these times, she hires
unable to obtain loans from a traditional bank to support
Mongolia. In 1995 she left
assistants whom she teaches to sew, providing temporary
her business, and her area was especially hard hit by
her low-paying factory
employment and training to more than 15 young people.
a series of damaging storms that recently had plagued
job to start a tailoring
With loans from XacBank, Dendev has built an extension to
the Dominican Republic. After one especially destructive
business in her home using one manual sewing machine.
her house as a workplace and bought a car to deliver her
storm, Tempora found her entire crop had been swept
She sold her products on the street, as she could not afford
products. Thanks to her business success, she has seen
away. In the aftermath of the storm, thieves robbed her of
to rent a stall in the market. In 1996, her husband lost his
two children graduate from the country’s best universities.
800kg of stored coffee.
job and joined her in the business. Her oldest children 35
WWB Board Members
“Since becoming a board member
Board of Trustees
over a decade ago, I have seen
Women’s World Banking is governed by a 20-member Board of Trustees, all of whom are recognized leaders in banking,
thousands of women gain the ability to provide not only for their
Committee and meet quarterly on behalf of the full Board to make policy and strategy decisions.
Friends of WWB/USA, Inc.
own families, but for their entire
Friends of WWB/USA, Inc. is a 501(c)(3) tax-exempt organization which raises donations from US foundations,
communities. That is why I serve
corporations, individuals and official sources in support of WWB’s global mission.
on the WWB Board of Trustees.” —Sylvia Fung Chin Secretary, Board of Trustees
36
finance, business, law, community organizing, or women’s economic participation. Nine of the members form the Executive
WWB Board of Trustees Chair Mercedes Canalda President, Banco ADOPEM, Dominican Republic Vice Chair Inger Elisabeth Prebensen Norway Treasurer Mary Houghton President, ShoreBank Corporation, USA Secretary Sylvia Fung Chin Partner, White & Case LLP, USA Fouad Abdelmoumni Director, Al Amana, Morocco Clara Serra de Akerman President, Fundación WWB Colombia René Azokli Executive Director, Association pour la Promotion et l’Appui au Développement des Micro-Entreprises (PADME), Bénin Patricia Barron Corporate Director, USA Honorary Board Member for Life Ela Bhatt Chair, FWWB, SEWA Bank, India K. Burke Dillon Executive Vice President, Inter American Development Bank, Retired, USA
Maricielo Glen de Tobón General Secretary, Federation of Latin American Banking Associations (FELABAN), Colombia
FRIENDS OF WWB/USA, INC. Board of directors
Marilou van Golstein Brouwers
Chair Gail Harrity Chief Operating Officer, Philadelphia Museum of Art
Managing Director, Triodos Investment Management, The Netherlands Mary Ellen Iskenderian President and CEO, Women’s World Banking, USA Humaira Islam Founder and Executive Director, Shakti Foundation for Disadvantaged Women, Bangladesh Diana Medman Chair, Russian Women’s Microfinance Network (RWMN), Russia Jennifer Riria Chief Executive Officer, Kenya Women Finance Trust (KWFT), Kenya Connie I. Roveto President, Cirenity Management, Canada Jayshree Vyas Managing Director, SEWA Bank, India Honorary Board Member for Life Michaela Walsh Founding President, Women’s World Banking, USA
Treasurer Ann Partlow Founder, Earthrise Capital Secretary Elizabeth P. Munson President, Rockefeller Trust Company Carolee Friedlander Founder, Carolee Designs Lois D. Juliber Retired Vice Chair and Chief Operating Officer, Colgate Palmolive Ann Kaplan Chair, Circle Financial Group Suzanne Nora Johnson Senior Director and Former Vice Chair, Goldman Sachs Group, Inc. Beth K. Roberts Partner, Accenture Michael Useem Professor of Management and Director of the Center for Leadership and Change Management, Wharton School, University of Pennsylvania
Ranjit Fernando Former Secretary, The Ministry of Enterprise Development Industrial Policy, Investment Promotion and Constitutional Affairs, Sri Lanka
37
Financial Statements
Balance Sheet December 31, 2007
Assets 2007 2006 Cash and cash equivalents
1,333,062
987,169
Grants and contributions receivable, net
5,496,982
5,208,753
Investments
31,597,781
33,136,306
Other assets
49,529
27,459
321,747
449,000
63,288
73,771
Interest in net assets of supporting organization
Women’s World Banking is registered in the Netherlands as Stichting (Foundation) to Promote Women’s World Banking.
Furniture, equipment, and leasehold improvements, net of accumulated depreciation and amortization of $235,044 and $201,908 in 2007 and 2006, respectively
Total assets 38,862,389 39,882,458
Both the Balance Sheet and Statement
Liability and Net Assets
of Activities contain comparable financial
Liabilities
information as of December 31, 2006.
Accounts payable and accrued expenses
964,575
794,144
Other liabilities
28,543
25,018
Total liabilities
993,118
819,162
Unrestricted
8,657,170
9,214,201
Temporarily restricted
5,365,139
6,034,363
Permanently restricted capital fund - income generally unrestricted
23,846,962
23,814,732
Total net assets
37,869,271
39,063,296
Net Assets
38
Total liabilities and net assets 38,862,389 39,882,458
Statement of Activities
Temporarily Unrestricted Restricted
December 31, 2007
In-kind contributions
Permanently Total Restricted 2007 2006
Operating Activities Revenue and support Grants and contributions
2,097,811
2,778,510
-
4,876,321
3,299,486
521,419
-
-
521,419
361,108
659,140
-
32,230
691,370
626,410
-
(127,253)
-
(127,253)
(930,080)
Foreign currency translation gain
100,208
-
-
100,208
70,397
Other income
100,692
-
-
100,692
75,224
Net assets releases from restrictions
3,320,481
(3,320,481)
-
-
-
Total revenue and support
6,799,751
(669,224)
32,230
6,162,757
3,502,545
Institutional development programs
2,741,110
-
-
2,741,110
2,673,268
3,750,499
-
-
3,750,499
3,767,280
Total program services
6,491,609
-
-
6,491,609
6,440,548
General and administrative
1,338,474
-
-
1,338,474
1,438,516
519,143
-
-
519,143
451,241
8,349,226
-
-
8,349,226
8,330,305
90,614
-
-
90,614
-
8,439,840
-
-
8,439,840
8,330,305
(1,640,089)
(669,224)
32,230
(2,277,083)
(4,827,760)
Net appreciation in fair value of investments
1,194,070
-
-
1,194,070
3,658,368
Contributions to affiliates
(111,012)
-
-
(111,012)
(296,108)
Total nonoperating activities
1,083,058
-
-
1,083,058
3,362,260
Decrease in net assets
(557,031)
(669,224)
32,230
(1,194,025)
(1,465,500)
Net assets at beginning of year
9,214,201 6,034,363 23,814,732 39,063,296 40,528,796
Net assets at end of year
8,657,170 5,365,139 23,846,962 37,869,271 39,063,296
Investment income, net of investment expenses of $44,232 in 2007 and $44,051 in 2006 Change in interest in supporting organization
Expenses and Loss Program services Functional products and services
Fund-raising Total expenses Loss Provision for uncollectable grants receivable Total expenses and loss (Decrease) increase in net assets from operating activities
Nonoperating activities
39
Funding Partners and Supporters
$521,000
In-kind contributions
$100,000 Sponsorships
68%
of 2007 contributions came from new funding partners
40
FOUNDATIONS & CORPORATIONS
BILATERALS & MULTILATERALS
ABN-AMRO Foundation Accenture Foundation Citi Foundation Deutsche Bank Americas Foundation Developing World Markets E.L. Rothschild LTD Fondazione Maria Enrica (FEM Italia Onlus) Ford Foundation Goldman Sachs Global Markets Institute Halloran Philanthropies ING JP Morgan Chase Master Card Foundation Morgan Stanley Staples Inc. Starr Foundation Triodos Bank UBS UN Foundation Western Union Foundation White & Case
AECID, Spain Appui Au Developpememt Autonome (ADA) CAF (Andean Development Corporation) DFID, UK Dutch Ministry of Foreign Affairs Inter-American Development Bank International Finance Corporation Norwegian Agency for Development Cooperation (NORAD) Swiss Agency for Development and Cooperation
* Gifts of $1,000 or more as of December 31, 2007
INDIVIDUALS Anonymous (3) Patricia Barron Nancy Barry Susan Boyd and Edward Sellers Sylvia Fung Chin Peggy Dulany Donor Advised Fund Suzanne Frye John and Polly Guth Mary Houghton
The Suzanne Nora Johnson & David G. Johnson Foundation Esther Kruijver Sarah Leshner Mary Long Nina McLemore James and Barbara Moltz Elizabeth P. Munson Beth K. Roberts Constance and Theodore Roosevelt Connie I. Roveto Cecily Selby Laurel Sprigg Michael Useem Michaela Walsh
OTHERS Care USA FELABAN Financial Women’s Association FMO Fundación WWB (FWWB) Colombia Shakti Foundation for Disadvantaged Women Stichting WWB Nederland
Core Values of the WWB Network • Poor women have the inherent power to be entrepreneurs and catalysts for change • Microfinance is an effective vehicle to build sustainable financial services and systems for the poor • Women’s leadership in microfinance institutions contributes to better overall performance and focus on women’s issues and concerns • Mutual accountability for results drives performance excellence and impact • Commitment to transparency and good governance is critical • Knowledge sharing and collective contribution to innovation and policy change will foster financial inclusion
8 West 40th Street • New York, NY 10018 www.womensworldbanking.org • 212-768-8513